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Home My WebLink About203-172 · . Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~O 3 - 1 7 a Well History File Identifier D Two-sided 1111111111111111111 Organizing (done) D Rescan Needed 11111111I1111111111 RES CAN ~Ior Items: p(GreYSCale 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: D Logs of various kinds: NOTES: BY: C Maria~ Date U II if / /')~ I I D Other:: 151 ri1P 11111111111I11 11111 vUE Project Proofing BY: ~ 151 BY: Date: + to = TOTAL PAGES ¡C/O (Count does not include cover sheet) 151 Scanning Preparation ProducUonScanning Stage 1 Page Count from Scanned File: I q I (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: JL. YES BY: ~ Date:II!I4-!ob 1111111111111111111 NO Stage 1 If NO in stage 1 page(s) discrepancies were found: YES 151 f11f NO 151 11111111111I11/111I BY: Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: 151 Comments about this file: Quality Checked 111111111111111111I 10/6/2005 Well History File Cover Page.doc • • rt nom: ~~•- __ MICROFILMED 03/0112008 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\I,aserFiche\CvrPgs_Inserts\Microfilm Marker.doc ) 6J- Àò~ ~ DATA SUBMITTAL COMPLIANCE REPORT 10/2/2006 Permit to Drill 2031720 MD 3530 Well Name/No. ILlAMNA 1 Operator PELICAN HILL OIL AND GAS INC. API No. 50-133-20527-00-00 TVD 3530 Completion Date 9/5/2004 Completion Status 1-GAS Current Status P&A UIC Y REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Log/ Data Digital Type Med/Frmt ï' - I{Og kog I J.L09 I;.og I Log / 1L09 ,. tOg fOg ~g I I 'µog I I L Electr Dataset Number Name Porosity Log Log Run Scale Media No Col Porosity 2 Blu Gamma Ray 2 Blu Sonic 2 Blu Sonic 5 Blu Gamma Ray 12 Col Neutron 12 Col See Notes Col Porosity 5 Blu Sonic 5 Blu Cement Evaluation Blu (data taken from Logs Portion of Master Well Data Maint Interval OH/ Start Stop CH Received Comments 100 3300 Case 8/5/2004 Interpretation of MemorY! Pulse Neutron 50 3528 Open 9/3/2004 COMPACT NUCLEAR POROSITY, IDENTIFICATION LOG/GR 50 3528 Case 9/3/2004 CML, GR, CEMENT BOND LOG 50 3528 Case 9/3/2004 CML, GR, CEMENT BOND LOG 50 3525 Case 9/3/2004 CML, GR, CEMENT BOND LOG 100 3300 Case 8/5/2004 Interpretation of Memory Pulse Neutron 100 3300 Case 8/5/2004 Interpretation of Memory Pulse Neutron 0 3500 Open 8/5/2004 Gas Detection Log, contractor: Tracer, a MD Totco Co., ROP 50 3500 Open 9/10/2004 CML, COMPACT NUCLEAR POROSITY IDENTIFCATION LOG/GR 50 3490 Open 9/10/2004 CML, COMPACT NUCLEAR POROSITY IDENTIFCATION LOG/GR 50 3500 Case 9/1 0/2004 CML, COMPENSATED SONIC, CEMENT BOND LOG . . Permit to Drill 2031720 MD 3530 TVD 3530 Cement Evaluation L DATA SUBMITTAL COMPLIANCE REPORT 10/2/2006 Well Name/No. ILlAMNA 1 Operator PELICAN HILL OIL AND GAS INC. API No. 50-133-20527-00-00 ~- UIC Y -~--~ CML, COMPENSATED SONIC, CEMENT BOND LOG Completion Date 9/5/2004 Completion Status Blu 50 Well Cores/Samples Information: Name ADDITIONAL INFORM"l'0N Well Cored? Y /~ Chips Received? ~ Analysis ~ Received? 1-GAS Current Status P&A --- ---~- Comments: ~~-~ 3500 Case 9/10/2004 Interval Start Stop Sample Set Number Comments Sent Received Daily History Received? (i:¡N ~N Formation Tops Compll.n"" Rev;ewed By' . _ _ .-_-.~ ~ Date: ~a~b . . ,/"ñ"; '1T'. ,-p r;::¡ ¡,~ '.. . Ii'.: !.., ~,. " 'I? Qlj.....nu~ . rlillPJ: i.} fi'.;A \ nLl'¡·L\\ ~ ,! U 1.11..\1 LrU Qv . AlfASIiA. OIL AlWD 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 November 1, 2005 Mr. Arlen Ehm Vice President / Alaska Pelican Hill Oil and Gas Inc. 4141 B Street, Suite 205 Anchorage, AK 99503 Re: Location Clearance, Iliamna # 1 (PTD 203-172) Dear Mr. Ehm: The Alaska Oil and Gas Conservation Commission completed a location clearance inspection of the Iliamna #1 well and associated gravel pad on October 18, 2005. The Commission previously witnessed plug and abandonment operations on the Iliamna # 1 well, and verified compliance with the abandonment regulations and approved permit requirements. The Commission's inspection showed the location to be in compliance with 20 AAC 25.170, "Onshore Location Clearance". The Commission requires no further work on the subject well or location. However, Pelican Hill remains liable if any problems were to occur in the future with the Iliamna #1 well. cc: S. McMains . Weu·PÎle 203-112 Pelican Hill Oil & Gas, Inc. . 4141 B Street, Suite 205 Anchorage, AK 99503 907-277-1401, Telephone 907-277-1402, Fax June 10, 2005 Mr. John Norman Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Re: Iliamna No.1 Exploratory Well- Update ð-a ~-\'" ~ Dear John: On March 8, 2005 Pelican Hill sent you a letter that provided an outline of our closeout activities. This letter will add to the information that was provided at that time. The next step will be for the final environmental sampling. I have made arrangements with Unocal for transportation and support for the two proposed visits. They advised me last week that the location is still wet. As soon as it is sufficiently dry to perform the environmental sampling, that task will be accomplished. When that occurs I will have a much better idea as to when the final trip will take place. Sincerely, Arlen Ehm Vice President/Alaska 907-277-1401, Telephone 907-277-1402, Fax ~ . ·ff· PmCAN' HIlL OIL & GAB iNC ¿;;Dj-/72- Pelican Hill Oil & Gas, Inc. . 4141 8 Street, SUite 205 Anchorage, AI( 99503 March 8, 2005 Mr. John Norman Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 RECE\VED MÄR 11 Z005 Commission ka Qi\ & Gas Cons. fùaS Anchorage Re: IIiamna No.1 Exploratory Well - Update Dear Mr. Norman: Now that Pelican Hill's eXQdus from Alaska has been announced by the press, we have received inquiries from some agencies concerning the status of certain operations. The captioned well site is one of those areas where our operations are not yet complete. On December 16, 2004 a letter was addressed to you spelling out the status of our activities at that time. It also stated that additional activities would be resumed "after breakup" this spring. Pelican Hill is moving forward with the plan as outlined at that time. Additional soil sampling and possible removal of residually-contaminated soil will be carried out this spring by Rob Crotty of ENTRIX, Inc. When the cleanup report on sampling and removal is complete, I will coordinate a trip to the site for "an additional inspection of the premises". Representatives of the following agencies will be invited along on that inspection trip: KPB DEC Surface DOG OPMP Unocal AOGCC It should be noted that the AOGCC may wish to make its own inspection trip while Unocal may wish to send a representative ftom the TBPF Sincerely, ~~ Arlen Ehm Vice President! Alaska Cc: AI Gross, President Jim Rose, Operations Superintendent .t?o.3- I í2- Pelican Hill Oil & Gas. Inc. . 4141 B Street, Suite 205 Anchorage, AK 99503 ~ -fT· PEUCAN HIlL 01 &: GAB iNC. . UP!- 907-277-1401, Telephone 907-277-1402, Fax December 13,2004 RECEIVED DEC 1 5 2004 Alaska Oil & Gas Cons. Commission Anchorage Mr. John Norman Chairman Alaska Oil and Gas Commission 333 W. 7tÌ1 Ave. Suite 100 Anchorage, AK 99501 Re: Iliamna No.1 Exploratory Well- Final Report Dear Mr. Norman: Pelican Hill vacated the site of ..In ".1,well site after the well was determined to be dry. The well was plugged and abandone<få:6cording to the existing AOGCC regulations. The well has further been identified by the placement of the proper dry hole marker. All rig components, rental equipment, supplies and other materials have been removed from the site. After breakup next spring an additional inspection of the premises will be made in order to obtain final site clearance from the AOGCC. Representatives of the Kenai Peninsula Borough have asked to be included in this inspection and that request will be honored. I will plan and coordinate this trip after conditions allow. It should be noted that the sandy roads leading from the air strip to the well site become very soft after breakup and vehicular traffic is avoided. This trip will be made after the roads will support such vehicular traffic. This constitutes the final report on this well. Sincerely, ~~ Arlen Ehm Vice President! Alaska Cc: Al Gross, President Jim Rose, Operations Superintendent Pelican Hill Oil and Ga nc 4141 8. Street, Suite 205 Anchorage, AK 99503 907-277-1401, Telephone 907-277-1402, Fox ~ -rr, PEUCAN HIil OIL &: GA) INC. November 4, 2004 Mr. John Norman, Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK. 99501 Re: Pelican Hill Oil & Gas, Inc., llíamna No.1, PTD 203-172, API 50-133-20527-00. Dear Mr. Norman, The referenced well was plugged and abandoned following G&I of the Class \I drilling waste. Plug and abandonment operations were completed on Oct. 12th, 2004. J The following documents are attached. 1. Two (2) copies of AOGCC Form 10-407 for the subject well. 2. Two (2) copies of the plug and abandonment operations summary for the subject well complete with pressure test records. 3. Two (2) copies of AOGCC Form 10-406, Monthly Injection Report for Sept. and Oct., 2004. 4. Two (2) copies of the step rate test required by Disposal Injection Order 27 A. 5. Two (2) copies of the post-injection temperature survey required by Disposal Injection Order 27 A. Due to snow cover on the location, I recommend final location clearance take place next spring. Pelican Hill will arrange the site visit at a mutually convenient time. Other than the required location clearance, my understanding is that the attached documents complete and finalize all the reporting requirements for the subject well. If that is not the case, please let me know what is missing. If you have any questions, please feel free to call me at 277-1408. Sincerely, \ (~;~ Jim Rose Pelican Hill Oil & Gas, Inc. u¡ ¡lJ'I'~t"\L ... STATE OF ALASKA . A~ Oil AND GAS CONSERVATION CO ION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a. Well Status: OilU GasU Plugged 0 Abandoned GJ Suspended 0 WAG 0 1 b. WeR Class: 20AAC 25.105 20AAC 25.110 Development 0 Exploratory 0 GINJO WINJO WDSPLO No. of Completions Other Service 0 Stratigraphic Test 0 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: " Pelican Hill Oil & Gas Inc. Aband.: 12 Oct. 2004 203-172 3. Address: 6. Date Spudded: 13. API Number: 4141 B Street, Suite 205, Anchorage AK 99503 4 Nov. 2003 / 50-133-20527-00 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: Sec. 31 T9N R14W 1578' FNL, 2480 FEL, SM 2 Dec. 2003 .I lliamna #1 Top of Productive Horizon: 8. KB Elevation (ft): 15. Field/Pool(s): Same 203.8' Total Depth: 9. Plug Back Depth(MD+ TVD): 3530' 3528' MDITVD 4b. Location of Well (State Base Plane Coordinates): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 1314210.55 y- 2499737.76 Zone- 4 3530' MDITVD ADL 388133-1 TPI: x- Same y- Zone- 11. Depth Where SSSV Set: 17. Land Use Permit: Total Depth: x- Same y- Zone- N/A N/A 18. Directional Survey: Yes UNo 0 19. Water Depth, if Offshore: 20. Thickness of Permafrost: N/A feet MSL N/A 21. Logs Run: N/A 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM PULLED 133/8 54.4 R-3 Surface 88' Surface 88' 143/4 To Surf. 29 cf 15.6 ppg G 95/8 32.3 H-40 Surface 560' Surface 560' 12 1/4 To Surf. 282 cf Type 1 51/2 15.5 K-55 Surface 3530' Surface 3530' 77/8 472 cf lead, 287 cf tail 23. Perforations open to Production (MD + rvD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) NONE/ABANDONED / 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Sqz @ 3020 4.7 bbls of 15.8 ppg Type G 680' to 307' 10.5 bbls of 15.8 ppg Type G 165' to Surface 4.0 bbls of 15.8 ppg Type G 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: /GaS-Oil Ratio: Test Period ~ Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 24-Hour Rate ...... 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". ¡If:k~~,,:-cl.~~~.¡. .::.t'~ """.'.- , RBDMS BFL NOV 1 2 7UD4 ¡ u-:_º~LW ORIGINAL \~_I k""~""III'~_"__"""""""""""""·" ~f - . - --- 1 ?'?nn~ 28. GEOLOGIC MARKE TVD 29. Include and briefly s detailed supporting da "None". FORMATION TESTS rize test results. List intervals tested, and attach as necessary. If no tests were conducted, state NAME Tyonek 3126-3147 Same Well was perforated as indicated. Attempts to swab the well in were unsucessfulL Formation water and sand were recovered. The formation water tested 40,000 ppm chlorides 30. List of Attachments: Copies of the pressure test records. Daily operations summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Signature: Title: Date: " Printed Name: Phone: 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 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for / njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 . . W ofk Summary and Dailv Actlvities: 7-0ct-2004 Test 9 5/8 annulus to 280 psi. for 30 minutes (charted record, see attachment). Load pits with 100 bbls of9.5 brine. Set BPV in Tubing Hanger. Nipple down tree. 8-0ct-2004 Nipple-up BOP's after completion ofG & I (grind & inject) operations. 9-0ct-2004 Finish nipple-up of BOP's, Rig up trip tanle Mix brine in pits. Pull BPV, set 2 way check. Test BOP's 250 / 2500 psi, test annular preventer to 250 /1250 psi. 10-0ct-2004 Pull packer:&ee w/ 4O+K. Check for flow, lay down landing joint and hanger. POOH lay down packer and tail pipe. TIH set RTNR @ 3020' test casing to 2000 psi. for 30 minutes (charted record, see attachment). Sting into RTNR. Rig up BJ and test lines to 4000 psi. establish injection rate and inject 118 bbls at 2 bbls/min 1940 psi. Mix and pump cement 4.7 bbls at 15.8 ppg + additives. Displace with one (1) bbl water and 16.5 bbls KCL. Sting out from RTNR, reverse clean. Rig down BJ. POOH stand back 682' of tubing, lay down the rest. 11-0ct-2004 Till with mule shoe to 680'. Rig up BJ, 7.5 bbls water, mix and pump cement 6.5 bbls @ 15.8 ppg + additives followed with 1 bbl water. Rig down BJ, pull out of hole to 372' and reverse circulate. WOC. Till tag hard cement @ 522'. Rig up BJ, pump 6 bbls water, 4 bbls cement @ 15.8 ppg + additives followed with 1.5 bbls water. POOH three (3) stands and reverse circulate clean. POOH and wait on cement. 12-0ct-2004 Wait on cement. Till and tag top of cement (weight 5000 lbs.) @ 307'. POOH ~ lay down pipe to 165'. Pump 2 bbls water, Mix and pump 4bbls cement@ 15.8 ppg + additives. POOH lay down and clean tubing. Rig down Weatherford and BJ. Nipple down BOPs. Clean and dig out the cellar, cut casing and attach abandonment marker. Witnessed by AOGCC representative Chuck M. Scheve. Continue with demobilization. 13-0ct-2004 Rig down and demobilization of equipment, clean location. 14-0ct-2004 Rig down and demobilization of equipment, clean location. 15-0ct-2004 Rig down and demobilization of equipment, clean location. 16-0ct-2004 Rig down and demobilization of equipment, clean location. 17 -Oct-2004 Rig down and demobilization of equipment, clean location. 18-0ct-2004 Clean location and condition pad area. It e " MEMORANDUM . State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ~ \ I^A. ~q \() 2,5 \YI P.I. Supervisor ''{ I FROM: Jeff Jones Petroleum Inspector Section: 31 Lease No.: Operator Rep.: Jerry Sandidge Township: 9N Drilling Rig: Water Res. #7 CasinalTubina Data: Conductor: 13 3/8" O. D. Shoe@ 88' MD Surface: 95/8" O.D. Shoe@ 560' MD Intermediate: 51/2" O.D. Shoe@ 3,528' MD Production: O.D. Shoe@ Liner: O.D. Shoe@ Tubing: O.D. Shoe@ DATE: October 13, 2004 SUBJECT: Plug & Abandonment IlIiamna #1 Pelican Hill Oil & Gas Inc. PTD - 203.-172 Exploration CONFIDENTIAL Range: 14W Rig Elevation: 12.5' Meridian: Seward Total Depth: 3,530' MD/TVD Casina Removal: Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Founded on Bottom of Cement Pluaaina Data: Top of Cement Depth Verified? Pressure Test Applied Casino Stub Balanced 153' MD Surface Yes Steel Cap Casinr:! Stub Balanced 660' MD 398' MD No 9.5 PPG Perforation Bridge plug 3,260' MD 3,020' MD No 9.5 PPG Tvpe Plua Ibottom up) Tvpe Plua Open Hole Perforation Annulus Casing Stub Surface Founded on: Bottom Bridge plug Balanced Retainer Verified? Drillpipe tag Wireline tag C.T. Tag No Mud Weight above plug October 13, 2004: I traveled to Trading Say to witness the surface abandonment of Pelican Hill Oil & gas Inc.'s lIIiamna #1 exploratory well. Jerry Sandidge (Pelican Hill Oil & Gas Inc.) was the representative for the abandonment work. On my arrival, the well had been excavated and the casing strings cut to a depth of 3 +1- feet below original grade. Cement was visible to surface in the top of the casing strings and a steel cap / marker plate displaying the required well information was seal welded to the top of the outer 13 3/8" conductor casing. A P&A well bore schematic provided by Mr. Sandidge and location photos are attached for reference. Summary: I witnessed the surface abandonment of the lIIiamna #1 exploratory well near Trading Bay, Alaska. ££;. Jim Rose (Pelican Hill Oil & Gas Inc.) Distribution: orig - Well File c - Operator c - DNRlDOG c - Database c - Rpt File c - Inspector Rev.:5/28/00 by L.R.G. Attachments: Well bore P&A Schematic (1) Location photos (2) P-A Exp Pelican HiIIl/liamna .xls 10/25/2004 5 1/2" 15.5 ppf, K*55 BTC Casing lliamna No.1 Plug and Abandonment Schematic Trading Bay, Alaska ElEV 204' AMSl RT 12.5' Rng 14W 2480'FEl Rig: Water Resurces NO.7 Spud: No\' 4, 2003 133/8, 54.4 ppf, R-3, Casing @ 138' 143/4" Hole 121/4" Hole - '20"1t:ÇBarâl'lëed~mt Plug- 3' BGl-153' BGl BHST 52 Deg F @ 100' "" - Surface Casing 9-5/8", 32.3 ppf, H-40 BTC Casing @ 560' 9 5/8" Casing Cmtd to Sfce 35 ft3 Balanced Cmt Plug 398' - 660' BHST 53 Deg F @ 550' Note: All referenced depths MDITVD From RT 7 7/8" Hole e\¿B l:;;. .s- / f>rD ;;2o:s -Ild-. c.MT (ç. ~ PPG- (~) -.. .-'!'". .- ._'. . H". ..;,¡ Cmt Rtnr @ 3,020' 32 ft3 Cmt Plug BHST 86 Deg F @ 3,100' SQzd Perfs 3,126'-3,147',4 SPF Jim ROee Bit CIBP @ 3,528' TD @ 3,530' TVD/MD lliamna #1 (Pelican Hill) Surface Abandonment Inspection Photos from AOGCC Inspector Jeff Jones October 13, 2004 I Casing Stub Marker Plate . ~V~VŒ (ID[F ~~~~~ AI~ASIiA. OIL AND GAS CONSERVATION COltDlISSION Jim Rose Pelican Hill Oil and Gas, Inc. 4141 B. Street, Suite 205 Anchorage, Alaska 99503 Re: Iliamnà # I-Plug and Abandon Sundry Number: 304-368 Dear Mr. Rose: . / ¡ , A¡;.z. - Þ? 2.. FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above- referenced well and operation. Your plan is acceptable, with the exception that all tubulars should be cut off flush and with the marker plate welded to the conductor. Please insure that you or your representative make contact with the Inspector's North Slope office in order to coordinate so an Inspector is available. The contact numbers are 1-907-659-2714 (voice) and 1-907-659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. BY ORDER OF TJlE COMMISSION DATED this ~ day of October, 2004 Enc!. 1. Type of Request: Abandon L:d Suspend U Operational shutdown U Perforate U Waiver U Annular Dispos.D Alter casing 0 Repair well 0 Plug Perforations 0 Stimulate 0 Time Extension 0 Other 0 Change approved program 0 Pull Tubing 0 Perforate New Pool 0 Re-enter Suspended Well 0 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Pelican Hill Oil and Gas, Inc Development 0 Exploratory 0 ~2 3. Address: Stratigraphic 0 Service 0 6. API Number: 4141 B Street, Suite 205, Anchorage, AK, 99503 50-133-20527-00 7. KB Elevation (ft): 9. Well Name and Number: 203.S' AMSL IlIiamna NO.1 8. Property Designation: 10. Field/Pools(s): ADL 388133-1 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3,530' 3,530' 3528 3528 Casing Length Size MD rvD Burst Collapse Structural Conductor 13.375" 88' S8' 2730 1130 Surface 9.625" 560' 560' 2270 1400 Intermediate Production 5.5" 3,530' 3,530' 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 3,126-3,147 3,126-3,147 Packers and SSSV Type: Packers and SSSV MD (ft): 12. Attachments: Description Summary of Proposal L:d 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch 0 Exploratory 0 Development 0 Service 0 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 10/10/2004 Oil 0 Gas 0 Plugged 0 Abandoned 0 16. Verbal Approval: Date: WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name ~im Rose Title Engineer Signature ( \,..¡{ ~ Phone 907-277-1408 Date 10/212004 "- COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: .30'1- 3'- &- Plug Integrity ~ BOP Test 0 Mechanical Integrity Test 0 Location Clearance ~ Other: þ..\\ u.<ò\f'-'::,'> "'\...0"\'0 "'" c...0-\-.ç \ "'''' ~ v-> / ~o.,'<.."- \'\ctB E ~ I¥~Q\<. ~\~~~ -\--0 ~~0<:--\-Ð'. \/\fc~S-..)~\t.~~ o.ç~~~~ ~O ~ ~\-..c~\B ~Iê.- C,,~ r ~ ..' 'Ie' L Subsequent Form uire . \~\ Commission J (¡ APPROVED BY Anc.hora~,~jí: ,(/V Approved byr J " fA COMMISSIONER THE COMMISSION Date: If). 6..f) . ._I?nl\<l. V OR\G\NA ~Bt)J"$J f 0(:1 . ij) ~ [r,!ì\:" a STATE OF ALASKA ALAS"IL AND GAS CONSERVATION COMMe>N APPLICATION FOR SUNDRY APPROVAL 20 AAC 25 280 .-..~~¡\O 'x R. Re: P&A procedure and some other things . . Subject: Re: P&A procedure and some other things From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Wed, 06 Oct 2004 10:50:00 -0800 To: Jim Rose <jimrose@ak.net> CC: Steve Davies <steve_davies@admin.state.ak.us>, John D Hartz <jack_hartz@admin.state.ak.us>, Jim Regg <jimJegg@admin.state.ak.us> Jim, The issue of the temperature was discussed among the staff here. I am sorry that you are not pleased with the detennination. I have completed my review and am forwarding the sundry recommending approval. With regard to the abandonment plate, all tubulars including the conductor should be cut off "even" and the plate welded to the conductor. I will forward you an example. You do not have to SD your operations. An amended order is pending signature and it allows up to 8000 bbls of disposal. Please message back with any questions. Tom Maunder, PE AOGCC. Jim Rose wrote: Tom, I received your reply to the temp log issue on my other em ail. Please delete the XXXX.dejazzd.com email address from your list. There isn't really any reason to use it anymore. · I am disappointed that you are requiring us to run the temp survey. I don't see any benefit to having the data and it is a seemingly unnecessary expense. · What is the status of the P&A application? We are planning to load the barge with supplies in 2 days and need to know as soon as practical that you have approved the plan. · We are at 5141 bbls injection volume this morning. Do I need to shut down.or can I continue injection? Thanks, Jim 1 of 1 10/6/200410:51 AM l.lL..U1UH DXdwple . . Subject: MCutoffExample From: Thomas Maunder <tom _ maunder@admin.state.ak:.us> Date: Wed, 06 Oct 2004 10:50:55 -0800 To: Jim Rose2 <jimrose@ak:.net> Jim, Here is an example of the cutoff. Tom Maunder, PE AOGCC Content-Type: applicationlmsword Content-Encoding: base64 1 of 1 10/6/200410:51 AM Sag Delta #5 (BPXA) Surface Abandonment Inspection Photos from AOGCC Inspector John Spaulding April 10, 2004 Marker Plate Casing cutoff 10ft below grade; cement to surface Marker Plate Installed - Pelican Hill Oil and Gas, Inc 4141 B. Street, Suite 205 Anchorage, AK 99503 ~ -fT· ær.AN HBL OIL & ~ we 907-277-1401,907-277-1402 Fax Mr. Thomas Maunder Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 1 0102/04 Re: Pelican Hill Oil and Gas, Inc IlIiamna No.1, APD 203-172, API 50-133-20527-00 RECE'\/~- OCT 04 2004 Alaska Oil & Gas COil Am:hofa!je Dear Mr. Maunder, Pelican Hill Oil and Gas hereby requests Sundry Approval to plug and abandon the subject well. As you know, the subject well was unsuccessfully tested for natural gas in September of 2004. Since that time, Pelican Hill Oil and Gas has obtained a permit that allows the injection of Class II exempt drilling waste into the well. The completion of injection operations is expected to be on or about 10/7/04. At that time, Pelican Hill Oil and Gas would like to initiate abandonment operations. The annulus between the 9 518" surface casing and the 5 %" production casing was cemented to surface during the primary production casing cement job. Pelican Hill Oil and Gas proposes to pressure test this annulus to 280 psi. as an indication of isolation. However, isolation of such a shallow annulus, while desirable, is probably not required to protect fresh water aquifers. Pelican Hill Oil and Gas requests a waiver of remedial cementing efforts on the subject annulus if it does not test successfully. If you have any questions regarding this Application for Sundry Approval, please contact me at 907-277-1408. Best Regards, \ ; ç}L---- Jim Rose Attachments: Form 10-403 in duplicate lIiamna No. 1 Plug and Abandonment Procedure lIiamna No. 1 Abandonment Well Sketch lIiamna No. 1 BOPE Schematic lliamna No. 1 Choke Manifold Schematic . Pelican Hill Oil and Gas, Inc IlIiamna NO.1 . Trading Bay, Alaska lliamna No. 1 General Well Information Well Name Prospect Location Well Classification Rig Name Rig Contractor Spud Date Operator API Number AOGCC Permit Number Rig Floor Elevation Ground Level Elevation Primary Target Total Depth Surface Location lliamna NO.1 lIiamna Approximately 1 mile NNW of Trading Bay, Alaska Exploration Water Resources No. 7 Water Resources Inti, Inc November 4, 2003 Pelican Hill Oil and Gas 50-133-20527-00 203-172 12.5' 203.8AMSL Tyonek, 3100-3510 TVD RT 3530' TVD RT Sec 31, T9N, R14W 1578' FNL, 2480'FEL, SM X: 1314210.55, Y: 2499737.76 Bottom Hole Location Same lliamna No. 1 Plug and Abandonment Procedure 1. Test 9 5/8" x 5 %" annulus to 280 psig for 30 min. Notify PHOG office if unsuccessful. 2. Load pit with 100 bbls 9.5 ppg brine. Configure pits to take returns and suction from the smallest possible volume. Minimize the accumulation of waste fluid by working with the smallest possible volume. Notify the AOGCC 24 hrs in advance of starting abandonment operations. 3. Set BPV in TBG hanger. Notify AOGCC 24 hrs in advance of an upcoming BOPE test. 4. Nipple down tree and nipple up BOPE. Replace BPV with check valve. Test BOPE 250/2500 psig. Test annular preventer to 250/1250 psi. 5. Remove check valve. 6. PU landing jt and screw into TBG hanger. 7. Back out lock down pins. 8. Check 9 5/8" x 5 W' annulus for pressure. Note that this annulus is freeze protected with diesel. Therefore, the well may U-tube when the packer is unset. Be prepared to take diesel in returns. 9. Unset packer with straight tension of +1- 30,000 Ibs above string wt. Clear the rig floor of people when unsetting the packer in case the blocks jump when the packer releases. 10. CBU. Check for flow. TOOH standing back. LD packer and ship to BOT for redressing. 11. MU CMT RTNR and setting tool. 12. TIH and set RTNR @ 3,051'. 13. Slack off 7,000 Ibs to confirm that the RTNR is set. . Pelican Hill Oil and Gas, Inc lIIiamna No. 1 . <::{rading Bay, Alaska <:ÞO-A-~ÙÁ-~~ ~ T~\ 7?~~~~S\- <:.\.c'-.\\0 b<ë 14. Close pipe rams and test annulus to 2000 psi for 10 min. 15. RU cementing equipment. Establish injection into perfs prior to mixing CMT. Bullhead 27 ft3 of CMT through RTNR utilizing the attached slurry design. ~...;)~ ~ "-lo\~ ~rc \::>-.~.\ 3 Note: Brine can have adverse effects on cement. Make sure the brine does not come in contact with the $'7It1 cement by placing freshwater spacers ahead of and behind cement. 200' of spacer is sufficient. 16. Sting out of RTNR and reverse clean. 17. TOOH layin~ down tubing. Stand back 680' of tubing. ,,"3. I. 2qy¡/1.· 18. LD RTNR stinger. ';j~ ":'~CL ~c\;",)...'^-k. d\.. S- ~~ ¡.¡-, , - I 19. TIH and spot 24 ft3 balancea cement plug from 660'-485'. Reference the attached slurry design for details. Displace cement 0.75 bbl short of balance. 20. Pull slowly out of plug. Reverse clean when EaT is 1 stand above plug. \::\ "'--'\ ýQ ~ 21. wac. --=- <A..~~-...)~ ~Cè\~"'~~~ \~ ~t.Cn.J<t.cJ~ 22. TAG TOC with 5000 Ibs. ~ - -'f' ()~-1 23. TOOH laying down to 165'. ~c..'U,>f. ....;Cr,;.\..:h."""-<'.: 'dO ~~ "S þ.J-. 24. Spot 20 ft3 balanced cement plug from 165' - GL. Displace cement .75 bbl short of balance. Slowly TOOH laying down tubing. Note 1: Determine a practical way to rinse the cement out of the tubing. Note 2: Have some sack cement on location to fill 5 %" casing to within 5' of GL if necessary. 25. Drain and wash out BOP stack. D BOPE. 27. Cut offwellhead below bradenhead. Prepare to weld on the abandonment plate by cutting the 133/8" conductor off 6"-12" deeper than the 9 5/8" surface casing. The 9 5/8" surface casing should be cut off 3'- 5' B 28. Weld the abandonment marker plate on the 9 5/8" casing. The marker plate should be a 20" x 20" square %" thick steel plate with the following information welded on it: Pelican Hill Oil and Gas Alaska PTD 203-172 lIiamna No. 1 API No. 50-133-20527-00 29. RDMO WR7 to N. Beluga NO.1 (' (' r S G "- fE .\ "-~ 't--'\~ "'- ~\ \ '-.O--S\~~ ~~cN\~ 'o(t: ~~\ ~ ~- ~ ~\~~ ~QW~~ -¥o ~"'~ ~~~\.JL-\ô~ Æ£ "fV(lO (~ Uiamna No.1 Plug and Abandonment Schematic Trading Bay, Alaska ElEV 204' AMSL RT 12.5' Rig: Water Resurces NO.7 Spud: Nov 4, 2003 13 3/8, 54.4 ppf, R-3, Casing @ 88' ......, ............... ......... ...................,.......... . ............................... ............................... ............................... ............................... ................. .......... .... ............................... ............................... ............................... ............................... ......,....................,.. . ............................... ............................... ............................... ............................... ............................... ............................... .............................. . ............................... ............................... ............................... ............................... ............................... ........-...........-........... ...................-........... ............................... ............................... ................................ ............................... ............................... ............................... .............................. . ............................... ................. ............ ................. ........ ................. . ........................... ............................. . ............................... ............................... ............................... .............................. . ............................... ................................... ............................... ................................ .............................. . ............................... ............................... ............................... ..........................-................................... ............................... ............................... ..........................-.-.........._...................... ............................... ............................... :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:. ...........-.................... .............................................................. ............................... ............................... ............................... .....................-......... .............................. . .............................................................. .............................. . .......-.-...........................................-........ ............................... .............................. . .............................................................. .............................. . :.:.:.:.:-:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:. .............................. . ............................... ............................... · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... ............................... ............................... · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................. . ............................... ............................... · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... ............................... .................... -.......... ............................... .............................. . ...................... -........ ............................... ............................... ............................... ...................... ........ ..................... ........ ...................... ...... ....................... ..... .......................... ... ............................. ... ............................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... ............................... .............................. . ...................-........... ............................... ............................... ...................-........... ............................... ............................... ............................... ............................... ............................... ............................... .............................. . ."............................ 121/4" Hole 9.5 ppg brine Surface Casing 9-5/8",32.3 ppf, H-40 BTC Casing @ 560' Note: All referenced depths MDITVD From RT 9.5 ppg brine 51/2" 15.5 ppf, K-55 BTC Casing Bit Rng 14W 2480' FEL 143/4" Hole 20 ft3 Balanced Cmt Plug 3' BGl-153' BGl BHST 52 Oeg F @ 100' 9 5/8" Casing Cmtd to Sfce 24 ft3 Balanced Cmt Plug 485' - 660' BHST 53 Oeg F @ 550' 7 7/8" Hole Cmt Rtnr @ 3,051' 27 ft3 Cmt Plug BHST 86 Oeg F @ 3,100' Sqzd Perfs 3,126'-3,147',4 SPF CIBP @ 3,528' TO @ 3,530' TVO/MO Jim Rose ¡ PFlllAN HIIL OIL & 00 n~r . Rig: Water Resurces No. 7 Spud: Nov 4, 2003 Rng 14W 2480' FEL RT ¡ 6.70' I Bell Nipple ,---- ¡Flow line 8.70' 10.20' 11" 3M Shaffer Spherical BOP 11.00' 12.20' 11" 3M Shaffer L WS Double Gate BOP IPipe Ram -------- ¡BHod Ram 21/16" 3M Manually Operated Gate Valves I~ ~~ ------- / 111" 3M x 71/16" 3M DSA ! IChoI<e \. ffi@llIØJJ - '" 2 1/16" 3M Manually Operated Gate Valve 11" 3M Mud Cross cIw 2 1/16 3M Outlets Lock Down Pins Jim Rose 'ff¡ PmCANHìiL OIL & 00 n' Iì' . Rig: Water Resurces No. 7 Spud: Nov 4, 2003 Rng 14W 2480' FEL Iro Shaker I ¡paniC Line I œ Iro Gas Buster rn [Ð 12" 3M Valves I /~ m [!J i [!] œ i 3 1/8" 3M Manually Adjustable Choke 31/8" 3M Manually Adjustable Choke EJ Jim Rose 1 empe~ature Log t . . Subject: Temperature Log From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Mon, 04 Oct 2004 09:08:35 -0800 To: Jim Rose <jimrose@dejazzd.com> CC: Jim Regg <jimJegg@admin.state.ak.us> DLD~-\'tJ \)\0 d-~ t\ Jim, Jim Regg and I have talked regarding your request of removing the requirement for the temperature survey. last Thursday regarding The requirement was placed in the order to provide confirmation regarding the placement of the waste. We believe that the temperature log should be run to provide that confirmation. Sorry for the delay in getting back to you. I was not in the office on Friday. Also, you might check the date stamp on your fax machine. The copy of your fax I have shows it being sent on September 20, not September 30. Please call with any questions. Tom Maunder, PE AOGCC 1 of 1 10/4/2004 9:37 AM Pelican Hill Oil and Gas, Inc 4141 B. Street, Suite 205 Anchorage, AK 99503 907-277-1401,907-277-1402 Fax ~ 'ff'¡ FF11O\N HIIL Oil & ~ lNC Mr. John Norman Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 9/26/04 Re: Pelican Hill Oil and Gas, Inc lIIiamna No.1, APD 203-172, API 50-133-20527-00 Dear Mr. Norman, Pleas find the attached completion report for the subject well. Please note that all of the log data associated with this well was previously submitted and is not included with this submission. If there are any questions regarding this information, please feel free to call at 907-277-1408. Best Regards, ~ Jim Rose Attachments: Form 10-407 lliamna No. 1 Completion Sketch Completion Operations Summary ¡\/E, SEP 2; 7 2004, A~a~ka (~ Cuns. Commission Anchorage ORIGINAL . STATE OF ALASKA _ fi. KA Oil AND GAS CONSERVATION C~ISSION WELL COMP 'ETION OR RECOMPLETION REPORT AND LOG ,pq O~ Oil Gas Plugged Abandoned Suspended WAG ~í·" \'Io"1"(~ 20AAC25.105 20AAC25.110 GINJ WINJ 0 WDSPL 0 No. of Completions 1 Other 2. Operator Name: 5. Date Comp., Susp., or Pelican Hill Oil and Gas Inc Aband.: 9/5/04 / 3. Address: 6. Date Spudded: 4141 B St, Suite 205, Anchorage Ak, 99503 November 4, 2003 I 4a. Location of Well (Govemmental Section): 7. Date TD Reached: Surface: See 31, TN9, R14W, 1578' FNL, 2480'FEL, SM ,../ December 2,2003 ./ Top of Productive Horizon: Same 8. KB Elevation (ft): 12.5' 203.8' AMSL 9. Plug Back Depth(MD+ TVD): 3,528' MDITVD 10. Total Depth (MD + TVD): 3,528' MDITVD 11. Depth Where SSSV Set: NA 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NA feet MSL NA TRUE Total Depth: Same 4b. Location of Well (State Base Plane Coordinates): Surface: x- ~ y- ~73T.Yð Zone- 4 TPI: x- SAME l7o.fl8if-Z.Z.y_ ¿.:f'1C{1lo,,,,'¡ Zone- Total Depth: x- SAME y- ,,Âb ¡~(3o'¡'Zone- 18. Directional Survey: Yes No 21. Logs Run: CML Nuclear Porosity, GR, Sonic, CBL, 1 b. Well Class: Development 0 Exploratory 0 Service 0 Stratigraphic Test 0 12. Permit to Drill Number: 203-172 13. API Number: 50-133-20527-00 14. Well Name and Number: lliamna No 1 15. Field/Pool(s): 16. Property Designation: ADL 388133-1 17. Land Use Permit: 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD CEMENTING RECORD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE PULLED 133/8 54.4 R-3 GL 88 GL 88 143/4 To Surf, 29 cf 15.6ppg G 0 95/8 32.3 H-40 GL 560 GL 560 12114 To Surf, 282 cf Type 1 0 51/2 15.5 K-55 GL 3528 GL 3528 77/8 472 cf lead, 287 cf tail 0 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): 3126-3147,4 SPF MDITVD ,/ 24. SIZE 27/8 TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 3083 3027 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. Date First Production: PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): NA NA Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 24-Hour Rate -+ 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". The subject well was swabbed and formation water of 40,000 ppm chlorides was recovered. No show of hydrocarbons. No core chips. ./ n '\...... "" C, P. ,r!. c,", 01-."~· ¡;~- mamna No.1 Completion Schematic Trading Bay, Alaska ELEV 204' AMSL RT 12.5' Rig: Water Resurces NO.7 Spud: Nov 4,2003 13 3/8, 54.4 ppf, R-3, Casing @ 88' 12 1/4" Hole Surface Casing 9-5/8",32.3 ppf, H-40 BTC Casing @ 560' Note: All referenced depths MDITVD From RT 5 1/2" 15.5 ppf, K-55 BTC Casing Bit ~ Rng 14W 2480'FEL 143/4" Hole 9 5/8" casing cmtd to surface 7 7/8" Hole Baker 450-237 HS packer @ 3,027' 2.313 "X" Profile Nipple @ 3,069' WlEG @ 3,082' Perfs 3,126'-3,147', 4 SPF CIBP @ 3,528' TD @ 3,530' TVD/MD Jim Rose . . IfIm}RHBLŒL&rÆ~ Rig: Water Resurces No. 7 Spud: Nov 4, 2003 Rng 14W 2480' FEL Date Depth (ft) Mud Wt (ppg) Operation 8/23/04 3517 8.33 Continue to fabricate components and rig up Water Resources No 7. Complete Koomy piping. Load pits and water tank with water. Nipple up BOP stack. Start to fabricate choke and kill lines. 8/24/04 3517 8.33 Continue to fabricate components and rig up Water Resources No 7. Continue to fabricate choke and kill lines. Fabricate flow line and trip tank piping. Repair headache rack. Fabricate blow down lines from mud pumps. All to diagnose weight indicator problems. Circulate pits and test 60 hp centrificals OK. Repair gunline. Rig up yard lights. Install temp air compressors. 8/25/04 3517 8.33 Complete aU piping fabrication. Purge Koomy lines and connect controls. Function test BOP's OK. Rig up testing pump and attempt to test mudline and standpipe wlo success. Repair leaks and test OK 250/2000 with exception of vatves on mud pumps...sIow leaks around bonnet packings. Set test plug and start testing BOP's. All to diagnose problem with annular. Notify AOGCC of upcoming BOP test. Rec'd and oIItoaded 4,300 gaf diesef fuel. No spiUs or iniuries reported. 8/26/04 3517 8.33 Continue to repair leaks on mud line and pump valves. Re-test mudline to 2000 psi OK. Pre- Test BOP's and perfonnance test accumulator system OK. Attempt to test gas detectors wlo success. Continue fabrication on landings and stairs. Continue electrical bonding work. Pick up driUing equipment and work through tool handling issues. 8/27/04 3517 8.33 Perfonn AOGCC BOP test OK. Jim Regg at AOGCC waived test. Set catwalk and pipe racks. RU tubing running tools. Strap and drift 2 7/8 tubing. Tubing fuU of rust and scafe...difficult to drift. TlH with bit and tubing to clean out tubing. No spills or injuries reported. 8/28/04 3517 8.33 TIH to TOC at 3,337. Circulate to clean out tbg and test circulation system. No 1 mud pump gear end making noise. TOOH. Test casing to 3,000 psi for 30 min. MU Motor and BHA. Strap in hole to 3,337. Make up torque ann and sandline assy. DriU soft cement 3,337-3,364. BOP drill and gas aIann drill with night tour. No spills or iniuries reported. 8/29/04 3531 8.33 Continue drilling ant 3,364 to ant wiper plug at 3,531. Circ clean. TOOH. LD BHA No 1. MU Bit, CSG Scraper and JB (BHA no 2.) and TlH to 3,517. Find 14' offill on blm. Pull 3.5 stands and TIH to 3. 517. Work on pits and mix brine for displacement. Wash 14' to 3,531. BOP driU and gas afann drill with day tour. No spils or injuries reported. 8/30/04 3531 9.50 Displace hole to 9.5 ppg NaCVKCI completion brine. TOOH. MU CIBP running tool and TIH. Tag wiper plug @ 3,531. Set CIBP @ 3528. Test CSG to 3000 psi. Circand condition completion brine. TOOH for logs. RU SLU and logging tools. RIH with logging run 1 (CBL, NeulOens, GR). Tag PBm @ 3,532 SLM. Log from PBTD to surf. Download tools and RIH with logging run 2 (Acoustic, GR). Tag PBTD @ 3,531 SLM. Log from PBTD to surf. RD SLU and logging tools while downloading data. Transmit data to log analyst Slip and cut drilting line and other rig maintenance while WOO. Fire driU with night tour. Safely meeting with day tour and night tour. 8/31/04 3531 9.50 Waiting on orders. Start instalting crown-o-matic. Work on No 1 rig pump. Install stairs and handrails on pits. Relocate water lines on pits. Service genset 2. Instafl 5th wheel on trailer. Clean location. Safely meeting with day tour and night tour. No spiUs or iniuries reported. 9/1/04 3531 9.50 Waiting on orders. Complete crown-o-matic installation. Rig maintenance, clean location and paint. Safely meeting with day tour and night tour. No soiUs or iniuries reoorted. 9/2/04 3531 9.50 Waiting on log analysis and orders. Rig maintenance, clean location and paint Pre- Test BOP's. Relocate water fill line. Safety meeting with day tour and night tour. No spiHs or injuries reported. Jim Rose . . 9/3/04 3531 9.50 Recíeve perforating orders. Service hands and state inspector delayed due to weather. Test BOP's 25013000. Test witnessed by AOGCC rep Lou Grimaldi. TIH w/6 stands. TOOH LO 6 stands. Have safety mlg. MU perforating BHA. Strap in hole. Safety meeting with day tour and night tour. No soills or iniuries rennrted' 9/4/04 3531 9.50 Strap in hole with perforating guns. Orop bar and perforate weD 3,126-3,147 4spf. No indications of pressure on firing. Observe well. CBU...no gas. TOOH. LO perforating tools. All shots fired. MU completion assyand TIH. Reverse in inhibited packer fluid and freeze protect with 2 drums diesel. Set packer a! 3,027and test casing to 2,500 psi OK. EOT @ 3,082. Shear out ball sea! and land tubing hanger with 9,000 Ibs on packer. Lock down hanger, back out landing joint and set BPV. NO BOP's. Safety meeting with day tour and night tour. No mils or in' uries rennrted. 9/5/04 3531 9.50 Finish NO BOP's. Find 1 of 2 TBG hanger seals cut. Pack with plastic. NU production tree and test to 3000 psi OK. Clear rig floor and move out pipe racks and catwalk. Move out mud products and logging shack. Spot flow back tank. Load main generator for 4 hr test. Blow down all lines. Pump down cellar and clean up in sub. Pour rope socket on sandline. RU swabbing tools and lubricator. Plumb in swab tank. Go back to dayfight tours only a! midnight on 9/4/04 Safety meeting with day tour and night tour. No spills or injuries reported. 9/6/04 3531 9.50 Finish plumbing in swab tank. Swab well to 2000'. Recover 20.1 bbls water in 6 runs. FL staying a! about 700'. Chlorides drop from 115,000 ppm to 40,000 ppm on the 6th run. All to make a 7th run but set down a! 1,200'. Tools sticking. POOH with swab and find tools sanded up. Sand was grey and white, well sorted, and 50 mesh. Remove swab cups and RIH with sinker bar to re-fleet the sand line drum. Load tubing with 9.5 brine. All to break down perfs wlo success wi rig pump. Rig up test pump and break down perfs a! 1500 psi @ 4 GPM. Pump in 1 bbl while pressure fluctuated between 1,100-2500 psi. SO. ISIP 1,500 psi, 5 min 875 psi, 10 min 400 psi. Secure well. FINAL REPORT. Safety meeting with day tour and night tour. No soills or in' uries rennrted. ./ Jim Rose iff.,' 'I; .r.q~ HnL01L&G\5 ~ Rig: Water Resurces No. 7 Spud: Nov 4,2003 Date 11/4/2003 11/5/2003 11/6/2003 11/7/2003 11/8/2003 11/9/2003 11/10/2003 11/11/2003 11/12/2003 11/13/2003 11/14/2003 11/15/2003 11/16/2003 11/17/2003 11/18/2003 11/19/2003 11/20/2003 11/21/2003 11/22/2003 11/23/2003 11/24/2003 11/25/2003 11/26/2003 11/27/2003 11/28/2003 11/2912003 11/30/2003 1211/2003 12/2/2003 12/3/2003 12/4/2003 12/5/2003 1216/2003 121712003 12/8/2003 1219/2003 12/10/2003 12/11/2003 12/12/2003 Depth (fl) 86 86 88 88 88 88 280 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 1705 1984 2500 3336 3517 3517 3517 3517 3517 3517 3517 3517 3517 3517 3517 3517 Mud Wt (ppg) Operation 8.7 Spud lliamna # 1 @ 11:00 hrs. Drl14 3/4 Hole to 86'. Run 133/8, 54.4 ppf R-3 ./ conductor. Cement 13 3/8" conductor to surface. Plug down 03:30. Start NU diverter. Cont NU diverter. Diverter and conductor settling. ND diverter. Pull 133/8" casing. Clean out 14 3/4" hole to 88'. Run 133/8" casing back. Cement 13 3/8" to surface with 29cf, 15.6 ppg class G slurry. ./ WOC. NU diverter. NU diverter and gas alarms. RU flowline. MU BHA and drill out wI 12 114" bit. Drill 12 1/4" hole to 560'. RU CSG tools. Start running 9 5/8" 32.3 ppf, K-55, BTC casing. Drop 2 jts in the hole. PU fishing tools. TIH wI spear. Could not latch fish. TOOH no recovery. TIH and clean out to top of fish. TOOH. TIH with spear and latch fish. TOOH with full recovery. RU casing tools. Run 9 5/8" casing. Finish running 9 5/8" casing to 560'. RUcementing equip. Cement 9 5/8" casing to surface with 282cf Type 1 slurry. Cement returns to surface. ,/ WOC. ND diverter. Start NU BOPE. Continue to NU BOPE. Continue to NU BOPE. Rig freezing up. Thaw rig. Attempt to test BOP's wlo success. Test stand pipe and mudline to 250/3000 psi ok. Test BOP's. Complete testing BOP's. RU Tesco Casing Drilling Equipment. Run 5 1/2" casing to bottom. Clean Pits Start drill out. TOOH for BHA change. W/O tools. Thaw rig. Drill out with casing. FIT to 14 ppg EMW. Drilling. Drilling. Drilling. Drilling. TD called @ 3517 although there is a descrepancy in the actual depth of the well. W/O cementing equipment. - Cement 51/2" 15.5ppf, K-55, BTC casing wI 472cf lead mixed at 13.5 ppg followed by 287cf tail mixed at 15.8 ppg. Plug down 00:00 hrs. Good returns .' ND BOP's and set slips on casing. NU BOP's. RU Logging equipment. Log well. Rig repair. RD Tesco. ND BOP's. SD and clean location. Rig down and clean up location. Rig down and clean up location. Rig down and clean up location. Rig down and clean up location. Rig down and clean up location. Finish rigging down. Final report. 9.0 8.7 8.7 9.0 9.0 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.0 9.2 9.2 9.2 9.2 9.2 9.2 9.2 9.5 9.8 10.0 10.0 10.0 10.2 10.5 . lliamna No.1 Operations Summary Trading Bay, Alaska ELEV 204' AMSL RT 12.5' Rng 14W 2480'FEL ./ RECEIVED AUG 0 9 2004 ~_Qi&GøGcJ'''.~ A'tC.'~ ...,...,.~ù> r~ 1:.V\....¿.-fe-;J. t:.:J , "'-- ~ Vt ¿~ ~. ....,. íD ' i~ .0'1 Jim Rose MEMORANDUM . State of Alaska . Alaska Oil and Gas Conservation Commission FROM: Chuck Scheve Petroleum Inspector DATE: Thursday, September 23, 2004 SUBJECT: Mechanical Integrity Tests PELICAN HILL OIL AND GAS INe. 1 ILIAMNA 1 .~}'~T1'~ìr TO: Jim Regg <:l? 0/1 P.I. Supervisor '1)eq-1 I It 0 ~ Src: Inspector Reviewed By: P.I. Suprv "5Î5fZ- will (L:4- Comm Well Name: ILlAMNA I API Well Number: 50-133-20527-00-00 Inspector Name: Chuck Scheve Insp Num: mitCS040923092335 Permit Number: 203- I 72-0 Inspection Date: 9/22/2004 Rei Insp Num: Packer Depth Pretest Initial 15 Min. 30 Min. 45 Min. 60 Min. Well 1 Type Inj. N TVD 3084 IA 0 2500 2460 2460 P.T. 2031720 TypeTest SPT Test psi 771 OA Interval INITAL PIF p Tubing 0 0 0 0 Notes: NON-CONFIDENTIAL Thursday, September 23, 2004 Page I of I Iliamna No 1 ;z.c>3..../72- Steve, Arlen forwarded me a message that you were asking for an analysis of the formation water we swabbed in from the perfs at 3126-3147. We did a chlorides test on the water and it was 40,OOOppm. I passed that on to Tom in a conversation but I think he was on his way out the door. Also, we did a step rate test on the well yesterday and the formation took 2 BPM of fresh water at a surface pump pressure of 860 psi... . better than indicated or expected. Jim 1 of 1 9/23/2004 1 :35 PM Step rate test HI Jim The Pelican Hills MIT and step rate test are complete. Bob should have the MIT. The results of the step rate test are as follows. Initial injection pressure (attempting to hold steady pump rate of .5 bbl per min) 1180 psi broke back sharply to 650 psi unable to hold steady pump rate with pressure changes. 20 bbls fresh water was then injected to clear tubing of the 9.5 Ib per gal brine. When the pump was shut down the tubing pressure bled rapidly to Opsi. Injection restarted at 1 bbl per min (as slow as pump would run) 460 psi. Rate increased to 1.5 bbl per min, pressure fluctuated between 650 and 700 psi. At 2bbl per min pressure was steady at 850 psi. Chuck 1 of 1 9/24/20042:02 PM . . STATE OF ALASKA ALASKA OIL AND GAS CONSEnV A TION COMMISSION 333 W. 7th Ave, Suite] 00 ANCHORAGE, ALASKA 99501-3192 REQUEST FOR EXAMINATION OF AOGCC RECORDS I, the undersigned, request that I be authorized to examine the AOGCC records listed below, I agree not to remove or alter the contents of records and I agree not to remove the records tTom the room designated for examination. I certify that I am neither a party, nor representing or acting on behalf of a party, involved in litigation in a judicial or administrative forum with the State of Alaska or a public agency to which these records are relevant. ~~~,9Clk,! ~ ~ AOGCC RECORDS REQUESTED: UJ.QU \+\ß,tD0} 41 ()fr" ~-:T¡;amY1~ qÞ-1 Signature: I}) A)6L- J.) Ltj ¿ .. Printed Name: )Ù It':5+ìn ,\)'/ r~(~ ! J<cctrl~?~W'\Î) \t}\~ D À.) R-- [) ðC) 550 cû '7~ c3ltl+e-~ Phone No: f)({l]-CO'Z ~cr Company ¡Firm: Address: * * * * * * * * * * * FOR AOGCC USE ONLY: ¥~~ Date and Time Records Requested (6 AAC 96.320): Date Notice of Receipt of Request Sent (6 AAC 96.3] 0): Date Additional Information Requested (6 AAC 96.3] 5): Date and Time Records Provided for Review: Date and Time Records Returned: ø ~ Name of AOGCC Employee Handling Reques'0# '£M-I M ......-- AOGCC will respond to this request as soon a proacticable, but no later than the 10th working day after the request is received (6 AAC 96.325) This request is a public record. (6 AAC 96.320) m:weepie/cheëkout.doc . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 71h Ave, Suite 100 ANCHORAGE, ALASKA 99501-3192 REQUEST FOR EXAMINATION OF AOGCC RECOIIDS I, the undersigned, request that I be authorized to examine the AOGCC records listed below, I agree not to remove or alter the contents of records and I agree not to remove the records from the room designated for exam ination. I certify that I am neither a party, nor representing or acting on behalf of a party, involved in litigation in a judicial or administrative forum with the State of Alaska or a public agency to which these records are relevant. "2 f I Signature: .~ ) ("'"""'--<--~.. (\--..,-""".'h' :1 f v AOGCCRECORDSREQUESTED: ,!NJPtz, I (,..;êt<. ~~"'(,(·~ÞJ . ') ~ U i-v. L. K f.. ~I ~\ j t<: l;f! A¿Nt:-,!1 7fL liv-p tlNé-{1(f/HE,,/91.:- Phone No: '2..6- <J -.f' 7 (. '" Company !Firm: Address: '-p .:. AI U v'I".; 5"-,"~~ L·""" ~.-, 'I " " Printed Name: *********** FOR AOGCC USE ONLY: Date and Time Records Requested (6 AAC 96.320): Date Notice of Receipt of Request Sent (6 AAC 96.310): Date Additional Infonnation Requested (6 AAC 96.315): Date and Time Records Provided for Review: Date and Time Records Returned: Name of AOGCC Employee Handling Request: AOGCC will respond to this request as soon a practicable, but no later than the 10th working day after the request is received (6 AAC 96.325) This request is a public record. (6 AAC 96.320) m:wcepie/checkout.doc ( . FROM :PF~ICAN HILL OIL & GAS 4IIÞ FAX NO. :907 277 1402 411ÞEP. 20 2004 12:41PM Pi Pelican Hill Oil & Gas þ Inc. 4141 B Street, Suite 205 AhChOt"C1ge, AK 99503 ~ ·tfimrAN H1Il OIL & G4S INC. 907-277-1401, Telephone 907-277-1402, Fax Fax To: AOGJX Aftn: Mr. Thomas Maunder From: Jim Rose Fax: 276.. 7542 Date: September 30 þ 2004 Total Pcrga: 2 ")- -) 4~1\ FROM ::FuICAN HILL OIL & GAS 4IIÞ FAX NO. :907 277 1402 .SEP. 20 2004 12:41PM P2 PelicQn Hill Oil and Gas, Inc 4141 B. Street, &lite Z05 Anchorage, AK 99.503 ~ ~rr' PFl1Cl\N HIlL On. & G.A$ INC. 907-277-1401, Telephone 907-277-1402, Fax Mr. Thomas Maunder Alaska Oil and Gas Conservation Commíssion 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 9/30/04 Re: Pelican Hill Oil and Gas, fne IlIíamna No.1, APD 203-172, API 50-133-20527-00, Disposal Injection Order No. 27, Rule 5: Surveillance. Dear Mr. Maunder, Pelican Hill Oil and Gas requests a variance from Rule: 5 of Disposal Injection Order No. 27 as pertaining to a required temperature survey. Pelican Hill Oil and Gas plans to plug the subject well at the completion of the current G&I injection operations. Therefore, additional injection becomes extremely unlikely and the temperature survey data will be of little value. Pelican Hill Oil and Gas requests that the aforementioned requirement for a post-injection temperature survey be removed from Disposal Injection Order No. 27. Please let me know if you have any questions. 1 can be reached at 277-1401. Best Regards, ~ -' ~- Jim Rose e e PTt $. ~'7~ Pelican Hill Oil and Gas; Inc 4141 B. Street, Suite 205 Anchorage, AK 99503 ~ :[, IÐrÆHIIl OIL & 00 nt 907-277-1401, Telephone 907-277-1402. Fax Fax To~NIinwc AOGCC 9J\ z.,1 \O~ ~~' From: Jim Rose Attn: Jim Regg Fax: 907-276-7542 Pages: 6 loe cover Phone: 907-279.1433 Date: 8/26104 He: lIIamna No 1 BOPE test, PTO 203-172 ec! Tom Maunder o Urgent 6?J For Review 0 PI-M Comment Mr. Regg, "'- ~vh~ ßSf~ Te-8+- Please see the attached BOP test results for the subject well. Please feel free to call with any questions. Our phone number at the rig is 281-674.0940. Thanks, Jim Rose /...... . ....~.;~ t, .,~' .. :\-c.. ' .t'" l .-' ,}"~i., .... . '~w't ('" ,,4 ,.' . '.4 mrr",.....'<A' ...t~,;[~ . ..J...._~ -.--·-e .-""'..... . } 6 AM "'~"-'" . , .' .",""" --0111111~ 5.-----::~- -~¥!l' .,.., .. -1::.-........"..¡.-,.. - .,. .1,.".. "J -, .. ".'.'. . .~ --- ~'--'1..:.:'.., .11_'.0 -,...... ,...... 'f ..'.....1. . " "ð.~~~~--r;:;i:~@Y&~~~;;;¡.:¥~C?~~ :~I::.. <', ð ~ .".':;~.:.;._:>' "",~ .~:t::""Ç1:.·"LI4.;Jç:·__..11"..,· '-"-1-'::":'." -'-:::":,::::!.~ _:--....~'" :'S, ':::--................ . . /.' '1' '-:'.. :'",.. ··_r. "" -'- .~. -..".. .,. -: .~.::::::. ··:::"~t.ji~··''''---·- '" "-" "':'::::'. '''-, ô: - :~............ .' ,':"-, ',' ..... :.J';::3.- ~ -'.- .,--:-~--- .,¡::1'-..-".;-'\:---.. . .::. '. '-. 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'" , ",-.-.~..: ·,.~~o$'~"!::.:::~ .... -$:E:;..~-::t::=f""·-"7'_'_+ ., ... ,."..............,¿ ,..-............ . e e STATE OF ALASKA 3/30104 OIL AND GAS CONSERVATION COMMISSION BOPE Test Report Submit to: üm reaa@admin.state.ak.us aocce Drudhoe bay@admin.state.ak.us bob fleckenstein@admin.stat9,ßk.us Contractor: Pelican Rig No.: DATE: 8/26/2004 Rig Rep.: Jim Rose Rig PtJone: 2816740941 Rig Fax; 2816740942 Operator: Pelican Hill Op. Phone: 277·1401 Op. Fax: 277-1402 Rep.: Field/Unit & Well No.: lliamna No 1 PTO # 203-172 Meridian: 8M location: Section: 31 Township: 9N Range: 14W Operation: Drlg: Workover: COMPL E.xplor.: Test: Initial: X Weekly: Other: Test Pressure: Rams; 3000 Annular: 1500 Valves: 3000 TEST DATA MISC. INSPECTIONS; FLOOR SAFETY VALVES: Test Result T est Result Quantity Test Result Location Gen.: p Well Sign P Upper Kelly NA Housekeeping: P Dr!. Rig P Lower Kelly NA PTD On Location P Hazard Sec. p Ball Type 1 P Standíng Order Posted P Inside SOP 1 P BOP STACK: Quantity Size Test Result CHOKE MANIFOLD: Annular Preventer 1 11" 3M p Quantity Test Result Pipe Rams 1 11" 3M P No. Valves 13 P Lower Pipe Rams 0 NA Manual Chokes 2 P Blind Rams 1 11" 3M P Hydraulic Chokes 0 NA Choke Ln. Valves 1 2 1/16" 3M P HCR Valves 1 21/16" 3M P ACCUMULATOR SYSTEM: Kill Line Valves 2 2 1/16" 3M P Time/Pressure Test Result Check Valve " ~ System Pressure 3050 p 0 NA Pressure After Closure 1400 P MUD SYSTEM: Visual Test Alarm Test 200 psi Attained 0:34 P Trip Tank p P Full Pressure Attained 2:10 P Pit Level Indicators p P Blind Switch Covers: All stations P Flow Indicator P P Nitgn. Bottles (avg): 4 ea, 2200 psi Meth Gas Detector p P H2S Gas Detector P P Test Results Number of Failures: º Test Time: 2.5 t:f.9.!!!] ComDonents tested 1J Repair or replacement of equipment will be made within days. Notify the North Slope Inspector 659-3607, follow with written confirmation to Superviser at: ¡im regg@admin.state.ak.us Remarks: The rig is the "Water Resourçes NQ, 7"... here foreward WR7 24 HOUR NOTICE GIVEN j~~ YES x NO Waived By Jim Regg Date 08/26/04 Time Witness Test start 8:00 Finish 10:30 \t\\Ck BOP Test (for rigs) BFL 3/8/04 lliamna BOP Test 082604 e e Pelican Hill Oil and Gas, In<: 4141 B. Street, Suite 205 Anchoroge, AK 99ð03 ~HHLOIL& (ìA$ INC. 907-277-1401, Telephone 907-277-1402, Fax lIiamna No~ 1 WR7 BOP Test Sequence Test 1: Valves 7,8,9, Pipe Rams, Outside Kill Line Valve, Floor Valve, 250/3000 Test 2: Valves 4,5.6, Inside Kill Line Valve, Floor Valve, 250/3000 Test 3: Manual Chokes, 250/3000 Test 4: Annular, 250/1500 Test 5: Inside Choke Line Valve, 250/3000 Test 6: HCR Valve, 250/3000 Test 7: Valves 2.3. Blind Rams, 250/3000 Accumulator Starting Pressure: 3050 psi Preventers Closed: Blind Rams, Pipe rams, Annular, HCR Accumulator Pressure after Closure: 1400 psi 200 psi Recovery: 34 sec 3000 psi recovery: 2min 10 see ~&~ Rig: Water Resurces No. 7 Spud: Nov 4, 2003 f:anic Line ITa Sh_kor 1 ITa Gae el,/sier rn [!) 12" 3M VøJves I /~ rn i [i) w :1 1/8" 3M Manually Adjuatable Choke :; 1/8" 3M Manually ADjustable Choke ~ Rng 14W 2480'FEL m ill i Jim Rose e ~;rtBJ Rig: Water Resurces No. 7 Spud: Nov 4, 2003 Rng 14W 2480'FEL Rr 1 11.10' [Bell Nipple I ____________ rlOW Llnq 8. TO' 10.~0' 11" 3M Shaffer Spherical SOP 11.00' - . '~.20' 11" 3M Shaffer lWS Double Gate BOP ¡ ----- ¡Pipe Rom :.:=J F~ '\ BIIJrn0J]J - " 2 1/16" 3M Manually Operated Gate V¡;¡lve 2 1/16" 3M ManuaIJy Operate" Gille Valves I~ UJJB[Œm ~ ~ / [11" 3M x 71/16" 3M DSA I r:::=J 11" 3M Mud CroS$ Clw 21/16 3M Outlets Look Oown Pin& Jim ROll-O' ~~~~Œ e ~o \ ~ ,® nL /M ~ nu' (? ¡f{;\\ U:ü u LfU L, Lrü æJ 'ù uu e AI4ASIiA OIL AND GAS CONSERVATION COMMISSION ¡ ! I J / I f í ¡ l 1 í ! i FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 August 16, 2004 Jim Rose Operations Superintendent Pelican Hill Oil and Gas, Inc. 4141 B Street, Suite 205 Plnchorage,AJ( 99503 Re: Illiamna No. 1 203-172 Dear Mr. Rose: 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 0 oliday or weekend. Encl. Pelican Hill Oil and Gas, Inc 4141 B. Street, Suite 205 Anchorage, AK 99503 ~ -fT· ærAN HIIL OIL &: GAS iNC 907-277-1401, Telephone 907-277-1402, Fax Mr. Thomas Maunder Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 8/12/04 Re: Pelican Hill Oil and Gas, Inc IlIiamna No.1, APD 203-172, API 50-133-20527-00 Dear Mr. Maunder, Pelican Hill Oil and Gas would like to resume operations on the subject well. In summary, Pelican Hill intends to clean out cement in the bottom of the well, log, and perforate the Tyonek formation. Based on the results of this operation, the well will either be flow tested, repermitted for Class II injection, recompleted to a different pay, or abandoned. - - . -----. . Please find the attached Application for Sundry Approval and supporting documentation for your review. I will be out of the office from 8/13/04 - 8/18/04. If you have any questions, please call Mr. Arlen Ehm at 277-1401. If it is an operational question, I will return your call. Best Regards, Jim Rose Attachments: Form 10-403 in duplicate lliamna No 1 Wellsketch BOP Detail Choke Manifold Detail Basic Completion Procedure General Well Information ORIGINAL 1. Type of Request: Abandon Alter casing 0 Change approved program 0 2. Operator Name: Pelican Hill Oil and Gas, Inc 3. Address: 4141 B Street, Suite 205, Anchorage, AK, 99503 7. KB Elevation (ft): 203.8' AMSL 8. Property Designation: ADL 388133-1 11. Total Depth MD (ft): 3,517' Total Depth TVD (ft): 3,517' Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): TBD Packers and SSSV Type: Length e STATE OF ALASKA e ALASKA Oil AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Suspend Repair well 0 Pull Tubing 0 Annular Dispos. Other 0 Waiver Stimulate 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Development Stratigraphic o o Service Exploratory 0 o 203-172 6. API Number: 50-133-20527-00 9. Well Name and Number: lIIiamna NO.1 10. Field/Pools(s): PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3,327' 3,327' Size MD rvD Burst Collapse 13.375" 9.625" 88' 88' 560' 560' 3,517' 3,517' 2730 2270 1130 1400 5.5" 4810 4040 Perforation Depth TVD (ft): TBD Tubing Size: Tubing Grade: 27/8 J-55 Packers and SSSV MD (ft): Tubing MD (ft): TBD 12. Attachments: Description Summary of Proposal Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: .j 13. Well Class after proposed work: Exploratory 0 Development 0 15. Well Status after proposed work: 8/21/2004 Oil 0 Gas 0 Plugged 0 WAG 0 GINJ 0 WINJ 0 Abandoned WDSPL o o Service 0 Date: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name JÙ-" ((..os t Title Signature Contact s 5' ¡)p~ Date Phone 2-'11~ i'iOf COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 30'/-3/7 Plug Integrity 0 BOP Test ilL Mechanical Integrity Test 0 Location Clearance 0 Other: ~ð\~'i ~(:;;.Cc... 3:~~~ ~rt~<>~ \SO'?~>-t. ~8fL MJG l' 7 'In{)~ COMMISSIONER APPROVED BY THE COMMISSION Date: e e Pelican Hill Oil and Gas, Inc lIIiamna No. 1 Trading Bay, Alaska General Well Information Well Name Prospect Location Well Classification Rig Name Rig Contractor Spud Date Operator API Number AOGCC Permit Number Rig Floor Elevation Ground Level Elevation Surface Location IlIiamna NO.1 IlIiamna Approximately 1 mile NNW of Trading Bay, Alaska Exploration Water Resources No. 7 Water Resources Inti, Inc November 4, 2003 Pelican Hill Oil and Gas 50-133-20527-00 J.D.ð-t'rO ;;>0 ~ - \ '" ~'o (;)?")V( 12.5' n-J=- 8'1 203.8AMSL J ( ~ Sec 31, T9N, R14W 1578' FNL, 2480'FEL, SM X: 1314210.55, Y: 2499737.76 Bottom Hole Location Primary Target Total Depth Same Tyonek, 3100-3510 TVD RT 3517' TVD RT e e Pelican Hill Oil and Gas, Inc lIIiamna No. 1 Trading Bay, Alaska 1/iamna # 1 Completion Procedure 1. Load pits with 200 bbls fresh water. 2. Nipple up BOP's. Dress double gate BOP w/2 7/8 rams on top and blinds on bottom. Test Bops 250/3000 for 10 min. · Notify A OGee of upcoming BOP test at least 24 hrs in advance. J.I!- '?VI k"{ \ ~ 3. Test casing to 3000 psi for 10 min. <.:...c.t":>\,,~ ~S'~\.o~Çj ~~ S~ .......\~~y-;,.~,10S~~',-\~Fb \ç, 4. Pick up 4 % mill tooth bit, 27/8" motor, 27/8" jars, and 3 1/8" circ I disconnect sub. Jet bit w/16/32 or greater nozzles. 5. TIH picking up 2718 tubing to TOe at approximately 3,327'. Drift (2.347") and strap tubing prior to running. · Plan ahead to recover and save diesel returns in displacement. 6. Drill out cement from TOC to TD at approximately 3,517. Circ clean. TOOH. LD motor assy. · Approach TOe slowly. 7. PU bit and casing scraperlboot basket assy. TIH. Circ clean on btm. 8. Mix and pump high-vis sweep followed by KCIINaCI completion fluid. TOOH. 9. MU CIBP and TIH. Set BP as deep as possible. TOOH. 10. RU slick line equipment and run logs as directed. Gently tag bridge plug with logging tools for depth confirmation. · Plan ahead to transmit log data to Mr. Glen Horel, Baker Hughes Inteq. Direct: (907) 267-6612 Cellular: (907) 230-1857 E-Mail: glen.horel@bakeratlas.com There will be some down time while Glen analyzes the data and picks the perforated intervals. Take this time to plan the transportation of the TCP guns. 11. MU perforating assy clw circulating sub and TIH. · Run a RA tag in the tubing string a known distance above the top shot. · Based on the perforated intervals, stretch calculations, and other information, it may be possible to skip the GR correlation run to confirm gun position. 12. RU Slickline equipment and run GR correlation log across appropriate interval. POOH and download log data. Adjust gun position accordingly. 13. Install TIW valve, close rams and fire perforating guns. Observe annulus for pressure. 14. Open TIW and Circulate BU. SD and observe well for activity. 15. TOOH and LD perforating tools. 16. MU completion tools and TIH. MU tubing hanger equipment and space out. 17. Circulate in packer fluid and freeze protection. 18. Set Packer. 19. Land tubing hanger and set BPV. Test hanger void per Vetco procedure. 20. ND BOP's and NU tree. Install 2 way check and test tree per Vetco procedure. 21. Move to test procedure. . /:"\ 4 ~'?-\ \>ro~~? ~~ G ~ ~çc~~ .\-e> ÞOGcc... Æ~ ~/, s mamna No. 1 Proposed Completion Schematic Trading Bay, Alaska ElEV 204' AMSl RT 12.5' Rig: Water Resurces NO.7 Spud: Nov 4, 2003 13 3/8, 54.4 ppf, R-3, Casing @ 88' 12 1/4" Hole Surface Casing 9-5/8",32.3 ppf, H-40 BTC Casing @ 560' Note: All referenced depths MDITVD From RT 5 1/2" 15.5 ppf, K-55 BTC Casing Rng 14W 2480'FEl 143/4" Hole 9 5/8" casing cmtd to surface 7 7/8" Hole Potential Secondary Pay 2,060'-2,140' Hydraulic Set, TBG Retvbl Packer @ +/- 3,000' Profile Nipple WlEG Proposed Perfs 3,100'-3,510' (Not Continuous) TO @ 3,517 TVO/MO Bit Jim Rose ~ ·fT· mrAN Hì1L Oil & GA) nr Rng 14W 2480'FEL Rig: Water Resurces No. 7 Spud: Nov 4, 2003 I Bell Nipple ,---- I Flow Une 11" 3M Shaffer Spherical BOP 11" 3M Shaffer LWS Double Gate BOP IPipe Ram ------- IBNn<! Ram 21/16" 3M Hydraulically Operated Gate Valve 2 1/16" 3M Manually Operated Gate Valves I~ 0I0J]]JJß]] ~ --------- / 111" 3M x 71/16" 3M DSA I 11" 3M Mud Cross cIw 2 1/16 3M Outlets \ ¡COOke 0I0J]][II0J] ~ EJ] 21/16" 3M Manually Operated Gate Valve Jim Rose ~ tfi ær.AN HüL OIL & GA) nf Rng 14W 2480'FEL Rig: Water Resurces No. 7 Spud: Nov 4, 2003 ¡TO Shaker I I Panic Line I ¡TO Gas Buster 12" 3M Valves /~ i i 3118" 3M Manually Adjustable Choke 3118" 3M Manually Adjustable Choke EiJ Jim Rose Pelican Hill Oil and G , Inc 4141 B. Street, Suite 205 Anchorage, AI( 99503 907-277-1401, Telephone 907-277-1402, Fax ~ -fT¡ FEUCANHIiLOIL& ~ JNC Mr. Thomas Maunder Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 t..~'.~: r;'¡:::¡V'ED ~ \. ..."'~ V I- 1;.., t..;1 '_O¡¡&Ga{ÀØ,~' ¡'."i(,~'~ 8/07/04 Re: Pelican Hill Oil and Gas, Inc IlIiamna No.1, APD 203-172, API 50-133-20527-00, Operations Summary Dear Mr. Maunder, I was able to reconstruct the attached Operations Summary for the subject well from various sources. It represents a reasonable account of the events but is not 100% accurate or complete. Please note that there appears to be some discrepancy as to the actual depth of the well. I will update this information as it becomes available. Please contact me at 907-277-1408 if you have any questions. Best Regards, Jim Rose Attachments: lIiamna # 1 Operations Summary.xls ·tfi Rig: Water Resurces No. 7 Spud: Nov 4, 2003 Date Depth (ft) 11/4/2003 86 11/5/2003 86 11/6/2003 88 11/7/2003 88 1118/2003 88 1119/2003 88 11/10/2003 280 11/11/2003 560 11/1212003 560 11/13/2003 560 11/14/2003 560 11f15/2003 560 11/16/2003 560 11/17/2003 560 11/18/2003 560 11/19/2003 560 11/20/2003 560 11/21/2003 560 11/22/2003 560 11/23/2003 560 11/24/2003 560 11/25/2003 560 11/26/2003 560 11/27/2003 1705 11/28/2003 1984 11/29/2003 2500 11/30/2003 3336 12/1/2003 3517 12/212003 3517 12/3/2003 3517 121412003 3517 12/5/2003 3517 12/6/2003 3517 1217/2003 3517 1218/2003 3517 12/9/2003 3517 12/10/2003 3517 12/11/2003 3517 12f1212003 3517 e Rng 14W 2480' FEL Mud Wt (ppg) Operation 8.7 Spud lliamna # 1 @ 11:00 hrs. Drl14 3/4 Hole to 86'. Run 133/8,54.4 ppf R-3 conductor. Cement 13 3/8" conductor to surface. Plug down 03:30. Start NU diverter. Cont NU diverter. Diverter and conductor settling. ND diverter. Pull 13 3/8" casing. Clean out 143/4" hole to 88'. Run 133/8" casing back. Cement 13 3/8" to surface with 29cf, 15.6 ppg class G slurry. WOC. NU diverter. NU diverter and gas alarms. RU flowline. MU BHA and drill out w/12 1/4" bit. Drill 12 1/4" hole to 560'. RU CSG tools. Start running 9 5/8" 32.3 ppf, K-55, BTC casing. Drop 2 jts in the hole. PU fishing tools. TIH w/ spear. Could not latch fish. TOOH no recovery. TIH and clean out to top of fish. TOOH. TIH with spear and latch fish. TOOH with full recovery. RU casing tools. Run 9 5/8" casing. Finish running 9 5/8" casing to 560'. RU cementing equip. Cement 95/8" casing to surface with 282cf Type 1 slurry. Cement returns to surface. WOC. ND diverter. Start NU BOPE. Continue to NU BOPE. Continue to NU BOPE. Rig freezing up. Thaw rig. Attempt to test BOP's w/o success. Test stand pipe and mudline to 250/3000 psi ok. Test BOP's. Complete testing BOP's. RU Tesco Casing Drilling Equipment. Run 5 1/2" casing to bottom. Clean Pits Start drill out. TOOH for BHA change. W/O tools. Thaw rig. Drill out with casing. FIT to 14 ppg EMW. Drilling. Drilling. Drilling. Drilling. TD called @ 3517 although there is a descrepancy in the actual depth of the well. W/O cementing equipment. Cement 51/2" 15.5ppf, K-55, BTC casing w/472cf lead mixed at 13.5 ppg followed by 287cf tail mixed at 15.8 ppg. Plug down 00:00 hrs. Good returns ND BOP's and set slips on casing. NU BOP's. RU Logging equipment. Log well. Rig repair. RD Tesco. ND BOP's. SD and clean location. Rig down and clean up location. Rig down and clean up location. Rig down and clean up location. Rig down and clean up location. Rig down and clean up location. Finish rigging down. Final report. 9.0 8.7 8.7 9.0 9.0 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.0 9.2 9.2 9.2 9.2 9.2 9.2 9.2 9.5 9.8 10.0 10.0 10.0 10.2 10.5 ~"<','~~ ,,'::',;:;';,i~,':',l:::::::;, (};"'~.:s,; ~ t·{t;,(;t:~ ~Y!i~ "~0!1 ¡ (MW)i,{';'-_) Jim Rose Rig: Water Resurces NO.1 Spud: Nov 4, 2003 miamna No. 1 Existing Wellbore Schematic Trading Bay, Alaska ElEV 204' AMSl RT 12.5' 13 3/8, 54.4 ppf, R-3, Casing @ 88' 12 1/4" Hole Surface Casing 9-5/8", 32.3 ppf, H-40 BTC Casing @ 560' Note: All referenced depths MDITVD RT I 51/2" 15.5 ppf, K-55 BTC Casing 143/4" Hole Rng 14W 2480' FEl 9 5/8" casing cmtd to surface 7 7/8" Hole PBTO @ 3,327 TVO/MO TO @ 3,517 TVO/MD Bit Jim Rose =Wd 9 ~6 AM : r' ~..- ...":' . <' e I '-- ~L__ =Wd 9 s 1500 1200 - .~ tJ) 900 c. - ~ ::::3 tJ) tJ) ~ 600 a.. 300 lIiamna No.1 Step Rate Injection Test o 0.5 1 1.5 2 2.5 BPM (Fresh Wtr) 3 3.5 4 1000 o 500 1000 - 1500 ..... (.) J!! - J:: ..... a. (.) C 2000 2500 3000 3500 40 1200 II: 1400 Pressure (psia) 1800 2000 2200 3000 1600 2400 2600 2800 50 60 70 80 90 100 Temperature (Deg. F) - Pressure Perfs 1500 1200 - - .~ fI) 900 Q. - ! ::I fI) fI) ! 600 c.. 300 lIiamna No.1 Step Rate Injection Test o 0.5 1 1.5 2 2.5 BPM (Fresh Wtr) 3 3.5 4 1000 o 500 1000 _ 1500 ..... ø ø 'Þ - ..c ..... Q. ø C 2000 2500 3000 3500 40 1200 1400 Pressure (psia) 1800 2000 2200 3000 1600 2400 2600 2800 50 60 70 80 90 100 Temperature (Deg. F) -- Pressure Perfs -Temperature ~ 'y/ ~ Pelican Hill Oil and Gas, Inc 4141 B. Street, Suite 205 Anchorage, Ale 99503 ~ . ·fT· FmlCAN mOIL & GAS ING 907 - 277 -1401 , Telephone 907-277-1402, Fax Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99504 Re: Reapplication for Underground Disposal of Liquid Drilling Waste Pelican Hill Oil & Gas, Inc. I1iamna No. 1 Permit No. 203-172 ~O~-\'ld- 'S((:Q. \)\.0 d\ À AUG 0 6 2004 ; ~-~ 0:':- ~ ;,. ~ /.~ i~~ Gentlemen: Pelican Hill initially submitted an application for underground disposal of such wastes on December 8, 2003. The Alaska Oil and Gas Conservation Commission (Commission) published the disposal injection order application for public comment on December 11, 2003. No comments were received. Pelican Hill suspended operations in early December 2003 because of inability to sustain supply operations due to the impending freezing of the Cook Inlet waters. The original application dated December 8, 2003 is being re-submitted in its entirety. Nothing has changed regarding the information originally submitted by Pelican Hill. On February 10, 2004, the Commission denied Pelican Hill's request because of deficiencies in three of the seventeen types of information listed by the commission in its letter of denial. These three deficiencies are discussed below. Item No.1 Cement Bond Log As discussed in the original application, a CBL had been ordered and we were waiting for the arrival of the tools. We were then advised that the tools would not be sent to our location at all. We were forced to forgo the CBL at that time. Upcoming completion plans, which require drining out 200+ feet of cement, will include running a CBL. The log will be submitted to the Commission as soon as it becomes available Item No.6 Confining Zones The original application identified a "Tyonek sandstone from 3,166-3,181 feet" as the zone chosen for injection. The zone of injection and confming zones win most likely change when additional data are acquired. Likewise, confming zones will be identified and this information will be submitted after further log data are acquired. After the 20o± feet of cement has been drined from the casing, a Pulse Neutron log will be run over the previously unlogged interval and, possibly, to the surface. If conditions warrant, an acoustic log may also be run over the entire hole. Item No.9 Nonmovement of Injected Fluids As stated above under Item No.1, a CBL will be acquired that will provide the needed information. '~ ~~ Alaska Oil and Gas Conservation Commission August 6, 2004 Page Two On August 5, 2004, a copy of the original Pulse Neutron log and a copy of the Gas detection log were provided to the Commission. A log with the gamma ray curve only was provided to the Commission at the time of the filing of the original application. Any infonnation filed with the application would become public. Since a State of Alaska Lease Sale scheduled for May 2004 included adjacent tracts. The information so filed was restricted. Pelican Hill is requesting public notice of this application be filed at once. As indicated above, all additional infonnation will be filed as it becomes available. Sincerely, ~~~ é. Arlen Ehm Vice President! Alaska Pelican Hill Oil & Gas, Inc. - - 'CJ crr rj:\ elf íT~~ 'Z''c If! J \ I! I r n j \ I i fr· \ I I ¡ ~) du ÜL, L~ (\ 1-:;] , nl t ¡ r i'il,.::! , I j í ' l t~, j I i "'~I;...---....{ F- n .-~, ~ F¡ F-, r-; / f\ , í A 1\ (rtJ ¡ V / ' ! \ ¡'D', 'I í/'I- \'\, iff ¡ \, I! ¡ \\ '-..,",,\i_\ f. \ LrJ U~ LFu cQ) ú\i Lr=\J FRANK H. MURKOWSKIJ GOVERNOR AI,A.SIiA. OIL AND GAS CONSERVATION COMMISSION July 30, 2004 333 W. ]TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907)' 276-7542 Mr. Jim Rose Petroleum Engineer Pelican Hills Oil and Gas, Inc. 4141 B Street, Suite 205 Anchorage, Alaska 99503 Re: Illiamna #1 Pelican Hills Oil and Gas, Inc. Permit No: 203-172 Sundry No: 304-286 dated July 24, 2004 Dear Mr. Rose: Enclosed is the Sundry Notice (Fonn 403) you submitted requesting an operational shutdown for llliamna #1. To the best of the Commission's knowledge, drilling operations were actually shut down in late December 2003 or early January 2004. Your application to halt operations rightly should have been submitted when operations were still underway according to 20 AAC 25.072(a) to allow the Commission to".. .decide whether to approve the temporary shutdown of .. . operations." 20 AAC 25 .072(b) requires the submission of fonn 404 including an operations report and any logs that were obtained during the operations. In response to email correspondence, you have recently submitted form 404 and a wellbore drawing however no operations report or logs have been submitted. Your early attention to the submission of this required infonnation is expected. All Operators in Alaska are expected to comply with AOGCC regulations. Continued failure to submit required notices and reports in a timely fashion could result . enforcement action as provided in 20 AAC 25.535 cc: Mr. Arlen Ehm 1. Type of Request: STATE OF ALASKA A~KA OIL AND GAS CONSERVATION COPJrrJIISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown .J Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: A,,,>ù Abandon Alter casing 0 Change approved program 0 2. Operator Name: Suspend Repair well 0 Pull Tubing 0 Perforate Waiver Stimulate 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Annular Dispos. Other [ Pelican Hill Oil and Gas, Inc 3. Address: 4141 B Street, Suite 205, Anchorage, AK, 99503 7. KB Elevation (ft): 203.8' AMSL 8. Property Designation: ADL 388133-1 11. Total Depth MD (ft): 3,517' Development 0 Stratigraphic 0 Exploratory 0 203-172 Service 0 6. API Number: 50-133-20527-00 9. Well Name and Number: lIIiamna No. 1 10. FieldlPools(s): Casing Structural Conductor Surface I nterrnediate Production Liner Perforation Depth MD (ft): Total Depth TVD (ft): 3,517' Length PRESENT WELL CONDmON SUMMARY Effective Depth MD (ft): Effective Depth ìVD (ft): Plugs (measured): Junk (measured): 3.327' 3.327' Size MD TVD Burst Collapse 13.375" 9.625" 88' 560' 88' 560' 2730 2270 113C 140C 5.5" 3.517' 3.517' 4810 4040 Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Packers and SSSV Type: 16. Verbal Approval: Date: 13_ Well Class after proposed work: Exploratory 0 Development - 0 Service 0 15. Well Status after proposed work: 8/412004 Oil 0 Gas 0 Plugged 0 Abandoned 0 WAG 0 GINJ 0 WINJ D WDSPl 0 12. Attachments: Description Summary of Proposal Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name ðJ·.~ (Los L Title ~ N lv f\- ¡Signature Phone z... - \40.f Date COMMISSION USE ONLY ffL \ (....~ L(..... Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 304--- J- f5 b Plug Integrity 0 BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 Other: ~DL\ o.\\G-L""~tL~\-s ~~\~\.)~,c~~ ~Sðf'uc"'~~('c.-ü+\cv,-<::> ~6~'OOft;¡~~ COMM!SSIONER APPROVED BY THE COMMISSION Date: OR'G'~JAL RIIJØ$\BFl d 02 1mH: "--" '~ - Pelican Hill Oil and Gas, Inc 4141 B. Street, Suite 205 Anchorage, AK 99503 907-277-1401,907-277-1402 Fax ~ -fT· FEUCAN m OJL &: GAS ING Mr. Thomas Maunder Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 7/24/04 Re: Pelican Hill Oil and Gas, Inc lIIiamna No.1, APD 203-172, API 50-133-20527-00 ,iUL~! )nn,~ Dear Mr. Maunder, Pursuant to our recent email communication, Pelican Hill Oil and Gas (PHOG) respectfully submits the requested forms 10-403 and 10-404. My understanding is that this will bring PHOG up to date for operations conducted in 2003. As you know, we are currently refurbishing our rig and preparing to complete the subject well. Prior to commencing well operations, we will submit form 10-403 with a completion procedure. Your timely review and approval of this application will be appreciated. At the completion of well operations, we intend to submit form 10-407. You requested a basic schedule of operations in your last email. The rig is currently under construction and will require testing prior to start-up. What follows are forecasted dates of certain events which are likely to change if we identify any operational deficiencies in the equipment. 8/1/04-8/12/04 8/12/04-8/16/04 8/17/04-8/25/04 8/25/04-9/1/04 9/1/04-9/21/04 9/21/04-1 0/1/04 10/1/04-10/7/04 10/7/04-1 0/21/04 Refurbishment and construction, completion of rig up. Final testing and troubleshooting. Perforating/Com pletion. Flow testing. G&I drilling waste pending results of flow test, permitting requirements, and operational concerns. Abandonment of perfs, reclassification of well, recompletion to shallower zone. Flow testing or abandonment, pending permitting requirements. Move to N. Beluga No. 1 There are, of course, a number of potential paths this project could take pending the results of the flow test(s). Please feel free to contact me at 277-1408 if you have any questions, Best Regards, Jhl- Jim Rose Attachments: Form 10-403 in duplicate, Form 10-404, IlIiamna NO.1 Well Sketch OR\G\NAL STATE OF ALASKA ALA~~ OIL AND GAS CONSERVATION COMM~$ION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Repair Well U Plug Perforations U Stimulate LJ Other U Performed: Alter Casing D Pull Tubing D Perforate New Pool D WaiverD Time Extension D Change Approved Program D Operat. Shutdown 0 Perforate D Re-enter Suspended Well D 2. Operator Pelican Hill Oil and Gas, Inc 4. Current Well Class: 5. Permit to Drill Number: Name: Development D Exploratory 0 203-172 3. Address: 4141 B. Street, Suite 205, Anchorae Ak, 99503 Stratigraphic D Service D 6. API Number: 50-133-20527-00 7. KB Elevation (ft): 9. Well Name and Number: 203.8' AMSL lIIiamna No.1 8. Property Designation: 10. FieldlPool(s): ADL 388133-1 11. Present Well Condition Summary: Total Depth measured 3,517' feet Plugs (measured) true vertical 3,517' feet Junk (measured) Effective Depth measured 3,517' feet true vertical 3,517' feet Casing Length Size MD TVD Burst Collapse Structural Conductor 13 3/8" 88' 88' 2730 1130 Surface 95/8" 560' 560' 2270 1400 Intermediate Production 51/2" 3,517' 3,517' 4810 4810 Liner Perforation depth: Measured depth: NA True Vertical depth: NA ~~=-. ¡;}1 71J(]4 r-i'{ Tubing: (size, grade, and measured depth) NA Packers and SSSV (type and measured depth) NA 12. Stimulation or cement squeeze summary: Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Met Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: Subsequent to operation: 14. Attachments: 15. Well Class after proposed work: Copies of Logs and Surveys Run Exploratory 0 Development D Service D Daily Report of Well Operations 16. Well Status after proposed work: oilD Gas 0 WAG D GINJ D WINJ D WDSPL D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. SUndry Number or NIA if C.O. Exempt: Contact fí{,'l cAN t-Þl..c...- Printed Name d1'~ lLðSL Title <F N L, .L.- Signature &, Phone 21') - ('-{ 0 g Date 7/Zi.{ (Ot'( . . ,UIIII IU_U' f'\CVI¡)CU U<ff£UU<f vUUll1IL VII!:fIlIClI VIIIY R8DMS BFL AUG 0 p ,ntìh ORIGINAL Kt:: llllè:111111è:1 tt 1 I..L.V.J-l I L.), C;l al --- .~ Subject: Re: Illiamna #1 (203-172), et al From: Thomas Maunder <tom_maunder@admin.state.ak.us> Date: Mon, 26 Jul 2004 14:22:50 -0800 To: Jim Rose <jimrose@aknet> CC: Steve Davies <steve_davies@admin.state.akus>, Jim Regg <jim_regg@admin.state.ak.us>, John D Hartz <jack_ hartz@admin.state.ak.us>, Bob Fleckenstein <bob _ fleckenstein@admin.state.akus>, Arlen Ehm <arlenehm@gci.net> Jim, We have received your transmittal letter, 2 copies of form 403 regarding an operational SD on I1liamna #1 and a form 404 with a wellbore diagram. Please refer to 20 AAC 25.072(b) regarding the additional information that should also be submitted with form 10-404. These include a summary of the daily drilling operations and copies of all logs (including mud log) obtained. Your wellbore diagram should also include information as to the fluid(s) left in the hole.. In your potential operating schedule, you indicate that "G&I" of drilling waste is planned. Pelican Hill had applied for a Class II Disposal Injection Order in late 2003. That request was denied without prejudice due to unavailability of necessary information. If it is Pelican's intent to pursue a Class II disposal permit, the identified information will need to be submitted so that the necessary determinations can be made. The full review process will be necessary including public notice of your application and the scheduling of a potential hearing. That process requires 45 - 60 days after the notice is published. Since July is nearly over, it is unlikely that an injection order could be in place to meet your proposed "G&I operation period" beginning September 1. Please feel free to contact me with any questions. We look forward to receiving the operational summary and any logs obtained on llliamna #1. Tom Maunder, PE AOGCC Thomas Maunder wrote: Thanks Jim. Yes, the digital copies of the report forms are on the web site. Tom Jim Rose wrote: Tom, I will try to have the paperwork for you by Monday and will include a basic schedule of events. In general, I am still refurbishing the rig and plan to resume completion operations the 2nd week of August... .providing the rig tests out ok. Can you send me digital copies of the 403,404,407? If not, I assume they are on the website and I can get them there. Thanks for the patience, Jim -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Wednesday, July 21, 2004 8:51 AM To: Thomas Maunder Cc: Jim Rose; 'Arlen Ehm'; Steve Davies 10f3 7/26/20042:23 PM 1\..1::: UlJë:1lJl1ld tt 1 \:¿,V.J- 1 I ¿, J, C;t ,1.1 '-"' Subject: Re: Illiamna #1 (203-172), et al '- Arlen and Jim, What is the status on the paperwork on Illiarnna #1?? provide some schedule information on what activities remains of this season. Thanks in advance. Tom Maunder, PE AOGCC Could you also are planned in what Thomas Maunder wrote: Jim and Arlen, The 404/407 will help bring matters closer to closure for the present time. To have shut-down operations a 403 should have been filed in December or January. As I understand, the well was TDed and casing cemented. Is that correct?? If that is the case, an OSD based on the weather conditions could be appropriate. As far as meeting, let me know your preference. With regard to "filings" PH has 2 permit to drills out there. Anything else you might have in mind will nominally require a 403. This includes resuming operations on Illiamna #1. I look forward to your call. Tom Maunder, PE AOGCC Jim Rose wrote: Tom, Please let me know if there is anything, in addition to the 404/407, that needs to be filed to bring Pelican up to date. I will get right on it. I would also like to visit with you and discuss the upcoming operations and required AOGCC filings. Please let me know when you might be available. Thanks, Jim -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Wednesday, July 07, 2004 8:07 AM To: Arlen Ehm¡ Jim Rose2 Cc: Steve Davies¡ Jim Regg Subject: Illiamna #1 (203-172), et al Arlen and Jim, I have a couple of questions with regard to last year's activities on Illiamna #1 and upcoming plans for this summer. Your operations at Illiamna #1 last year and ongoing rig modifications were recently discussed in Petroleum News. I have looked at our file for that well and to date no well reports (404 or 407) have been submitted. According to the messages I have, operations were halted sometime in December. Reports should have been submitted last year within 30 days of the operations halt. Your early attention to providing the reports required by the regulations would be appreciated. 20f3 7/26/20042:23 PM 3 of 3 7/26/2004 2:23 PM Tom Maunder, PE AOGCC We look forward to your replies. Call with any questions. What is the timing of your proposed operations this summer?? We have received a request for c-plan exemption for the North Beluga well and since some of the land issues appear to have been settled have it under review. Mention is made of ongoing negotiations with CIRI. Have such negotiations been concluded?? When will that project start?? What operations will be done on Illiamna #1 before equipment is moved to Beluga?? - '- Ke: l111amna 111 CLUj-l /1.), et al llllè111111è1 tt 1 -- '---- ~~ 1 J[J203- (7~ Subject: Illiamna #1 From: Thomas Maunder <tom _ maunder@admin.state.ak.us> ))~te:""ed, 19 May 2004 11: 12:31 -0800 . _ __ r?{ /1/0+ ~;.i~~ Ros.e <jin.rr0se@d~jazzd:com>, .Arlen Ehm <arl~nehm@gc.i:net> . ~t u. ~~;LoU Gnmaldl <Iou -DImaldl@arnmn.state.ak.us>, JIm Regg <.JIm _regg@admll1.sfate.ak.us>~ Jnn ~ose~<j imrose@ak.net> - - Jim and Arlen, Just a quick note. Lou Grimaldi and myself were over to Trading Bay last Friday. We had some extra time and traveled out to your location. We found things to be in order at the 3 sites where you have equipment, although by no means did we conduct a complete inspection and we did not enter any enclosures or "climb" onto the rig. All in alII we found the housekeeping at the locations to be good. Regards I Tom Maunder, PE AOGCC 1 of 1 5/19/2004 12:42 PM r_~ FRANK H. MURKOWSKI. GOVERNOR :~:; IT¡íA\ 11 ~ r\.n) [~I~ ¡,A\ ['.l/Æ ~~ r_(( ffi\ \..;:~>,-- L..-J Ic-<~ ~J id ~ ." ~~ .-..- '-of -- ~ -.- ~ ~ ~ - --- AI,ASIiA. OIL AND GAS CONSERVATION COltDlISSION 333 W. -¡æ AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 February 10,2004 Mr. Al Gross Pelican Hill Oil and Gas Inc. 1401 N. El Camino Real, Suite 207 San Clemente, CA 92672 (p ~n,,-,ct ),0.3 - /O_¡ À Dear Mr. Gross: By letter dated December 8, 2003, Pelican Hill Oil and Gas Inc. ("Pelican Hill") requested authorization to allow the underground injection of non-hazardous oil field waste fluids within the IliamnaNo.1 wellbore. Iliamna NO.lis located in Section 31, T9N, RI4W, Seward Meridian, Alaska. The proposed injection interval is located within the Tyonek Formation. Thewaste stream consists of freshwater-based drilling mud . and drilled cuttings generated in connection with the drilling of Iliamna No.1. Pelican Hill estimates that 3,000 barrels of waste would be disposed into the well. The Alaska Oil and Gas Conservation Commission ("Commission") published the disposal injection order application for public comment on December 11, 2003. No comments were received. Iliamna No. I is being drilled as an exploratory gas well. It is our understanding that Pelican Hill suspended drilling operations in late November 2003 because of concerns about the suitability of the rig to operate in the winter conditions at the drill site. To date, the Commission has· not received any notification from your company concerning the temporary shutdown of drilling· operations as required by regulation 20 AAC 25.072. Pelican Hill's application to temporarily convert the well to a DIC Class II disposal well is because of limited waste handling options. After injection is completed, the zone would be isolated, and the well plugged back and completed to the shallower objective(s) to test for commercial quantities of gas. There is insufficient infonnation available for the Commission to grant the injection order. Regulation 20 AAC 25.252 lists 17 required types of infonnation to be included in a disposal injection order application. To date, Pelican Hill has provided no infonnation or limited infonnation concerning several of those required items. The attached chart compares the requirements of regulation 20 AAC 25.252 and the infonnation submitted by Pelican Hill. Most concerning to the Commission is the lack evidence that the fluids injected will be confined to the intended injection interval. Pelican Hill has not provided critical information concerning the integrity of production casing cement or the lithology, thickness and lateral extent of overlying and underlying confming zones. ~ '---- The request to inject drilling waste into Iliamna No.1, as provided in Pelican Hill's application dated December 8, 2003, is denied without prejudice to the right to re-apply for authorization upon meeting all requirements of 20 AAC 25.252. Attachment cc: Arlen Ehm 2420 Foxhall Drive J\nchorage,AJ( 99504 Mark Myers, Director Division of Oil and Gas 550 West 7th Avenue, Suite 800 J\nchorage,AJ( 99501 Sincerely, Daniel T. Seamount, Jr. Commissioner REQUIREMENTS CHECKLIST: APPLICATION FOR UNDERGROUND DISPOSAL OF LIQUID WASTE ILIAMNA #1 20 AAC 25.252 UNDERGROUND DISPOSAL OF OIL FIELD WASTES AND UNDERGROUND STORAGE OF HYDROCARBONS (b) The operator has the burden of demonstrating that the proposed disposal or storage operation will not allow the movement of oil field wastes or hydrocarbons into sources of freshwater. DONE ITEM REQUIREMENT SUBMITTED :Partial 1. (b) Disposal or storage wells must be cased and the casing Dec. 8,2003 submittal: page 1, part (b) provides a cemented in a manner that will isolate the disposal or description of casing and cementing procedure, and storage zone and protect oil, gas, and freshwater sources. a statement that operator believes cement is competent and believes that channeling did not take place. Cementing job reports are attached to submittal. Cement quality log (CBL) has not been run. (CRITICAL ITEM) ( (c) An application for underground disposal or storage must include: DONE ITEM REQUIREMENT SUBMITTED Yes 2. (c)( 1) plat showing the location of all proposed disposal and Included in Dec. 8, 2003 submittal storage wells, abandoned or other unused wells, production wells, dry holes, and any other wells within one-quarter Inile of each proposed disposal or storage well; Yes 3. (c )(2) list of all operators and surface owners within a one- Included in submittal: no other operators, surface quarter mile radius of each proposed disposal or storage owner is Kenai Peninsula Borough. Letter of non- well; objection received from borough on Dec. 9, 2003. Yes 4. (c )(3) affidavit showing that the operators and surface Included in submittal owners within a one-quarter mile radius have been provided a copy of the application for disposal or storage; Yes 5. (c)( 4) name, description, depth, and thickness of the Included in submittal: Tyonek sandstone from 3166' fonnation into which fluids are to be disposed or stored and to 3181 '; 30% porosity estimated from offset well appropriate geological data on the disposal or storage zone 1.5 mi NNE. including lithologic descriptions and geologic names; ( REQUIREMENTS CHECKLIST: APPLICATION FOR UNDERGROUND DISPOSAL OF LIQUID WASTE ILIAMNA #1 DONE ITEM REQUIREMENT SUBMITTED No 6. (c)( 4) name, description, depth, and thickness of the No information provided. confining zones, including lithologic descriptions and geologic names; (CRITICAL ITEM) Yes 7. (c)(5) logs of the disposal or storage wells, ifnot Included in submittal: cased hole OR-CCL only. already on file, or other similar information; Operator has cased hole OR-Neutron and electronic drilling data (acquired in lieu of a standard mud log), but expressed reservations about maintaining confidentiality and has not yet submitted them. Note: Because this involves. existence, absence or levels of contaminants in freshwater, under 20 AAC 25.537(e)(1)(B), logs down through the injection interval cannot be kept confidential. Yes 8. (c)( 6) description of the proposed method for Included in submittal; statement that the mechanical demonstrating the mechanical integrity of the casing integrity of casing-tubing will be tested to 1,500 psi, and tubing under 20 AAC 25.412; and well bore schematic No 9. (c)(6) description of the proposed method for No information provided. CBL; temp surveys demonstrating that fluids will not move behind casing (baseline, subsequent to injection); water flow log beyond the approved disposal or storage zone; may be acceptable demonstration of confinement Yes 10. (c)(6)(A) & (6)(B) description of the casing of the Included in submittal: page 1, part (b) disposal or storage wells, if the wells are existing; or description of the proposed casing program, if the disposal or storage wells are new; No 11. (c )(7) statement as to the type of oil field wastes to be Submittal: 3,000 barrels of drilled cuttings and disposed or hydr()carbons stored, their composition, freshwater-based drilling mud; injection rate of 1 to their source, the estimated maximum amounts to be 2-bpm expected. Understanding confinement is disposed or stored daily; necessary before accepting the small volume and injection rate as satisfying this requirement. f ( REQUIREMENTS CHECKLIST: APPLICATION FOR UNDERGROUND DISPOSAL OF LIQUID WASTE ILIAMNA #1 DONE ITEM REQUIREMENT SUBMITTED Acceptable 12. (c )(7) statement as to compatibility of fluids to be No statement of compatibility but fluid will consist disposed or stored with the disposal or storage zone; of cuttings and fresh-water based mud; Commission believes compatibility is not a concern. Yes 13. (c)(8) estimated average and maximum injection Included in submittal: Estimated average injection pressure; pressure is about 800 psi, and maximum expected injection is about 1000 psi; maximum allowable pressure is 1025 psi (assuming fluid density is 9.0 ppg); expected frac gradient is 15.4 ppg EMW. Injection rate expected to be 1 to 2 bpm. Acceptable 14. (c )(9) evidence to support a commission finding that the Statement included in submittal: "It is not likely proposed disposal or storage operation will not initiate that the proposed injection could possibly propagate or propagate fractures through the confining zones that a fracture height of 800' ." (operator's estimated might enable the oil field wastes or stored hydrocarbons minimum upward distance to the deepest freshwater to enter freshwater strata; sand). Yes 15. (c)(10) standard laboratory water analysis, or the results Water sample not available. Included with of another method acceptable to the commission, to submittal is an analysis of offset well logs by determine the quality of the water within the fonnation operator and by Baker-Hughes/INTEQ. Both into which disposal or storage is proposed; indicate water quality in the disposal interval exceeds 10,000 ppm TDS. Yes 16. (c)(11) reference to any applicable freshwater Not applicable based on item 15. exemption issued in accordance with 20 AAC 25.440; and Yes 17. (c)(12) report on the mechanical condition of each well There are no wells within ~ mile of the well. that has penetrated the disposal or storage zone within a Nearest wells are 1-1/4 to 1-1/2 mile away. one-quarter mile radius of a disposal or storage well. ( ( Tf'ffi~\rlr [E - (n~\ f"Fd , , I ! ~~~ ¡ I! ¡ r' lQJ U ffi~ It ¿6~ ~ U~ ffi~ -- AT¡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 December 2, 2003 Mr. Jim Rose Engineering Consultant Pelican Hill Oil and Gas Inc. 1401 N. EI Camino Real, Suite 207 Sam Clemente, CA 92672 Re: lIiamna No.1, API 50-133-20527-00 Alaska Permit to Drill 203-172 Mr. Rose: Pelican Hill Oil and Gas Inc.'s ("Pelican Hill") request for conditional approval of proposed options for disposal of drilling waste in lIiamna No. 1 cannot be approved at this time. Option 1, Annular Disposal, cannot be granted due to lack of sufficient information. Option 2, Non-Annular Disposal, cannot be approved under 20 AAC 25.080. Separate application for this option must be made under 20 AAC 25.252 and 25.412 for any disposal operations not meeting all requirements of 20 AAC 25.080. Background Tom Maunder, a senior engineer with the Alaska Oil and Gas Conservation Commission ("Commission"), first discussed regulations governing drilling waste disposal timing first with Pelican Hill's representative in early June 2003 (email from T. Maunder t 0 A. E hm dated June 2, 2 003). Pelican H ill det ailed it s disposal programs for solid waste, mud and drilling cuttings in the "Response to Mitigation Measures" section ("Response") of the Coastal Project Questionnaire that was submitted to the Office of Project Management and Permitting in early September 2003. On September 10, 2003, the Commission received a copy of Pelican Hill's Response, and we relied on the described disposal programs as we approved the permit to drill for the lIiamna NO.1 exploration well. Section 18a of Pelican Hill's Response states that solid waste and drill cuttings would be collected and stored in steel flip-top tanks. If production were established, the cuttings would be utilized in concrete production pads. If not, cuttings would be removed from the project area and disposed in an approved manner. Section 18b states that spent drilling mud will be stored in metal Alaska Permit to Drill 203~2 December 2, 2003 Page 2 of 3 ,-" containers, removed from the project site and disposed in an approved manner possibly by grinding and injection or at an approved facility such as Envirotech's facility near Tyonek. On November 24, 2003, the Commission received an incomplete application from Pelican Hill presenting two options for disposal of drilling waste within the lIiamna N o. 1 well. T he in formation provided by Pelican H ill is ins ufficient, consequently, both options must be denied. These denials are discussed separately, below. Option 1 - Annular Disposal The strict guidelines of regulation 20 AAC 25.080 were developed to protect underground sources of freshwater, and they must be followed. 20 AAC 25.08 presents a listing of 17 items of information that must be supplied by the operator in support of an application for annular disposal. To date, Pelican Hill has provided only 10 of these information items for lIiamna NO.1. Until sufficient information is provided to the Commission, annular disposal operations cannot be approved. The Commission granted seven separate waivers allowing Pelican Hill to try new or non-standard techniques or methods while drilling lliamna NO.1. Two of these waivers directly impact annular disposal approval: 1) waiver of standard open hole well logging requirements and 2) waiver from standard sample collection and mud logging requirements. An unfortunate result of Pelican Hill's waivers is a lack of information that is critical for approval of annular disposal operations. Because Pelican Hill is using a new, drilling-with-casing technique that does not permit tripping of pipe, it is not possible for Pelican Hill to record conventional open hole logs in lIiamna NO.1. Since there is no practical alternative that allows recording of open hole logs, the Commission granted a waiver to standard well logging requirements. As a consequence of Pelican Hill's waiver, they will not be able to provide open hole log information that is critical to understanding the nature and thickness of the zone(s) that would receive drilling waste and, more importantly, the nature and thickness of the zone(s) that would confine the waste and prevent its migration into freshwater aquifers. The Commission typically requires a mud log be recorded on exploratory wells. Pelican Hill is using an electronic monitoring system to gather and report drilling information rather than employ standard mud logging services. Without a mud logging geologist onsite, cuttings samples are not collected and a sample (lithology) log is not recorded. Therefore, an accurate description of the nature or thickness of the potential receiving and confining zones within lliamna No. 1 is not possible. '~ Alaska Permit to Drill 203-172 December 2,2003 Page 3 of 3 --/ The proposed, very shallow disposal depth in lIiamna No. 1 means that a complete demonstration of confinement is crucial for Commission approval for annular disposal of drilling wastes. Until Pelican Hill can provide the Commission sufficient information concerning the extent and nature of the confining zone, annular disposal cannot be approved. Option 2 - Non-Annular Disposal Pelican Hill proposes a second option for disposal of drilling waste in lIiamna No. 1: disposal through perforations at least 150' MD below the lowest hydrocarbon zone encountered in the well (expected perforation depth is about 3300' MD). Clearly, this operation does not involve disposal through an annular space, and 20 AAC 25.080(c)(3) prohibits using annular disposal regulations to circumvent 20 AAC 25.252 (underground disposal of oil field wastes) or 20 AAC 25.412 (casing, cementing and tubing for disposal injection wells). Any disposal operations not involving disposal through an annulus must conform to 20 AAC 25.252 and 20 AAC 25.412. Pelican Hill must make a separate application under these regulations for this type of drilling waste disposal operation. Please call if you have any questions. Steve Davies Senior Petroleum Geologist k ~~uÌ-¿ Tom Maunder Senior Petroleum Engineer SD:~jc '- ..~ MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Sara Pahlin, DATE: December 1, 2003 Commissioner THRU: Jim Regg, ~ l ~(~ Q3 Petroleum Engineer ~1 ~ð1-/'7L FROM: Lou Grimaldi, SUBJECT: Rig/Operation inspection Petroleum Inspector Pelican Hill lIIiamna #1 I made an inspection of the rig and general operations at the Pelican Hill, IIliamna #1 location. (~eCL ) There had been an anonymous reportA of poot rig and safety concerns made to one of the inspectors via telephone and I was dispatched from Nikiski to take a look at this operation. I flew to UNOCAL's Trading Bay Production Facility (T.B.P.F.) via Kenai Aviation. I was picked up and escorted to the rig in a timely fashion. I met with Scott Prather (Tool Pusher) and informed him of the reason for my visit, we discussed his operation and I found him to be open and forthcoming. I will address the concerns individually; 1. Rig took a kick and driller was not aware of situation. Gas detector at Mud Loggers shack was inoperative. According to Scott Prather, there was no well control event. The gas detector in the Mud Loggers shack was not working properly and he ceased operations until it was repaired. During this time the general audible alarms sounded while being calibrated. I spoke with Arlen Ehm (contract geologist) separately and he conveyed essentially the same scenario. The rigs gas detectors seemed to be functioning properly while I was there. 2. The Gas Buster was frozen and non-functioning. The gas buster outlet is situated below the pit base level, there is no other reasonable place to put this type of buster, as it is approximately 20' tall. There is sufficient room to allow for separation of gas from the mud. The drawback being that unchecked the mud from the pits flows back to the gas buster and seeks its own level. As the gas buster is not protected from the weather it is subject to freezing of its contents. According to Scott Prather, The gas buster did freeze up and was thawed out. A full opening valve has been installed on the outlet of the gas buster to prevent backflow. This is not the best situation as neglecting to open this valve during circulating mud will cause the Gas buster to overflow out of the top vent. I discussed this with Scott Prather and this will be put into their kick procedure for the "Man on the choke" to do. Possible modifications to this system should be looked into. 3. A failure of the mud pits causing a spill onto the tundra. Scott Prather informed there was indeed a mud spill, a welded seam either split or was not 1000/0 to begin with. When the pits were filled some mud leaked out onto the ground around the pits. According to Scott it was all contained inside the "Herculite" bermed area. The area was snow and ice covered and did not appear especially "dirty". Scott told me that the spill had been reported to A.D.E.C. I asked Scott that in the future any spills during drilling/workover operations be reported to Jim Regg in the anchorage office or after hours to the North Slope inspector. Rig and operation inspection lIIiamna 1 12-01-03 LG.doc 10f2 '~~ ,~ SUMMARY; The rig had all the necessary BOP equipment in place and seemed to be functioning normally. I observed better than a Y2 dozen joints drilled down with proper procedures followed while making connections. I did see a few hands I have encountered on other rigs so lack of experience does not seem to be a real issue. The major problem I observed concerns the low temperatures this rig is operating in and its lack of adequate heat. There are three medium Tioga forced air heaters and one medium boiler. The "Sub-base" and BOP's as well as the choke manifold are enclosed in visqueen shelters with the Tioga heaters keeping these somewhat warm. The choke and kill lines have steam hoses entwined and visqueen wrapped. The pit's are draped with visqueen and heat retention seemed adequate. The ambient temperature was in the +10 area today and I doubt that this rig and it's equipment would be safe to operate in any colder weather. Scott and I discussed this and relayed to me that between wells he plans on some modifications that will help in the warmth of the rig. The plan forward as relayed to me is to stop drilling on Tuesday morning, set and cement casing. The pipe rams will have to be changed to accommodate the production tubing to be run. I feel this would be an opportune time to spread some more visqueen and get some more heat to critical areas. I informed Scott to notify myself when casing is cemented. My recommendation is cease operations when casing is cemented until some upgrades of the heating system are made. I should return when this is accomplished to witness a BOP test. If the rig can perform this, consideration for running completion be made at that time. cc: . Tom Maunder (A.O.G.C.C.) NON-CONFIDENTIAL Rig and operation inspection lIIiamna 1 12-01-03 LG.doc 20f2 rt:llCäll Dlll::-i ll11äll1Uä tt 1 --- ~ Subject: Pelican Hills Illiamna #1 From: "JeffB. Jones" <jeffjones@admin.state.ak.us> Date: Mon, 01 Dec 2003 09:02: 10 -0900 To: James.B Regg <jim _regg@admin~state.ak.us>, Lou Grimaldi <Iou _grimaldi@admin.state.ak. us> Cç: Tom Maunder <tom _ rnaunder@adinin.state.ak.us>, aogcc-prudhoe _bay <aogcc -prudhoe _ bay@admin.state.ak. us> ~ t'7 \- ..i1 D/ (\<1.¡ \Ù 1 Hello Jim, this note is a follow-up on our conversation of yesterday. I received a phone call at home on 11/30/03 from a Pelican Hills employee working on the Illiamna #1 well, who wished to remain anonymous. The employee expressed concern about the way the Pelican Hills was conducting operations and the AOGCC's oversight effectiveness. The employee alleged that Pelican Hills was operating in an unsafe manner and cited the following "non-compliance" items: 1. Mud logging / Gas detection system inoperative 80-90% of the time. 2. Freeze up problems with the Gas Buster & kelly. 3. A failure of the mud pits causing a spill onto the tundra. 4. Employees not following safe work practices¡ i.e.: PPE, fall protection. The employee was also questioning why "the State allows a new operator to operate in an unsafe and haphazard manner¡ when operators elsewhere (North Slope) are held to much higher standards". I told the employee that I would forward his concerns to the Commission and that an AOGCC inspector would make a visit to the rig very soon to witness a BOPE test and check on the operation. I also thanked the employee for the information and offered that anyone could come into the AOGCC office and speak with you or the Commissioners regarding issues related to oil & gas drilling and production. I spoke with Lou last night and he said he would be going to that location today, weather permitting. I will let you know if I get further information. Thanks, Jeff 1 of 1 12/3/2003 5:36 PM ~;:) ~'\..~~U~;:)L~U 1 of 1 "-- Subject: As Requested From: Arlen Ehm <arlenehm@gci.net> Date: Fri, 31 Oct 200308:43:49 -0900 To:· Steve Davies <steve _ davies@admin.state:ak.us> -' Content-Type: application/pdf -. ILIAMNA 1 NAD 27.pdf Content-Encoding: base64 .m moon. ...... .. no mum... on _n_ ......._.. Content-Type: application/pdf.' ILIAMNA 2 NAD 27.pdf Content-Encoding: base64 _ .. _ ....... un onon on .. ............._....__.....__._....____._._____. ._.__....___m_.....__._.........,. --- .-----------.----.--._.~- ~>~~.- bç; .5~VI€..$ /O·f~.D'f 10/13/2004 8:40 AM R R 15 14 W W 30 29 25 SCALE: I" = 2000' 36 I 1578' :tLlAMNA 1 (SET 5/8" REBAR) 2480' 31 32 2 1 R R 15 14 W W T9N T8N 6 Well Name Northing Easting Elev ILlAMNA 1 2499970.64 174188.22 203.83 Units:U.S. Survey Feet Horizontal Datum:NAD 27 Coordinate System:State Plane; Zone 4 Vertical Datum:NAVD 88 Horizontal locations are based on the NGS published coordinates for KUST AT AN RESET of (N2459539.34, E186278.03) Elevations were generated using RINEX data from CORS Stations TLKA (Talkeetna CORS ARP) and KEN1(Niki USCG B); ELEVATIONS ARE +1- 5' SECTION LINES ARE DRAWN USING PROTRACTED COORDINATES. F. Robert ~œm- ~ (]Jg)g)[[)[bo LOCA TI ON OF PELICAN HILL OIL & GAS INC. WELL LOCATION FOR ILlAMNA 1 SEC. 31, T 9 N, R 14 W, S.M., AK 801 WEST FIRE WEED LANE SUITE 2Dl ANCHORAGE. ALASKA 99503-1801 PHONE (907)-274-5257 PREP ARED FOR: PELICAN HILL OIL AND GAS INC. DRAWN BY: JZW CHECKED BY: CBS JOB NUMBER: 2003-510 ENGINEERS AND LAND SURVEYORS SCALE: 1" = 2000' ~$. <'?Ã'"3(-; i}(.~ W ~ :!Í ~ '1511!.S ICMa,Dr -~~ '-'. ~V~VŒ ffi)~ ~~~~~!A\ / AI~A.SKA OIL AND GAS / CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. -¡rn AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Mr. Al Gross Pelican Hill Oil and Gas Inc. 1401 N. El Camino Real, Suite 207 San Clemente, CA 92672 Mr. Arlen Ehm 2420 Foxhall Drive Anchorage, AK 99504 Re: Iliamna No.1 Pelican Hill Oil and Gas Inc. Pennit No: 203-172 Surface Location: 1578' FNL, 2480' FEL, Sec. 31, T9N, RI4E, SM Bottomhole Location: same Dear Messrs. Gross and Ehm: Enclosed is the approved application for pennit to drill the above referenced exploration well. This pennit to drill does not exempt you from obtaining additional pennits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required pennits and approvals have been issued. In addition, the Commission reserves the right to withdraw the pennit in the event it was erroneously issued. On page 3 of the application, Pelican Hill requests waivers to 11 Commission requirements. Attached, please find a tabular listing of the requested waivers, a citation for the relevant regulation, and an analysis of each request. The Commission's analysis indicates that for several issues, no waiver is necessary. The remaining requests are granted, based upon infonnation provided by Pelican Hill. 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 pennit may result in the revocation or suspension of the pennit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at 659-3607 (pager). Sincerely, L4~ -Randy{uedrich Commissioner BY ORDER OF THE COMMISSION DA TED this~day of October, 2003 cc: Department ofFish & Game, Habitat Section wlo encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section Pelican Hill Oil and Gas Regulatory Waiver Analysis IlIiamna Wells Trading Bay Alaska 1--Diverter Line Size 20.035(c)(1 )(B) Requirement is that line size must be equal to or larger than hole size being drilled. Planned hole size is 12-1/4" and diverter line is 12". This is a waiver that has been granted in a number of other cases. According to the discretion allowed at 20.035(h)(2), approval of this waiver is recommended. 2-- Threaded connections on 20.035(4)(F) and Requirements are that connections to the BOP be flanged or hubbed and choke and kill lines 20.035(e)(6)(F) that choke and kill lines be assembled without hammer unions or internally clamped swivel joints. The choke and kill lines are high pressure "hose" as employed on other rigs in the state. The ultimate end connections are flanged. As manufactured, the "hose" ends are threaded. The flanged ends were made up in the "shop". This equipment meets the regulatory requirement. No specific waiver is needed. 3--BOP control lines/hoses 20. 035( e )(6)(A) The regulations do not specifically address the BOP control lines, however (e )(6)(A) specifies that the choke and kill lines must be capable of withstanding the temperature... of an ignited.. .release. Since the control lines are in the same environment, it is logical that the same standard apply. Pelican has proposed to run the lines in a protective "tray" and wrap any intervals not protected in the tray with insulation. Based on inspection by Inspector John Spaulding, it has been determined that this would be acceptable. According to the discretion allowed at 20.035(h)(2), approval of this waiver is recommended. 4--Use of X-overs on the "drill 20.035(e)(4)(9)(B) The requirement is for an inside BOP and full-opening drilling assembly pipe" safety valve and IBOP safety valve. The ultimate "drill string" being used by Pelican Hill is casing. This technique has not been previously used in Alaska, although it has been employed at several locations outside. The purpose of the IBOP is to be able to stab a "check valve" like tool that can be run into the well and then pumped through. The full opening valve is specified so such that the valve would not present a size restriction simply by being installed on the "pipe". When "normal" casing is run, it is common practice to obtain a X-over to allow the existing rig í l Page 1 of 4 5--Not to employ a trip tank while drilling surface hole. 6-Not to employ a manned mud logging unit. Pelican Hill Oil and Gas Regulatory Waiver Analysis llliamna Wells Trading Bay Alaska 20.033(c)(2) safety valve to be employed while running the casing. In this case, casing is being run all the time and unless a trip is done, pipe should be on bottom at all times. According to the discretion allowed at 20.035(h)(2), approval of this waiver is recommended. Regulations require a drilling fluid measuring system or trip tank. The rig will be equipped with a "PVT" system that will measure the levels and compute the volumes in the surface mud pits. Satisfactory operation of this system will be an inspection item when the Inspector first visits the rig. Pelican Hill has also been asked to provide their tripping procedure, a copy of the trip sheet and the specific volumes (bbl/ft) for the pipe and hold combinations in this section. According to the discretion allowed at 20.0330), approval of this waiver is recommended. Approval of this waiver is recommended. Two issues were considered: safety (crew and environment) and significant contribution to geologic knowledge. SAFETY - Pelican Hill will have methane and H2S detectors on the rig with audible and visible alarms. They will also have a geologist onsite during all drilling operations below surface casing point at 550' MD. Seismic data are sparse in the area, but show no indications of shallow gas hazards. Two nearby (within 1-1/2 miles) exploratory wells have already penetrated this section. West Forelands A-1 drilled the section using 9.5 - 10.5 ppg mud. Kustatan Ridge 1 drilled from surface to 2365' with 9.6 - 9.8 ppg mud. While tripping in with a new bit at 2365', the crew encountered a gas kick measuring 200,000 ppm methane. The mud was weighted up to 11.0 ppg, and the well was drilled to TD. Pelican Hill's mud system design engineer is aware of the offset wells and the gas kick. He feels 10.0 mud will be sufficient to control any pressure encountered by the lIiamna wells. Pelican Hill will also have sufficient weighting material available to control any elevated pressures. As a last resort, Pelican Hill will be drilling with casing, so they can always cement it in place to control any severe problem. GEOLOGIC KNOWLEDGE - An electronic well information system will be used during drilling that will provide much of the information normally provided by a mud logqing unit with crew: depth, ROP, hookload, weight ( ( ,¡ ( 25.071 (b )(1) Page 2 of 4 Pelican Hill Oil and Gas Regulatory Waiver Analysis IlIiamna Wells Trading Bay Alaska on bit, RPM, torque, stroke counters, pump pressure, mud volume, pit gain floss, flow, trip tank data, total gas, and H2S. This information will be recorded from surface to TO, and will be provided to the Commission. Regulation 20 MC 25.071 (c) allows the Commission to waive collection of geologic data (samples) if they will not significantly add to the geologic knowledge of the area. Arguably, collection of samples will not add much to existing knowledge as the two nearby exploratory wells have mud logs from 400' to well below planned TO of lliamna 1 and 2. These wells also have complete sets of cuttings from 30' to well below the planned TO of lIiamna 1 and 2. 7-Waive survey 20.050(a)(2) For a well not intentionally deviated, surveys must start at 500' and be requirements performed at a maximum of 500' intervals thereafter. Pelican Hill proposes to conduct a wellbore survey after the drilling operation is completed. Given that the well is relatively shallow and there are no spacing issues, their proposal is reasonable. According to the discretion allowed at 20.050(h), approval of this waiver is recommended. a-Perform a FIT rather than 20.030(f) The regulation requires that "The test must be performed to a a LOT at the surface casing predetermined equivalent mud weight or fracture pressure as specified in shoe. the PTO." Pelican Hill's proposal to test to 14.0 EMW exceeds the mud weights employed in the offset wells and meets the requirements of the regulation. No waiver is needed. 9-Waive the requirement to 20.065(b) & (c) The requirement to comply with API RP 49 is dependant on penetrating have H2S protective formations known to contain H2S or in the absence of nearby drilling equipment on site. history. The records of the offset wells do not indicate that H2S was encountered and H2S is not reported throughout the basin where only the shallow gas bearing intervals have been penetrated. Gas detection (methane and H2S) will be in service as required by 20.066. The design of the well and the planned depth meet the requirements of (b) of this section. No waiver is needed. 1 O-Equipment spacing from 20 MC 25.527 AOGCC regulations don't specifically address distance from the wellhead wellbore. for equipment. Classification areas and distances are determined by other's (API) specifications. The AOGCC citation that applies requires [ ( Page 3 of 4 Pelican Hill Oil and Gas Regulatory Waiver Analysis lIIiamna Wells Trading Bay Alaska well control equipment to ".. .be in good operating condition and be protected to insure reliable operation under the range of weather condition that may be encountered at the well site." The same requirement is in the production regulations. It is not unreasonable that the same requirement apply to the rig equipment. Rigs used in Alaska are generally constructed/assembled with equipment much closer than other areas. The equipment employed is manufactured for use in proximity to a well. At a minimum, equipment must be properly operated and maintained according to the manufactures specifications. Pelican Hill will be employing gas detectors as required by 20 MC 25.066, however such detectors are an adjunct to proper operations, maintenance and drilling practices, not a substitute. No waiver from this Qeneral requirement is needed. 11-Eliminate open hole logs 25.071 (a) Approval of this waiver is recommended because there is no practical alternative. Drilling with casing does not permit tripping of pipe; so open hole logging is not possible. A pulsed neutron log will be run from TD to 500' above the uppermost gas show determined by the well site geologist (top of logged interval is expected to be about 2500' TVD). GR and CCl will be recorded from TD to surface. Regulation 20 MC 25.071 (c) allows the Commission to waive collection of geologic data and logs if they will not significantly add to the geologic knowledge of the area. Arguably, open hole logs from this well will not as two nearby « 1-1/2 mi), existing exploratory wells have GR, Dual Induction logs from 400' to well below planned TD, and sonic logs from 200' and 390' to well below planned TD of the lIiamna wells. One well also has Neutron and Density logs from 2321' to well below planned TD. ,( ( ( ( Page 4 of 4 ¡::. _r 1::1111,. '->{UI::;:)UUII;:) ~-- ~ Subject: RE: Permit Questions Date: Fri, 24 Oct 2003 12:57:45 -0800 From: "James Mosley" <mjily@ix.netcom.com> To: "'Tom Maunder'" <tom_maunder@admin.state.ak.us>, "'Arlen Ehm'" <arlenehm@gci.net>, "'Truman Hicks'" <HicksTruBlue@aol.com> CC: "'Steve Davies'" <steve_davies@admin.state.ak.us> Tom, Thanks for the clarity and patience you have shown. ITEM 3 I have copied Truman Hicks on this email so that he can understand the requirement to use Trip sheets during pulling of the pipe to run surface casing. ITEM 4 The knife valve and diverter are going to be plumbed into the same hydraulic line from the accumulator. Since the knife valve takes only a littl fluid to manipulate, I am sure that it will be open prior to the annular preventer. ITEM 5 One of the reasons I stipulated using the kill line is so that this line can be blown dry after the casing pressure test. I have some concerns that we wi!! overlook a low spot in the lines somewhere, but the heightened awareness of potential freeze up spots wi!! go a long way toward preventing this from happening. On the mud pit drawing issue. I took the dimensions from the Quadco drawings and have recognized that they may be in error. The calculations are approximate without seeing the tanks in operation. Your addition is more correct than mine. oops. As for the working volume in the tanks, This will be the first time these mud pits have been used. I have recommended to Arlen, that he have the Mud engineer double check the dimensions and calculations. Given that there are centrifugal pump mud lines run through the pits, and that the pit system relies on gravity equalization, I suspect that the working volume is somewhat less. Exactly how much remains to be seen once the pits are in use. Sincerely, Jim Mosley Drilling Consultant Well Digger Inc. email: miilv@ix.netcom.com Home: 907-694-4170 Cell: 907-350-6489 -----Original Message----- From: Tom Maunder [mailto:tom_maunder@admin.state.ak.us] Sent: Thursday, October 23, 2003 10:39 AM To: Arlen Ehm; James Mosley Cc: Steve Davies Subject: Re: Permit Questions Gentlemen: I have received the "packet" with the replies to my questions. I still have a few minor comments. Question 3 regarding drilling surface hole without the trip tank. You indicate that the PVT system will be rigged up as required and you have provided the trip sheets. You note that it is planned to pump out to run surface casing. You are correct that this will fill the hole, however the rig crew should still fill out a trip sheet to keep track of the volumes. Changes in pit level need to be monitored whenever pipe is pulled or run regardless of how the fluid is added to the hole. Question 4 regarding standing orders. On the diverter procedure, (steps 3 and 4) the knife valve should be completely open prior to the "bag" completely closing as required by 20 AAC 25.035(c)(2)(B). When the Inspector comes to witness the diverter function test, this is one item he will be looking for. Casing test pressure procedure: For this test, it is stated to use the kill line to pressure up the well bore. AOGCC regulations do not specify how a well should be pressured up for such tests, however it would seem appropriate to use the normal circulating path since that would have been employed to drill out some of the cement and that "flow path" is charged with the drilling fluid. The potential for having isolated fluid volumes freeze must be also considered. Depending on how the kill line is freeze protected, if it is used for the casing test it must then be blown out and freeze protected by whatever method Pelican Hill has chosen. Mud Pit Drawing: On the mud pit drawing, the total capacity number given (203 each tank) does not agree with sum of the individual 10f2 10/24/20031:31 PM ~t:: r-ermn uue::)luf1~ ~ .~ compartments. For tank 1 the sum of the compartments is 206.5 bbls and the tank 2 sum is 241.5 bbls). Are the compartment volumes given "brim full" or are these volumes the volumes at maximum working height?? Would you please clarify these volumes?? These points are not critical for my review, however I'd appreciate a reply as soon as practical.. Tom Maunder, PE AOGCC James Mosley wrote: Tom, Here is what I have sent to Arlen. If you need the original files let me know. Jim M. Drilling Consultant Well Digger Inc. email: mjily@ix.netcom.com Home: 907-694-4170 Cell: 907-350-6489 -----Original Message----- From: Tom Maunder rmailto:tom maunder@admin.state.ak.usl Sent: Thursday, October 16, 20032:20 PM To: arlenehm@gci.net Cc: Steve Davies; James I. Mosley Subject: Re: Permit Questions Thanks Arlen. We will look forward to the replies. Again, when do you think "spud" could be?? Please note our office is closed tomorrow since it is Alaska Day. Please call with any questions. Tom Arlen Ehm wrote: > Gentlemen: > > We are working on answers to the sets of questions that you presented > to us. I will answer Steve's questions. Jim is preparing answers to > Tom's 3, 4, 5, 7, 8, the subsequent question on a pit drawing and his > final question on casing integrity. These will be provided as soon as > they are completed. > > Thanks. > > Arlen ------------------------------------------------------------------------ Name: Reply to Tom Maunder.doc Reply to Tom Maunder.doc Type: WINWORD File (application/msword) Encoding: base64 20f2 10/24/20031:31 PM n.t:. I t:1111I'I. 'u(Ut:;)UVII;) ------ ~ Subject: Re: Permit Questions Date: Thu, 23 Oct 2003 11 :38:50 -0800 From: Tom Maunder <tom_maunder@admin.state.ak.us> To: Arlen Ehm <arlenehm@gci.net>, James Mosley <mjily@ix.netcom.com> CC: Steve Davies <steve_davies@admin.state.ak.us> Gentlemen: I have received the "packet" with the replies to my questions. I still have a few minor comments. Question 3 regarding drilling surface hole without the trip tank. You indicate that the PVT system will be rigged up as required and you have provided the trip sheets. You note that it is planned to pump out to run surface casing. You are correct that this will fill the hole, however the rig crew should still fill out a trip sheet to keep track of the volumes. Changes in pit level need to be monitored whenever pipe is pulled or run regardless of how the fluid is added to the hole. Question 4 regarding standing orders. On the diverter procedure, (steps 3 and 4) the knife valve should be completely open prior to the "bag" completely closing as required by 20 AAC 25.035(c)(2)(B). When the Inspector comes to witness the diverter function test, this is one item he will be looking for. Casing test pressure procedure: For this test, it is stated to use the kill line to pressure up the wellbore. AOGCC regulations do not specify how a well should be pressured up for such tests, however it would seem appropriate to use the normal circulating path since that would have been employed to drill out some of the cement and that "flow path" is charged with the drilling fluid. The potential for having isolated fluid volumes freeze must be also considered. Depending on how the kill line is freeze protected, if it is used for the casing test it must then be blown out and freeze protected by whatever method Pelican Hill has chosen. Mud Pit Drawing: On the mud pit drawing, the total capacity number given (203 each tank) does not agree with sum of the individual compartments. For tank 1 the sum of the compartments is 206.5 bbls and the tank 2 sum is 241.5 bbls). Are the compartment volumes given "brim full" or are these volumes the volumes at maximum working height?? Would you please clarify these volumes?? These points are not critical for my review, however I'd appreciate a reply as soon as practical.. Tom Maunder, PE AOGCC James Mosley wrote: Tom, Here is what I have sent to Arlen. If you need the original files let me know. Jim M. Drilling Consultant Well Digger Inc. email: mjily@ix.netcom.com Home: 907-694-4170 Cell: 907-350-6489 -----Original Message----- From: Tom Maunder fmailto:tom maunder@admin.state.ak.usl Sent: Thursday, October 16, 2003 2:20 PM To: arlenehm@gci.net Cc: Steve Davies; James I. Mosley Subject: Re: Permit Questions 1 of 2 10/23/2003 11 :39 AM t"\.e: r-ermn I...lue::)llun::i ~ Thanks Arlen. We will look forward to the replies. Again, when do you think "spud" could be?? Please note our office is closed tomorrow since it is Alaska Day. Please call with any questions. Tom Arlen Ehm wrote: > Gentlemen: > > We are working on answers to the sets of questions that you presented > to us. I will answer Steve's questions. Jim is preparing answers to > Tom's 3, 4,5,7,8, the subsequent question on a pit drawing and his > final question on casing integrity. These will be provided as soon as > they are completed. > > Thanks. > > Arlen ------------------------------------------------------------------------ Name: Reply to Tom Maunder.doc Reply to Tom Maunder.doc Type: WINWORD File (application/msword) Encoding: base64 Tom Maunder <tom maunder@admin.state.ak.us> Sr. Petroleum Engineer Alaska Oil and Gas ConseNation Commission 20f2 --..' 10/23/2003 11 :39 AM ~~ L..D 3 - 1-72- .2D3-173 - 3601 C Street, Suite 1378 Anchorage, AK 99503 (907) 272-1232 (907)272-1344 Fax info@Detroak.com Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Fax (907) 276-7542 RE: Pelican Hill Oil and Gas, Inc. lliamna prospect seismic data Dear Mr. Davies: I have interpreted the seismic data in the lliamna prospect area on behalf of Pelican Hill Oil and Gas, Inc. In the course of my interpretation, I saw no indication of any shallow gas accumulation in the area on the seismic data. Specifically, I observed no amplitude anomalies, phase reversals, or gas chimneys on any of the seismic lines at a depth of less than 2000 feet. The lliamna #1 well is located approximately 750 feet from the nearest seismic line and the lliamna #2 well is within 100 feet of a seismic line. Unfortunately, I cannot provide you with a copy of any of these seismic lines because the data are proprietary and Pelican Hill Oil and Gas, Inc. do not have any rights to show the data. Please let me know if I can be of further help to you. ~cereIY, OA' ........... \)~ e KJ~ Paul Daggett Staff Geophysicist r"1 r~ r-'" F" . J . - t"'( r-.- t '. V· r-D - . """"-, """"" ."-'c. - r:: OCT 2 3 2003 Alaska Oil & Gas Cons. Commission AnGhora~f 10/23/2003 14:20 FAX I4J 002 ~""1J"~'" ~ .~ .. ·fT· PEUCAN HILL Q~ &·GAS JNCQ October 23, 20G3 Tom Maunder, Senior Petroleum Engineer AOGCC 333 West 7th Ave., Ste. 100 Anchorage) AK 99501 DearT~ Please accept this authorization to allow Arlen Ehm to pick up the Illiamna # I & #2 permits at Trading Bay. Tills authorization is noted by my signature below. Thank: you for all of the work you and your· staff have done to help us forge a·successful driHing program at Tmding Bay. ti Sincerely~ PELICAN HJ:U.~n. &: ~S, INC. O~'tI.ë<t~ :.' Allen J. Gross .. President / I . 1401 N. EI Camino Real; Ste. 207, San Clemente, CA 92672 · Phone (949) 498-2101 . Fax (949) 498-2132 '- ---- @ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certification #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm@gci.net October 21, 2003 Mr. Tom Maunder Senior Petroleum Engineer AOGCC 333 W. ih Ave., Suite 100 Anchorage, AK 99501 REC'E:'-""-: 1\ ¡E~' < \~-..~j V"" LJ nc~""'')'"'' 2 2 'Jflrt) v~ ~ - ~tJiAJ !,Ia~ka Oil & Gas Cons. Commission Anchorage Re: Questions Regarding Plan of Engineering Tom: Attached are our combined responses to your questions: 1. Has the bonding issue been taken care of?? AE: You have advised me that the AOGCC has received the required letter of credit. 2. As you indicated, you are aware that the AOGCC should be notified in advance so that we may witness the function test on the diverter system, gas detectors and PVT system prior to drilling out of the conductor. This also applies for the BOP prior to drilling out of the 9-5/8" surface casing. The inspector may also desire to remain and witness the casing test and FIT/leakofftest. The contact numbers are 1-907-659-2714 or pager 1-907-659-3607. There is normally at least one Inspector on the slope at all times. To the extent practical, please try to avoid late night calls just to provide notice. Call earlier as appropriate. During business hours, you (or someone) may call Jim Regg at 793-1236 or myself at 793-1250. 24 hour advance notice is requested and given the more remote location additional notice might be appropriate. AE: AJ I of the above is duly noted. We will notify as indicated as early as possible. The necessary instructions will be posted on the doghouse wall. 3. A request has been made not to have the trip tank in place for the surface hole. In order for that to work, it is necessary that the PVT system be functioning properly and/or that one pit can be isolated and then the depth "stuck" or measured to determine how much mud the hole took (on TOR) or gave back on (on TIH). Are there trip sheets available at the rig?? Have all the specific capacities and displacements been assembled on a table to be easily accessible?? ..~. JM: The Totco PVT flow Show equipment will be fully rigged up prior to tripping pipe. If a need to fill the hole arises, then the Hole will be filled using the stroke counters and the Totco equipment. Trip sheets will be available on the rig for use to monitor any fill up events that are required. The rig will have a complete sheet of specific capacities and displacements for use on every hole section for the tubulars being used at the time. A copy of both the trip sheets and the specific capacities is attached. Additionally, the trip out of the hole to run the surface casing will be made using the top drive by pumping out of the hole. Because we will pump out of the hole, there will not be a need to fill the hole during tripping. 4. The Hole Section Notes on page 7 look to essentially be the "Potential Hazards Section" required by the regulations [20 AAC 25.005(c)(4)]. These appear to be specific to the surface hole, although there certainly are portions that apply to the entire well. There doesn't appear to be a specific section for the production hole section with the exception of what is included in the mud plan. The regulations require potential drilling hazards to be identified and posted so that all crew members are aware of what is possible [20 AAC 25.035(g) and 20 AAC 25.527(e)]. There is also a requirement for "Standing Orders". Basically this requires a notice that the driller has the responsibility and duty to shut in a well if there is an indication of flow. This may seem like common sense and it is, but we both know how uncommon common sense can sometimes be. JM: The Hole Section Notes for specific Drilling Hazards during the well was written so that the Drillers, Tool Pusher, and Company Man are aware of the potential drilling hazards. While one can not always predict every event that could occur, the intent here is to promote awareness of known hazards. Kick Tolerance and gassy Coals are the main hazards during the drilling of these hole intervals. The second part of item 4 concerns "STANDING ORDERS" associated with Shut in and Emergency Procedures. A recommended set of ST ANDING ORDERS for posting on the rig is attached. These include procedures for diverting a shallow flow with only the diverter rigged up and a shut in procedure for shutting in a kick with the BOP's nippled up. The AOGCC also requires that these standing orders identify that the Driller is responsible for shutting in the well. 5. You indicated that the completion plan might "change" . You are correct that any changes should be communicated to us. One item I see as written, in order to reverse in the packer fluid it is possible to carefully close the Hydril on the methanol control line by "dialing down" the closing pressure. Other operators have successfully employed the plans as written here. JM: At this time the recommended completion plan is being reviewed by Management. Any additional changes from the plan as submitted will be forwarded by the operator to the AOGCC in a timely manner. The currently proposed plan with the updated cement height shown on the picture has been emailed to Arlen. IUAMNA,. 1 PROPOSED WELL BORE COMPLETION SCHEMATIC Høle Si;?:e 14--314" from 14'1080' 1$-3/8".54.5#, K-55, Butt Casing at sO' RKB 13-3IS" 10 12.61" from 12- to 80' 255.6 Cubic Feet CHEMICAL USED FOR 1000' PROTECTION 10.0# Brine with Corrosion Inhibitor in Casing by Tubing Annulus TOP OF CËMENT TO FEET ABOVE HIGHEST HYOROCARBt "X" Nipple @ 4900' 5-1/2" by 2-7/8" @ 5000' wi Seal Bore Extension 2-7/S", Tubing @ 5200' 1246 Cubic Feet LTC MAV @ 5500' RKB TO 5500 FEET HOLE SIZE AND CASING AND TUBING ANNULUS CALCULATIONS - Total Hole 011' Cased Feet of Feet of Volume Depth of Hole Vol Hole Csg in Csg in Cased & Shoe in In Volume Open Cased Open Hole Feet Bbls/ft in Bbls/ft Hole Hole in Bbls Csg Disp/Ft in bbls/ft .Ann Vol Csg in Bbls Displ fromTD Bbls to Cellar Casing Cement Capacity Vol Reqd from RKB Excess % bbls in Bbls Casing Casing Hole Casing Size in Weight Size in ID in inches in PPF inches Inches 13.375 54.5 14.75 12.615 80 0.211 0.000 64 0 13.526 0.174 11.1216 2.404 50 3.606 12.367 NOTE Calculations based on top of cement at bottom of cellar. 9.625 32.3 12.25 8.921 550 0.146 0.155 470 64 78.406 0.090 48.0552 30.351 50 45.526 42.519 NOTE: Calculations based on top of cement at 16 feet RKB. ON SHOV TOe OF CEMENT IS TO BE AT: 3500.000 CEMENT HEIGHT: 2000 5.5 15 7.875 4.44 5500 0.060 0.077 4950 534 339.480 0.029 161.147 178.334 25 151 105.324 NOTE: Calculations based on top of cement at500 feet above highest Hydrocarbon Show assumed 3500' TOC. TUBING CALCULATIONS FOR ANNULUS VOLUMES AND CAPACITIES Casing Ann Vol Annular Depth of Vol Between Feet of Feet of Volume to Tubing Full Tubing Tubing Hole Tubing End of below Tbg and Tubing Tubing End of TBG Displ to Tubing Tubing Tubing Circulation Size in Weight Size in IDln Tubing Tbgin Casing Below Above Tubing in Disp/Ft Packer Capacity Capacity Capacity Volume to inches in PPF inches Inches in Feet BPF in BPF Packer Packer Bbls in BPF in Bbls in BPF to Packer to EOT EOT in Bbls 2.875 6.5 N/A 2.441 5200 0.019 0.011 200 5000 57.827 0.008 40.1461 0.006 28.940 30.098 87.925 6. In the mnd program section on the 12-1/4" open hole, we clarified that the surface casing is 9-5/8" not 8- 5/8" . . . AE: Initially, 8 5/8" casing was scheduled to be used. This was later changed to 9 5/8", but n ot all changes were caught on the Plan of Engineering. 7. In the wellhead installation section it is mentioned about preheating the casing and head prior to welding. Is post heating involved as well?? JM: Vetco has furnished an appropriate wellhead installation procedure that will be used to install the starting head. 8. It is noted to fax any BOP test reports in. We will make arrangements to get you electronic copies of the diverter and BOP test forms. Although you may not have email from over there, we do request that such reports be submitted in electronic form. JM The forms to use have been emailed to the rig and instructions concerning where to email same give to the Company man. 9. Regulations require that the "persons in charge" have taken approved well control training. This includes the Company Man, Toolpusher, and Driller [20 AAC 25.527(e)]. AE: We will have a drilling supervisor and two drillers on location. All will have current certification from an approved well control school. One other more urgent issue, when do you believe that the conductor hole might be spudded?? AE: Possibly by October 24 or 25, but no sooner. In the permit package, the BOP and choke manifold are all diagrammed out. There is no pit drawing. Could you please have Jim put one together. JM: A picture of the rig pits and circulating system showing volumes was requested to be included in the information on the rig equipment. This file is attached at the end of this submittal. In the submitted permit package, I did not find a shoe integrity procedure. Could you have Jim put one together?? Also, I believe that it says that the casing test on the 9-5/8" casing will be done bumping the plug while cementing. The normal procedure I have seen done is to pressure test the casing immediately prior to drillout and establish a pressure versus volume pumped line and then use that same "plot" to verify how the . . integrity test or leak off test goes. With the casing drilling hook up maybe there is something different. Please check with your "associates" and confirm if the test is possible immediately prior to drillout. JM: The casing pressure test will be conducted immediately prior to drilling out the shoe. The casing pressure test will be followed by the proposed shoe integrity test. STANDING ORDERS DIVERTER PROCEDURE FOR USE DURING DRILLING WITH THE DIVERTER IS RIGGED UP. The driller has the responsibility and the duty to shut in the well or divert the well if a flow is detected. The following procedure is to be used in the event of a shallow flow with only the diverter rigged up. 1. Leave the pumps running while the pipe is pulled to a point where a tool joint is not in the diverter bag. 2. Shut down pumps and sound alarm for all hands to assemble at muster point. 3. Close the diverter bag 4. Open the knife valve on the 12" flowline 5. Shut down all engines and any potential source of sparks. 6. Muster with all hands at the muster station for instructions and head count. 7. Evaluate the situation and notify the drilling superintendent ASAP. NOTE: DIVERT AND DESERT IS THE RULE!!!!! SHUT IN PROCEDURE WHILE PIPE IS IN THE HOLE & BOPS NIPPLED UP The following procedure will be used to shut in the well if a well control event occurs. I. Stop drilling and sound the alarm. 2. Pick up the drill string until bare pipe is across all of the BOPS and wellhead equipment. Ensure that drill bit is at least three feet off bottom. 3. Stop the pumps and check for flow. 4. Ifthe well is flowing, open the HCR valve and close the annular preventer 5. Close the choke to secure the well in a shut in condition. 6. Confirm that all flow has stopped and that the well is shut in. 7. Allow a few minutes for pressures to stabilize. 8. Read and record the Shut In Drill Pipe Pressure (SIDPP), and Shut in Casing Pressure (SICP). 9. Record the pit level increase. 10. Notify Supervisor and muster all hands for instructions. . PELICAN HILL OIL AND GAS CORP WATER RESOURCES RIG ILlAMNA PROSPECT . MD Ft.: TVD FT.: MW ppg: Start Time: DATE: Finish Time: DRILLER: Reason for Trip: TRIP SHEET Number of stands to have top of DC's one DP stand below BOP'S PULL ON () ( ) Single ( ) Double DISPLACEMENT: DC1 DC2 Other Other DP1 DP2 SIZE 6"x2-1/4",83# 7"x2-13/16", 110# 5-1/2"x15# 2-7/8" 6.5# 3-1/2"x 13.3 4-1/2"x 16.6# bblslft 0.03005 0.0402 0.00535 0.00224 0.005 0.00637 x Feet = Vol (bbls) CAPACITY: bblslft 0.00491 0.00731 0.0238 0.00578 0.0074 0.01419 x Feet = Vol (bbls) HOLE FILL Hole Fill TRIP TANK STROKES to (Bbls) per (bbls) per DISCREPANCY STAND NO. GUAGE fill Increment Increment Accumulated per Increment Accumulated REMARKS CASING PRESSURE TEST PROCEDURE 1. Run in hole to top of cement and prepare to drill out cement Tag cement and con:flrn1 that the cement is hard. Drill to within 40 feet of shoe and circulate out. Do not drill shoe joint until after the casing pressure test. 2. Shut down pumps and confirm weU stands static and is balanced inside and out. 3. Close annular preventer and open HCR valve so that wen is lined up to the hydraulic choke. Pump through the kill line and across the top of the BOP stack taking returns to the choke line. This will flush any air out of the system and help ensure that the pressure up results are not invalid due to air. 4. Ensure that the hydraulic choke is closed. Perform casing pressure test as follows: 5. Pump 1¡4 bbl and record Drill pipe pressures as seen on standpipe and casing pressure as se.en on choke manifold. 6. Plot as each 1¡4 bbl is pumped the pressure versus total amount pumped. See examplegraphbeløw. It is suggested that the pump volume used be pumped out of the trip tank and bled back to the Trip tank so that calculated strokes and bbls can be compared. The casing pressure test will later be compared to the leak off test so that the slope of the pressure ups can be used to validat¢theleak off test data. 7. Continue pumping the 1¡4 bbl increments until the desired casing test pressure has been achieved. 8. Shut down the pressure up at the desired amount and hold pressure on the casing 9. Report the initial and final test pressure on the daily drilling report and on theIADC report NOTE: if the pressure bleeds offmore than 10%, the test not valid. Ensuring that there is no in the system prior to the test will eliminate the possibility of air causing an invalid test result. 10. Bleed off all of the trapped pressure using the hydraulic choke. Open the annular preventer and close the HCR valve. 2500 TYPICAL CASING PReSSURE TEST 500 n n. .n .. .n ... 'n n ... .. .. ... ... .. ... .. .. ... ~ ~ -- .n .. ... .. '. .n .. .. ... ---- '. ... '. .. .. .. .. n ... .. .. .. .. ... .. ... ... .. I.. '. .. n .. ... '. ... .. ... .. .. .. ---- ... .. ---- ... .00 - ¡.. .n .. ... .. n ... * : .. ... ... - I ... .. .. .. 'n '. 'n ... I··· .. ... .. ... ... ... .n ... '. ... .. ... .. .. .. ... ... ... ... 'n n ... '.. ---- "1" ... ... ... 'n .. .. .. .. .. ... ... .. .. ---- ... .. ... '. .. .. .. I·· I··· .. '. .. n .. .. ... -.-- '. ... ... n ... .. ¡.. .n '. .. ... ... .. .n '. .... .. ... ... ... .. ... ... .n ... ... ... .n .... I·· n .. ------ j... .. ". ... .. .n ---- --- n I··· .. .n n .. ... .. 00 ... ... n ... .n f·· .. ... n .. .... ... '" ... In J J { n. .n n n n '. n. .. .. f ... .. .. .... ... ... ~._- ... ... ~ ... ----- .. ... '.. ... .. .. n I·· ... ... .. .n .. ··1..+·· '.. '. ... ... 1'00 ... I.. n... .. ... .. '. ". -I.. P t ; ~N G P R ES S UR E T ES T I..· .n n _n _~~~~~ ... .. ... .. ... ----- ···f· '.. n. .+. .. .. .. --.. ·+·1····· .I I I I I I --- .. ... .. ... .. n. .. .. .n I I I 5.00 10.00 15.00 20.00 25.00 BSlS PIIM PEO 30.00 3500 40.00 2000 1500 ië .5 f! " to to e II.. 1000 o o 00 TEST PROCEDURE 1. Drill out shoe and cement below shoe if any. Drill25 feet of new hole below the shoe and circulate the hole clean, 2. Pull up hole and position the casing shoe to be tested. 3. Shut down pumps and confirm well stands static and balanced inside and out. 4. Close annular preventer and open valve so that well is lined up to the hydraulic choke. 5 Ensure that the hydraulic chokeis closed. Perform leakoff test as follows: 6. Pump 1!4 bbl and record drillpipe ptessuresasseenon standpipe and casing pressure as seen on choke manifold. 7. Plot as each 1;4 bbl is pumped the pressureversustota.l amountpumped. example graph below. Compare pressure up to the original casing pressure test. Both should have the 8. Continue pumping the 1!4 been observed or until the pressure needed to meet has been reached. . The test will be either a jug test called Integrity Test" or a "Leak Off Test" depending on whether a observed or not. 9. Bleed off all of the trapped pressure using choke. Open the annular preventer and close the HCR valve. 10. Report the test results on the daily report and on the IADC report. 11. Calculate leak off or pressure integrity as follows: Leakoff expressed inPPG Equivalent Mud Weight =;: .MudWeight + (Test. Pressure or Pressure at LEAK OFF)I (.052)(Depth of Shoe in TVD feet) NOTE: If the leak off test is unsatisfactory or too the Superintendent ASAP for decision on remedial volumes, and recipe. TYPICAL lEAK OFF TEST 2500 500 ·--f-- n .. .. .. . I·n , .. -- .. .. .. ... __I·· . ..ILL. .. .. .. .. ... .. ,.. ... . .. · . ·.1__ .... n .-- . · ... n n ·c-- . · · n .. I·.. n . n' n .. . .n .. ,-- ... ... n n .. .. · ... ·r·· .. .. -- ., ... .. .. n i·· i·· n .. . .. . n .. ... .. -- ... ... .. · . ... .. . .... I,· ... .. .. . 1__ ... ..... -- ,-- -- -- .-- ,... .. .. ¡.,. ,.. -- ." ... .. ... ... ... ,.. .. .. .. . .. .. .-- . .. -- ... .. .. .. .. ... I·· ... ..:: --.. ... . ... ... ... .. -- . .. .. . .. .,. ... 'C. . .. .. ... m .. n .. ... nl.. . ... . ,... .. ,.. ... .. .. .. · -..~ n ..... n .. .. ... ,. .. n n n .. n ... .. 'n · n· .. ... .. · .. .. n .. n · · .. ...¡... ,n . n · ... .-- ... . n _._- .. -- · .. ... ,. · · .. n. .. .. -- . .. ... · · .. . ... ... .... . n' .. ... . .. ... n . . .. .. . .. . ... .. .. n .. .. n -- · .. .. .. .. ... .. .J. 2000 I- f/) a.. 1500 c e I ~ 1000 a.. 0.00 5.00 10.00 15.00 20.00 25.00 BBlS PUMPED 30.00 35.00 40.00 . . The following schematic identifies the mud tank capacities on the rig. Ô 4'by4'by5'= 12.5' by 8' by 5' = 89 bbls 12.5' by 8' by 5' = 89 bbls 14.25 bbls SUCTION PIT SUCTION PIT Ô 4' by 4' by 5' = 14.25 bbls TANK NUMBER 1 HOLDS 203 bbs 8 by 10 by 5 feet = 71 bbls 8 by 10 by 5 feet. = 71 bbls 8 by 10 by 5 feet = 71 bbls 4' by 8' by 5' = 28.5 mud settling rank bbls SETTLING Tank Desilter suction SAND TRAP TANK NUMBER 2 HOLDS 203 bbls I trust that this information adequately answers your questions. Sincerely, ~~ Arlen Ehm Ene. Cc: Al Gross ~e:One More Question (I hope) . . Subject: Re: One More Question (I hope) Date: Wed, 15 Oct 2003 16:59:20 -0800 From: Tom Maunder <tom_maunder@admin.state.ak.us> To: Arlen Ehm <arlenehm@gcLnet>, Steve Davies <steve_davies@admin.state.ak.us> Arlen, Thanks for stopping by. You had me "worried" that I would have to stand you up due to the meeting commitment I had. I hadlhave no doubt that you will get an answer to the questions that Steve and I have posed. Speaking of which... / In the submitted permit package, I did not find a shoe integrity procedure. Could you have Jim put one together?? Also, I believe that it says that the casing test on the 9-5/8" casing will be done bumping the plug while cementing. The normal procedure I have seen done is to pressure test the casing immediately prior to drillout and establish a pressure versus volume pumped line and then use that same "plot" to verify how the integrity test or leak off test goes. With the casing drilling hook up maybe there is something different. Please check with your "associates" and confirm if the test is possible immediately prior to drillout. Thanks 'Q'r\- ~'-IJ\ "s, / Tom Maunder, PE AOGCC Tom Maunder wrote: > Arlen, > I had one other engineeringlrig question. > > In the permit package, the BOP and choke manifold are all diagrammed out. > There is no pit drawing. Could you please have Jim put one together. > Thanks much. > Tom Maunder, PE > AOGCC > > Tom Maunder wrote: > > > Arlen, > > Further to our conversation, I have the following engineering questions. » > > 1. Has the bonding issue been taken care of?? - Ð\ ~ ~...'\ c:." '> 0 ('.~o\ ~ ~ > > 2. As you indicated, you are aware that the AOGCC should be notified in > > advance so that we may witness the function test on the diverter system, > > gas detectors and PVT system prior to drilling out of the conductor. > > This also applies for the BOP prior to drilling out of the 9-5/8" > > surface casing. The inspector may also desire to remain and witness the > > casing test and FIT/leakoff test. /' > > The contact numbers are 1-907-659-2714 or pager 1-907-659-3607. There V > > is normally at least one Inspector on the slope at all times. To the > > extent practical, please try to avoid late night calls just to provide > > notice. Call earlier as appropriate. During business hours, you (or > > someone) may call Jim Regg at 793-1236 or myself at 793-1250. 24 hour > > advance notice is requested and given the more remote location > > additional notice might be appropriate. > > 3 A request has been made not to have the trip tank in place for the > > surface hole. In order for that to work, it is necessary that the PVT > > system be functioning properly and/or that one pit can be isolated and > > then the depth "stuck" or measured to determine how much mud the hole 1 of'lr 10/16/200310:38 AM ~e:, One More Question (I hope) . / . > > took (on TOH) or gave back on (on TIH). Are there trip sheets available > > at the rig?? Have all the specific capacities and displacements been > > assembled on a table to be easily accessible?? > > 4. The Hole Section Notes on page 7 look to essentially be the > > "Potential Hazards Section" required by the regulations [20 AAC > > 25.005(c)(4)}. These appear to be specific to the surface hole, > > although there certainly are portions that apply to the entire well. > > There doesn't appear to be a specific section for the production hole > > section with the exception of wHat is included in the mud plan. The > > regulations require potential drilling hazards to be identified and > > posted so that all crew members are aware of what is possible [20 AAC > > 25.035(g) and 20 AAC 25. 527(e)}. There is also a requirement for > > "Standing Orders". Basically this requires a notice that the driller > > has the responsibility and duty to shut in a well if there is an > > indication of flow. This may seem like common sense and it is, but we > > both know how uncommon common sense can sometimes be. > > 5. You indicated that the completion plan might "change". You are > > correct that any changes should be communicated to us. One item I see /' > > as written, in order to reverse in the packer fluid it is possible to > > carefully close the Hydril on the methanol control line by "dialing > > down" the closing pressure. Other operators have successfully employed > > the plans as written here. > > 6. In the mud program section on the 12-1/4" open hole, we clarified V > > that the surface casing is 9-5/8" not 8-5/8". > > 7. In the wellhead installation section it is mentioned about V > > preheating the casing and head prior to welding. Is post heating > > involved as well?? > > 8. It is noted to fax any BOP test reports in. We will make > > arrangements to get you electronic copies of the diverter and BOP test -/ > > forms. Although you may not have em ail from over there, we do request > > that such reports be submitted in electronic form. > > 9. Regulations require that the ''persons in charge" have taken approved ./ > > well control training. This includes the Company Man, Toolpusher, and V > > Driller [20 AAC 25.527(e)]. » > > All in all, I think the package submitted is reasonable. As noted in > > our conversation, it is our expectation that what will ultimately be > > executed will be substantially similar to what has been submitted. If > > there are marked deviations from this plan, then notice of changes > > should be provided to the Commission according to 20 AAC 25.015. » > > Please call me at 793-1250 or Steve Davies at 793-1224 as appropriate. » > > One other more urgent issue, when do you believe that the conductor hole > > might be spudded?? . » > > Tom Maunder, PE > > AOGCC v '"'^'-'"'~~.",-",-,,,~-- ·^·M·~^~"~~,_~'~""~.''''"_,"~"_~~HH_'U"U ·M·_·."·_·^·"~_'""",,~~~"~,,_W··'·' Tom Maunder <tom maunder(á)admin.state.ak.us> Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 20fZ^ ~'UUHWWU""W""wmuu_muu """" " ~_wmH~'^'"M"","" 10/16/200310:38 AM l!ia(TIna 1~ Questions Concerning Permit to Drill Application . . Subject: lliamna 1: Questions Concerning Permit to Drill Application Date: Tue, 14 Oct 200318:57:45 -0800 From: Steve Davies <steve_davies@admin.state.ak.us> To: Arlen Ehm <arlenehm@gcLnet> CC: Tom Maunder <tom_maunder@admin.state.ak.us> Arlen, Here are a few questions that I have based on my initial review of the lIiamna #1 permit to drill application: The Kustatan Ridge #1 exploratory well drilled by Shell during 1967 is located about 1-1/2 miles north of lIiamna #1. Kustatan Ridge #1 encountered a gas kick after tripping into the hole with a new bit at 2365'. The rig crew increased the weight of the drilling mud from 73 to 82 pounds per cubic foot (about 9.8 to 11.0 pounds per gallon), and drilling continued. The mud logger's gas chromatograph recorded methane up to 200,000 ppm. This was not an insignificant event. They took their kick with 9.8 ppg mud in the hole. Page 3 of Pelican Hill's application suggests suggests this same interval will be drilled using only 10.0 ppg mud. 1. Was the Kustatan Ridge #1 kick considered while designing the mud program for lIiamna #1? 2. Why does the mud program designer feel that 10.0 ppg (a safety factor of only about 0.2 ppg) mud will be sufficient to drill this interval? 3. What contingencies are planned to control a gas kick? 4. Since Pelican Hill does not plan on having a mudlogging crew on site, who will be responsible for installing, calibrating, monitoring, maintaining, and testing gas alarms? What is their level of experience and training with this system? 5. Does Pelican Hill have gas monitoring, maintenance, and alarm-response orders written for the drilling crew that will be posted on the rig floor? In lieu of a manned mudlogging unit, Pelican Hill proposes to utilize an electronic data system. 1. Who will install, calibrate, maintain, monitor, and test the electronic system utilized to conduct "remote mudlogging"? What is their level of experience and training with this system? 2. Will there be a well site geologist on location at all times during drilling operations? 3. What information will be available to the well site geologist on location from the electronic mudlogging system? 4. If Pelican Hill does not plan to have a geologist onsite at all times, how will the geologist be kept informed events on the rig and how will the geologist be kept informed of information derived from the electronic mudlogging system? What will be the delay time in getting that information to the geologist? Regulation 20 AAC 25.030 (c)(3) states that "surface casing must be set below the base of all strata known or reasonably expected to serve as a source of drinking water for human consumption and at a depth sufficient to provide a competent anchor for BOPE." 1. What factors were used to determine the 550' setting depth for surface casing? 2. What is the distance to, and the depth of, the nearest drinking water well or surface source of drinking water? 3. What evidence do you have that casing at such a depth will protect potential sources of drinking water? 1. Salinity calculations from logs in offset wells? 2. Water analyses from those wells? Thanks for your help. Steve Davies 1 of 1 10/16/200310:37 AM . . R R 15 14 W W 30 29 SCALE: I" = 2000' 25 36 1578' ltLlAMNA 1 (SET 5/8" REBAR) 2480' 31 32 Well Name Northing Easting Elev ILlAMNA 1 2499737.76 1314210.55 203.83 R R 15 14 W W T9N T8N r o Units:U.S. Survey Feet Horizontal Datum:NAD 83 Coordinate System:State Plane; Zone 4 Vertical Datum:NAVD 88 Horizontal locations are based on the NGS published coordinates for KUSTATAN RESET of (N2459304.37, E1326298.47) Elevations were generated using RINEX data from CORS Stations TLKA (Talkeetna CORS ARP) and KEN1(Niki USCG B); ELEVATIONS ARE +1- 5' SECTION LINES ARE DRAWN USING PROTRACTED COORDINATES. F. Robert wœm ij GJ~~rnœo LOCA TION OF PELICAN HILL OIL & GAS INC. WELL LOCATION FOR ILlAMNA 1 SEC. 31, T 9 N, R 14 W, S.M., AK 801 WEST FIREWEED LANE SUITE 201 ANCHORAGE. ALASKA 99503-1801 PHONE (907)-274-5257 PREPARED FOR: PELICAN HILL OIL AND GAS INC. DRAWN BY: JZW CHECKED BY: CBS JOB NUMBER: 2003-510 1" = 2000' SCALE: ENGINEERS AND LAND SURVEYORS . . ¡g ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certification #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm@gci.net October 10, 2003 Ms. Sarah Palin, Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Re: Drilling Permit Pelican Hill Oil and Gas Iliamna No.1 Dear Ms. Palin: Attached is an application for a drilling permit and a plan of engineering covering those operations. Also included is a Plan of Operations that was filed with the Division of Oil and Gas. For your information, we are also filing a nearly identical application for Iliamna No.2, which is within the same prospect area. Application for permits has also been made to other pertinent state, borough and federal agencies. As all of the industry is aware, Governor Murkowski is in the process of streamlining the permitting process for oil and gas projects. The Governor recently asked Pelican Hill to keep him apprised of all correspondence to state agencies relative to the obtaining of permits. Therefore we are providing his office with a complete set of pertinent permit applications. Sincerely, ~~ Arlen Ehm Geological Consultant Ene. :.~ Ce: Governor Murkowski Al Gross, Pelican Hill Oil and Gas OR'G\~\!t\L STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 1b. Type of well Exploratory X Stratigraphic Test 0 Development Oil 0 Service 0 Develo ment Gas 0 Sin Ie Zone 0 Multi Ie Zone 0 5. Datum Elevation (DF or KB) 10. Field and Pool 203.8 Feet 6. Property Designation ADL 388133-1 7. Unit or Property Name lIiamna 8. Well Number 1 9. Approximate spud date Octoberij)2003 14. Number of acres in property .. e. 1 a. Type of work Drill X Redrill 0 Re-ent 0 Dee en 0 2. Name of Operator Pelican Hill Oil and Gas Inc. 3. Address 1401 N. EI Camino Real, Suite 207 San Clemente, CA 92672 4. Location of well at surface 1578' FNL & 2480" FEL Sec.31 -T9N-R14W At total depth Same 12. Distance to nearest property line 3,702' 6,933' 16. To be completed for deviated wells Kickoff depth feet Maximum hole angle 0 18. Casing ro ram size S ecifications Hole Casin Weight Grade Coupling 13. Distance to nearest well ,4-'°/<>-3 None 11. Type Bond (see 20AAC25.025) Irrevocable letter of credit to be suppliéd Amount $200,000 15 Proposed depth (MD and TVD) 4,400 5,500 MD 5,500 TVD 17. Anticipated pressure (see 20 AAC 25.035 (e)(2) Maximum Surface 1749 psig. At total depth 5500 feet (TVD) 2574 psig Settin Length MD 60' 0' 550' 0' 5,500' 0' 80' 550' 5,500' 143/4" 121/4" 77/8" 13 3/8" 9 5/S" 51/2" 54.40# 32.30# 15.5 R-3 H-40 J55 Buttress Buttress Buttress 0' O' 0' 80' 550' 5,500' 5-1/Z' 27/8" 6.50# K-55 EUESRd 5,500' 0' C 19. To be completed for Redrill, Re-entry and Deepen Operations Present well condition summary 0' 5,500' 5,500' 20. Attachments: Filing Fee X Property Plat X X Alaska BOP Sketch X Diverter Sketch X Drillin Fluid Pro ram X Time vs De th Plot X 20AAC25.050 Re uirements X 21. I hereby certify that the foregoing is true and correct to the best of my knowledge Permit Number API Number Commissioner ORIGINAL Quantit of cement 1Ssx=20CF 192 sx = 283 CF TBD Based on top of Shows Plan is for 191 sxs Lead + 149 sxs Tail = 347CF lead + 173 CF Tail None RECErv~· ~. 1 0 Date c: ~~'Âb . . PELICAN HILL OIL AND GAS, INC. DRILLING PROCEDURE ILIAMNA NO.1 & NO.2 By Jim Mosley, Well Digger Inc. Drilling Consultant for Arlen Ehm - Geological Consultant Pelican Hill Oil and Gas, Inc. and Truman Hicks -Drilling Supervisor Pelican Hill Oil and Gas, Inc. ILIAMNA DRILLING PROCEDURE REV Pelican Hill Oil and Gas, Inc. Page 1 10/10/03 . . TABLE OF CONTENTS AOGCC WAIVERS REQUESTED IN TIllS PERMIT TO DRILL........................................................... 3 RIG PREPARATIONS AND PREDRILL ACTIVITIES...........................................................................4 PRESPUD AND INITIAL RIG UP OPERATIONS..................................................................................5 SPUD IN, DRILL 14-3/4" HOLE TO 80 FEET, RUN AND CEMENT 13-3/8" ........................................ 6 DRILL 12-114" HOLE TO 550 FEET, RUN AND CEMENT 9-5/8" CASING.......................................... 7 NIPPLE UP AND TEST BOPE AND ..ACCUMULATOR....................................................................... 8 BOPE SCHEMATIC FOR BOPE TEST REPORT ................................................................................. 10 DRILL 7-7/8" HOLE TO 1D AND SET 5-112" CASING WITH CASING DRILLING TOOLS ............. 13 NIPPLE UP TUBING SPOOL, RUN LOGS AND TUBING WITH PRODUCTION PACKER .............. 14 ATI ACHMENTS TO DRILLING PROCEDURE. ........... .... .................... ...... ............................ ............ 15 MUD PROGRAM.................................................................................................................................. 16 PROPOSED FRACTURE GRADIENT AND MUD WEIGHT CHART .................................................29 CASING PROGRAM, CASING SAFETY FACTORS AND BOPE RATINGS ...................................... 30 BJ SERVICES CEMENT PROGRAM.. .............. ............. .................... ...... ......................... ........ ........... 31 LOCATION LAYOUT FOOTPRINT DRAWING ................................................................................. 43 RIG LAYOUT WITH DIVERTERLINE IN PLACE ............................................................................. 44 DIVERTER ST ACKUP DRAWING. ............... ............................... .......... ............ ............... .................. 45 DIVERTER CLEARANCE DRAWING SHOWING KNIFE VALVE LOCATION................................ 46 BOP EQUIPMENT STACKUP WITH SURFACE WELLHEAD AND SPACER SPOOL...................... 47 BOP STACKUP WITH PRODUCTION CASING WELLHEAD AND TUBING SPOOL ...................... 50 CHOKE MANIFOLD ...... ........................ ............. .................. ....................... ............................ ............ 51 ACCUMULATOR VOLUME REQUIREMENTS AND BELL NIPPLE DESIGN ................................. 55 BELL NIPPLE DRAWING FOR USE ON ALL THREE NIPPLE UPS.................................................. 52 SWAB KICK TOLERANCE CHART .................................................................................................... 53 PRESSURE KICK TOLERANCE CHART ............................................................................................ 55 PROPOSED WELLBORE SCHEMATIC .. .......... ........... .................... ........................... ...... .............. .... 57 PROPOSED DAYS VERSUS DEPTH CURVE ..................................................................................... 58 PROPOSED COMPLETION SCHEMATIC..... ......................... .... .................... ......................... ........ .... 60 PROPOSED XMAS TREE AND WELLHEAD EQUIPMENT SPECIFICS ........................................... 61 ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 2 10/10/03 . . AOGCC WAIVERS REQUESTED IN THIS PERMIT TO DRILL 1. Use of a diverter line sizing of 12" which is W' smaller that the size of the surface hole bit. 2. Use of threaded outlets on choke and kill lines. The maximum anticipated surface pressure is expected to be less than 2000 psi and a waiver from the rigid lines requirements is requested. 3. Use of existing BOP control line hoses is requested. These hoses are not annored like coflexip. The accumulator control lines will be run in a tray and wrapped with fire protection insulation across the intervals in the substructure where the lines are not run in protective trays. 4. Use of crossovers on the 3-1/2" TIW and mop is requested in lieu offull opening valves. The Planned Casing Drilling Operation is not conducive to utilizing a 5-1/2" TIW or mop. Therefore, approval of the use of3-1/2" drill pipe size equipment is requested. 5. Drilling of the surface hole to a depth of 5 50 feet without the use of a trip tank is requested for the following reasons. The interval will be drilled with a top drive and the space limitations on location are such that the diverter line occupies the space required for the existing trip tank and choke manifold. The trip tank will be set once the diverter operation is finished and the diverter line nippled down. 6. A waiver from the requirement of using manned mud logging operations and of collecting, washing and retaining a set of well samples is requested. The well density in the general area is such that no significant additional knowledge will be gained by having personnel on location to catch samples and to mud log. Remote mud logging will be conducted via electronic monitoring and this log will be provided to the AOGCC. 7. A waiver from the requirement for wellbore surveys while drilling is requested. Casing drilling operations do not trip the pipe or BRA. while drilling and have produced straighter holes than those with normal drilling assemblies. Directional surveys are normally taken with either wireline or MWD. Casing drilling operation are planned and these operations have produced straighter holes than those with standard drilling assemblies. This well is planned as a relatively shallow 1/ straight hole and will be directionally surveyed after completion. 8. A waiver to stop the leak off test of the surface shoe at 14.0 ppg EQ is requested. The well plan anticipates using 10.0 ppg mud for the interval from the surface casing shoe to total depth. The anticipated fracture gradient at 550 feet is about 14.0 ppg EQ. The operator does not see any benefit to breaking down the shoe during leak off testing. 9. A waiver from the requirement to maintain H2S protective equipment on site is requested. This well is planned as a shallow sweet gas test of previously identified reservoirs that have not / encountered H2S in nearby wells. Drill stem testing is not planned and, consequently, there will not be any H2S encountered. The operator will maintain gas detection equipment in strategic ,I areas so that any gas or H2S will be detected and the appropriate response can be made safely. 10. A waiver of the distance requirements for the spacing of equipment from well bore is requested. This compact rig and its support equipment make a very small footprint, which requires that a lot of support equipment be placed within short distances from the well bore. All ignition sources, except the drawworks engine, are within their own buildings or are at, a minimum, separated by other building housed rig components. For example, the accumulator is about 20 feet from the wellbore, but separated from it by a water tank and the accumulator house. NOTE: That this request does not include the diverter line, which will be as per the regulations. 11. The elimination of open hole logs is requested. Well density in the area make the surface hole log unnecessary. Given the Casing Drilling operations do not nonnally provide for tripping, open hole electric line logs are not obtained. In lieu of open hole logs, Pelican is planning on running a cased hole log to identify gas bearing intervals. A waiver from the logging requirements is requested. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hìll Oil and Gas, Inc. Page 3 10/10/03 . . RIG PREPARATIONS AND PREDRILL ACTIVITIES 1. Finish building rig pits, installing electrical lines, piping, and instrumentation equipment. 2. Install and fit test top drive casing drilling system. Dismantle it and prepare top drive equipment for shipping. 3. Install accumulator in trailer with air compressor and storage units. 4. Preinstall pit monitoring and gas detection equipment. 5. Prefabricate and procure wellheads, bell nipple, BOPE stack, hydril, accumulator lines, spacer spools, diverter lines, and drilling spool. 6. Procure water tank and cuttings holding tanks. Ensure that water tank has steam lines installed. 7. Obtain and prepare to ship sufficient matting boards and matting to double layer under rig and to cover the location and roads as per the land use agreement and DEC approval. 8. Contract for trucking to haul and deploy rig rrom yard to North Star Terminal. Rig is 21 loads plus top drive and composite matting boards. 9. Contract for a barge company to move rig and associated equipment to Trading Bay Production Facility barge landing.. 1 0. Contract for surveyors to survey and stake location and provide plat for the location. 11. Share the costs of drilling a water well with UNOCAL at the TBPF. 12. Contract for a vacuum truck at site. A super sucker vacuum is preferred so that cuttings movement can be handled with the vacuum, truck if necessary. 13. Arrange for Bulk Cement to be delivered to the site. Arrange for additional barge shipments as needed. Cementing equipment should include at a minimum: two bulk silos for storage of cement at the TBF; one bulk truck for use to move per job cement volumes to the well site; one bulk hopper for the well site; and a cement mixing plant and pump for mixing and displacing cement into the casings and wellbore. The cement jobs are expected to be pumped as two stage jobs with one stage of bulk in a bulk tank and the other in the bulk truck. Sufficient heated water on location will be required to mix each cement job. See cement plan for details on bulk volumes, mix water requirements, chemical additives, etc. 14. Prepare Tubular Products and Casings for Shipment to West Side. 15. Move sufficient fuel and fuel storage tank to West Side. Rig Tank is 10,000 gals. Ensure that at least 20,000 gals are on hand. 16. Move steam generator to the Trading Bay facility and have same prepared in a standby mode for moving to rig site and temporary use during cold weather and prior to cement jobs. 17. Function test accumulator and BOP's prior to moving to West side. Ensure that accumulator has environmentally rriendly hydraulic fluid. 18. Check all radiators and ensure that all radiators have been flushed and filled with environmentally rriendly antirreeze suitable for minus 30 degrees. 19. VerifY that all drilling assemblies and crossovers have been inspected and will screw together. 20. Ensure that a back up set oftools are available for each drilling assembly. 21. Ensure that a TIW valve and an mop are available for the 3-1/2" Drill pipe and for the 5-1/2" Casing. A crossover on each rrom drill pipe to casing thread is acceptable provided that the valves will test. 22. Prepare diverter lines with RF 150 flanges in advance and have at least two 25 foot pieces and one 5 foot piece with flanges preinstalled. Note: one 25 foot piece can have flanges on one end only. 23. Ensure that 2 foot sub and ramp are ready to be transported to West Side. 24. Ensure that sufficient mud products are delivered to the West Side. 25. Ensure that bell nipple has been fabricated to match the attached drawings. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 4 10/10/03 . . PRE SPUD AND INITIAL RIG UP OPERATIONS 1. Install interlocking rig mats on location and roadway. See location drawing and roadway route drawings for details on areas to be covered with interlocking mats. 2. Install impermeable barrier of pit liner material over roadway and location. This will be placed over the matting. 3. Place 6" Board mats where substructure is to be placed. 4. Dig and install 7-foot diameter cellar and place mats as needed to allow access to the cellar. 5. Set 2-foot substructure base and back rig in. Set remaining substructure. 6. Set mud tanks and begin hooking up lines and instrumentation. 7. Set mud pumps, and generators and hook up ail lines and valves. 8. Set water tank and place doghouse on top. Plumb water tank 9. Place accumulator building. Fill pits and solids control equipment with water. Leak check all fittings, hoses valves, etc. Set trip tank as per location rig up drawing. NOTE: After rigging down the diverter lines the trip tank will be turned around so that the choke manifold and gas buster can be rigged up. 10. Set gas buster and hook it up to the rig pits. Note: the gas buster will not be used during the first 500 feet of drilling. 11. Layout diverter lines ready to bolt together and anchor line. 12. Put 13-5/8" wellhead, diverter spool and hydril into end compartment of substructure. 13. Set catwalk and V-door slide. 14. Set remaining ancillary equipment, doghouse mud logging shack, tool sheds, etc. 15. Install containment berm around all rig components. 16. Begin filling water tanks, mud pits, and fuel tanks. 17. Prepare to raise mast 18. Fire up generators, heaters, steam generator, and air compressors. 19. Fire up rig engines and mud pumps. 20. Layout guy wires and check all of the mast for verification that it is ready to raise. 21. Raise mast from horizontal to vertical. 22. Telescope up the upper portion ofthe mast and pin it. Secure guy wires and anchors. 23. Set Tesco top drive power unit and hydraulic lines. 24. Begin mixing spud mud. 25. Install the cellar jet pump and plumb it to put returns across shaker. 26. Set top drive rails on catwalk and begin installing it in mast. 27. Set top drive unit on catwalk and pick it up with blocks. Install TBAR stiffener to top drive and hook up Kelly hose and hydraulic hoses. 28. Set 6" drill collars and BRA on catwalk. Pick up 14-3/4" drilling assembly and prepare to drill to 80 feet. 29. Set pipe racks and cuttings tank. Place two joints of 13-3/8" casing on pipe racks. 30. Place sufficient drill pipe on pipe racks to drill to 550 feet. Place 12-1/4" tools on end of catwalk ready to move to the rig floor after drilling the 14-3/4" hole. 31. Rig up BJ cementing unit and place bulk hopper and lines such that the two cement jobs can be done from one rig up. The 13-3/8" cement job is a very small job and can be considered a warm up to the 9-5/8" job. 32. Lay cementing lines to the catwalk and place cement standpipe against substructure. Chain standpipe in place and lay chicksan lines to BJ unit. 33. Rig up gas detectors and verify that PVT system is working. Verify that remote mud logging unit is functional. - ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 5 10110/03 . . 34. Install Koomey hoses in fire protection tray and lay same to edge of substructure. Inspect rig location for completeness of rig up and for adequate environmental protection and spill containment. Place impermeable barrier and berms as needed to contain location runoff Berm a diverter pit with barrier under the end of the diverter line. See attached location layout drawing for placement of equipment and for any revisions needed. 35. Notify AOGCC ofintent to spud. SPUD IN, DRILL 14-3/4" HOLE TO 80 FEET, RUN AND CEMENT 13-3/8" 1. Ensure that bit and drilling assembly are in the center of the cellar. Wash the first few feet and then drill 14-3/4" hole to 80 feet taking returns to the cellar and pumping mud and cuttings ftom cellar to shaker via the cellar pump. Use one pump and low flow rates to avoid washing out ftom under the rig. See hydraulics program, bit program and mud program for details. 2. Circulate hole clean and pull out of hole keeping hole full. 3. Lay down 14~3/4" bit and stand back 6" drill collars if possible, otherwise lay down drill collars. 4. Pick up two joints of 13~3/8", 54.5#, K-55, BTC casing and run in hole with same using air hoist to run the casing. Set casing on bottom and if necessary wash to bottom. 5. Rig up BJ fast lock head and prepare to cement 13-3/8" casing. Mix and pump cement job as per the BJ cementing program. Hold pressure on the cement for a minimum of 6 hours. Release pressure and slack off the casing. Remove fastlock cement head and prepare to cut casing. Rough cut 13-3/8" casing and lay down stub. 6. Final cut 13-3/8" casing as per diverter drawing and space out requirements. 7. Install slip lock 13-5/8" 5M wellhead and diverter tee as per diverter drawing. Install knife valve and hook up diverter lines to ensure that the diverter lines run downhill. 8. Install control lines to diverter and knife valve. Install bell nipple and fill hole with water up to the diverter tee only. Install flowline and flosho. 9. Pick up drill collars and run same in hole. Function test diverter bag and knife valve with drill collars in hole. This will prevent unnecessary damage to the hydril element. Ensure that accumulator closing pressure for the diverter bag is at regulated to be at least 1000 psi but not more than 1500 psi. 10. Open diverter and knife valve. Ensure that diverter lines are not holding fluid and cannot fteeze up. 11. Pick up 12-1/4" drilling assembly as 8-112" Bit and 12-114" RWD or underreamer as per bit program. 'no\.\ ~ì ~Q<":'C(" ~<o" ~\.\'"'~s ~ ~ ~\ \'$LS-.\-«X· .~ \"''-..\..\0 '" I S Q c::. ~\t ~c. ~'\5 ~\J\ ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 6 10/10/03 . . DRILL 12-1/4" HOLE TO 550 FEET, RUN AND CEMENT 9-5/8" CASING 1. Run in hole to top of cement with 6" drill collars. Pretreat mud for cement contamination. Wash and drill to bottom. 2. Function test mop and TIW valves. Ensure that both are on the rig floor and that an operating handle is at hand. 3. Check all PVT flowsho equipment to ensure it is in working order. Verify that gas detectors are all functioning correctly. 4. Lay sufficient drill collars on catwalk as needed to provide at least 15000 pounds of weight to the bit. Drill 12-l/4" Hole to 550 feet as per bit, mud, and hydraulics programs. 5. Catch cuttings in cuttings tank and de-water same with trash pump as needed. 6. Drill to 550' reaming each connection. NOTE: Drill hole to fit casing strap based on depth of underreamer. 7. Circulate bottoms up and pull out of hole. If hole pulls slick, then rig up to run 9-5/8" casing. If hole had tight pulls, then make wiper trip, circulate out again, and pull out of hole prior to attemp!ing to ru~ casing. Ensure that hi~h ~iscosity mud i.s le~ in.hole 'prior to pullin~ out ofhol(( \ for casmg. Momtor h2k.&1l-up and mamtam hole full while tnppmg pIpe. '-.)':>~~' ~ <:::. K<Z:."",," 8. Lay Down RWD or Underreamer and stand back remaining BHA and drill pipe. NOTE: Standing back is not an option. The drilling assembly will be laid down prior to rigging up to run casing. Rig up to run casing. with top drive. 9. Run and cement 9-5/8", 32.3#, K-55 buttress casing as per mud, and cement programs. Ensure that float shoe has receptacle for non-rotating composite cementing plug. Use ofPDC drillable cement plug with non-rotating feature is preferred. Five centralizers, one each on the first five joints are recommended. Run casing to bottom, washing as necessary to place casing shoe on bottom. Pick up casing one foot above bottom and hold in place during cement job. 10. Bump plug, hold pressure on 9-5/8" casing for 30 minutes and record same on chart recorder as casing pressure test. Release pressure. Confirm float is holding. Place any excess cement in cuttings tanks and retard same. 11. Hold casing in place for a minimum of eight hours. The 9-5/8" wellhead will be welded on after cutting off the 13-5/8" head. SEE BOPE drawings of stack up for correct heights to cut off casmgs. HOLE SECTION NOTES NOTE: If well control situation arises on surface hole, driller will operate diverter valve, close Hydril and shut down mud pumps and engines. Crew will muster at pre-designated area. If lost circulation occurs, establish loss rate at full drilling circulation rate. Contact drilling engineer and mud company representative to discuss options. a) Begin drilling with water base-mud starting at 9.5 ppg and allow the mud weight to rise to 10.0 ppg. Maintain mud weight by controlling solids with mud cleaner operation. The cuttings will be stored on site in a steel tank. Use vacuum truck and/or 966 loader to move cuttings as needed. b) NOTE: Utilize all fluid and waste transfer tracking documents as per MI Drilling Fluids ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 7 10/10/03 . . Recommended Mud Properties for Surface Hole: Density: 9.5-10.5 ppg Viscosity 44-100 sec/qt PV 12-16 cps yP 15-401b/l00ft2 Gels 15-30 Fluid Loss NC to 6-14 cc API PH 9.0-9.5 Contingency usage oflost circulation material on site includes: Seepage losses- Add 5-10 ppb graded calcium Carbonate Moderate Losses- Mix 10-30 ppb of Seal Fine & Medium while drilling and/or spot pills across loss zones. c) No known shallow gas zones exist; however, swabbing potential exists on all trips. Because of the considerable length of production of the nearby Trading Bay field, there is always a possibility of some shallow gas accumulations occurring. Continuously fill the hole on all trips while the diverter is in use. Discuss tripping procedures with all personnel. Do not POOH at high speeds. Use trip tank sheets and continuously fill hole on all trips. Check for swabbing on each stand out ofholë.1fSwabbing appears to be an issue, then use top drive to pump out of hole. d) Gas/H2S detection and monitoring drilling parameters will begin from the surface. e) Rig crews will participate in a pit drill or trip drill each tour. f) Accurately monitor trip tank and fill out trip sheets. g) Visually monitor hole at all times on trips. DO NOT USE STRIPPING RUBBER BELOW THE ROTARY TABLE. --- NIPPLE UP AND TEST BOPE AND ACCUMULATOR 1. The removal of the 9-5/8" casing and nipple down of the diverter will be done similar to the original stack up except that it will be necessary to cut the 9-5/8" several times to enable removal ofthe diverter pieces. Slack off on 9-5/8" casing and confirm that it will stay put. Nipple down the bell nipple and pick it up. Cut 9-5/8" right on top ofhydril. Lay down cut piece and bell nipple. Nipple down from 13-5/8" wellhead and rough cut 9-5/8". Lay down cut piece and set back down with diverter. Nipple down and pick up Hydril. Set Hydril in sub. Nipple down diverter tee with 16" spacer spool and knife valve. Cut off 13-5/8" wellhead and send it to ABB Vetco for stub removal and redressing for next well. Final Cut 13-3/8" casing as per BOP stack up drawing requirements for space out. Final cut and prepare the 9-5/8" casing top for welding on surface casing wellhead. See drawing for details. Weld on 11" 3M by 9-5/8" SOW wellhead and test void to 500 psi. Head should be preheated prior to welding onto 9-5/8" casing. Ensure wellhead tests prior to nippling up spacer spool and BOPE. Nipple up spacer spool, drilling spool, rams with 5-1/2" pipe rams installed in upper cavity and blinds in lower cavity, Hydril and bell nipple. Install flowline and sensors. Hook up accumulator lines, choke and kill valves and lines. Hook up gas buster and choke manifold. Prepare to test preventers and accumulator. . \ Run and set test plug in 11" 3M wellhead. ~O\~ ~~ C:..... '- ~o,t)Ç>~'~('\"'\-1 Fill stack with water and verify system holds water. -\-ù ~\~?7 ~ \> ~~ Run test joint with TIW valve on top. Screw in with top drive and prepare to test. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 8 10/10/03 . . 13. Rig up test pump and chart recorder to record BOPE tests. Fill out BOPE test report and fax same with daily drill report. 14. Record and test BOPE as per the attached BOPE test sheet. Tests 1 through 4 test pipe rams, entire choke manifold, kill line, kill line valves, top drive, Kelly hose, and standpipe. Test 5 and 6 test blind rams and choke line valves. Test 7 tests Hydril. 15. Recharge accumulator and turn off power to all the accumulator pumps. Turn off air supply to air pump. Prepare to test accumulator. 16. Close and open Hydril, record pressure and closing time. Close and open blind rams. Record pressure and closing time. Close and open pipe rams. Record pressure and closing time. Close and open HCR valve. Record pressure and closing time. Record final accumulator pressure and verify that at least 1200 psi remains in the system. Ifthe pressure is below 1200 psi, then each of the nitrogen bottles must be checked for correct precharge. 17. Verify that accumulator lines and control hoses are rree of leaks, properly placed in the fire protection trays, and that the control hoses in the cellar area are adequately wrapped with fire protection insulation. 18. Line up choke manifold and kill line valves as follows. TIW and mop on rig floor, insidekillline valve closed, outside kill line valve open, inside choke line valve open, HCR closed, and choke manifold lined up to gas buster through the hydraulic choke with valves 1, 5, 7, and 8 open. All of the remaining choke manifold valves are to be closed. 19. Line up standpipe and Kelly valves as needed to begin next hole section. 20. Pull test plug and verify that mud is conditioned for cement contamination. 21. Pick up 7-7/8" drilling tools and crossover to 5-1/2" casing drilling string. ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 9 10/10/03 HOPE SCHEMA TIC FOR HOPE TEST REPORT ILIAMNA DRILLING PROCEDURE REV lOOCT. n......1;...........__ TT":11 A":1 ~.""",..:J ~........ T.......... n...""..... 1 f\ 1 f\ /1 f\ If)."') ŒJ [] ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 11 10/10/03 . . HOPE TEST SEQUENCE SHOWING VALVE POSITIONS & REQUIRED TEST PRESSURES TEST # Valves Valves TEST Preventer Low High Objective of Test from Open Closed PLUG AND Closed Test Test OR TEST Psi Psi JOINT Fill UP All None Test Plug Annular Leak Leak Function and Fill System ffom Test and Test Check Check with Water. Pump through Joint with Joint with Gas Buster, and Kill Lines Top Drive Top Drive #1 ffom 4,5,6,7 1,2,3, Test Plug Pipe Rams 250 3000 Shell Test of System, Outer Test Joint ,8,9,10 11, and and Test pSI pSI valves, Stand Pipe, Kelly with Top ,12, Stand Joint with Hose, and Pipe Rams using Drive 13, pIpe Top Drive Test Joint and standpipe and TIW #2 from 1,2,3,5 4,8,9, Test Plug Pipe Rams 250 3000 Test inner Kill line Valve, Test Joint ,6,7,11 10, and and Test pSI pSI Manifold Cross Isolation with Top ,12, Top Joint with Valve, both manual and Drive 13, Drive Top Drive hydraulic Chokes, and TIW mop standpipe and Stand Pipe #3 ffom 1,2,3,8 4,5,6, Test Plug Pipe Rams 250 3000 Test Kill line inside Valve, Test Joint ,9,11, 10, and and Test pst pSI Choke Manifold inside and NO 12, TIW Joint valves, Test Joint, and TIW Top Drive and 13 #4 ffom 1,2,3,4 7, and T est Plug Pipe Rams 250 3000 Choke Manifold Isolation Test Joint ,5,6,8, TIW and Test pSI pSI Valve 9, Joint #5 from 1,2,3,4 13 Test Plug Blind 250 3000 Kill Line, Standpipe Stand Pipe ,5,6,7, Rams pSI pSI Valve, and HCR Valve through 8,9, Kill Line 10, 11, and 12 #6 ffom 1,2,3,4 12 T est Plug Blind 250 3000 Inside Choke Line Valve, Stand Pipe ,5,6,7, Rams pSI pSI Standpipe Valve and Kill through 8,9,1 0, Line Kill Line 11, and 13 #7From 1,2,3,4 12 Test Plug Hydril 250 1500 Hydril, Shell Test of Stack, Test Joint ,5,6,7, and Test pSI pSI and Inside Choke Line 8,9, Joint Valve 11, and 13 NOTE: A 5-1/2" TEST JOINT WILL BE REQUIRED TO PERFORM THE ABOVE TESTS. USE OF A SHORT CROSSOVER TO THE TEST PLUG THREAD IS POSSIBLE PROVIDED THE LENGTH DOES NOT PUT THE CROSSOVER IN THE PIPE RAM. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 12 10/10/03 . . DRILL 7-7/8" HOLE TO TD AND SET 5-1/2" CASING WITH CASING DRILLING TOOLS 1. Run in hole with 7-7/8" drilling tools picking up 5-1/2" 15.5#, K-55, buttress casing with torque rings installed in each joint. 2. Carefully tag up on top of cement expected at 510 feet. 3. Begin drilling cement and plug with 7-7/8" PDC drilling assembly as per bit, mud, and hydraulics programs. 4. Drill from 550 feet to 575 feet and circulate out cuttings and cement contaminated mud. Condition hole for leak off test. 5. Pull any casing collar out ofBOPE stack, close rams, and test casing shoe to an equivalent of 14.0 ppg or leakoff, whichever is lower. It is anticipated that the shoe will hold the 14.0 ppg EQ as a casing shoe integrity test. If shoe leaks off, contact drilling engineer for further recommendations. Ifleakoffis less than 13.0 ppg EQ, then a squeeze job will most likely be necessary. Contact mud company and cement company for further advice. 6. Ifleakofftest results are satisfactory, then drill ahead as per bit, mud, and hydraulics programs. Drill to 5500 feet while maintaining mud weight as per the program and monitoring gas via the unmanned equipment. Fax reports and mud log to Anchorage daily. 7. Report all gas shows to Arlen Ehm immediately. A gas show is any show that has double the background gas units. NOTE: Kick tolerance decreases dramatically as the well is drilled deeper. Maintain mud weight as per plan and if indicated increase mud weight as needed to keep background gas below 100 units. Expect numerous coal beds with gassy mud log results. Maintain weight on bit and rotary as per bit recommendation :ITom Tesco. 8. Upon reaching total depth, circulate out for two bottoms ups and until well appears quiet. Rig up to cement 5-1/2 Casing as per cement program. Ensure that sufficient heated water is available for the cement job, that the cement and field water samples have been lab tested and that the casing cementing tools are ready for the job. Casing slips should be dressed to be dropped :ITom the rig floor after the cement job. Have tubing spool ready to be installed once the 5-1/2" is set. 9. Rig up BJ and cement 5-1/2" casing as per cement plan. Bump plug and hold pressure on plug for 5 minutes. Release pressure and rig down BJ. Drain stack and drop slips on 5-1/2" casing. Ensure that 5-1/2" is landed with weight set slips. Set the entire weight of the 5-1/2" on the casing slips. 10. Cut 5-112" casing just above the bell nipple and lay down cut piece. Pick up bell nipple and recut 5-1/2" just above the Hydril. Remove cut piece, remove bell nipple and pick up BOPE rams and spacer spool. Rough cut 5-1/2" casing and lay down cut piece. Nipple down Hydril, rams, drilling spool and spacer spool. Install packoff on 5-1/2" casing slips. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 13 10/10/03 . . NIPPLE UP TUBING SPOOL, RUN LOGS AND TUBING WITH PRODUCTION PACKER 1. Install tubing head and drilling spool. Nipple up drilling rams and Hydril. Nipple up bell nipple. 2. Run test plug and change rams to 2-7/8". Test all BOPE rams, Hydril and all breaks in the system to AOGCC specs and as per BOPE test procedure attached herein. A 2-7/8" test joint and a 7- 1/16" test plug are required. Crossovers rrom the 3-1/2" IF TIW and mop are required to crossover to the tubing thread for both the TIW and the mop. 3. Rig up wireline and run pulsed neutron log rrom PBTD (TOC) to 500 feet above uppermost show. Top oflogged interval is expected to be 2500 feet. Continue running Gamma Ray and CCL log to the surface. 4. Prepare to run 2-7/8" tubing and packer. 5. The completion procedure interval details will be determined after logging and will be based on results rrom the pulsed neutron log. 6. For the purpose of this permit, the completion procedure will be generic and should only formalize the prospective intervals and perforation depths after logging. 7. Pick up TCP assembly loaded with 6 SPF DP charges to perforate as indicated by logging results and Rlli on 2-7/8" tubing with packer and "X" nipple as per completion program recommendation. 8. Tubing assembly should include TCP Guns with bar drop firing head, auto drop sub, perforated sub, "X" nipple below packer, two joints of tubing, packer with millout extension, one joint of tubing, "X" nipple, and tubing to the surface. A chemical injection sub should be run at a depth of 1000 feet with a 3/8" control line to the surface so that methanol can be pumped into the well for rreeze protection during winter time production operations. The tubing should employ protectors for the chemical injection line. 9. Run in hole to bottom or near bottom and circulate mud out of hole with 10# brine. Add biocide and antioxidant type corrosion inhibitor to the annulus by reversing annulus after the well is displaced with brine. 10. Pull back up hole to correct measured depth taking care not to mash the chemical injection line. 11. Place tubing with packer at 5000 feet and tubing hanger in full tension. If TCP guns are used, then the BRA will need to incorporate a gun release sub. 12. Run correlation log as needed to place the guns on depth. Space out, make up tubing hanger and land it in tubing spool. Pressure test chemical injection line and pump through same with methanol prior to landing hanger. Lay down landing joint. 13. Nipple down BOPE stack, nipple up Xmas tree and test same. 14. Rig up to reverse circulate rreeze protection fluid into annulus. Pump 25 bbls of methanol or diesel into annulus and shut down. 15. Rig up wireline and run and set tubing stop and PX plug below packer. Pressure up and set packer. Retrieve plug and tubing stop. 16. Nipple up production test separator and prepare to drop bar perforate. 17. Perforate and test as instructed. Secure well, and move rig to next location. ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 14 10/10/03 . . ATTACHMENTS TO DRILLING PROCEDURE 1. Survey Plat of Location 2. TopoMapofarea 3. Aerial Photo of Locations with Pipeline Route and Stakes shown 4. Mud Program - MI Drilling 5. Proposed Fracture Gradient and Mud Weight Chart with Offset Mud Weights Plotted 6. Cement Program - BJ Services 7. Proposed Wellbore Schematic and Hole Volume Calculations 8. Location footprint drawing - VISIO by Quadco 9. Diverter Stackup Drawing 10. Diverter Cleamace Drawing showing Knife Valve Placement 11. BOP Stackup with Surface Wellhead and Spacer Spool 12. BOP Stackup with Production Casing Wellhead and Tubing Spool 13. Bell Nipple Drawing for use on all three Nippleups 14. Swab Kick Tolerance Chart 15. Pressure Kick Tolerance Chart 16. Koomey Unit and BOP Equipment Hydraulic Fluid Requirements 17. Proposed Bit Program 18. Proposed Drilling Days versus Depth Curve 19. Proposed Completion Schematic 20. Proposed Xmas Tree and Wellhead Equipment Specifics ILIAMNA DRILLING PROCEDURE REV 100CT.doc PelícanHill Oil and Gas, Inc. Page 15 10/10/03 R R 15 14 W W 30 29 25 SCALE: 1" = 2000' 36 1578' 1-tLlAMNA 1 (SET 5/8" REBAR) 2480' 31 32 2 1 R R 15 14 W W T9N T8N 6 Well Name Northing Easting Elev ILlAMNA 1 2499970.64 174188.22 203.83 Units:U.S. Survey Feet Horizontal Datum:NAD 27 Coordinate System:State Plane; Zone 4 Vertical Datum:NAVD 88 Horizontal locations are based on the NGS published coordinates for KUST AT AN RESET of (N2459539.34, E186278.03) Elevations were generated using RINEX data from CORS Stations TLKA (Talkeetna CORS ARP) and KEN1(Niki USCG 8); ELEVATIONS ARE +/- 5' SECTION LINES ARE DRAWN USING PROTRACTED COORDINATES. F. Robert wœm ~ ŒJ~~rnœo LOCATION OF PELICAN HILL OIL & GAS INC. WELL LOCATION FOR ILlAMNA 1 SEC. 31, T 9 N, R 14 W, S.M., AK 801 WEST FIRE WEED lANE SUITE 2D1 ANCHORAGE. ALASKA 99503-1801 PHONE (907)-274-5257 PREP ARED FOR: PELICAN HILL OIL AND GAS INC. DRAWN BY: JZW CHECKED BY: CBS JOB NUMBER: 2003-510 1" == 2000' SCALE: ENGINEERS AND LAND SURVEYORS 388137 Faults Pelican Hill O&G . . MUD PROGRAM July 21, 2003 Pelican Hill Oil & Gas Anchorage, Alaska ATTN: Arlen Ehm/AlIen Gross Ref: I1iamna 1, 2, & 3. Gentlemen, Enclosed is the mud program for your upcoming Iliamna casing drilling program. Included is a well summary, economic summary, interval summary, and the project team. At the end oftlle project all unused material can be returned for full credit if it is in sellable condition. This program is for a low solids geI/gelex fluid in the surface interval and in the production inter- val. Mud weights up to 9.6 are expected. We recommend tbat a well control contingency stock of 1000 sacks of barite be maintained on the West Side of Cook Inlet at a readily accessible location. AU material shipped to the west side can be returned for full credit as long as the material is not damaged. We also recommend that careful planning is utilized to minimize fluid volumes and maximize the potential reuse of aU drilling fluids. Please call me if you have any questions regarding the mud program. Lee Dewees Pr~ject Engineer M-I Drilling Fluids 907274-5533 M-I Drming Fluids L.L.C. 72 ¡ West First A venue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax """""DR\I.UtØi , .... FLUIDS . Well S,ummary Hð/ê Siü (m) Olding P~" 12 lt4" 1118"''''' /.\.\'II e J JJt.111 ("01111'01 (; {/\ A: ¡eAs 1.. ¡"l'lf 1 'J 1\ ....,,, . (; _ Low (¡'ta,.iff' Solitl\' .-' A- /.\snc 3 Jlo/e Stahilifr ~" ('oaJ ,\'f(/hili~r A- /.\sue 4 Ill/ids uud ('11'- fiHg.~i .1/uIU(!.tClJlelll . Iliamna 1,2, & 3 ""ftt (ft) TVD Müd S)'St8m MJd Sí.d eümidirt/íie ~ o.a:,. Müif Cõ&t M) (~ (01)' 60(}' Gf\l.Gelft 8.1-9..5 moo 4 5500' 55iOfY Flo-PmI3 %KCf 9.6 $24750 11 -MaJìltmn (:(lustarrt auen1ìOllfOf shallow SasJdçks" - A'lwntain adequate barite in\l·entory. · It is: imponant.omaintain LOS at less dum. Mr~ tOaœomlOO~ date c,ams drimn~ operatiOll~ · Add SP) Oland A~'pac {JL as. required. · Add Asphasol Supren~ .2 to () pooo&.per barrel only sJougbìu:g coal bec()foos aproblern. · Optimize'he use of aU solid~ control equipment.. UriHze ~nud deaner on surface vo'ume"'" thtlne ~feens, · \\llen possible n~:ycle aU ßUI&.. M-J J)fmju~ f-:1ui:d¿¡¡ Ll..C. 721 We!t F'ir:!ll A \'.t.'f1œ .Ant::1:Wf., Al¡!sKa ~/9j() ¡ .274-5564 279-6729 Fax ~ DIIWfIG , ....FUIDS ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas. Inc. Page 17 10/10/03 . . Economics Summary Iliamna 1,2, & 3 Surfaœ 600' $2600 $5600 $8200 4: 4: Drilling 5550' $24150 $12000 $4550 1 u · Cost includes B S'urf~.e pilot bole, · Full tirne engineeringservkeincludedin oost · do not include any consideration for Io&'t cirCtdatil)t1 Of $tUCK pipe, M-I DriUi~ Fluids L.LC. 121 W!L'&1f¡'im A'Ii~ .Å.ni:;):¡¡:ïraBí!', lùa!lbï 99S¡n 27,f-5564 219-6n9Fil~ DIILUfIG FWlDS ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 18 10/10/03 . . Interval Summary - Iliamna 1. ,2, & 3 Drilling Fktiid System (:ìe!..(';relex Key ProductsMIGell Odexl BadteiPolyPac lJllSodaAshlDesoo Solids Control Shakerl DeSiJrerlCentritùge PoIenfia. Problems u'tst Circulation I Drill Solids." Hole Stabdityl Stoughing Coal/Bit DaUing Depth nëNafi eft) 500' Mud Weight (PPlt &.89.5 API Fluid loIs cmftOmIÞ) 3-10 GítJ Stnmøth tlbl1iOOft'i) 1211 j Total ..ids (%) 15-25 Plastic 'VilcostIy tel') 2íJ-25 Yiefd Pöint flbJ1iOOt!P) 25- :~5 · Build initial volume \vitbt'resh w~er, 15 ppb of M] Gel., Gelex (one .008 of(~lex per five ~ks ofMI ('ìel) ~"ash .asrequired,and bm'ite to 9.5 PP!!¡, · Open hole to 12Il4"; · · Keep· driU solids to amif1ìnu.uu b~t' aggressive use of an solidsCOJ1'trol equipment.wlution wilh frem watiermay be required. .. Use De:soo CPto thin tbe mud if required. .. SpotL(~1\.·lpmìf lost drculat1()'fl occurs· .. Rtm~~~~~!~~~tÒfneWF'o~pro ~'$·tem. · I111tial volume requiren~ts s:houJd be 400 bbls: M-llJîiUiDf! FluimLL.C. 111 We::ítFi.r:'it A\'î.'IlB Ant:l1Of., Ab.lllU ~)5i!H 214-5564 219-6129 Fa:" DRlWIIG FWID5 ILIAMNA DRILLING PROCEDURE REV lOOCT.doc D......n-ø 10 10/10/0"1 Dð1~,..on U~l1 (")~1 ......-nA ~..,C" TnI"' . Interval Summary - . Iliamna 1,2, &3 (lel~Gelex Key Products MI (iell (1elexl Ba.ritelPQI)'Pac tJllSoda Ash/Desoo CF/Sodium Bi. carbonatelDD Solids Control Shakerl DeSI.JterlCetltrHù.ge Potential Probtems Lost Circulatiou Drill SoHci;¡lHole Stat)ilÜyl Slt)ugh. ins Coal/Bit Balling Depth ~j _II) lOOt)' :;;.¡;œ' 12-20 APt Fkdd Los. ImII3Omin) 8-10 t,-8 <~ 1,2-21) U-20 IOllg <6% · Treat surface mudtòr cement contaminatÎon ,,^,ith sodium bìcarbonate and Desoo CF, Run SIOI· ids contt'Ol eqUÎp:tll¡et:lt, R1I11nud cleaner 'with 325 rnesh screens: on surra~ \lolumepdQf tQ drilUngpro(Íuction intef\'at · Initta! mud w'eight should be B.S.9.0pp¡. lJnless; hole oonœtitXlS dictate otherWIse. · Keep win soJid'tto less than @re~ve use of aU soUds contt'Olequil)tnent and dUudon if t'equired... . Maint3in fluid 1()~s eontrol witbadditions t)fPolyPw.;.VL. . Initial ''ii'Qlume requiret.neöts sbQuld. be 600 bbls M-[ DrmilIgl?lumi LL.C. n 1 W~tFiit. ^'\\L'D'Iæ! ÂJlICl1íu'., Alaw. 9I)j!H 214-5564 (OO7) 21'9-6129 FAX r:I.·.Þäì ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 20 10/10/03 . . LCM Guidelines - Iliamna1,2, & 3 Lost amulatlonRecomluer~ded LCMPìU F(J:rmula.o; Problems Key Products DrilUngFluíd l M-I SeJÛ fjne, MediUD1. Coarse X.(; Polymer' FornI A Set¡¡Safe 'CII'b JO..2040 VðlUMè of Mud (b.mll) 30 .... SUfi Coanié Cppb) () Volume of Mud (bam!JIA) .to x..c PôìyMlllf fppIJ) 1f2 .XI Flnl! .....) 10 ,.. $8aÎ Medium fppb) .... ~ Coané CppD) {I 20 VoIumê of Mud (~ís) 50 ... 'SU,f Medium fppb) 20 MtXI Fìnê fppb) 20 · Sf;;¡otthe pm acl'OSSt.ne lœ~ zone" · lJse MIX pjne v.ùen 1\I1W"D andior mudnrocol" are being used. · Use of Safe ('lUbprodUtt~ as required, M..IDdIHoe.P1uÌds LL.C. 121 Wß!itFirst A\'l'mlil1! .Anel}{'ll.,Ala~ 9I}j;{Jf 214-55ri4 271)..{:¡n9 Fax DRlLUNG FLUIDS ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 21 10/10/03 Oètacrip- don i! t:ri8 Wetght Matëriel SG w.ight tdalel 'øI Price ri r;aw. I: Ptb , 10 , Prôdud$ etEX iOdIum BIcarb P-101 OlYPAC UL íMlatic Sodä IJNvme-FFeè Desco t-O mr1 ;eM ~ lràIAI k:ak:u.... Mud -- . . Get Gel.( SVs~ tem 92 Bar1 42 (3.1 285 Ifo No 15 0.1393 In_ I DïrIIMIt'" 1 bbI COft~ 1hIIÎM· . FièId_1b 0.0 0.2 1.5 1.0 0.2 0.251 0.5 34.5 15..0 333.1 I 386.41 I I VOl- I.ímìi. léttMFìéId. IJIDI 0.03 O.OtX 0.2(1 O.ODQ 1.sa 0.0041 1.oq 0.003 0.2(1 O.ODQ O.2~ 0.00( 0.5CI 0.001 34.5 0.02~ 15.0 0.01E 333.1 0.953 386.41 9.2Ot1 1.0oa I ith WII O.Ot 0.0 1.4 0.6 0.0 0.1 0.5 8.2 5.1 333.1 ~Q \.fOB( . ..... . 1 bbt 0.1 0.0 3.1 2J1 0.11 ~i (¡; 2.0 0.0 14.03 )..1":( l}ttlUil8 P1umLLC. 121 Was:tFi!l'!ìíl A'II1!noo .AlK:IIDfíli~, Alaska ')1)5<)) 214-5564 279-£';729 Fax 1LIAMNA DRll.,LING PROCEDURE REV 100CT.doc Pelican Hin Oil and Gas, Inc. Page 22 r::a 10/10/03 · . HSE - Iliamna '1,2, & 3 HANDLING OF DRILLING fLUID PRODUCTS HtALTl1 AND SAFEn'- I. , .DrUHn¡ cr'e\\IS :stlOuld be Înstrooted in the p:roper ptocedw'es, for handl ¡ng ftuídproducts.. 2,PersonalPwtective EquiplneDt (WE) chads :should be posted in the pit fOOtfi. tbe mud lab. Md the Qffice t')t~ 1heDriUing Format1. :3, PPE must be good\"~!fk¡t1g order alld be udlizedas recommended by the WE ~hm1s. 4, Prodœt tddi.i~}f1$. sl'lìOutd be made with the iutentto u.~ ~)mplete UBil ì!Uî1Ounts o.fproducts (s:ac~. drum$. tat1s) as t'Ouch .Q.,~p'Os.."J¡btt,t it} o.l:der to mininuæ iOivt,tftwry o.f partial units. 5 ,Irls:ureall MSD$ SJle:etS .lJeup to dateMd readi:ly availabletòr "''01'k«, to ~ for infOfrnatlOll, ENVIRONMENTAL I, l~ure that all product stored 'Outside li1 pt'O'tected from the \I¡~tber'. 2. Do no.tstorepltftial w'dtS' (sacks, et~) outside without additional pc{rteCÙOft. .3 . When transferring fluid and 0.1' cuttingsfi'Om the rig totant~ insure aU hoses are properly secured. M-I Dnll¡~A\1Î!d!¡ L.LC. 121 West J4rst A'i.'ooæ hlCbt1f!íìß\f!', AÙlsb 00$01 11.i-556,t 219,(:;729 Fax IHIIL.I..III:i R..UIDS ILIAMNA DRILLING PROCEDURE REV 10OCT.doc Pelican Hill Oil and Gas, Inc. Page 23 10/10/03 ILIAMNA DRILLING PROCEDURE REV lOOCT.doc pp,1k~m Hi11 Oi1 flnr'l G::!<; Tnr: Pfl7P, 74 10/1 0/01 ILIAMNA DRILLING PROCEDURE REV lOOCT.doc D~11""'''lon u~n (');¡ >'4nrl í:CiC< Tn..... Dr}fi,ß ry" llì 111ì/lì'< . HSE - Iliamna 1,2, &3 . HAZARDOUS MATERtA.LS IDENtIFICATION SYSTEM (HillS) HAZARD RATINGS "-Severe hazard 3", SerioLD hazard 2 - M~ hazard '1 -SlIght hazard .. - Mínlmal hu.d · An a&terilk Mdlô tie heallh rating indlcate& that .. chronÎC hazard Is SMØêJated wìt!h the material. HMIS PERSONAl. PROTECTIVE EQlIPMENT INDEX A - &Ifety GIe:ases B - &Ifety GleaMS, GIêJV.ü C - Sitfety Glaus, Glovø, SynIheIic Apron Ð - Faœ Shield, Gbt.,Symhetíc AIvon E - Safely Gtøø&, GkN_, OWt RøpiNtDr iF' - Safùty G_.. Gtô'il'., Symhetlc. Apron, Dust Respirator Q - Safety Glaues, GIovM, V8PØt Ft.ator If - SplMh Goggfe$, GIoVl!t$, Synlhélk:: .Þ4:Iron, Vapor Aesptlatw 1- Safely Glaues, GIowJ$, Dust and Vapor RèSplNtDr J - Spl.... Gogø-. Gtovea, Symhelíc Apron, Oust and Vapor Raapírator II( - Ail Un. Hood or M., Gtoves, FuR SUit. B~ X - Consult yom. aupéMsor for speœtE handing dfrêdl!o/1/& M:..I DnlJìøe J:;'1u.id¡¡¡LJ..C. n 1 'WœtFir&t A\~ J~}lI.u., Ala!lb ~¡;J:)o!n ,~) 274-5564 27~}-6n9 Fax. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 26 ~ rim 10/10/03 . Project Team . Pbillip "ups FieJdE~ t I.... . Iliamna 1,2, & 3 Gus \\f"1k Wat:~ MulaQef Title Oktrf¡e.M....r Td Senb preJed EIIgbt,ør Warelløllfif!''''~ FWd :E~r FWd~r t .. \\1 òrk 9071701.._1 907 17....!MJ 907 27....M33 907 776-1QJO 9071'7~ 907 27~ I I l..ti DelA'æíii ~ect~~ Dw.m a.,tIIl Tœh Sen,'ice . MI Prl~jootEtlSitH!(lI' ;m¡j T1i.~11 Service I:¡~m.~( \\ill i::oordinaw b..~ tœ ris:, w1Lmb¡;uøe, and lb:! M-I fveld etlgmeeJ'!i. . Well pO¡ræi!;",rm 00 momtmud Ìû ÌlJök fm' an)' dliMiJL' wbichwm impto\'B .00 t!!rrwjí!â~~' of too opera- 00n t1lf a,."!et1.~n;'ublll!.. ']'c:;¡m Crai, .lIer .I)eeø lIr1u Lee DewHil GuWIk PIIU, Dupe. .Monte KaIda. CeUutar 987 21,.,1196 917 lß.l634 907 11'7.. 9011S1411 M-I Drilliî'l@ P1um LL.C. 721 We..\It !i'ir. AliL'nœ ,\ni::.1mfã~, AJaw 99511)1 214-5564 (1);)7j 21~n9Fu ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 27 10/10/03 PROPOSED FRACTURE GRADIENT AND MUD WEIGHT CHART PELICAN HILL OIL AND GAS ILlAMNA NUMBER 1 PROSPECT OFFSET MUD WEIGHTS, ANTICIPATED PORE PRESSURE, FRACTURE GRADIENT, MUD WEIGHT, AND CASING PLAN 1000 CONGl MERAT 88~~t ~~~M 2000 3000 ~ 4000 ~ Cíð Q ;§. :S it 5000 Q CONG 6000 7000 Structural Casing Surface Casing Production Casing 8000 i!I PROPOSED MUD WEIGHT iLlAMNA 1 ANTICiPATED PORE PRESSURE EXPECTED FRACTURE GRADIENT Forelands State A No 1 V'c;;cKUSTATAN No 1 -'%''''IWHWlmIMOKUAKIE No 1 ANTICiPATED CONGLOMERATE . ANTiCIPATED low Gas COAL BEDS ANTICIPATED GASSY COAL BEDS 9000 8 9 10 11 12 13 14 15 16 17 18 19 20 Mud Weight, Pore Pressure, Fracture Gradient (PPG Equivalents) ILIAMNA DRILLING PROCEDURE IŒV 100CT.doc Pelican Hill Oil and Gas, Inc. 29 10/10/03 CASING PROGRAM, CASING SAFETY FACTORS AND DOPE RATINGS PELICAN HILL OIL AND GAS INC. ILlAMNA CASING PROGRAM AND CASING DESIGN SAFETY FACTORS CASING RATINGS AND DESIGN FACTORS STRING CASING OR TUBING SETTING FRACTURE FORMATION ASSUMED MUD FORMATION GAS DESIGNATION DESCRIPTION CASING OR TUBING RATINGS DEPTH GRADIENT PRESSURE WT PRESSURE GRADIENT MASP DESIGN FACTORS TENSION JOINT TENSION COLLAPSE BURST SIZE IN WEIGHT IN RATING IN COLLAPSE BURST @ SHOE IN @ SHOE IN @SHOE IN IN PSI PER based on air based on with Gas NAME INCHES INPPF GRADE POUNDS PSI IN PSI IN PSI FEET TVD PPG EQ PPG EQ IN PPG PSI FOOT PSI weight empty pipe to Surface STRUCTURAL 13,375 54,5 K-55 853000 853000 1130 2730 80 10.5 9 10 37.44 0,1 29 195.64 27.16 94,14 SURFACE 9,625 32.3 H-40 365000 254000 1400 2270 550 14 9 10 257.4 0,1 202 14,30 4,90 11.24 PRODUCTION 5,5 15,5 J-65 248000 248000 4040 4810 5500 16.5 9 10 2574 0,15 1749 2,91 1,41 2.75 TUBING 2.875 6,5 K-55 99660 99660 7680 7260 5200 N/A 9 10 N/A 0,15 1749 2.95 2.84 4.15 . MAS? Calculations are based on the anticipated formation pressure minus a gas gradient to the surface and assumes the well is completely unloaded for the purpose of this calculation, Collapse Safety Factors are based on the Assumed Mud Weight Hydrostatic with the tubular completely void from the surface to total depth of the string, Tension Safety Factors are based on the Air Weight of the tubular string w~h no buoyancy, CASING DESCRIPTION AND SETTING INFORMATION BOPE TO BE NIPPLED UP ON TOP OF EACH STRING " Ii"CII'" CASING OR TUBING IUrur "t:III"" HOlò: DESIGNATION DESCRIPTION THREAD STRING DEPTH SIZE ~ILò:IN I vvt:l"nl NAME INCHES IN PPF GRADE TYPE FEET TVD FEET TVD INCHES STRUCTURAL 13.375 54.5 K-55 BUTT SURFACE 80 14-314 SURFACE 9,625 32,3 H·40 BUTT SURFACE 550 12-1/4 PRODUCTION 5,5 15.5 J·55 BUTT SURFACE 5500 7-7/8 TUBING 2.875 6.5 K-55 EUE 8 Rd SURFACE 5200 N/A ~I f<IN<3 DESIGNATION t-'~I NAME TYPE SIZE EQUIPMENT RATING STRUCTURAL DIVERTER 11" HYDRIL 3M SURFACE BOP STACK 11" ANN & 2 Rams 3M PRODUCTION BOP STACK 11" ANN & 2 Rams 3M TUBING BOP STACK 11" ANN & 2 Rams 3M e ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 30 10/10103 . . BJSERVICESCEMENTPROGRAM WJ PropO$.à!j No.;; 1001 19968F Pelican Hili 011 & Gas, Inc. Iliamna No.1.. REVISION P'eIWlin Hill Rig 11an'ì11il Fle:Jd field An~0I'8gè Còlmly, Naska Octobéf i, 2003 p....Nd for. Jim MO!iély ProjèCt Engine. Pdcan Hi. Oil .& Gas, line. Well Recommendation PmPflMd by: J. Jay G~mèt M...ager, CltySala Kenai. A1am Bus Phone: (901) 349-6518, Anchotap ElM.: jOari'léf@bjEi....Iœ8.com Mobile: ('901) 229-6536 PO\V~ R.\" I S I ()Nc)}I Sentic8 Potnt: KeruìÎ, þJ( BUè PhÐne~ (907) 116-4084 (907) 659-2329 Fax: (907) 116-408.1 Setvfcè laþl8UhtatiwM.1 J. Jay Gamèt Manag;er,Cil.)'~la Kttnal, Aaam 9uå Phone: (907) M9-6518., Anchorage Emall: jOamer@bjSmica.cofn Mobil.: (901) 229-8536 ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 31 10/10/03 . Opeí'iidor Narrœ: Pelican HiJI Oil&. Gn, Îfie. ~ NSIt'Iè: llìamna Nò.1 Job Description: CondUctor Casing Datét ~p.tember 26, 2003 . Wj FilOpow No:100f7~ JOB AT A GLANCE Depdt (TVD) Depdt (MDJ Hole aim SOft SOft '''.15 in ~ng SiaIWe_ : Pump Via Total Milt Water Required 13 3J8Î'1, 54.S Ibslft 13 3/8" O..D. (12.615'" .lD) 54.5 90 gals 8pecer FI'H'Ih Wal8r Dêftsity CémèM stuny SUrfêCê Pipé. stuffY Dêftlity VWd DiSptacemHt DisplacBmíìñt Dêftlity 10 bblš 8.4 ppg \, 11hadc.s i ¡ UtI ppg ... / 1.16 cfM~ cr ,...",.", ,,/ 0·"·"'" 10 bblš 9.5 ppg WE..,,," DATA ANNULAR GEOMETRY I ANNULAR I.D. ....) 14.150 HOLE ~.. -=- _-W:-L , I guSPENÐEÐ PIPES F DIAMETER .. ...~ 0.0. · .... I ....... U')., 13.315 12.615 '~I ~~I Mud Dtrnslly Mud Tp Est. Static Temp. Ell. Cke. T..... IU2 ppg Water Based 55"F 55"F VOLUME CALCULATIONS Nft x 00.2109. 'With 5O%ä:êØ'S ;: TOTA.LSlURRY VOlUME = 200.2 (:1 20.2 cf .. bbfs = ILIAMNA DRILLING PROCEDURE REV 10OCT.doc Pelican Hill Oil and Gas, Inc. Page 32 10/10/03 . . Opefator Naítté: Pëlícan HIlI Oil & Gas, thC. Wèd Name: niamna No. t Jeb Descriptión: CoodUt:mt Castng Dale;: Sèptember 26, 2003 WJ ProþðMÌ Ne: tOO119958D FLIID SPECIFICATIONS SpaCér 10.0 bbIi8 fl'esm WMer @ 8.42 ppg FlUlO VOLUME VOUJ"'E CU.f'TfACTOR A~ANDnPEOFCEMaa CeIlíflèM Slurry 20 I 1.16 == 18 øèks CIMs G Cement + 1 0811I100 Net FP- 6l + 2% bWoC Calcium Chloride + 44.3% Frhh Waler 9.9 bbì8 DIsp1äœmenl @ 9.5 ppg ~œmøm CEIENT P'ROÆR11ES Slurry Wêlght (ppg) Slurry Yield (d1sack) Amount of Mbe Water (gps) Amount of Mi. Fluid (p) SLURRY NO. 'Í 15.80 US 5.00 5.01 RHEOLOGIES nUlD Spacer ,...ItIP . 55"F 11M 2M 'tM 1M 129 100 97 91 .. 36 ~ 27 PRICE ESTIMATE Pl'Oduct lII_riIIl QTV UNfT PJltODUCT DeSCAlPTtON NET AMOUH1' 18 sa. CI.. G CelJlênt 305.91 3<1- Ibs Calcium Chloride tfU2 t Dlil$ FP..tIt 38.a5 Pröduêt Material SlJbtðtllil: $362j5e Service Ch8rgM aty UNIT ~OOUCTDeSCRIÞ1'1ON I\IET .. AMOOHr 12 Iít$ Service SupéfllÎSM - hot./dy d\arg& 661.65 24 hrs alof 1.082..Ð 19 cu I Drv BtA: Mawialli SeMce Cltara. 28.01 SeMce Cltarg. Subtcta1: $1 112.06 Equipmilö't aty UNIT MODUctœSCRlPTrOH NeT ~ 1 411111 Cement Punm easlna. 0 . 1000 ft: U12:.1'5 1 iôb F...Lok CIítnèfit Head 222.75 1 ob D8bI ..............lIon, Cement Standard 571.00 1 job Fletd Storage Bin 517:001 Equipment SubIOf8I: $2,530.001 TOTAL.: ",II4.i4J ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 33 10/10/03 . . JOB AT A GLANCE Dèpth (TVD) Dèpth (MDt Hole saa 550 ft 550ft 1.2.25 In CHing SiMlWelght ~ PIIInP \Ilia 9518." 32.3 IbsIft 9 518" 0.0_ (9.001 ~ .LD) 32.3 1~351 .gaIs T_I Milt Water Rêquk8d Specer fl'HÌl Water· Spacer Density Tall Slurry Tall Cemarlt Density Yield Øspl8cement DrIIlhg Mud DlsplaC8fNlRt Demslty 15 bbls 8.3 ppg 192aadts 14.5 ppg 1.48 crack 31 bbls 9.5 ppg WlELL DATA ANNULAR CliOlliiTRY AI\INtJi.ARI.D. fib' MIA,,'" TRUIVI~1..c 12.220 CASING M 64 12.250 HOLE 550 550 SUSPENDED PIPES I DIAMaT" I1n' 0.0. . . . .... I. 1.0. 9.825 UI01 '~I ~~~I Ftoat Collar !HI . Mud OeMity Mud T}Iþè EM. Static Temp. EM. Ch. Temp. 470 ft run )PO WãIèr BaMd 61 "F 5!PF WOLUIì1I!! CALCULATIONS 6411 48611 8011 iC )c x 0.3092 eM O.3132eM O.iU19crft \!\îIIh 0 % èJ(CêÞ \!\îIIh 50 % @xcess - .\iIioftIh 0 % éXCèMi TOTALSLURRYVOUIME = 19.8 cf 228.3 cf 35.4 cf (imlliðe pipe) 283.5 cf 51 bbts = ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 34 10/10/03 . FLUID SPECliF1CA TIONS Spaœr . 15.0 bbfa FI'''' Water Spacer @ 8.34 ppg VOLUMEVOWMe CU.fT FACTOR AMOUNT AND TYÆ OF CEMENT FLUID Tail SlUffÿ 283 Dlsiptacemenf CEMENT PROPERTIES Slurry WeIght (ppg) Sltìt'I'Y Yield (dJsack) Ai'noont of Mix Watêt (gp¡¡) Ai'noont of Mix FlllÎd (p) estimated Pumpîng Time -10 Be (HH:MM) Free Water (mIs) @" F 0 90 · angle Fluid L.óH (cct3ðmin) 811000 psí and · F COMPReSSIVE STRENGTH 7' tlrs . 62 · F (þšÎ) 15 hrs @$2' F (psi) 2. hr& @ $2' F (psi) 120 hn¡ @ 62 '" F (psi) RHEOLOGIES FLUID Spaôèt Tíïil SkJny f&MP @55' F o 6O"F Product "..rial 1.48 #I t92 lliàck$ Type. Cement + 8% bWòc SA-90 + IU-% bwoc ßA.H) + 1 gals/100 Melt FP-6t "I- 62.4% Fruh Wahlf 31.0 bbIa D'ïlflng Mud Displl!tCéffìènt@ 9.5 JlPg SLURRY NO.1 14.50 1.48 1.04 1.05 .:22 0.0 8.0 50 500 915 3200 ___ ___ ___ ....1IL -'- --L 129 100 91 91 36 21 158 117 104 H 59 4S PRICE ESTIMATE OTY UN.,. PRODUCT DESCFUPTtoN .~..~ !'!2_. 1 " Ce:mmt Pitta, Rubber, Bottðm 9-5/8 in 264.&5 i " Ce:m_t Aug, Rubber, Top 9-SJ8 In 1 43_M 1444 Ib& BAw90 849.11J 73 Ib& BA-1 0 525.9' 2gels FP..... 73.1~ 1 92 .. Type Cement 1 .842.1~ Product Material SuhltJlll: $3.._13 Service C...... OTY UN.,. PRODUCT œSCFUPTfON rET AMOUflf 1 2 hra SeMcè SuøeMot - hOì.utv charge 681 .85 36 !'Ira Equipment Operator 1 ,S23-:ii 285 ctI It Dry Bu. MatèrliM SeNke Charaê 420.D1 SeNke Charg_ Suhh)fal: $2,705.34 ll..,lAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 35 10/10/03 . . Depth (NOt Depth (MD} Hole Size CulngllmlWelght : PuInp VIa fatal Mbe. Water Réqulmd WefahMd SpliCer MCS.D Spal:er System Density 18tle8d Slu", CMIng Drtlad Section ...lead Density Yield TailSluny Caslng.onllêd Sectkm ·'11 Den.lilty YIøtd Displøcemfød 2 IlLS ;Ctment .. DrI.ng Mu Danshy ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 36 5,,500ft 5,500ft 7 ~8151n 5 tt2 ÎIí, 15.1 IbaJft 1,981 gets 3Ð bbls f 0.5 ppg 191s8èb t3~5 ppg 1..82 cffsact t4988èb t5~e ppg 1~1e oIMct 13t bbls t 0.0 ppg 10/10/03 . . r.IIJ.DAIA ~ ANNULAR 1.0. pnl 9.00t CASING 7.815 HOLE MEASURSJ 550 5500 TRUE 550 5.500 SUSPENDED PIPES DIAMETER .. n 0.0. LÐ~ 5.500 4.960 WEIGHT 'bill) 15.08 MEASURED 5500 TRUE VÐmCAL 5500 Mud DtnIity Mud Type Eat. Stade Temp. Eat. Cire. Tomp. 10.00 ppg wamr Based U3 I) F 971)F 2,000 ft 1 !OOO ft x 0.t133 d'ft win ? 0 % exctll = x 0.1733 en win ~ 0 % ftCtll = TOTALIlURRY VOLUME = S4Ø.5 cf 173.3 cf 519.8 cf 93 bbfs - - ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 37 10/1 0/03 . OperataI'" Name: Pelican Hm 01. & Gaa,lna. wø NiImè: tamna NO.1 - REVISION Job DtKcription: Casîng-Drilled Casing Section ~èt October9,20ó3 FLUID SPI¡jClFICA TIONS WMghbad SpaCèt FlUlO VOLUME VOLUME CU.fT FACTOR 347 í 1.32 1st Lœd Slurry Tall SlIJfIY 113 J 1.16 ~Cément CEMENt PROPERTIES SlwryWMght (ppg) Slurry Yield (cf1sack) Þ.nIðum: of Mix W8W (p', Þ.nIðunt of Mix Fluid (p) EdntMed Pumpîng Tlme-10 8C (HH:MM) Ealmated Pumping Time - 1 GO BC (HH:MM) Free Water emls). 98 ti> F 4» 45 .. angle Fluid Lou (cc/30lfIfn) at 1000 psi and 98" F COMPRESSIVE STRENGTH .. tin¡ 4»11 I) F (psi) 4.37 hn¡ 4»110" F (psi) 6.35 tin¡ 4» 110" F (PSi) 7.51 tln¡@ 110" F (psi) 8 hn¡ (» 110" F (f.)&i) 12 hra. .110 ". F IPsI) 24 hra. .110 F (psi) RHEOLOGIES FLUID TEMP . WJ Prop_at No. 10ó179956iF 30.0 bbI$ MCS-CD Spacer System + 141b$1bbl R-3 + 8~99 ìbt.lbbl PotM!šium ChÎOíii. + 30.1 S lb&Jbbí BèhtolíÎ18 + 119 bsJbbI ~ @10.5 A~AND~OFCEMBff == 191 sackl Claø G Cement. +10%, bw(I(; 9ßrgo + 1% bw'oé Ctilm Chloride.. 2.5% bwoc Fl· 82 -+ 0.2% bwocAšA-301 + 2 gat&J100 sack Fp· 6l -+ 0.5% bwoc Sodium MetatllicaIe + 84% Ftešh ·Wãtèr == 149si!ìCkI Claø G Cemtnt + 1% bWóC 8A-10 + 0.1 % bwoc R-3 + a bŸiO'N PotaulumChfofidé + 0.6% bwoc 00-32 + 1 gBls/10t) sack FP-6L + 0.3% bwoc Sodium Metnilicate + 34.8% Fresh 1J'\Iater 131.4 bbia 2. BEllS Cement + Mllng Mud. 10 ppg SLURRY SWRRY NO. 1 NO.2 13.50 HUG 1.82 1.16 1.21 3.92 9.21 4.92 4:tO 4~08 4:35 4:22 0.0 1ctt) 14_0 50 50 500 500 517 912 923 2188 1131 3432 IØð 3ØO .... 3 2Ðò I 1&1 Lead Suny 0 96 oi< F 88 50 37 24 12 1.2 Titil Slurry 0 98 '" F 260 152 108 62 16 13 ILIAMNA DRILLING PROCEDURE REV 10OCT.doc Pelican Hill Oil and Gas, Inc. Page 38 10/10/03 . . <)peräfòt Name~ Pélitett HlI 011& Gà$, .~. Wed Natné~ liiamna Nö. 1 - RE\ASlON Job Description: Cssmg-Drilléd Ceasing Sêdkltt Oate: October 9, 2003 !Cj PropofiDl No: 10011995&F PRICE ESTIMATE Product II_riel orv UNtT PRODUCT ŒSCRJPtK)N ",T ~ 340 .. CI8àfi G Cemetlt 5.178..3(1 1 80 lbe C8kium ChkWide 1 04.94 3.92 lbe PotaS8ÎUm Chlo~e 1 31.9S gQS lbe 8êmonite 1 54.3(1 1 32 lbe Soclum ~I~ 1 90.21 435 lbe R-3 562.24 3570 lbe Barb. Butt 746.13 3570 lbe Barb 0.00 1 ea Cèment Pfua. Rubber. Top 5-1/2 in 54.4! 1260 gals NlCS-4 2,591..~ 1 796 lbe 8A,·90 1 .056.95 1 41 .be 8A,·10 1 015..91 850 lbe CD-32 392.1Ð 6 gals FP-6L 221 .~ 449 .be FL-62 3.395~5e 36 .be A.SA-301 251.4(1 Produd tit_riat SuhIofaI: $16 659.99 S-ViceChargH OTY UNrr PRODUCT DEšCNPTK)N 681. 1.623. 790. $3,015.31 12 hra 36 hra 536 cu ft: SéMce Ctwif. M Subb:àt: TM ti/ì;Chni(¡;¡1 dm COftbiMd ifí this p~ Ii baaed on·1M lllêtl ifí~ líWillilllllìt iIíÌ ttIìII·~ ðfWi'itiftg aM IS 1IüIIjIicf.. fa füf1tt_íINIl,.l& aIId __ 'I'hD ~ diIIta ~ Iñ Ø'í1S pfD.PiJIUI.Wè øtinlììdîlll ãtlly IiIICI mall' val)' dí!þ61tdif1r1 Ufí ttllIí wad: aotütlli' puforme4 PI1eifíg dI:IM nOl ~ líldillllãl,.... and IIi:ìêaI t:axø or fO)'JIiItiH.. Thii ~ IS btiS_ 00 BJSérVÍãMCampll!'l!l bf!ifIg lIIWardeclltIM \!ífé:iitt ãtI a first call blliI MdMíhifí lIilty (XI) day. ðf the~. date. TIle.. priOM will be ~ ùJ ftItliIM if tire worl: ii dí:IM... Ølìrty po} day.. fmm tire ptQPOUI.... 0'011_ MCDI1d Olf third cd bIIiI. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 39 10/10/03 . . Opèrator Namé: Péllcatt t-liIl Ofl& SM.. 11't~. Weft NàtrIe: lfiamtia NO.1 - RËVIS1úN Job Oø.scriptjon:Casing-Orilléd Casing Secti()n: Øaté.. Odòbér 9. 2003 Wj p~ Not 1001'19958F PRICE ~STIMA TE Equipment OTY UNrf PRODUCT D!SCRlPTtOH iti!1L. 1 6hf& Cèment Pump C.slng, 5001 - 6000 ft 2.551.50 1 job FI$-Lok Cement· Hèad 222.15 1 'ob Dêà Acauisilion. Cément. Standard 511.50 :2 'ob FieJd $toraaa BItt 1,,034.00 Equipmênt S~: $4,391 J"5 ~ to'fAL: U", 121 ..~ NotH 1. Final chätga to be baud on actt.œl hoots, prê$sure and m8têríBla. bfended for and or caMumêd dumg cemlllnting oplMadons. 2. No smnd-by ch8fgl!l$ wII b. ÎflrCül'Nd for non-op~g days bêlWeen _Is. 3. Room attd board to be provided by Pellcatt Hill Oil &. gl!Jl&.Shouk:llhl$ not: be po&S1b1e remolD lóC8tiott charoø for pefSônnìid will 1Jé· incurred. 4. TranapOí1tdlon forequipmettt and pilßDhttel1D attdtom 10catiDh to. béprovMfed by Pdcan HI 01 .& Gas. ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 40 10/10/03 . . PRODUCT DESCRIPTIONS ASA.401 Additive uud to rèdl.lêê or ellmínélr'ø· nw and eel!llng in èémem: mmes. DA..10 MmpiVvescement ,bêndlng and aeMas B mBfíi1t flmv eomrólagem.. i. can be tmed iIn IIghtwêight,8lañdard and d8nãi&êd llurrlø øl mod"8Ie tèmpefIiU.. DA_ An rlioñ-Cömp8Chd $llca time flat proddcø high compreüive8tfength"low dend, cement Mulffles \'\/hich prevent annul. go mìgraØon by reducing swrry plI!Ifmeabllity. It em be used in the 1aw·1o high MmpehllUre ranges. Barilè A. naturally oéCunng mmefal (BarwmSulf8m). It œ Wiidaly uød Mil qgtdlng Miattldal in œmem·. ipace" andoœaslonall, in œmrøfitäilurriø. It can yield a slurry døMity in øctmi of 19 I~gal. 8entoö" Commonlycahd ~, it Is a day material bsed as aœment é:élønðér' and to conbcl éXC~ tru waw. C042 A patented. tree-ft(MÙ'g, Wi!IIer soluble potyrnêr Ihati'á an efflcien,t and edtldl\fe dl:&pmi8nt for ptimary and remedial œmèrMmg. c.'càlln Chloridé A powdètòd. ftalœd or pellleílìzed iMiI!dUriBlt used 10 déaene fhickElhinglÎme aM lnue:aM the: rd'1r of atrefigth dê\felopment. CM&8G CemøM Intended for !tiše!\! M a bask cemlint .rom :ìWrliícè 10 800CJ. ft at manufadUféd,or can be UMd y¡¡IIth ~.ratŒ1íi and retardM'Bto rover a ~é'ànlJé elM!. dépth& MId bJmperaturè$. Ft-G A. þíìtentod dry blend of W_if aoIuble polymerf¡¡ that are bnwlltedlò oontf(JI the 10M of ttbid during cementing øpetalimíõ. A ~aant and bonlingaddidVit arit propôflÎotìédto deliver oommtent peil1Or_í'liCB Md contlröl ftuld loss in primøtyand squeeze œmentingappkåtiiOn:& at low to moderale FP-6L A. clear lqüìd that deCtèi!ìl!lèl!i foaming In "Fries during mixjng. MCS4 A. turbuklnlßow SpaCéf sY$tem that prevents water and all-bee mud iIIfid ce:rrøml COAtari'latkJn and watet~Wèt& Ifté cilììŠiîrlg tô Incr_so bonding. PotiIIssium Chloride A grdnürat saU used Iõ reduce dafll5wellling CilUSèd by waœr-bne sfimulatiiJn1h::iid&.. Potassium Chloli&l AglaoulBr satt used ·10 f~dUœ day S'wellßg C8U$éd by wãlér-basé cementing ttrkfa. Ft..a A low tempèf81Wè relBrder U$êd in ã wide range' of dUlY formulaticlrd to éxlMld tftè stury thict.enlng time. IDdium .......UIicaM An e'dBnœr I.Øèd to produœ an eemamlca'!, low densilyeement slUrry. ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 41 10/10/03 . . ..............' !:l J........J........... i&.:tJ CONDITIONS ILl SeNÎl»l1' pMformanœ of Hl'Vicøaöd sa. of lMtAlials Is flXpMSSly COftdiloMd upon the applicabilty of the TendS and Conditiona ~ed In lhe CüI'f'èAlBJ SelvÍCés Price Book-The Tøms and CøntltíoM indudè, among oth. thinQ$, an indemnity in favor of BJ ~ tom Cufdom. for damage to Úíè·wel. bofe, tMefVOir dã!fMge, Iou of the hole, bIowout& and kIø of conttol of the well, even if taUMd by the negligence or 011. fãuft of BJ Services. The Tf!fmS and Conditions .1.0 limit the wurmf'tli',es pro\íided bylbe BJ Services and fie remêdieš to which Customer may. beenitled inÚíè event of ã brød 0' ~ty by 8JServÌCM. Forhae fUSonS, Wé stroMGly recommend lbatyôü Catêftllly rø"ie'Wa copy of fie Tetrn8iand CondiUoM. If yOä do not have 8 copy of the BJ SelvÍCé& Price Book, VØü can v_the 1"ïll1lM and Coödltion& M BJ ~ Web:Sitït, WWW.ljlêNicM.cöm.By ~ng thM 8J SeNiœs perform theaêlViœs described !herein, ~ acknowledgØthM Iüd1 T.m'I& âftd CondiliõnillM äppllcablê to theørviCê!l. . furthør, by ~ngthèIêNÎCIK, Cu!ltôtnelr wananls that lis ~e on Ihè Wèlloc:atil)n or OIher SIIlViœ de wil _fUly _thorized to ac:lmowlêdge s.uch Terms.Md CondlØons by executing ä. field Receipt or other document PNMìllted by BJ lervicMcontäintlng such Tenns and CondidoAs. In the øent thai CUstomer and BJIervIcøl hiwe ~ II 118sew Services Ag........m coverihg th. wort to bíiì pèrf6llfl8d, such lllaatw "IVÎCIK ,.Nemeftt shaH govttm in placè of... Tem'l& and ConcllmL If you are inttaNMId in MW:ln. into Mater Service& ArJlØíØ"Mftl with 8J SérvH::es~ pløM C()fttact us thmughtbe "'Go BJ'" button on the BJSentices Web lb. BJ SERVICES CONTACT INFORMATION BJ Services Company Kenai District - Operations Supervisor · Ed Post - 24-hour dispatch (907) 776-4084 BJ Services Company Kenai District - Service Supervisors · Marshall Brawn · Robert Moore · Smokey Poage · David Wallingford Regards, Jay 1. Jay Garner BJ Services Company, USA Alaska City Sales Manager, Pacific Region (907) 349-6518 Office (907) 229-6536 Mobile email: jgamer@bjservices.com ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 42 10/10/03 1- I 33'-6" T 10/10/03 \~ D RIG LAYOUT WITH DIVERTER LINE IN PLACE erri~ aker & ¡ ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 44 T esco Power 25'-ŒJ . Cat Walk 10/10/03 .& 4' _019 . SPACE OUT AND DIMENSIONS OF DIVERTER WITH TWO 13-3/8" SPOOLS .. ,. RKB to Top Pollution Pan 16 Inches ., RKB to Top of Hydril 54 Inches ~ RKBto Top of 12" RKBto RKBto Díverter Top of Top of Line 24" SUB DSAF 120.4375 BASE 93.75 Inches 116" Inches Inches RKBto RKB to top of Bottom of DiverterDri 12" Uing Spool Diverter RKBto 98.1875 Line top of 5" Inches 132.4375 Sub Inches beam 111 140 Inches Inches .. 'RKB to RKB to Rig MAT Top of 13- 5/8" SLIP .. lOCK Csg Head 147.1875 150 Inches Inches from RKB to Ground level with Two 5" MAts .- RKB to 13- 318" Cutoff 165.6875 Inches 'RKB'to .. bottom of Cellar 222 linci",,- 45 Height Top of o 8 8 38 39.75 4.4375 . Bottom Of Item o 0 Rotary table o 8 bushing 8 16 SPACE 16 54 Bell Nipple 54 93.75 HYDRll 93.75 98.1875 DSAF 22.25 98.1875 120.4375 Top of 1Z' Diverter Line 12 120.4375 132.4375 Bottom of 1 Z' Diverter Line 14.75 132.4375 147.1875 Top of Cgg Head 18.5 147.1875 165.687513-3!8"CasingCut 56.3125 165.6875 222 Bottom of Cellar 111 116 140 13-3/8",54.5#, K-55, Buttress Casing Set at 80 feet RKB 46 ITEM Dimensions CELLAR 72" Diameter RIG SUB 70" Wide by 7'2" Long 13-518" 5M Flange 26.5" Diameter 11" 5M Outlet Flange on Diverter TEE 23" 11" 5M by 150 RF XO 11" Long by 19" RF Flange OD Series 150 RF Flange OD 19" 47 . . SPACEOUT OF SURFACE CASING NIPPLE UP WITH SPACER SPOOL FOR TBH HEAD RKB to Top of Hydril 54 RKBto Top of Rams 93.75 Inches RKB to" Bottom of Spacer Spool 168 Inches '--- RKBto bo1tom of 9 518" Csg Head 165.5 InChes 1 1 I 8 8 Helg,t Top of Bottom Of 118m o 0 0 Rotary table o 8 8 bUshIng 16 SPACE 38 16 39.75 54 RKBto Top of Spacer Spool 140.5 Inches 150 Inches from RKB to Gnu1d level wI1h Two 5" MAJs 54 Bel Nipple 93.75 HyQiI 29.315 93.15 123.125 Rams 17.315 123.1 140.5 Cross 27.5 140.5 RKB to 3-318" Cutoff 91.5 nches 11.5 168 RKB to bo1tom of Celar 222 Inches 6 165.5 30.5 191.5 48 168 SPACER 165.5 11" Csg Head 191.5 13-318"CUloff 222 CeSar Bottom Table Kill Line Side CHOKE LINE SIDE SUB BASE GROUND LEVEL ELEVATION 15 FEET 49 . . SPACE OUT OF BOPE WITH TBG SPOOL IN PLACE ,. Height Top of Bottom Of Item 0 0 o Rotary table 8 0 8 bushing 8 8 16 SPACE RKB to Top of Hydril 54 Inches .. Ir0 Inches 38 16 54 Bell Nipple RKB to Rig MAT RKB to Top of Rams 93.75 Inches .. 39.75 54 93.75 Hydril RKB to top RKBto of Drilling Top of Spool TBG 123.125 Spool Inches 143.5625 150 Inches Inches from RKB .. to Ground RKB to level with 29.375 93.75 123.125 Rams Top of 9- Two 5" 518" Csg MAts Spool RKB to 165.0625 Top of Inches DSAF 140.5 Inches RKBto .. bottom of 9- 17.375 123.1 140.5 Cross 5/8" Csg Head 182.5625 3.0625 140.5 143.5625 DSAF Inches. With 4" of 9· 518" Casing ,r inside head 21.5 143.6 165.0625 Tbg Spool RKB to 13- 3/8" Cutoff 188.5625 RKB to , Inches bottom of 182.5625 11" Csg Head Cellar 222 17.5 165.1 inches .. + 6 182.6 188.5625 13-318" Cut off 33.438 188.6 222 Cellar Bottom 50 Hydril Weight 5300 #'s Height 39-314" Closing Volume 7.43 Gallons Studs 1-31f!!' by 9-112" 16 Studs and Nuts Ring Gasket R53 Studs Required 16 Stud Size 1-3/8" by 9-112" Ring Groove R-53 LWS Height 29-318" LWS Weight 5000 #'3 Closing Volume 1.74 Gallons Opening Volume 1.45 Gallons Closing Volume 1.74 Gallons Opening Volume 1.45 Gallons Mud Cross Height 17-3/8" Ring Grooves R-53 ITEM SIZE Ring Gaskets it of Boits Bolt Size & Length A. 3·118" 5M HCR Vaive on Choke Line R35 8 Per Flange 1-1/8" by 7-114" B. 3-118" 5M Manual Plug valve on Choke Une R35 8 per Flange 1-118" by 7-114" C. DSAF 3·118" 3M by 3-118" 5M R31 and R35 8 Studs per side 718" by 6" & 1-1/8" by 7-114" D. DSAF 3-118" 3M by 2-1116" 5M R31 and R35 8 Studs per side 718" by 6" both sides E. 2-1116" 5M Manual Plug Valve on Kill line R24 8 per Flange 7/8" by 6" F. 2-1116" 5M Manual Plug Valve on Kill line R24 8 per Flange 718" by 6" 52 ITEM DESCRIPTION 53 54 ACCUMULATOR VOLUME REQUIREMENTS AND BELL NIPPLE DESIGN BELL NIPPLE DRAWING FOR USE ON ALL THREE NIPPLE UPS ACCUMULATOR VOLUMES REQUIRED, TEST PROCEDURE AND BELL NIPPLE DESIGN ITEM Annular Ram Ram HCR Vol to Open Vol to Close Total o 7.43 7.43 1.45 1.74 3.19 1.45 1.74 3.19 0.5 0.5 1 14.81 15O"k 11.145 4.785 4.785 1.5 22.215 Acceptable volume of usable accumulator fluid is equal to 22.2 Gallons. The Accumulator should still have an acceptable pressure of 1500 psi remaining. Accumulator test procedure. Fully charge bottles to 3000 psi and shut off pumps. Shut off air supply and electrics to the accumulator Close annular and open same. Close Annular again. Close and open each ram and close each ram again. Open and close HCR and reopen again. Measure accumulator pressure and confirm same is more than 1500 psi. If accumulator pressure is less than 1500 psi, Isolate and check each bottle for correct Precharge. Each bottle should be precharged to 1000 psi with nitrogen prior to filling with hydraulic oil. BELL NIPPLE DRAWING fOR USE ON ALL THREE NIPPLE UPS ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. Page 55 10/10/03 tn ..J m In ~ 6 C .... .... II( ~ 5 Z ~ W ..J ~ 4 ~ o 2 SW AD KICK TOLERANCE CHART 8.0 10 9.0 10.0 11.0 MUD WEIGHT 8 9 IlIAMNA # 1 WELL SWAB KICK TOLERANCE VERSUS MUD WEIGHT FOR VARIOUS FG"S WITH CASING SHOES SET AT 550 FEET 7 3 2 1 .60 FG = 11.5 .65 FG = 12.5 -+- .70 FG = 13.5 FG .728 .75 FG :;: 14.4 .8 FG = 15.4 o ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hill Oil and Gas, Inc. Page 56 10/10/03 PRESSURE KICK TOLERANCE CHART o 500 1000 1500 2000 PSI 2500 3000 3500 4000 o 1."."..& ~ ~ t~ þ\G\~W il J I lI' ji~ r t~ ---11.5# MUD HYDROSTATIC -v¡ -11# MUD HYDROSTATIC ff -1@.5#MUDHYDROSTATIC III -1(J# MUD HYDROSTATIC i .....e..cASING SEITING - .,t !~""MAXIMUM Ji..'WM KICK TOLERANCE IN PPG WITH 11.5# MUD ~IMUM KWM KICK TOLERANCEINPPG WITH .~ 11# MUD f- , I ~IMUM Ji..'WM KICK TOLERANCE IN PPG WITH 10.5# MUD .\\'''''!Ir\&I!IØ)MAX!MUM KWM KICK TOLERANCE IN PPG WITH 1!J# MUD I I ~ ~ C 9-5/8 1000 2000 3000 :t:- I- CI> D.. CI> wu.. c .5 4000 5000 6000 10.0 10.5 11.0 11.5 1 12.5 13.0 13.5 14.0 Maximum KWM in PPG ILIAMNA DRILLING PROCEDURE REV 100CT.doc Pelican Hin Oil and Gas, Inc. Page 57 10/10/03 ILIAMNA '# 1 PROPOSED WELL BORE SCHEMATIC TOP OF CEMENT ASSUMED @ 16 FEET RKB TD 5500 FEET Hole Size 14-314" from 14' to 80' 13-318".54.511, K-55. Butt C.sing.t 80' RKB 13-M!" ID 12.61"from 12- to 80' Hole Size 12-114" from 80' to 550'. Hoie Volume 78 BBLS nuior Vol 30 BBLS Cement Required 46 BBLS 255.6 Cubic Fe.t 9-518", 32.3#, K-55, STC at 550' RKB 9-518" ID 8.921" from 12' to 550' "X" Nlppie @ 4900' 5-112" by 2-718" PACKER @5000' 2-718",6.511. K-55. EUE 8 Rd Tublng@5200' Hole Size 7.875" From 55(J' to 5500' Hole Volume 339 BBLS AnnutarVol 178 BBLS cement Requtred 222 BBLS 1246 CUbic Feel 5-112", 1511, K-55, LTc MAV @ 5500' RKB HOLE SIZE AND CASING AND TUBING ANNULUS CALCULATIONS Cased Casing Casing HOlo C.slng Depth of Ogen Hote Slzoln Wolght SIlO In ID In Shoo In HoIa Vat Volume Inches In PPF Inch<!;;¡ Inches Feet In Bblslft In_ Totaf Hole Vatu"", Csg C....d & Dlsp/Ft Csg Opon Hole In In Dlspl Bbls bblslft BbIs Ann Vol In BbIs fromTD toCallar Casing Comant Capacity Vol Roqd from RKllln Excess % bbls 8bts Falllof Csgln Ogen Hote Felli of Csg In C.sed Hole 13.375 54.5 14.75 12.615 80 0.211 0.000 64 13.526 0.174 11.1216 2.404 50 3.606 12.367 NOTE Calculations based on top of cement at bottom of cellar. 9.625 32.3 12.25 9.001 550 0.146 0.155 470 64 78.406 0.090 48.0552 30.351 50 45.526 43.285 NOTE: Calcuiations based on top of cement at 16 feet RKB. 5.5 15 7.875 4.44 5500 0.060 0.079 4950 534 340.224 0.029 161.147 179.078 25 223.847 NOTE: Calculations based on top of cement at16 f...t RKB TUBING CALCULATIONS FOR ANNULUS VOLUMES AND CAPACITIES Ca'lng Ann Vot Annutar DeptI¡ of Vot B_",n Felli of Felli of VoIu"", to End of balow Tbg and Tubing Tubing End of Tubing Tbg In Casing In Below Above Tubing In In Felli BPF BPF Packar Packe, Bbfs TubIng Tubing Hole Tubing Slzeln Weight SIz"1n ID In Inches In PPF Inehês Incho, Tubing TBG Dlspl to Tubing DlspIFt Packer Capaclly In BPF In BbIs In BPF Tubing Tubing Capacity Capacity to Packo, to EDT 2.875 6.5 NIA 2.441 5200 0.019 0.011 200 5000 57.827 0.006 40.1461 0.009 28.640 30.098 Page 58 105.324 Full Circulation Vow"", to EDT In Bbl' 87.925 PROPOSED DAYS VERSUS DEPTH CURVE PELICAN Hill Oil AND INC. lliamna # 1 Anticipated Days Versus Depth -10 o -5 o 5 10 15 20 1000 )aV5 """"", - 113-318" @ 80 Ft , J J \ I .\ 9-5 18" @ 550 Ft \ \ " - ~ -- ... .. -- <;;; : .5 -S ¿¡ -- -- --.- ". , " 1 ~ , , \. , 1Tw -ANTICIPATED DAYS VERSUS DEPTH I , : : : 5-1/2" @ 5500 FtJ. I ; ¡ : I ., 2000 3000 4000 5000 6000 ILIAMNA DRILLING PROCEDURE REV lOOCT,doc Pelican Hill Oil and Inc. 59 10110/03 PROPOSED COMPLETION SCHEMATIC IlIAMNA# 1 PROPOSED WEll BORE COMPLETION SCHEMATIC ILIAMNA DRILLING PROCEDURE REV lOOCT.doc Pelican Hill Oil and Gas, Inc. 60 10/10/03 . . PROPOSED XMAS TREE AND WELLHEAD EQUIPMENT SPECIFICS ?'HfII ...... III M II.J. -- .ME IfIIIIIICII. 1-7/11"' all ~II · III CIi ..i I... ...... - - .-.YIIID .... t:t' .=.& .- SIE a: F'Œ ElllGlNrERlNC ACAD 9-518 X 5-V2 X 2-718 DD 5M NIP ASS"( ~:.. 8'.... ~ .--. JID.IWII HIWI ...- JIIIIL ilL ~ .....-- SP-IIISH D~1~J"'q" U'¡l1 (')11 ",,"rI r!.....C' Tn,... ILIAMNA DRILLING PROCEDURE REV lOOCT.doc D,",fT~ r...l 1 (Ill (l1(lCl 1073 INLET PELICAN HILL PH. 907-333-8880 2420 FOXHALL DRIVE ANCHORAGE, AK 99504-3342 COOK '" . 89-6/1252 O¡;..seD ~F"a.""" ~~~~·nl3ack J DOLLARS o $ It) - If} DATE t1- (}6 C- c.. DQR PAY TO THE ORDER OF. f)A/€ . M> / ~ 2 5 2000 b 0 I: :l 0 2? ~ 2 t. ~ III ~ --~~~--,;,¡.!..-;~~~~;n~.0=~wmw~mmf...4_~~I'.1..w,~m:;;r~~ ,- - ~o ? :llll FOR~..~ . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERIP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~fà.tM.f1CL -if I 2-ò 3 -/72... PTD# CHECK WHAT ADD-ONS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing well ~ Permit No, API No. . (If API num ber Production should continue to be reported as last two (2) digits a function· of the original API number stated are between 60-69) above. PILOT HOLE In accordance with 20 AAC 25.005(1), all (PH) records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) .. and API number (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to full EXCEPTION compliance with 20 AAC 25.055. Approval to peñorate and produce is contingent upon issuance of a conservation order approving a spacing exception. (Company Name) assumes the liability of any protest to the spacing . exception that may occur. DRY DITCH All dry ditch sample sets submitted to the SAMPLE Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Rev: 07110/02 ajody\templates Administration Well Name: ILlAMNA 1 Program EXP PTD#: 2031720 Company PELICAN HILL OIL AND GAS INC. Initial ClasslType EXP I PEND GeoArea 820 Unit On/Off Shore On 1 P~rlT!itfee attache.d_ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 leas~_numberappropriSite _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 _U_nLque well_n_arn~_aod OUlT!b_er _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - - - - - - - Y~s - - - - - . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 WellJoC<lt~d ina c:lefine.dpOQL _ _ _ _ _ _ _ _ _ _ _ _ _ _ No _ _ _ _ Exploratory well _ _ _ _ - - - - - - - - - - - - - - 5 WellJocSiled prpper _dLstance_ from driJling unilbpundj;lry _ _ _ _ _ _ _ _ _ _ _ _ _ _ y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6 WellJocat~d prpperdLstance_ from otber wells_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 _S_utficient j;lcreage_ayailSible in_dritliog unjt _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 Jtd~viated, js_ weJlbore platincJu_ded _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - - - - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9 _Operatoronly:affectedparty _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s_ _ _ _ _ _NOTICEØFCHAN_GE_OfOWNERSHIP_a_ndPESIGNATIQNOfOPEM1QRtorlT!S_ filed10J22/2003._SfQ - -- 10 _Operator bas_apprppriate_bond LnJorcE!. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ y~s _ _ _ _ _ _ _ formJO-A026 r~CE!.i,,-ed JO/23/03.; letter otCrectitlT!u_st be_apprpVE!.d_by _C_ornrnjs_sLooers prior toJssuing permit._ - - 11 P~rlT!itGaobeLssuedwjtboutco_nserva_tionorder_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - Y~s_ _ _ - - - - - - - - - -- Appr Date 12 P~rlT!il~aobeLssuedwjtboutadlT!inistrati\le_apprpvaL - - - - - - - - - - - - - - - - - - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - -- SFD 10/24/2003 13 Can permit be approved before 15-day wait Yes 14 WE!.llJocat~d wLthin area alld_strataauthorLzed byJojectipn Ord~r # (pulIO# in_cprnrn~otsHForNA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 15 _A!I wells_wit!1Ln Jl4J'uite_area_of reyiew id~otified (Fpr servjq:¡wetl onlY:L _ _ _ _ _ _ _ _ _ _ _ _ _ _ _NA _ _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16 PIE!.-produ~ec:l iojector; .durSition_of pre-pro.ductipol~ss thall3. montbs_ (Forse(llLce well on!y) _ _ _NA _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 17 ACMP_FJlldingof Con_si~teocy_h_as bee_nJssued_ forJbis pr_olect _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ Deemedconsiste_nt by_Qffiq:¡_of Pr_olect_Managementl~eJmittLng on Oct< 3, _2003. - - - - - - - - - - - - - - - - 18 _C_oodu_ctor string_PJovided _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - - - - - - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 _S_urtaq:¡_casing_PJotectsaILknowIlUSQWs _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _NeaJestwateLweJlis_U:mi,SE&Js1t6'_c:leep;_onlyptherwa_terw~IILn_are_aJs4.5rnL.SE&Js205·de_ep. 20 _CMT v_ol adequ_ateJo Ci rc_u late on _cond_uctor_ & SUJtC$g _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ Casing wm-:;mted_ to surface wiJI adeqJJately prptecla_ny potelltiaLundergrOUlld_sources_of drinJ<Lng water. _SFP_ 21 _CMT vol adequ_ateJo tie-LnJong _striog tOSJJrf csg_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 22 _CMTwill coyeraJl J<nown-Pfo_ductiye borii!:on_s_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23 _C_asiog de_sigos ac:leQua_te fpr C,_T" B_&_permafrpst _ _ _ _ _ _ _ y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24 _A.dequSitetallkage_onese(lle pit _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Y~s _ _ _ Pit drawiogspJovided.10Jal ~'bJirnJulr' pit capacity 4413 bbls, allowing YJre~brd,_ pitC<lpacLI¥- is 358_ bb!. _ _ 25 Jtare-drilt bas_a_ 10-403 for SibandOlllT!ent be~o apPJoved _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _NA _ _ _ _ _ _ _ CalcuJatedfluLdJIl hoJe_ atTD353 bbls. Jf5<5~' casing w~reJripped from rD~ holefi!1 would be "7130 bbls. 26 A.dequSitewe!lboIE!. separatjonproposed _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~L _ _ _ _ _ _ No otberwetlbore_s_nearby:. _ _ _ _"(he pLts haye sufficient Gapacjty to_d~Uv~rt)1i~ yolume althpughjtcpuld - - - - - - 27 Jtdiver:terJe~uiIed,dQesitlTleetreguJations_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ beas_muc!1_as50%p{tbeactivepilvplurn~_ - - - - - - - - - - - - - - - - - - - -- Appr Date 28 _DJilliogfluid_progralT!s~hematic&eq_uipJistadequSit~_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s_ _ _ _MaximumanticipatedBI:Œ'9.0EMW._PI,mnedMWW.QppgwitbsuppliE!.s to weight JJp._ - - - - - - - - - - - - - -- TEM 10/23/2003 29 _BOPEs,_dp_they meetreguJation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 30 _BOPE_PIess raJiog appropriate;_testto-<puJ psig Lncomments)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ _ CalcuJaJed_MASP_ 2024 psi. Planlled BOPJest pr~ss_ure_3_000 psL - - - - - - - - - - - - - - - - - - - - 31 _C_hoke_manifold cOlT!pJies w/APIRF'-53. (May 64) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 32 Work wi!l occur withoutoperatjonsbutdown_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - - Y~s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 33 Js preseoce of H2S gas_ probable _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ No - - - - - - - - -- - - - - - - - - - -- - - - - - -- - - - - - - - - - - - - - - - 34 MecbanicaLcpodjtlooptwellswLthinAORYerifiec:l(for_s_ervjcew~lIonM_ _ _ _ _ _ _ _NA _ _ _ _ _ _ _ _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- Field & Pool Well bore seg Annular Disposal o o - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - -- . Engineering . Appr SFD 35 36 Date 37 10/23/2003 38 39 P~rmitc_ao be Lssued wlo hydrogen_s_ulfide meas_ures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ Non_e_enco_uotered in_offsetwetls_. Rig_sensprsJAlill be_uJiljz_ed._ - - - - - - - - - - - - - - - - - - - - - - - _D_atapJesented on_ pote_ntial oveJpressur~_zones _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ _ _ Noneexpe_cted._Qp_erator is_aware of rnJJd prpfjles used to_dIitI offs~t wells. Wellsite gE!.ologist will be_ - - - - - - - - _S~Lsmic_analysjs ofshallow gas_zpoes_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y~s _ _ _ _ on_sLte when_drillingb_elow_550' MQ. _ElectrOllic driJling Lnformatioo sy:stem_ wil! be us~d. - - - - - - - - - - _S~abed _condjtipo survey (if off-shore) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .NA _ _ _ _ _ _ _ NO evjdence_ Qf shaJlow gas_h_a~ards Qn_sparse sejsmic. _Rig wiJI haV_e-9SiS detectQrs. - - - - - - - - . . - - - - _ CQnta_ct namelp!1olleforweelsly progress reports [exploratory _only] _ . _ _ _ _ _ _ _ _ Yes _ _ . . . Men _E_hrn, 33.3~8_86Q. _ _ . . . _ _ _ _ _ _ _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Geology Geologic Commissioner: Date: Engineering Public Commissioner: Date Commissioner ;{. ~ :!Vf!03 ¡;vf Date LETTER OF CREDIT MUST BE APPROVED BY COMMISSIONERS BEFORE ISSUING PERMIT. An inclination only survey is required on this vertical well. Mudlog will consist of output data from electronic mud logging system. Cuttings samples waived due to close proximity (within 1-112 miles) to two existing exploratory wells having complete samples from 30' to >6700' MDITVD. Open hole logs waived: will be drilled with casing; pulsed neutron I GR will be run in casing. L l e e Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information, inf'onnation of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. Operator: PELICAN Hill Plot Name: Contractor: PELICAN Hill Oil AND GAS Date & Time: Monday, January 05, 2004, at Rig Start Time: November 27 2003, 06:00:00 Well: ILlAMNA 1 End Time: December 6 2003. location: Start Depth: 559 Field: iIIiama End Depth: 3518 Ave. Interval: Hook Load Avg ROP Total Gas Top Drv Rpm KLBS 200 0 FT/HR 2000 UNITS 300 0 RPM 150 Block Height Pump Pressure Total Spm Top Drv Torque FEET 100 0 PSIG 5000 0 SPM 2500 FT/LBS 500 Master Channel Time () Depth 01' D... <1! _'0 0:: r:: :r:ß -q-(f) 01- 1':' C <!> o () I I 111127/03 110:00:00 I 11/27/03 12:00:00 11/27/03 14:00:00 11/27/03 116:00:00 11/27/03 18:00:00 11/27/03 0:00:00 660 f'~~3 680 4:00:00 700 7')('\ Þ 1/28/03 740 6:00:00 I 760 780 ~'~~3 ROO 8:00:00 820 I 840 I I 860 111/28/03 10:00:00 880 I Qn{) 111/28/03 1100 118:00:00 1120 :11/28103 20:00:00 11/28/03 22:00:00 11/29/03 00:00:00 11/29/03 02:00:00 11/29/03 04:00:00 '11/29/03 06:00:00 ,11/29/03 08:00:00 1700 11/29/03 10:00:00 11/29/03 12:00:00 i11/29/03 14:00:00 11/29/03 16:00:00 :11/29/03 i18:00:00 11/29/03 20:00:00 "'d,Af'i 1760 1780 ]11/29/03 1600 22:00:00 11/30/03 1820 00:00:00 1840 1/28/03 2:00:00 :11/28/03 '14:00:00 11/30/03 18:00:00 :11/30103 120:00:00 ??An 2300 2320 2360 2400 2420 2440 2460 2480 2500 2520 2540 ')¡;;;¡;:,n 2580 2600 2620 ')&::An 2660 ?Ç\:!O 2700 ?7?O 2740 2760 2780 2800 2820 2640 ")o¡;:,n 2880 2900 2920 !12/01/03 2940 116:00:00 2960 2980 112/01/03 3000 118:00:00 3020 112/01/03 3040 r;:!0:00:00 3060 3080 :12/01/03 ":!1fìn 3120 122:00:00 80 :12/02/03 :1200 ~O:OO:OO 3220 I 3240 3260 :12/02103 I 3280 02:00:00 3300 3320 !12/02/03 3340 04:00:00 3380 ,12/02/03 :1400 3420 06:00:00 3440 3460 12/02/03 08:00:00 3480 3500 3520 ;12/02/03 3540 10:00:00 12/02103 12:00:00 '12/02/03 14:00:00 12/02/03 16:00:00 12/02/03 :18:00:00 '12/02/03 ~W:OO:OO :12/02/03 (22:00:00 112/03/03 00:00:00 i :12/03/03 02:00:00 112/03/03 04:00:00 -1 ! 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