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204-207
· . 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. JD~ - J.Q 7- Well History File Identifier Organizing (done) D Two-sided 1111111111111111111 R)JCAN \Ø Color Items: D Greyscale Items: DIGITAL DATA D Diskettes, No. D Other, Norrype: D Poor Quality Originals: D Other: NOTES: BY: ~ Date I, 'a/07 Project Proofing BY: ~ Date I /G/O 7 (() X 30 = I <l\ 0 + Date: J /8/07 Scanning Preparation BY: C Maria ) Production Scanning Stage 1 1~8 (Count does include cover sheet) VYES NO Page Count from Scanned File: BY: Page Count Matches Number in Scanning Preparation: Date: J /3/07 If NO in stage 1, page(s) discrepancies were found: ~ Stage 1 BY: Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: Comments about this file: D Rescan Needed 11111111111 II 111111 OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ~09S of various kinds: D Other:: 151 rvtP 11111111111I11 11111 151 VVt'f 17 = TOTAL PAGES 197 (Count does not include cover sheet) .,AA . () 151 ., , rr III 11111111111 11111 YES 151 WVp NO 151 1111111111111111111 III 1111111111111111 151 Quality Checked 1111111111111111111 10/6/2005 Well History File Cover Page.doc STATE OF ALASKA L F r ALA, OIL AND GAS CONSERVATION COMMI. JN AUG 13 2013 REPORT OF SUNDRY WELL OPERATIONS A GCC 1.Operations Abandon U Repair Well U Plug Perforations U Perforate [2]. Other U a° Performed: Alter Casing ❑ Pull Tubing❑ Stimulate-Frac ❑ Waiver ❑ Time Extension❑ Change Approved Program ❑ Operat.Shutdown❑ Stimulate-Other ❑ Re-enter Suspended WeII❑ 2.Operator 4.Well Class Before Work: 5.Permit to Drill Number: Hilcorp Alaska,LLC Name: Development 12 Exploratory ❑ 204-207 3.Address: 3800 Centerpoint Drive,Suite 100,Anchorage, Stratigraphic❑ Service ❑ 6.API Number: AK 99503 50-231-20029-00 • 7.Property Designation(Lease Number): 8.Well Name and Number: Deep Creek Unit(C-061590) Happy Valley A(HVA)-11 9.Logs(List logs and submit electronic and printed data per 20AAC25.071): 10.Field/Pool(s): N/A Deep Creek Field/HV Beluga and Tyonek Gas Pool • 11.Present Well Condition Summary: 7,168;9,075; Total Depth measured 10,082 feet Plugs measured 9,280 feet true vertical 9,578 feet Junk measured 7,175(fill) feet Effective Depth measured 7,159 feet Packer measured 4,246 feet true vertical 6,656 feet true vertical 3,884 feet Casing Length Size MD TVD Burst Collapse Structural 92' 13-3/8" 92' 92' 3,450 psi 1,950 psi Conductor Surface 1,107' 9-5/8" 1,107' 1,099' 5,750 psi 3,090 psi Intermediate 4,506' 7" 4,506' 4,116' 7,240 psi 5,410 psi Production Liner 5,821' 3-1/2" 10,082' 9,579' 10,160 psi 10,540 psi Perforation depth Measured depth See attached Schematic True Vertical depth See Attached Schematic Tubing(size,grade,measured and true vertical depth) 3-1/2" 9.2#,L-80 4,298' 3,930' 4,246'MD Packers and SSSV(type,measured and true vertical depth) Baker ZXP 3,884'ND N/A N/A 12.Stimulation or cement squeeze summary: N/A Intervals treated(measured): N/A S�,ANNcre Treatment descriptions including volumes used and final pressure: N/A CA ED 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 0 Subsequent to operation: 0 0 0 0 0 14.Attachments: 15.Well Class after work: Copies of Logs and Surveys Run N/A Exploratory Development 151 ' Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16.Well Status after work: Oil ❑ Gas ei . WDSPL❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP❑ SPLUG❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O.Exempt: 313-382 • Contact Chris Kanyer Phone: 907-777-8377 Printed Name Chris Kanyer Title Reservoir Engineer Signature Phone 907-777-8377 Date 8/13/2013 RBDMS AUG 2 0 2� r-2/13 Form 10-404 Revised 11/2011 Submit Original Only Happy Valley Well HVA-11 SCHEMATIC Last Completed 12/10/04 Nikon.41,,,4n.r.I F PTD: 204-207 API: 50-231-20029-00 Tree cxn-3"Bowen cxn RT-THF:16.4' Casing and Tubing Detail ? ,,, Size Type Wt/Grade Top Btm CONN/ID Cement/Other to 13-3/8" Structural 68#, K-55 Surface 92' BTC/ Grouted in place 13-3/8" ,,' 9-5/8" Surface 40#, L-80 Surface 1,107' BTC/ 115 bbl of 12.8 ppg lead and 27 92' �..1 6 8.835" bbl of 15.8 ppg class G tail _ l 0 BTC-Mod/ 108 bbl of 12.8 ppg lead and i7 ,,, 7" Surface 26#, L-80 Surface 4,506' 6.184" 14 bbl of 15.8 ppg class G tail. La Mk IBT-Mod/ iii 3-1/2" Liner 9.2#, L-80 4,261' 10,082' 2.992" 220 bbl of 12.0 ppg Litecrete 9-5/8 @1,007 , Tubing IBT Mod/ Annulus loaded with 3% KCI 3-1/2" Production 9.2#, L-80 Surface 4,298' 2,99 2„ brine plus corrosion inhibitor w/ 2bbl diesel freeze protect. Jewelry Detail 2 = e 3 # Depth Length ID OD Item 5 4 1. 2,513' 7.42' 2.992" 5.50" Chemical injection sidepocket mandrel (Macco SF01-CI) L 6 with 1/4",0.049"wall SS chemical injection line 7"@4,506' 2. 4,246' 15.12' 4.408" 5.975" Baker ZXP packer - 3. 4,261' 9.8' 4.414" 5.92" Flexlock liner hanger - BLG-50 4. 4,264' 1.28' 2.876" 5.0" Fluted locator sub - BLG-80 5. 4,284' 13' 2.876" 3.93" Baker 80-40 seal assembly = BLG-90I 6. 4,298' 0.5' 2.876" 3.93" Muleshoe BLG100 7. 7,168' - - - Halliburton EZSV BP(11/16/05) T-4 8. 9,075' - - - Halliburton Elite-Magna Range CIBP(11/10/05) Tagged fill @ 7,175' = T-6 -. RKBSLM 12/27/09 - T-10 9. 9,280' - - - Halliburton Magna Range CIBP(6/10/05) 7 Yg = 1-17 Perforation Data ZONE TOP(MD) BTM(MD) TOP(TVD) BTM(TVD) SPF Condition BLG-50 4,712' 4,718' 4,299' 4,304' 6' Open-5/12/2012 BLG-50 4,795' 4,799' 4,373' 4,377' 6' Open-5/12/2012 8 S BLG-80 5,281' 5,291' 4,815' 4,824' 6' Open-12/22/2009 BLG-80 5,301' 5,309' 4,833' 4,841' 6' Open-12/22/2009 = 1-80 BLG-80 5,314' 5,324' 4,845' 4,855' 6' Open-12/22/2009 - BLG-90 5,517' 5,537' 5,036' 5,055' 6' Open-12/22/2009 BLG-100 5,743' 5,768' 5,252' 5,276' 6' Open-12/22/2009 9 g T-4 6,382' 6,396' 5,879' 5,891' 6' Open-8/7/2013 1-91 T-6 6,589' 6,609' 6,086' 6,106' 6' Open-8/7/2013 ✓ T-10 6,894' 6,924' 6,391' 6,421' 6' Open-11/16/2005 _= T-100 T-17 7,216' 7,284' 6,713' 6,781' 6' 11/11/05,Isolated 11/16/05 T-80 9,106' 9,156' 8,603' 8,653' 6' 12/4/04,Mini Frac 6/22/05,Isolated 11/10/05 T 105 T-91 9,406' 9,430' 8,903' 8,927' 6' 12/10/04,Isolated 6/10/05 T-100 9,531' 9,551' 9,028' 9,048' 6' 12/3/04,Isolated 6/10/05 -- T-130 1-105 9,624' 9,654' 9,121' 9,151' 6' 12/1&12/3/04,Isolated 6/10/05 T-130 9,910' 9,930' 9,407' 9,427' 6' 11/30/04,Isolated 6/10/05 NOTE: 3-1/2"@10,08r alli 9-5/8"Surface Casing:FIT 16.3 ppg EMW • 7"Surface Casing:FIT 13.5 ppg EMW TD=10,082' PBTD=10,026' • Tubing lift threads:3-1/2"IBT MAX HOLE ANGLE=30.0°@ 3,087 • Eline had problem running in hole with BP(Max OD 2.28").Noted as very bumpy at+5,400'.Logging KOP=500' up for tie-in had+2,100Ib weight.(11/10/05). max Doglegs=<3deg/100' • Stimulation:Mini-Frac stimulated T-80 perfs on 6/22/05 with 40bbl at 3.5bpm. Updated by TDF 8-13-2013 Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVA-11 Add perfs & install cap strings 50-231-20029-00 204-207 8/6/13 Daily Operations: 7/31/2013 -Wednesday No operations to report. 8/1/2013-Thursday No operations to report. 8/2/2013 - Friday No operations to report. 8/3/2013 -Saturday No operations to report. 8/4/2013-Sunday No operations to report. 8/5/2013 - Monday No operations to report. 8/6/2013 -Tuesday PTW and JSA. Rig up lubricator, P/T lub to 250psi low/ 2,500psi high. Tubing pressure 0 psi. RIH w/2.70 GR and tag fill at 7,175' KB. FL 500' KB. Swab well down from 500'to 4,650' KB. RIH w/2-1/2"x20' dummy guns and tag fill at 7,175' KB. POOH. No problems. RIH and tag fluid at 4,620'. Figured out fluid was coming back in to well at 10' every 20 min. Rig down lubricator. Put 400 psi on well. SDFN. Hilcorp Alaska LLC Weekly Operations Summary Well Name API Number Well Permit Number Start Date End Date HVA-11 Add perfs& install cap strings 50-231-20029-00 204-207 8/6/13 8/8/13 Daily Operations: 8/7/2013-Wednesday PTW and JSA. Spot equipment and pressure test lubricator to 250psi low and 2,500psi high. 400 psi on tubing. RIH w/2- 1/2"x20' HC, 6 spf, 60 degree phase perf gun and tie into Schlumberger SCMT log dated 19-Dec-2004. Spot perf gun from 6,609' to 6,589' per Final Approved Perf Request Form dated 7/25/13 by Geologist. Fired gun and no pressure change. POOH. FL was 4,360'. RIH w/2-1/2"x14' HC, 6 spf, 60 degree phase perf gun and tie into Schlumberger SCMT log dated 19- Dec-2004. Spot perf gun from 6,382"to 6,396' per Final Approved Perf Request Form dated 7/25/13 by Geologist. Fired gun and no pressure change. POOH. FL was 4,332'. TP 360psi when perfed. Rigged down lubricator and turn well over to production. Dropped 3 soap sticks and waited 30 min.Attempted to bring well on but no go.TP is 0 psi. 8/8/2013-Thursday Mobe to location. PTW and JSA. Rig up slickline lubricator, PT to 250psi low and 2,500psi high. Swab well from 4,060'to 5,810'. Did not gain any pressure and got back around 16BBL of fluid today. Rig down and return to base. 8/9/2013- Friday No operations to report. 8/10/2013 -Saturday No operations to report. 8/11/2013-Sunday No operations to report. 8/12/2013 - Monday No operations to report. 89/13/2013-Tuesday No operations to report. • • w e I ' s� THE STATE Alaska Oil and Gas N ors ®f s Conservation Commission GOVERNOR SEAN PARNELI, 333 West Seventh Avenue Q, ����� Anchorage, Alaska 99501-3572 ALAS"' Main: 907.279.1 433 SCAN�E�? Ut Fax: 907.276.7542 Robert Kendrick !'� G Operations Engineer 1 — a° 7 Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503 Re: Deep Creek Field, HV Beluga& Tyonek Gas Pool, Happy Valley A-11 Sundry Number: 313-382 Dear Mr. Kendrick: 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 reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, ‘476 Cathy v Foerster Chair /C - DATE D this/da y of July, 2013. Encl. • 0 , J / RECEIVED STATE OF ALASKA `l JUL�ckA ' 1 7 2013 AA OIL AND GAS CONSERVATION COMMISSION A Q-ls 71 1I b._. APPLICATION FOR SUNDRY APPROVALS A000 20 MC 25.280 1.Type of Request: Abandon ❑ Plug for Redrill ❑ Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate Q Pull Tubing❑ Time Extension ❑ Operations Shutdown ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing ❑ Other: Install Capstring 111 • 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Hilcorp Alaska,LLC Exploratory ❑ Development 0 • 204-207 • 3.Address: Stratigraphic El Service 11:1 6.API Number. 3800 Centerpoint Drive,Anchorage AK,99503 50-231-20029-00 • 7.If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? C0553 • Will planned perforations require a spacing exception? Yes ❑ No El Happy Valley A-11 • 9.Property Designation(Lease Number): 10.Field/Pool(s): FEE CIRI • Deep Creek Field/HV Beluga&Tyonak Gas Pool• 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): 10,082 • 9,578 7,105 6,602 7,169'/9,075'/9,210' 7,105'(Fill) Casing Length Size MD TVD Burst Collapse Structural 92' 13-3/8" 92' 92' 3,450psi 1,950psi Conductor Surface 1,107' 9-5/8" 1,107' 1,099' 5,750psi 3,090psi Intermediate 4,506' 7" 4,506' 4,116' 7,240psi 5,410psi Production Liner 5,821' 3-1/2" 10,082' 9,579' 10,160psi 10,540psi Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): See Attached Schematic See Attached Schematic 3-1/2" 9.2#/L-80 4,298' Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): Baker ZXP and N/A 4,246'(MD)/3,884'(TVD)and N/A 12.Attachments: Description Summary of Proposal 0 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic❑ Development 0 Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: 7/23/2013 Oil ❑ Gas © WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: N/A WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: N/A GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Chris Myers Email cmyersCc@hilcorp.com Printed Name obert Kendrick Title Operations Engineer Signature Phone 777-8431 Date 7/16/2013 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: i ,.� ^ Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ 51'3 r�� Other: Spacing Exception Required? Yes ❑ No [21 Subsequent Form Required: /0—yoy RBDMS JUL 2 3 201 / APPROVED BY Approved by:4,,, COMMISSIONER THE COMMISSION Date: -7...1 _13 ( ) pp V aR4�1� A pp Subs in Duplicate and Form 10-403 '-vised 10/2012) A ro 1 i f/nr�1 months from a date of approval. Attachments in Du licate 741-!3 /71 .p 1.'k$ �\ • • Well Prognosis Well: HVA-11 Hilcorp Alaska,LU Date:7/16/2013 Well Name: Happy Valley A-11 API Number: 50-231-20029-00-00 Current Status: Shut-in gas completion Leg: N/A Estimated Start Date: July 23rd, 2013 Rig: N/A Reg.Approval Req'd? 10-403 Date Reg.Approval Rec'vd: Regulatory Contact: Tom Fouts 777-8398 Permit to Drill Number: 204-207 First Call Engineer: Chris Myers (907)777-8333 (0) (907) 398-9955 (M) Second Call Engineer: Chris Kanyer (907)777-8377 (0) (907) 250-0374(M) AFE Number: 1322156 Current Bottom Hole Pressure: —2,480 psi Maximum Expected BHP: —2,626 psi @ 5,927' TVD Calculated using .433psi/ft gradient Max. Allowable Surface Pressure: —2,300 psi (Based on 0.055 psi/ft gas gradient) Brief Well Summary This well was drilled and completed as a gas well in December 2005.The well had produced only 136 MMcf from the T-10 at low rates("100Mcfd @ 300psi) until Beluga perfs were added in December 2009.After perforating the Beluga 80, 90, & 100 sands,the well could not sustain flow due to water influx from the added J zones.The Beluga 50 was added in May 2012 the well was perforated with fluid level at 480'.There were no indications of gas production after the well was swabbed down to"4,680.'The well has remained shut in ever • since. The proposed completion plan is to swab the well down to ±4,650', perforate the Tyonek T-4&T-6 sands, and flow test well. Contingency to run capillary sting to±6,600'. • Summary Procedure 1. RU slickline and test lubricator to 250psi low/2,500psi high. 2. Run GR&dummy gun and tag fill at±7,105'. 3. Swab water down to ±4650'. 4. RD slickline. 5. RU E-line and test lubricator to 250psi low/2,500psi high. 6. Perforate Tyonek T-4 - sands from ±6,380'to±6,395' and ±6,589'to±6,609'. 7. RD Eline. 8. Flow test well. Run Pressure/Temp survey. CONTINGENCY(If well does not sustain rate above liquid loading rate) 9. RU Dyna Coil Unit. 10. Stab 3/8" SS capillary line into dual barrier pack-off. Make up BHA components. Install pack-off and pressure test same against swab valve 250 psi low/3,000 psi high. 11. RIH with 3/8" capillary string to+/-6,600'. 12. Install slips, capillary string master valve, &chemical injection pump. 13. RD Dyna Coil Unit. 14. Turn well over to production. Attachments: 1. As-built Well Schematic 2. Proposed Well Schematic W^ i • E. Happy Valley � .��, © 0:- HVA-11 ��t.' a Viz; ; *'¢��, Hilton,Alaska.LLC 5ae.. x,3 ',.K b....3 ,,,'4:e ,^".;.,:,..A, Tree cxn-3"Bowen cxn RT-THF:16.4' Casing and Tubing Detail 1*,.,, ,,,,, L - a 4 , , t.,--, .. , Size Type WV Grade Top Btm CONN/ID Cement/Other 1 �€. 13-3/8" Structural 68#, K-55 Surface 92' BTC/ Grouted in place BTC/ 115 bbl of 12.8 ppg lead and 27 ' , ' 9-5/8" Surface 40#, L-80 Surface 1,107' 13-3/8", 1 ,,.� 8.835" bbl of 15.8 ppg class G tail h 1: );S 7" Surface 26#, L-80 Surface 4,506' BTC-Mod/ 108 bbl of 12.8 ppg lead and 6.184" 14 bbl of 15.8 ppg class G tail. IBT-Mod/ 3-1/2" Liner 9.2#, L-80 4,261' 10,082' 2 992„ 220 bbl of 12.0 ppg Litecrete itill 4,9-5/8"@I,007' Tubing IBT Mod/ Annulus loaded with 3% KCI 3-1/2" Production 9.2#, L-80 Surface 4,298' 2,99 2„ brine plus corrosion inhibitor w/ 2bbl diesel freeze protect. Jewelry Detail 2 , 3 # Depth Length ID OD Item a. 5 4 c 1. 2,513' 7.42' 2.992" 5.50" Chemical injection sidepocket mandrel (Macco SFO1-Cl) L 6 with 1/4",0.049"wall SS chemical injection line 7"@4,506' 2. 4,246' 15.12' 4.408" 5.975" Baker ZXP packer _ 3. 4,261' 9.8' 4.414" 5.92" Flexlock liner hanger - BLG-50 - 4. 4,264' 1.28' 2.876" 5.0" Fluted locator sub 5. 4,284' 13' 2.876" 3.93" Baker 80-40 seal assembly - BLG-80 6. 4,298' 0.5' 2.876" 3.93" Muleshoe 7. 7,168' - - - Halliburton EZSV BP(11/16/05) - - BLG-901 - BLG-loo 8. 9,075' - - - Halliburton Elite-Magna Range CIBP(11/10/05) Tagged fill @ 9. 9,280' - - - Halliburton Magna Range CIBP(6/10/05) 7,159'RKB SLM - T-10 12/27/09 - 7 Perforation Data T-17 ZONE TOP(MD) BTM(MD) TOP(TVD) BTM(TVD) SPF Condition BLG-50 4,712' , 4,718' 4,299' 4,304' 6' Open-5/12/2012 BLG-50 4,795' . 4,799' 4,373' 4,377' 6' Open-5/12/2012 BLG-80 5,281' • 5,291' 4,815' 4,824' 6' Open-12/22/2009 8 27K BLG-80 5,301' • 5,309' 4,833' 4,841' 6' Open-12/22/2009 BLG-80 5,314' • 5,324' 4,845' 4,855' 6' open-12/22/2009 BLG-90 5,517' . 5,537' 5,036' 5,055' 6' Open-12/22/2009 T80 BLG-100 5,743' • 5,768' 5,252' 5,276' 6' Open-12/22/2009 T-10 6,894'• 6,924' 6,391' 6,421' 6' Open-11/16/2005 9 2K T-17 7,216' . 7,284' 6,713' 6,781' 6' 11/11/05,Isolated 11/16/05 T-80 9,106' . 9,156' 8,603' 8,653' 6' 12/4/04,Mini Frac 6/22/05,Isolated 11/10/05 - T-91 T-91 9,406' • 9,430' 8,903' 8,927' 6' 12/10/04,Isolated 6/10/05 T-100 9,531' . 9,551' 9,028' 9,048' 6' 12/3/04,Isolated 6/10/05 T-100 T-105 9,624' 9,654' 9,121' 9,151' 6' 12/1&12/3/04,Isolated 6/10/05 T-130 9,910' ) 9,930' 9,407' 9,427' 6' 11/30/04,Isolated 6/10/05 - T-105 NOTE: T-130 • 9-5/8"Surface Casing:FIT 16.3 ppg EMW • 7"Surface Casing: FIT 13.5 ppg EMW • Tubing lift threads:3-1/2"IBT 3-1/2"@ 10,082' AK • Eline had problem running in hole with BP(Max OD 2.28").Noted as very bumpy at+5,400'.Logging up for tie-in had+2,100lb weight.(11/10/05). • TD=10,082' PBTD=10,026' Stimulation:Mini-Frac stimulated T-80 perfs on 6/22/05 with 40bbl at 3.5bpm. MAX HOLE ANGLE=30.0°@ 3,087' KOP=500' Max Doglegs=<3 deg/100 Updated by TDF 5-21-12 • • Happy Valley Well HVA-11 PROPOSED Last Completed 12/10/04 II ilrorn Aloeko.LLC PTD: 204-207 API: 50-231-20029-00 Tree cxn-3"Bcmen cxn RT-THF:16.4' Casing and Tubing Detail 1. ) :,,i Size Type Wt/Grade Top Btm CONN/ID Cement/Other , �10 13 3/8" Structural 68#, K 55 Surface 92' BTC/ Grouted in place BTC/ 115 bbl of 12.8 ppg lead and 27 13-3/8" ,r 9-5/8" Surface 40#, L-80 Surface 1,107' @ 92 :+ 1 8.835" bbl of 15.8 ppg class G tail , 7" Surface 26#, L 80 Surface 4,506' BTC-Mod/ 108 bbl of 12.8 ppg lead and 6.184" 14 bbl of 15.8 ppg class G tail. IBT-Mod/ i 3-1/2" Liner 9.2#, L-80 4,261' 10,082' 220 bbl of 12.0 ppg Litecrete 2.992" 9-518"@1,007' Tubing IBT Mod/ Annulus loaded with 3% KCI 3-1/2" Production 9.2#, L-80 Surface 4,298' 2,99 2„ brine plus corrosion inhibitor w/ 2bbl diesel freeze protect. 3/8" Capstring _ 0.17#,2205 Duplex SS capillary string run to±6,600' Jewelry Detail 2 .,-... al ► 3 5 4 # Depth Length ID OD Item L 6 1. 2,513' 7.42' 2.992" 5.50" Chemical injection sidepocket mandrel (Macco SF01-CI) 7"@4,506' with 1/4",0.049"wall SS chemical injection line 2. 4,246' 15.12' 4.408" 5.975" Baker ZXP packer BLG-50 3. 4,261' 9.8' 4.414" 5.92" Flexlock liner hanger BLG-80 4. 4,264' 1.28' 2.876" 5.0" Fluted locator sub 5. 4,284' 13' 2.876" 3.93" Baker 80-40 seal assembly BLG-90 I ....._...... BLG-100 6. 4,298' 0.5' 2.876" 3.93" Muleshoe 1111 ap 7. 7,168' - - - Halliburton EZSV BP(11/16/05) Tagged fill @7,159' 8 9 075' Halliburton Elite-Magna Range CIBP(11/10/05) RKB AM 12/27/09 T-10 9. 9,280' - - - Halliburton Magna Range CIBP(6/10/05) 7 °' T-17 Perforation Data ZONE TOP(MD) BTM(MD) TOP(TVD) BTM(TVD) SPF Condition BLG-50 4,712' 4,718' 4,299' 4,304' 6' Open-5/12/2012 BLG-50 4,795' 4,799' 4,373' 4,377' 6' Open-5/12/2012 8 --....-.4 BLG-80 5,281' 5,291' 4,815' 4,824' 6' Open-12/22/2009 BLG-80 5,301' 5,309' 4,833' 4,841' 6' Open-12/22/2009 1 7 . T-80 BLG-80 5,314' 5,324' 4,845' 4,855' 6' open-12/22/2009 BLG-90 5,517' 5,537' 5,036' 5,055' 6' Open-12/22/2009 BLG-100 5,743' 5,768' 5,252' 5,276' 6' Open-12/22/2009 9 T-4 ±6,380' ±6,395' ±5,878' ±5,893' 6' Future /j T-91 T-6 ±6,589' ±6,609' ±6,086' ±6,106' 6' Future ✓ T-10 6,894' 6,924' 6,391' 6,421' 6' Open-11/16/2005 T-100 T-17 7,216' 7,284' 6,713' 6,781' 6' 11/11/05,Isolated 11/16/05 T-80 9,106' 9,156' 8,603' 8,653' 6' 12/4/04,Mini Frac 6/22/05,Isolated 11/10/05 T-91 9,406' 9,430' 8,903' 8,927' 6' 12/10/04,Isolated 6/10/05 T-105 T-100 9,531' 9,551' 9,028' 9,048' 6' 12/3/04,Isolated 6/10/05 T-105 9,624' 9,654' 9,121' 9,151' 6' 12/1&12/3/04,Isolated 6/10/05 T-130 T-130 9,910' 9,930' 9,407' 9,427' 6' 11/30/04,Isolated 6/10/05 NOTE: 3-1/2"@10,082' • 9-5/8"Surface Casing:FIT 16.3 ppg EMW • 7"Surface Casing:FIT 13.5 ppg EMW TD=10,082' PBTD=10,026' • Tubing lift threads:3-1/2"IBT MAX HOLE ANGLE=30.0°@ 3,087' • Eline had problem running in hole with BP(Max OD 2.28").Noted as very bumpy at+5,400'.Logging KOP=SOO' up for tie-in had+2,100lb weight.(11/10/05). Max Doglegs=<3 deg/100' • Stimulation:Mini-Frac stimulated T-80 perfs on 6/22/05 with 40bbI at 3.5bpm. Updated by TDF 7-16-2013 STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COMM ION REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Repair Well [J Plug Perforations ❑ Perforate 0 Other U Install Cap Strings Performed: Alter Casing ❑ Pull Tubing ❑ Stimulate - Frac ❑ Waiver ❑ Time ExtensiorIE Change Approved Program ❑ Operat. Shutdown ❑ Stimulate - Other ❑ Re -enter Suspended WeII❑ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Hilcorp Alaska, LLC Development p IN Exploratory ❑ - 204 -207 3. Address: 3800 Centerpoint Drive, Suite 100, Anchorage, Stratigraphic ❑ Service ❑ 6. API Number: AK 99503 y� • 50- 231 - 20029 -00-+ .r 7. Property Designation (Lease Number): - Gy • ` tp (t 8. Well Name and Number: Deep Creek Unit (C- 061590) 1 t g —tilt,. Happy Valley A (HVA) - 11 9. Logs (List logs and submit electronic and printed data per 20AAC25.071): 10. Field /Pool(s): Deep Creek Field / HV Beluga and Tyonek Gas Pool 11. Present Well Condition Summary: 7,168; 9,075; Total Depth measured 10,082 feet Plugs measured 9,280 feet true vertical 9,578 feet Junk measured 7,159 (fill) feet Effective Depth measured 7,159 feet Packer measured 4,246 feet true vertical 6,656 feet true vertical 3,884 feet Casing Length Size MD TVD Burst Collapse Structural 92' 13 -3/8" 92' 92' 3,450 psi 1,950 psi Conductor Surface 1,107' 9 -5/8" 1,107' 1,099' 5,750 psi 3,090 psi Intermediate 4,506' 7" 4,506' 4,116' 7,240 psi 5,410 psi Production Liner 5,821' 3 -1/2" 10,082' 9,579' 10,160 psi 10,540 psi Perforation depth Measured depth 4,712'- 4,718'; 4,796- 4,799' True Vertical depth 4,299'- 4,304'; 4,373'- 4,377' Tubing (size, grade, measured and true vertical depth) 3 -1/2" 9.2 #, L -80 4,298' 3,930' 4,246' MD Packers and SSSV (type, measured and true vertical depth) Baker ZXP 3,884' TVD • i `. N/A • 12. Stimulation or cement squeeze summary: N/A S � NNE JUL 2 4 2012 JUN Intervals treated (measured): N/A La af•331� 2 t1 JUN J,. Treatment descriptions including volumes used and final pressure: N/A Acc3 cC 13. Representative Daily Average Production or Injection Data ��11 v Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 0 Subsequent to operation: 0 0 0 0 300 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run N/A Exploratory❑ Development Q - Service ❑ Stratigraphic ❑ Daily Report of Well Operations X 16. Well Status after work: Oil ❑ Gas 0 . WDSPL ❑ GSTOR ❑ WINJ ❑ WAG ❑ GINJ ❑ SUSP ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: Contact Chad Helgeson Phone: 907 - 777 -8300 Printed Name Chad Helgeson Title Operations Engineer Signature G Y �/ ' 4011 Phone 907-777-8300 Date 6 / /Z /l Z RED VI- r 7/214(2 i MS JUN 13 2011 7/) z //7- Form 10 -404 Revised 11/2011 Submit Original Only • Hilcorp Alaska, LLC Well Operations Summary Well Name API Number Well Permit Number Start Date End Date HVA -11 Add perfs & install cap strings 50- 231 - 20029 -00 204 -207 5/13/12 5/18/12 Daily Operations: 05/13/2012 - Wednesday Pressure test lubricator 250 psi low - 2500 psi high. RIH w/2- 1/2 "x4' HC, 6 spf, 60 deg phase perf gun and tie into Slim Cement Mapping Tool, dated 11/18/2004. Spot perf gun from 4,795' to 4,799'; per Final Approved Perforation Request Form dated 5/4/12 and signed by D. Buthman. Tubing pressure was 0 psi. Fired gun and got good indication of gun firing. Saw no pressure increase. POOH. Fluid level 480'. RIH w/2- 1/2 "x6' HC, 6 spf, 60 deg phase perf gun. Spot perf gun from 4,712' to 4,718'. Fired gun and got good indication of gun firing. Saw no pressure increase. POOH. Fluid level 480'. RD lubricator and ' well over to production. 05/16/2012 - Thursday RU and pressure test lubricator from 250 low to 2,500 high. Took sand sample as requested @ 7,105'. Swabbed well, went past perforations. Swab well from 495' to 4,900'. RD. 05/17/2012 - Friday RU wireline to well. Wireline swabbing well. 05/18/2012 - Saturday Swabbed well. Went past perforations, no gas build up. RD. Taking tubing pressure readings every hour. Happy Valley elf ® H st Completed 12/10/04 T1AII 1- Tree cxn - 3" Bowen cxn r RT-THF: 16.4' Casing and Tubing Detail J , lt, Size Type Wt/ Grade Top Btm CONN /ID Cement/Other 13-3/8" Structural 68 #, K-55 Surface 92' BTC/ Grouted in place 13 -3/8" _ 1 9 -5/8" Surface 40 #, L -80 Surface 1,107' BTC/ 115 bbl of 12.8 ppg lead and 27 @92' 8.835" bbl of 15.8 ppg class G tail 7" Surface 26 #, L-80 Surface 4,506' BTC -Mod/ 108 bbl of 12.8 ppg lead and 6.184" 14 bbl of 15.8 ppg class G tail. 4 3 -1/2" Liner 9.2 #, L -80 4,261' 10,082' IBT- 992d/ 220 bbl of 12.0 ppg Litecrete 9-5/8" 0,007 IBT Mod/ Annulus loaded with 3% KCI 3 -1/2" Production 9.2 #, L -80 Surface 4,298' 2.99 2 „ brine plus corrosion inhibitor w/ 2bbl diesel freeze protect. Jewelry Detail 2 3 # Depth Length ID OD Item S 4 1. 2,513' 7.42' 2.992" 5.50" Chemical injection sidepocket mandrel (Macco SFO1 -CI) L 6 with 1/4 ", 0.049" wall SS chemical injection line 7" @ 4,506' 2. 4,246' 15.12' 4.408" 5.975" Baker ZXP packer 3. 4,261' 9.8' 4.414" 5.92" Flexlock liner hanger BLG-50 4. 4,264' 1.28' 2.876" 5.0" Fluted locator sub 5. 4,284' 13' 2.876" 3.93" Baker 80-40 seal assembly — BLG-so 6. 4,298' 0.5' 2.876" 3.93" Muleshoe 7. 7,168' - - - Ialliburton EZSV BP (11/16/05) — BLG — BLG100 8. 9,075' - - - Halliburton Elite -Magna Range CIBP (11/10/05) Tagged fill @ 9. 9,280' - - - Halliburton Magna Range CIBP (6/10/05) 7,159' RKBSLM = T -10 12/27/09 — 7 X Perforation Dqi = T -17 ZONE TOP BTM Shot Condition BLG -50 4,712' 4,718' 6 5/12/2012 BLG -50 4,795' 4,799' 6 5/12/2012 BLG -80 5,281' 5,291' 6 12/22/2009 BLG -80 5,301' 5,309' 6 12/22/2009 8 BLG -80 5,314' 5,324' 6 12/22/2009 BLG -90 5,517' 5,537' 6 12/22/2009 T -80 BLG -100 5,743' 5,768' 6 12/22/2009 T -10 6,894' 6,924' 6 11/16/2005 T -17 7,216' 7,284' 6 11/11/05, Isolated 11/16/05 9 T -80 9,106' 9,156' 6 12/4/04, Mini Frac6 /22/05, Isolated 11/10/05 — T -91 T -91 9,406' 9,430' 6 12/10/04, Isolated 6/10/05 T -100 9,531' 9,551' 6 12/3/04, Isolated 6/10/05 T -100 T -105 9,624' 9,654' 6 12/1 & 12/3/04, Isolated 6/10/05 T -130 9,910' 9,930' 6 11/30/04, Isolated 6/10/05 — T -105 NOTE: • 9 -5/8" Surface Casing: FIT 16.3 ppg EMW — T -130 • 7" Surface Casing: FIT 13.5 ppg EMW • Tubing lift threads: 3 -1/2" IBT • Eline had problem running in hole with BP (Max OD 2.28 "). Noted as very bumpy at +5,400'. Logging 3 -1/2" @10,082' / - . A up for tie -in had +2,1001b weight. (11/10/05). • Stimulation: Mini -Frac stimulated T -80 perfs on 6/22/05 with 40bbl at 3.5bpm. TD =10,08Z PBTD = 10,026' MAX HOLE ANGLE = 30.0 @ 3,08T KOP =500' Max Doglegs = <3 deg/100' Updated by TDF 5 -21 -12 Chevron Fr~sco Castro Chevron North Am~ Exploration and Production ~~ Technical Assistant 3800 Centerpoint Dr. Suite 100 Anchorage, AK 99503 Tele: 907 263 7844 Fax: 907 263 7828 E-mail: fcbn@chevron.com DATE March 8,2010 To: AOGCC Mahnken, Christine R th ~' ~~ Ave. Ste#100 333 W. 7 Anchorage, AK 99501 ,o p ~ . ~. ` NbTES LAS; POS',' 'WELL LOG TYPE .,.SCALE LOG DATE , ~ ,B LINE ' CD. DLIS HV A-11 PERFORATION RECORD 5" 22-Dec-09 1 1 PDS :~~!~'~ y ~~ fir' ~' ~ ~ ~"~~'^ /J ~o`~- ~~ ~~a ~ t Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 Z63 7828, Received ey: STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION REPORT OF SUNDRY WELL OPERATIONS REC~IV~t~,~~~~ JAN Y 9 2Q10 Alaska 0~ ~ 6u Cens. Ciatlati9=i~~i 1. Operations Abandon Repair Well Plug Perforations Stimulate Other A~nC~1rt'a~ _ Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver ^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate Q Re-enter Suspended Well ^ 2. Operator Union Oil Company of California 4. Well Class Before Work: .Permit to Drill Number: Name: Development Q Exploratory 204-207 3. Address: PO Box 196247, Anchorage, AK 99519 Stratigraphic^ Service ^ API Number: 50-231-20029-00 Property Designation (Lease Number): .Well Name and Number: C-061590 [Deep Creek Unit] Happy Valley A-11 Field/Pool(s): Deep Creek Field / HV Beluga and Tyonek Gas Pool 10. Present Well Condition Summary: 7,168', 9,075', & \ 10,082 feet Plugs (measured) 9.280' feet Total Depth measured true vertical 9,578 feet Junk (measured) 7,159 (fill) feet Effective Depth measured 7,168 feet Packer (measured) 4,246 feet true vertical 6,665 feet (true vertical) 3,883 feet Casing Length Size MD / TVD Burst Collapse Structural 92' 13-3/8" 92' 92' 3,450 psi 1,950 psi Conductor Surface 1,107' 9-5/8" 1,107' 1,098' 5,750 psi 3,090 psi Intermediate 4,506' 7" 4,506' 4,115' 7,240 psi 5,410 psi Production Liner 5,784' 3-1/2" 10,082' 9,578' 10,160 psi 10,530 psi Perforation depth: Measured depth: 5,281'-5,291', 5,301'-5,309', 5,314'-5,324', 5,517'-5,537', 5,743'-5,768', 6,894'-6,924' True Vertical depth: 4,814'-4,823', 4,833'-4,840', 4,845'-4,854', 5,035'-5,054', 5,251'-5,275', 6,394'-6,421' Tubing (size, grade, measured and true vertical depth): 3-1/2" 9.2#, L-80 4,298' 3,930' ~ N/A N/A Packers and SSSV (type, measured and true vertical depth): Baker ZXP Packer 4,246'MD (3,883'TVD) 11. Stimulation or cement squeeze summary: Intervals treated (measured): -_ i ~;; ,~I c: r ~~ . ~ t~ ~~< ;~ .4 ~ ~A t, ~~. l . I~ E N/A Treatment descriptions including volumes used and final pressure: N/A 12. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 100 0 0 psi 290 psi Subsequent to operation: 0 0 0 0 psi 685 psi 13. Attachments: .Well Class after work: Copies of Logs and Surveys Run N/A Exploratory^ Development^ Service ^ Daily Report of Well Operations X Well Status after work: Oil Gas ~ WDSPL GSTOR ^ WAG ^ GINJ ^ WINJ ^ SPLUG ^ 16. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309-410 Contact Steve Tyler 263-7649 Printed Name Timothy C. Brandenburg Title Drilling Manager -,. " ~ 'a ~F C .. _. ~.~ Phone 276-7600 Date 1/18/10 Signature ~' >''`~ RBDMS ~ 0 ~ Submit Ori m y Form 10-404 Revised 7/2009 g' al Onl ~Ch Chevron -Alaska ~ Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNo Original RKB (ft) Water Depth (ft) HV-A11 HAPPY VALLEY A-11 5023120029 HR0491 - --_ Jobs - Primary Job Type Job Category Objective y Actual Start Date Actual End Date Perforating -Post Production Well 12/18/2009 Services Primary Wellbore Affected Wellbore UWI Well Permit Number HV-A11 502312002900 1204207 _ Dail d : tAtions 12117/2009 00:00 -12/18/2009 00:00 _ Operations Summary RU slickline. Pressure test lubricator 250psi low/2500psi high. Run 2.75" GR and dummy gun and tag fill at 7,158'. RD slickline__ 12/22/2009 00:00 - 1212312009-00:00 _ --- -- Operations Summary RU Eline. Pressure test lubricator 250psi low/2500psi high. Perforate Beluga 80,90,100 sands with 2.5" Power 6spf, 60 degree phased guns from 5,281'-5,291', 5,301'-5,309', 5,314'-5,324', 5,517'-5,537', 5,743'-5,768'. RD Eline and return to production. - - - 12/28/2009 00:00 12/27/2009 00:00 _ __ _____ __ _ _ __ Operations Summary RU slickline Pressure tested lubricator, wireline valve and pump-n-sub 250 psi low and 2500 psi high. Ran 2.75" GR to 7159' RKB (slm). Noted Fluid level at 4488' RKB (slm). Ran 2.25" DD Bailer and recovered sample of fill. RD slickline. hevro HahhY Valley wp Hva~~~ HVA-11 Last Completed 12110/04 13318" ~ 97 9-Sa" ~1,OOT Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID CementlOther 13-3/8" Structural 68#, K-55 Surface 92' BTC/ Grouted in lace 9-5/8" Surface 40#, L-80 Surface 1,107' BTC/ 8.835" 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 class G tail 7" Surface 26#, L-80 Surface 4,506' BTC-Mod/ 6.184" 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 class G tail. 3-1/2" Liner 9.2#, L-80 4,261' 10,082' IBT-Mod/ 2.992" 220 bbl of 12.0 ppg Litecrete Tubing 3-1/2" Production 9.2#, L-80 Surface 4,298' IBT-Mod/ 2 99 2„ Annulus loaded with 3% KCI brine plus corrosion inhibitor w/ 2bbl diesel freeze rotect. Jewelry Detail # Depth Length ID OD Item 1. 2,513' 7.42' 2.992" 5.50" Chemical injection sidepocket mandrel (Macco SFO1-CI) with 1/4", 0.049" wall SS chemical injection line 2. 4,246' 15.12' 4.408" 5.975" Baker ZXP packer 3. 4,261' 9.8' 4.414" 5.92" Flexlock liner hanger 4. 4,264' 1.28' 2.876" 5.0" Fluted locator sub 5. 4,284' 13' 2.876" 3.93" Baker 80-40 seal assembly 6. 4,298'_ 0.5' 2.876" 3.93" Muleshoe 7. ,168 ~ - - - Halliburton EZSV BP (11/16/05) 8. 9,075' - - - Halliburton Elite-Magna Range CIBP (11/10/OS) 9. 9,280' - - - Halliburton Magna Range CIBP (6/10/05) Perfora tion Data ZONE TOP BTM Shot Condition BLG-80 5,281' 5,291' 6 12/22/09 BLG-80 5,301' 5,309' 6 12/22/09 BLG-80 5,314' 5,324' 6 12/22/09 BLG-90 5,517' 5,537' 6 12/22/09 BLG-100 5,743' 5,768' 6 12/22/09 T-10 6,894' 6,924' 6 ~ 11/16/05 T-17 7,216' 7,284' 6 11/11/05, Isolated 11/16/05 T-80 9,106' 9,156' 6 12/4/04, Mini Frac 6/22/05, Isolated 11/10/05 T-91 9,406' 9,430' 6 12/10/04, Isolated 6/10/05 T-100 9,531' 9,551' 6 12/3/04, Isolated 6/10/05 T-105 9,624' 9,654' 6 12/1 & 12/3/04, Isolated 6/10/05 T-130 9,910' 9,930' 6 11/30/04, Isolated 6/10/05 T-130 NOTE: ^ 9-5/8" Surface Casing: FIT 16.3 ppg EMW 3-vz°~io,oar ~ 7" Surface Casing: FIT 13.5 ppg EMW ^ Tubing lift threads: 3-1/2" IBT ^ Eline had problem running in hole with BP (Max OD 2.28"). Noted as very bumpy at +5,400'. Logging TD =70,087 PBTD = 10,02x' up for tie-in had +2,1001b weight. (11/10/OS). MAX HOLE ANGLE =30.0° @ 3,087' Stimulation: Mini-Frac stimulated T-80 perfs on 6/22/05 with 40bb1 at 3.Sbpm. KOP=500' Max Doglegs = <3 deg/100' HVA-11 Actual Well Schematic 1-18-10 doc Updated by CVK 1-18-10 Tree cxn - 3" Bowen cxn RT-TH F: 16.4' • 0 ALtAsl A SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMDUSSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Mr. Tim C. Brandenburg Drilling Manager Union Oil Company of California '104 P.O. Box 196247 44� Anchorage, Alaska 99519 Re: Deep Creek Field, HV Beluga and Tyonek Gas Pool, Happy Valley A -11 Sundry Number: 309 -410 c� 0 4' 7 Dear Mr. Brandenburg: 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (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. Sincerely, Daniel T. Seamount, Jr. Chair DATED this 1 4day of December, 2009 Encl. L ` ; kA STATE OF ALASKA 4 °? ' ALASKRIL AND GAS CONSERVATION COMMISSIO DEC 0 9 2009 W44 APPLICATION FOR SUNDRY APPROVALS IZ1114Iz0°9 20 AAC 25.280 Alaska Oil & Gas Cons. Commission 1. Type of Request: Abandon ❑ Suspend ❑ Operational shutdown ❑ Perforate 0 - Re -enter Suspen Alter casing ❑ Repair well ❑ Plug Perforations ❑ Stimulate ❑ Other ❑ Specify: Change approved program ❑ Pull Tubing ❑ Perforate New Pool ❑ Time Extension ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development ❑ , Exploratory ❑ 204 -207 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: PO Box 196247, Anchorage, AK 99519 50- 231 - 20029 -00, 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No El Happy Valley A -11 9. Property Designation (Lease Number): 10. Field /PooI(s): C- 061590 [Deep Creek Unit] I Deep Creek Field/ HV Beluga and Tyonek Gas Pool 11. PRESENT WELL CONDITION SUMMARY Total Depth MD ft : Total Depth TVD ft : Effective Depth MD (ft): Effective Depth TVD ft : Plu measured : Junk (measured): P O P O P p O 9s ( ) 10,082 9,578 10,026 9,522 7,168', 9,075', & 9,280' N/A Casing Length Size MD TVD Burst Collapse Structural 92' 13 -3/8" 92' 92' 3,450 psi 1,950 psi Conductor Surface 1,107' 9 -5/8" 1,107' 1,098' 5,750 psi 3,090 psi Intermediate 4,506' 7" 4,506' 4,115' 7,240 psi 5,410 psi Production Liner 5,784' 3 -1/2" 10,082' 9,578' 110,160 psi 10,530 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 6,894'- 6,924' 6,391'- 6,421' 1 3-1/2" / 1 9.2# L -80 1 4,298' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): Baker ZXP packer / N/A 4,246'/ N/A 12. Attachments: Description Summary of Proposal 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Development Q - Service ❑ 14. Estimated Date for 12/14/09 15. Well Status after proposed work: Commencing Operations: Oil ❑ Gas Q _ WDSPL ❑ Plugged ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steve Tyler 263 -7649 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature ° 7 hone Date 12/8/09 COMMISSION USE ONLY �y Conditions of approval: Notify Commission so that a representative may witness I SundryNumber:�� Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: Subsequent Form Required: i o — 4o APPROVED BY , Approved b COMMISSIONER THE COMMISSION Date: Pp Y R 4- ORIGINAL Form 10 -403 Revised 7/2009 Submit in Duplicate Chevron is • Happy Valley Well # HVA -11 12/8/09 OBJECTIVE: • Perforate Beluga 80, 90, and 100 zones. PROCEDURE SUMMARY: • RU slickline and pressure test lubricator 250psi low / 2500psi high. • RIH and tag fill at 7,168' RKB • RD slickline. • RU Eline and pressure test lubricator 250psi low / 2500psi high. • RIH, tie -in, and perforate BLG -80, BLG -90, & BLG -100 zones. • RD Eline. Turn well over to production. HVA -11 REVISED BY: CVK 12/8/09 evron 1ow Happy Valley Happy Valley HVA -11 Well HVA -11 ,tom Last Completed 12/10/04 Tree cxn -3 "Bowen cxn BT - THF , 16.4' Casing and Tubing Detail Size Type WV Grade Top Btm CONN /ID Cement/Other 13 -3/8" Structural 68 #, K -55 Surface 92' BTC/ Grouted in place 1198 9 -5/8" Surface 40 #, L -80 Surface 1,107' BTC/ 115 bbl of 12.8 ppg lead and 27 @9r 8.835" bbl of 15.8 ppg class G tail 7" Surface 26 #, L -80 Surface 4,506' BTC -Mod/ 108 bbl of 12.8 ppg lead and 6.184" 14 bbl of 15.8 ppg class G tail. 3 -1/2" Liner 9.2 #, L -80 4,261' 10,082' IBT -Mod/ 220 bbl of 12.0 ppg Litecrete 0,518" @1,007' 2.992" Tubing 113T-Mod/ Annulus loaded with 3% KCI 3 -1/2" Production 9.2 #, L -80 Surface 4,298' 2 brine plus corrosion inhibitor w/ 2bbl diesel freeze protect. Jewelry Detail 2 3 s 4 # Depth Length ID OD Item ° 6 L 2,513 � 7.42 2.992 5.50 � Chemical injection sidepocket mandrel (Matto SFO1 -CI) 7 @ 4,50 6' with 1/4 ", 0.049" wall SS chemical injection line 2. 4,246' 15.12' 4.408" 5.975 Baker ZXP packer 3. 4,261' 9.8' 4.414" 5.92' Flexlock liner hanger 4. 4,264' 1.28' 2.876" 5.0" Fluted locator sub 5. 4,284' 13' 2.876" 3.93' Baker 8040 seal assembly 6. 4,298' 0.5' 2.876" 3.93" Muleshoe 7. 7,168' - - - Halliburton EZSV BP (11/16/05) T -10 8 9,075' Halliburton Elite -Magna Range CIBP (11/10105) 9. 9,280' Halliburton Magna Range CIBP (6/10/05) T -17 Perforation Data ZONE TOP BTM Shot Condition T -10 6,894' 6,924' 6 11/16/05 8 T -17 7,216' 7,284' 6 11/11/05, Isolated 11/16105 T -80 9,106' 9,156' 6 12/4/04, Mini Frac 6/22/05, Isolated 11110105 T -91 9,406' 9,430' 6 12/10/04, Isolated 6110105 T-80 T-91 9,531' 9,551' 6 12/3/04, Isolated 6110105 9 T -105 9,624' 9,654' 6 12/1 & 12/3/04, Isolated 6110105 T -130 9,910' 9,930' 6 11/30/04, Isolated 6110105 T -91 T -100 T -105 NOTE: ■ 9 -5/8" Surface Casing: FIT 16.3 ppg EMW T- 130 7" Surface Casing: FIT 13.5 ppg EMW ■ Tubing lift threads: 3 -1/2" IBT 31/2" @ 10,082 Eline had problem running in hole with BP (Max OD 2.28 "). Noted as very bumpy at +5,400'. Logging up for tie -in had +2,1001b weight. (11110105). ■ Stimulation: Mini -Frac stimulated T -80 perfs on 6/22/05 with 40bbl at 3.5bpm. TD = 10,082 PBTD = 10,026' MAX HOLE ANGLE = 30.0 ° @ 3,087' KOP =500' Max Doglegs = <3 deg /100' HVA -11 Actual Well Schematic 11 -9-09 doc Updated by CVK 11 -9 -09 • evroliM Happy Valley Happy Valley HVA -11 Well HVA -11 PROPOSED Last Completed 12/10/04 Tree cxn — 3" Bowen cxn RT- 7HF:16.4' Casing and Tubing Detail L i Size Type Wt/ Grade Top Btm CONN /ID Cement/Other 13 -3/8" Structural 68 #, K -55 Surface 92' BTC/ Grouted in place 13-18" 1 BTC/ 115 bbl of 12.8 ppg lead and 27 @er 9 -5/8" Surface 40 #, L 80 Surface 1,107' 8.835" bbl of 15.8 ppg class G tail 7" Surface 26 #, L -80 Surface 4,506' BTC -Mod/ 108 bbl of 12.8 ppg lead and 6.184" 14 bbl of 15.8 ppg class G tail. 3 -1/2" Liner 9.2 #, L -80 4,261' 10082' IBT -Mod/ 220 bbl of 12.0 ppg Litecrete 9-5/8" @1, oor 2.992 Tubing IBT -Mod/ Annulus loaded with 3% KCI 3 -1/2" Production 9.2 #, L -80 Surface 4,298' 2 brine plus corrosion inhibitor w/ 2bbl diesel freeze protect. Jewelry Detail 2 3 5 4 # Depth Length ID OD Item 7 „ @ 4 e0e 6 1. 2,513' 7.42 2.992" 5.50" Chemical injection sidepocket mandrel (Macco SFOI -CI) with 1/4 ", 0.049" wall SS chemical injection line 2. 4,246' 15.12' 4.408' 5.975" Baker ZXP packer 3. 4,261' 9.8' 4.414' 5.92" Flexlock liner hanger 4. 4,264' 1.28' 2.876' 5.0" Fluted locator sub ELG-80 5. 4,284' 13' 1876' 3.93" Baker 8040 seal assembly BLG-90 6. 4,298' 0.5' 2.876" 3.93" Muleshoe BLG-100 7 7,168' - - - Halliburton EZSV BP (11/16/05) T -10 8 9,075' Halliburton Elite -Magna Range CIBP (11110105) 9. 9,280' Halliburton Magna Range CIBP (6/10/05) T -17 Perforation Data - ZONE TOP BTM Shot ondition BLG -80 5,281'(+/-) 5,291'(+/-) 6 PORPOSED 8 BLG -80 5,301'(+/-) 5,309'(+/-) 6 PORPOSED BLG -80 5,314'(+/-) 5,324'(+/-) 6 PORPOSED BLG -90 5,517' +/- 5,537' +/- 6 PO POSED T-80 BLG -100 5,743'(+/-) 5,768'(+/-) 6 PORPOSED 9 T -10 6,894' 6,924' 6 11/16/05 T -17 7,216' 7,284' 6 11/11/05, Isolated 11/16105 T -91 T -80 9 9,156' 6 12/4/04, Mini Frac 6/22/05, Isolated 11110105 T -91 9,406' 9,430' 6 12/10/04, Isolated 6110105 T-100 T -100 9,531' 9,551' 6 12/3/04, Isolated 6110105 T -105 9,624' 9,654' 6 12/1 & 12/3/04, Isolated 6110105 T -105 T -130 9,910' 9,930' 6 1 11/30/04, Isolated 6110105 T -130 NOTE: ■ 9 -5/8" Surface Casing: FIT 16.3 ppg EMW 3- 1/2"@10,082" 7" Surface Casing: FIT 13.5 ppg EMW ■ Tubing lift threads: 3 -1/2" IBT ■ Eline had problem running in hole with BP (Max OD 2.28 "). Noted as very bumpy at +5,400'. Logging TD = 10,082' P13TD = 10,026' up for tie -in had +2,1001b weight. (11/10105). MAX HOLE ANGLE =30.0 @ 3,087' Stimulation: Mini -Frac stimulated T -80 perfs on 6/22/05 with 40bb1 at 3.5bpm. KOP =500' Max Doglegs = <3 deg /109 HVA -11 Proposed Well Schematic 12 -8 -09 doc Updated by CVK 12 -8 -09 ~~ MICROFILMED 03/0112008 • ;~ ~~,~.~ r - ~ ~-. ,.. DO NOT PLACE ANY NEW MATERIAL UNDER THIS PACE F:~LaserFiche\CWrPgs_Insertstillrticrofilm Mazker.doc .3 ~ b~L- DATA SUBMITTAL COMPLIANCE REPORT 11/27/2006 5f~ ;l~()Jr;Lf-d i API No. 50-231-20029-00-00 Permit to Drill 2042070 Well Name/No. HAPPY VALLEY A-11 Operator UNION OIL CO OF CALIFORNIA MD 10082"'" TVD 9578 .r'" Completion Date 11/30/2004 ~ Completion Status 1-GAS Current Status 1-GAS UIC N -- ~- -- ~~_. REQUIRED INFORMATION Mud Log No Samples No Directional Survey Yes .~-----~ ---.- DATA INFORMATION Types Electric or Other Logs Run: PEX, Sonic, GR/CCL, SCMT (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH/ ~e MedlFrmt Number Name Scale Media No Start Stop CH Received Comments og Mud Log 2 Sep 1008 10082 Open 12/17/2004 '-~--'-----', ro R;¡t",,gf f"(.,TCl, <HIOn i r. Pdf 12798 217 13572 Open 1 0/29/2004 ROrYooroEWR/ i \.,)IN'-') 1",>,)....\\ ~t c r'df 127Y8 n::¡tI'> nf Penetration ?f¡ 11840 13352 Open 1 UlL!:II20u4 FWP/EWRIDCrvMWD I Report: Final Well R 0 0 12/17/2004 Epoch Final Well report i I w/CD I ~ I Mud Log 2 Col 1008 10082 Open 12/17/2004 I Mud Log 2 Col 1008 10082 Open 12/17/2004 Drilling Dynamics Log I CJ'> C Pds ~07 Sonic 4507 6865 Open 12/15/2004 DIPOLE SHEAR SONIC I TOOL P &S, UPPER I DIPOLE MODES TVD LOG ! ~ ~., Sonic 2 Blu 4507 6865 Open 12/15/2004 DIPOLE SHEAR SONIC I TOOL P &S. UPP~~ DIPOLE MODES L I ~ Sonic 2 Blu 4507 6865 Open 12/15/2004 DIPOLE SHEAR SONIC [ TOOL P &S, UPPER i ~ I DIPOLE MODES TVD LOG [ mer' Induction/Resistivity 5 Blu 4507 6865 12/15/2004 PLATFORM EXPRESS I I Nt !rv/ARRA Y INDUCTION, i I DIPOLE SHEAR SONIC I TOOL ~. Induction/Resistivity 5 Blu 4507 6865 12/15/2004 PLATFORM EXPRESS f/tpW/ARRAY INDUCTION, DIPOLE SHEAR SONIC TOOL C Pds ~2908 Pressure 0 4510 Case 12/15/2004 PRESSITEMP I SURVEY/CEMENT TOP IDENTIFICATION I L______ . . DATA SUBMITTAL COMPLIANCE REPORT 11/27/2006 Permit to Drill 2042070 Well Name/No. HAPPY VALLEY A-11 Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20029-00-00 MD 10082 TVD 9578 Completion Date 11/30/2004 Completion Status 1-GAS Current Status 1-GAS UIC N ~ möã' Pressure 2 BS 0 4510 Case 12/15/2004 PRESSITEMP SURVEYICEMENT TOP /bED .~' IDENTIFICATION tå C ¡A&Ct..IS 2909 Induction/Resistivity 4050 9558 12/15/2004 CML QUAD COMBO ~Log ~ 12909 Sonic Blu 4050 9558 12/15/2004 CML QUAD COMBO ~ 12909 Sonic Blu 4050 9558 12/15/2004 CML QUAD COMBO ED C Pds 13269 Completion 7000 10003 Case 7/29/2005 GR/CCL Completion Record 2.5" HSD . Power Jets 4 13269 Completion 5 BM 7000 10003 Case 7/29/2005 GR/CCL Completion i Record 2.5" HSD Power Jets chD C Pds t.i3270 Completion 9262 10026 Case 7/29/2005 Completion Record 2.5" HSD Power Jets Log ~. Completion 5 BM 9262 10026 Case 7/29/2005 Completion Record 2.5" HSD PowerJets ~D C Pds vr3271 Completion 9530 9654 Case 7/29/2005 Completion Report 2.5" HSD Power Jets Log 4Mi'4-. Completion 5 BM 9530 9654 Case 7/29/2005 Completion Report 2.5" HSD PowerJets u{[; C Pds 03272 Completion 9104 9154 Case 7/29/2005 Completion Record 2.5" HSD PowerJets Log ~ Completion 5 BM 9104 9154 Case 7/29/2005 Completion Record 2.5" œ6 HSD PowerJets C Pds .It 3273 Completion 9260 9640 Case 7/29/2005 Completion Record 2.5" . HSD PowerJet 6 SPF, 60 Deg Phased I Log ~ Completion 5 BM 9260 9640 Case 7/29/2005 Completion Record 2.5" HSD PowerJet 6 SPF. 60 Deg Phased ~g ~rforation 5 Blu 2 6830 6990 Case 5/14/2006 2.5 Power Jet HSD Perforation Record 13-Nov- JD 2005 C Pds "'13884 Perforation 5 2 6830 6990 Case 5/14/2006 2.5 PowerJet HSD I Perforation Record 13-Nov- ¿ 2005 A-~884- See Notes 5 Blu 6720 7190 Case 5/14/2006 Halliburton Magna CIBP Setting Record 16-Nov- 2006 DATA SUBMITTAL COMPLIANCE REPORT 11/27/2006 Permit to Drill 2042070 Well Name/No. HAPPY VALLEY A-11 Operator UNION OIL CO OF CALIFORNIA API No. 50-231-20029-00-00 MD 10082 TVD 9578 Completion Date 11/30/2004 Completion Status 1-GAS Current Status 1-GAS UIC N ~ C Pds ..ò884 See Notes 5 6720 7190 Case 5/14/2006 Halliburton Magna CIBP---~' I Setting Record 16-Nov- 2006 ~g ~ Completion 5 Blu 7990 9085 Case 5/14/2006 Halliburton CIBP 3.5" Casing 2.5" HSD Power Jet 6 SPR Perf. 10-Nov- vfu ~09 2005 C Pds Completion 5 7990 9085 Case 5/14/2006 Halliburton CIBP 3.5" Casing 2.5" HSD Power . Jet 6 SPR Perf. 1 Q-Nov- 2005 Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORM~ON Well Cored? Y l!!) Daily History Received? QÞN 0Y Chips Received? ~ Formation Tops Analysis Received? ~ -- -_.__._._._~-~ Comments: . Compliance Reviewed By: ~ I Date: & J\~ ~ 1\)- RECE\vfo MAY 1 5 7.006 Union Oil.pany of California 909 W. 9th e Anchorage, ¡ 501 Tele: (907) 263-7889 E-mail: oudeand@chevron.com Fax: (907) 263-7828 Chevron n' "'. . (" \. C\j\\'¿I~i~:;n Debra OudeéUJ"K!1 Uti & th~S ,o{:"· Technologist AI\Cti()I~J~ To: AOGCC Helen Warman 333 W. ih Ave. Ste#100 Anchorage, AK 99501 ~.:'~Ui:i~'ll.1m! Date: May 11, 2006 , MUL TIFINGER IMAGING : TOOL : 204-186 ¡ 502312002800 HAPPY VALLEY- 'COMPLETION RECORD 2' A 10 OMEGA HSD 6SPF : 204-207 ¡ 502312002900 ~ -¡'-'HA'PPV vÁLLEY:' T--HÄLÜBÜRTö¡;.rMÄGNA"C¡E~P : A 11 i SETTING RECORD :204-207 'IS02312002900 'rHÄPP¥VAiIE'(" :":ŒPÒWERGETHsÓGÚNI , A11 ' PERFORATION RECORD ,"7250-8020 , pds, Ix! 'SINCH 16-Nov- '6720:7190 "1 : 05 pds 1'- "S'íNCR' '~:~ 16-Nov- l "S830.699ó"·W f '2- : 05 '204-207 ! 502312002900 i HAPPY VALLEY- ! COMPLETION RECORD ! 51NCH 10-Nov- ¡ 7990-9085 ! A 11 ! HALLIBURTON CIBP FOR 3.5' , 05 l CASING /2.5 HSD POWER JET 6 SPF PERF 199-054 '501331012501 · SCU 21A-09 190-147 . 507331005501 'TBFA-01RO 167-080 i 507332006800 'TaÚo-oj" 198-064 · 507332026701 . TBU G-21RD 169-086 507332049800 TBU G-32 , pds,lx! . .,~ COMPLETION RECORD 2.5 5 INCH 01-May- 10095- 1 OMEGA HSD 6 SPF 06 10450 COMPLETION RECORD 2 5 INCH , 02-Feb- 5300-6015 HSD POWER JETS 4SPF 06 COMPLETION RECORD 3 3/8 5 INCH 11-Feb- I 9280-9414 1 HSD POWER JET 6 SPF, 60 . 06 PHASING "CÓMPLÜIÓNRECÒRD 2.25 ! 51NCH 29-Jan- 9615-9833 POWERJET HSD GUNS, 4 06 SPF, 60 DEG, GAMMA RAY/ CCL CORRELATION COMPLETION RECORD 2.875 5 INCH 31-Jan- 9180-9950 ' 1 POWERJET HSD GUNS, 4 06 SPF, 60 DEG, GAMMA RAY / CCL CORRELATION , pds , pds , pds '! pds,pdï i pds, pdf Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. Rece;ved By, C.~_.- Date: S-J 5/0 Y _ _ STATE OF ALASKA ALA~IL AND GAS CONSERVATION COM+N REPORT OF SUNDRY WELL OPERATIONS 1. Operations Abandon U Repair Well U Performed: Alter Casing D Pull Tubing D Change Approved Program D Opera!. Shutdown D 2. Operator Union Oil Company of California Name: 3. Address: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 733' 8. Property Designation: Happy Valley Production Facility 11. Present Well Condition Summary: Total Depth measured 10,082' true vertical 9,578' Effective Depth measured 7,168' true vertical 6,665' Casing Length Size Structural Conductor 92' 16" Surface 1 ,007' 9-5/8" Intermediate 4,506' 7" Production Liner 5821' 3-1/2" Perforation depth: Plug Perforations U Perforate New Pool D Perforate D 4. Current Well Class: Development 0 StratigraphicD RECEIVED DEe 1 5 2005 Stimulate U Alal9blaJ/ & ~ecßmPlete WaiverD Time Extension 0 A 130ns. COO1miUìOf¡ Re-enter Suspended Well D ,nct"~ragfl 5. Permit to Drill Number: ExploratoryD Service D 204-207 6. API Number: 50-231-20029-00 9. Well Name and Number: HV-A 11 10. Field/Pool(s): Happy ValleylTyonek feet feet Plugs (measured) CIBP @ 7,168',9,075',9,280' Junk (measured) feet feet MD TVD Burst Collapse 92' n/a n/a 1,002 5,750 psi 3,090 psi 4,116 7,240 psi 5,410 psi 9,579' 10,160 psi 10,530 psi 92' 1,002' 4,506' 10.082' Measured depth: Open perfs: 6,894 to 6,924' True Vertical depth: 6,391' to 6,421' Tubing: (size, grade, and measured depth) Packers and SSSV (type and measured depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): 3-1/2",9.2#, L-80 @ 4,298' Baker ZXP packer @ 4,246' Treatment descriptions including volumes used and final pressure: n/a Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure o 0 0 500 0 0 15. Well Class after proposed work: Exploratory D Development 0 16. Well Status after proposed work: OilD Gas 0 WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 13. Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Oil-Bbl o o x Contact Steve Tyler 263-7649 Tubing Pressure o 806 Service D GINJ D WINJ D WDSPL D ISUndry Number or N/A if C.O. Exempt: 305-338 P"oled N,me Tim,"" c. BœOd~:;:<- ~7 o R\ G \ N A LAFE 164633 Date I;? - ¡CI-~ rRßÞ/l1$ Submit Original Only Title Drilling Manager Phone 907-276-7600 h1 Iwell Name HV-A11 Primary Job Type Recompletion Jobs I Primary Wellbore Affected IOriginal Hole 164633 Daily Operations 11/8/200500:00 -11/9/2005 00:00 Operations Summary bullhead N2 to displace fluid to formation 11/9/200500:00 -11/10/2005 00:00 Operations Summary No activity chasing equipment for e-line work tomorrow 11/10/2005 00:00 - 11/11/2005 00:00 Operations Summary Set Halliburton Elite Magna-Range CIBP @ 9075' 11/11/200500:00 -11/12/2005 00:00 Operations Summary Run GR and Dummy guns Perforate T-17 sands (7284 -7216) 11/12/200500:00 -11/13/2005 00:00 Operations Summary Well testing 11/13/200500:00 -11/14/2005 00:00 Operations Summary RIH with sHeline to verify water depth, Flow test well 11/15/200500:00 -11/16/2005 00:00 Operations Summary Pump N2 to Bullhead fluid into T -17 Perfs for preparation of plug setting. 11/16/200500:00 -11/17/2005 00:00 Operations Summary RU Schlumberger. RIH and set bridge plug at 7.168' to isolate T-17 perfs. Perfed T-10, 6894' - 6924'. 11/17/200500:00 -11/18/2005 00:00 Operations Summary Load Out equipment headed for SRF 1 ¡ ¡ ! I . UNOCAL API: 50-231-20029 AOGCC: 204-207 1271' FSL, 1263'FEL Sec22, T2S, R13W, S.M. RT-THF: 16.4' Tbg lift threads - 3%" IBT Tree cxn - 3" Bowen cxn Production Tubino: 3%", 9.2 ppf, L-80, IBT-Mod to 4298' - Annulus loaded with 3% KCI brine plus corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2513' (Macco SF01-CI) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4264" - Baker 80-40 seal assembly 13' of 4.00" OD seals - Muleshoe at 4298' · · · · · · · ... · ... z z .... ... :::;g;: :::;g;: Pluos: Halliburton MagnaRange CIBP at 7,168' (11/16/05) :::;g;: Halliburton MagnaRange CIBP at 9075' (11/10/05) Halliburton MagnaRange CIBP at 9280' (6/10/05) Directional Data: max hole angle = 30.0 deg at 3087' KOP = 500' max dogleg < 3 deg/1 00' HV-A11 Schematic 11/17/05 .... ~ IPBTD = 10,026' I TD = 10,082' . Well Name: Happy Valley #A 11 Field: Deep Creek Unit State: Alaska ¡Conductor: 13%",68 ppf, K-55, BTC to 92', grouted in place ... Surface Casino: 9%", 40 ppf, L-80, BTC to 1007' Cmnt with 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 ppg tail "G". FIT = 16.3 ppg EMW Intermediate Casino: 7", 26 ppf, L-80, BTC-Mod to 4506' Cmnt with 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 ppg tail "G". FIT = 13.5 ppg EMW Open Perfs: T-10: 6894' - 6924' Isolated Perfs T-17: 7,216' - 7,284' (6 spf, 11/11/05) T-80: 9106' - 9156' (6 spf, 12/4/04) T-91: 9406' - 9430' (6 spf, 12/10/04) T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30/04) Production Liner: 3%", 9.2 ppf, L-80, IBT-Mod liner from 4261' - 10,082' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4246' Cemented with 220 bbl of 12.0 ppg Litecrete Updated by: JGE Re: Change of Scope on Happy Valley HV A-II Sundry# 305-338 . 'ZD4,-2 0'7 . Steve, AOGCC hereby approves the addition to your well evaluation procedure (App. No. 305-338) described below. All other permit stipulations apply. Winton Aubert AOGCC 793-1231 Tyler, Steve L wrote: Winton We perforated the T -17 interval and put well in test. We had 28 bbls of water entry into the wellbore with very little commercial gas. Our Forward plan is as follows: Displace wellbore fluids wi gas or N2. MIRV Eline. Set CIBP within 50' above T-17 perfs @ 7216'. Negative test CIBP by bleeding tbg pressure to 0 psi. Repressure tbg to 1500 psi. Rlli perforate T-I0. Flow test well. Turn well over to production. Please let us know if you concur with our forward plan. Thanks 1 of 1 11/15/2005 1 :02 PM ~ìJ \IIŒ . (ill !~ (f\ 1 /7\ rñì lœ'" " m l' 'I lkl \ II" I !J " \~\,' ! r \ /fj " ì, I lJlj ~ LJ1\ æJ; ~ uti . AI~SIiA. OIL AlQ) GAS CONSERVATION COMMISSION Timothy C. Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519 FRANK H. MURKOWSKI, GOVERNOR 333 W. PH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: HV-A11 Sundry Number: 305-338 Dear Mr. Brandenburg: 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. 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 (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. Sincerely, DATED thisl day of November, 2005 Encl. e., r C¡z}- /1- 2 - OS' . STATE OF ALASKA O/S ¿71S ALA Oil AND GAS CONSERVATION COMMI~N APPLICATION FOR SUNDRY APPROVALS 20 MC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool D 4. Current Well Class: Abandon U Alter casing D Change approved program D 2. Operator Name: 1. Type of Request: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 16.4' 8. Property Designation: Happy Valley Production Facility 11. Total Depth MD (ft): 10,082' Casing Structural Conductor Surface Intermediate Production Liner Liner Perforation Depth MD (ft): 9,106-9,156' Packers and SSSV Type: ITotal Depth TVD (ft): 9,578' Length 92' 1,007' 4,506' 5,821' Suspend U Repair well D Pull Tubing D }k4{¡~ ~; . '~~,' ji':"S3;" \\,.~J!' NOV {} 2 2005 Perforate ~ ," Stimulate D Time Extension D Re-enter Suspended Well D 5. Permit to Drill Number: Development Stratigraphic o /' D Exploratory D Service D 204-207 / 6. API Number: 50-231-20029-00 / 9. Well Name and Number: HV-A11 / 10. Field/Pools(s): Happy ValleylTyonek PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): Effective, Depth TVD (ft): 10,026' 9,522' Size MD / TVD I Plugs (measured): 9,280' Burst Other U JUnk (measured): I Collapse 13-3/8" 92' 92' 9-5/8" 1,007' 1,001' 5,750 psi 7" 4,506' 4,115' 7,240 psi 3-1/2" 10,082' 9,578' perfOration Depth TVD (ft): 8,602-8,652' Baker ZXP packer BOP Test D 404 Tubing Size: " Tubing Grade: 3-1/2 , 9.2# L-80 Packers and SSSV MD (ft): 4,246' 12. Attachments: Description Summary of Proposal ~ Detailed Operations Program D BOP Sketch D 14. Estimated Date for Commencing Operations: Driven 3,090 psi 5,410 psi Tubing MD (ft): _ 4,298' 13. Well Class after proposed work: / Exploratory D Development 0 ~~/ 15. Well Status after proposed work: 1 /4/ 05 Oil D Gas 0 Plugged D WAG D GINJ D WINJ D Date: Service D Abandoned D D 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and corre'ct to the best of my knowledge. Contact Steve Tyler 263-7649 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature Z...;..-~C/~,/ Phone 907-276-7600 Date II - I '- o.s- (:::/ L:::::? COMMISSION USE ONLY WDSPL Conditions of approval: Notify Commission so that a representative may witness SUndry Number: ?;D5'" ?Jot Plug Integrity D Other: Approve Mechanical Integrity Test D Location Clearance D ODD," M~ B~ ""Q, ,.".'" d , COMMISSIONER APPROVED BY THE COMMISSION Fo~ '0_ R~I20050 'R I GIN A L AFE 164633 (I g 2005 Submit in Duplicate . . Happy Valley HV A-II Work Summery 10/31/05 · MIRV N2 pump. Displace wellbore fluids wi N2. · MIRV Eline. Set CIBP within 50' above T-80 perfs @ 9106'. ~ · Negative test CIBP by bleeding tbg pressure to 0 psi. · RIH perforate T -17. . Flow test well. . RIH Perforate T-lO. / · Turn well over to production. . . Perforation History / MD TVD SSTVD Zone Top Btm Amt Top Btm Top Btm Comments T-10 6885' 6895' 10' 6382' 6392' 5642' 5652' Proposed Perfs 6898' 6906' 8' 6395' 6403' 5655' 5663' Proposed Perfs 6908' 6918' 10' 6405' 6415' 5665' 5675' Proposed Perfs 6921' 6926' 5' 6418' 6423' 5678' 5683' Proposed Perfs T-17 7212' 7230' 18' 6709' 6727' 5969' 5987' Proposed Perfs 7236' 7257' 21' 6733' 6754' 5993' 6014' Proposed Perfs 7262' 7280' 18' 6759' 6777' 6019' 6037' Proposed Perfs T-80 9106' 9156' 50' 8603' 8653' 7863' 7913' Proposed Isolation T-91 9406' 9430' 24' 8903' 8927' 8163' 8187' Proposed Isolation T-100 9531' 9551' 20' 9028' 9048' 8288' 8308' Proposed Isolation T -105 9624' 9654' 30' 9121' 9151' 8381' 8411' Proposed Isolation T -130 9910' 9930' 20' 9407' 9427' 8667' 8687' Proposed Isolation . PR API: 50-231-20029 AOGCC: 204-207 1271'FSL,1263'FEL Sec22, T2S,R13VV, S.M. RT-THF: 16.4' Tbg lift threads - 3%" IBT Tree cxn - 3" Bowen cxn Production Tubinq: 3%", 9.2 ppf, L-80, 1ST-Mod to 4298' - Annulus loaded with 3% KCI brine plus corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2513' (Macco SF01-CI) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4264" - Saker 80-40 seal assembly 13' of 4.00" 00 seals - Muleshoe at 4298' Pluqs: Halliburton MagnaRange CISP at 9075' (proposed) / Halliburton MagnaRange CISP at 9280' (6/10/05) Directional Data: max hole angle = 30.0 deg at 3087' KOP = 500' max dogleg < 3 deg/100' HV-11 Proposed schematic 10-20-05 . Well Name: Happy Valley #A 11 Field: Deep Creek Unit State: Alaska POSED ... · · · · · · h z z ... ~ ~ ..4 ~ PSTD = 10,026', TO = 10,082' ¡Conductor: 13? ", 68 ppf, K-55, STC to 92', grouted in place I!.. Surface Casinq: 9? ", 40 ppf, L-80, BTC to 1007' Cmnt with 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 ppg tail "G". FIT = 16.3 ppg EMVV I!.. Intermediate Casinq: 7", 26 ppf, L-80, STC-Mod to 4506' Cmnt with 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 ppg tail "G". FIT = 13.5 ppg EMVV Open Perfs: PROPOSED T-10: 6885' - 6926' (proposed) T-17: 7212'-7280' (psoposed) --- / Isolated Perfs PROPOSED ~ T-80: 9106' - 9156' (6 spf, 12/4/04) T-91: 9406' - 9430' (6 spf, 12/10/04) T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30/04) Production Liner: 3);,", 9.2 ppf, L-80, 1ST-Mod liner from 4261' - 10,082' Saker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4246' Cemented with 220 bbl of 12.0 ppg Litecrete Updated by: JGE Date: To: From: Subject: . . November 7, 2005 File.. ¡""lu} Jane Williamson "þ'YJ "/"VV Happy Valley A-II, plug back of perforations Unocal has applied for sundry approval to plug back existing Tyonek 80-130 perforations and perforate Tyonek 10-17 within HV A-II. I spoke with Unocal's reservoir engineer and he explained that attempts to flow the lower Tyonek zones failed. No reserve losses will result from this recompletion, .. STATE OF ALASKA _ AlASW Oil AND GAS CONSERVATION COM~ON R FeE fVED REPORT OF SUNDRY WELL OPERATIONS D Stimulate D Oth~F& ~~I ~Q~es D WaiverD Ti~fâ ~¡r'ftiO&~s,Cøns. C'-sion D Re-enter SuspendedVVell 5.Permit to prill Nu ~~~fa.! Exploratory [] ~!è4.ÜÔO¡¡¡i Service ¡;¡¡ 6. API Number: 50-029-20587-01-00 9. Well Name and Number: 1. Operations Abandon D Repair Well D Performed: Alter Casing D Pull Tubing D Change Approved Program D Opera!. Shutdown D 2. Operator BP Exploration (Alaska), Inc. Name: 3. Address: P.O. Box 196612 Anchorage, AK 99519-6612 7. KB Elevation (ft): 85.7 KB 8. Property Designation: ADL-028287 11. Present Well Condition Summary: Total Depth measured 11114 true vertical 8964.6 Effective Depth measured 11074 true vertical 8967.13 Casing Conductor Surface Production Liner Liner Length 80 2676 9433 518 2121 Size 20"x30# 13-3/8" 72# L-80 9-5/8" 47# L-80 7" 29# L-80 3-3/16" 6.2# L-80 Perforation depth: Measured depth: 10820 - 10845 True Vertical depth: 8996.46 - 8994.55 Tubing: (size, grade, and measured depth) Packers and SSSV (type and measured depth) 12. Stimulation or cement squeeze summary: Intervals treated (measured): Plug Perforations Perforate New Pool Perforate 4. Current Well Class: Development Stratigraphic [] feet feet feet feet MD 33 - 113 32 - 2708 31 - 9464 8985 - 9503 8988 - 11109 10880 - 10905 8990.92 - 8987.49 4-1/2" 12.6#/12.75# Y-10A 10. Field/Pool(s): Prudhoe Bay Field/ Prudhoe Bay Oil Pool Plugs (measured) Junk (measured) None None TVD Burst Collapse 33 - 113 32 - 2707.93 4930 2670 31 - 8849.68 6870 4760 8395.58 - 8886.98 8160 7020 8398.4 - 8964.9 10930 - 10950 8983.91 - 8981.32 10970 - 11000 8978.96 - 8975.56 11050 - 11070 8969.64 - 8967.5 L-80 30 - 9038 4-1/2" TIW HBBP-T Packer 4-1/2" Baker SAB Perm Packer 8843 8935 ~ÇA\N\h~lEL Treatment descriptions including volumes used and final pressure: Representative Daily Average Production or Injection Data Gas-Mcf Water-Bbl Casing Pressure o 4763 250 o 0 0 15. Well Class after Droposed work: Exploratory Development 16. Well Status after proposed work: Oil [] Gas WAG 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. 13. Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations Oil-Bbl o o x Contact Sharmaine Vestal Printed Name Sharmaine Vestal <"- / Signatur~ ?~~ Form 10-404 Revised 04/2004 t è..i-' RBDMS 8Ft SEP ,~ B 2005 Tubing pressure 900 o Service P' GINJ WINJ ¡;¡¡ WDSPl SUndry Number or N/A if C.O. Exempt: N/A Title Data Mgmt Engr Date 9/22/2005 Phone 564-4424 Submit Original Only --'I¡ II . . .. Y-10A DESCRIPTION OF WORK COMPLETED NRWO OPERATIONS EVENT SUMMARY 1~lffrYDATE I 8/28/2005 *** WELL INJECTING ON ARRIVAL *** (pre rwo screening) PULLED 41/2" ECLIPSE PATCHES & LOWER ANCHORS @ 3312' SLM & 3688' SLM, SET 4 1/2" PX PLUG BODY & PRONG @ 8863' SLM, ( PRONG 96" OAL, 1.75 FN, 3/16" EQ PORTS) NOTIFY PAD OP *** WELL TO REMAIN SI, SECURED W/ TTP *** FLUIDS PUMPED BBLS 2 Diesel 2 TOTAL Debra Oudean G & G Technician To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 fiJlUlt. :'~'~~i'JI.im! . Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocal.com . UNOCAL VòJJJ ....".. .-........-...-............. HAPPY V ALLEY-1 0 . .....______n........................... HAPPY VALLEY-10 HAPPY V ALLEY-1 0 HAPPY VALLEY -11 HAPPYVALLEY-11 HAPPÝ V ALLEY-11 HAPPy\íÀLLEY-11 . _...unO'·",___.- ."".............. HAPPY VALLEY-11 ,.. ,,,,,._~. .... .----".."....--" "^".,,.. HAPPY VALLEY-3 ._····___·.___.."_".·.,w..··..._·"..··.·,, HAPPY VALLEY·B HAP-PYŸÄÜ"EY:à Date: July 27,2005 ,;~iJ;~" 1 1 pds, txI. fma ......-................--...--. 502312002BOO 502312002BOO 502312002BOO 502312002900 502312002900 _,v·....·,,_·,,······,'··...··'·'······· 502312002900 .......,..,....... .._...._._._....... ·..·m.···. 502312002900 502312002900 502312001600 ,·_________··___._._,'_.w·_,_·...·_········'··o 502312002300 ,.'_.___.......,... ···...·,W,·.M.·,·.W.·.·_·,w." 502312002300 5 INCH 02-May·05 B090-B221 2/5 INCH 11-0ct-04 3B60·B420 2/5 INCH 11-0ct-04 3B60-B420 5 INCH 3O-Nov-04 7000-10003 5 INCH 03-Dec-04 9530-9654 5 INCH 04-Dec-04 9104-9154 51NCH 01-Dec·04 9262-9636 5 INCH 10-Dec-04 9260-9640 pds . ...-,..............................-.... o las, metafile, viewer .-----.--.--...... ........,..-...,... o las. metafile. viewer -1 "-1 '1 pds I ') ?-- c.. c:r -t", -r &--1 pds I ) )...C I LY :.:.r-- ' ....1 pds f) J.- 7 Î-- .J-- --1 '-t pds I ) À.7 ~ "..--1 ) /1 pds I ) À/ J 0 pds pds PERFORATION RECORD 2 HSD POWERJET GUNS " " PERFORATioN RECORD 2 HSD p9.....ERJET"UNS MULTIPLE PROPAGATION RESISTIVITY GA,MMA,RAVMD, MULTIPLE PROPAGATION RESISTIVITY GAMMA,RAYlYD GAMMA RAY / CCL , COMPLETION RECORD 2.5 HSD POWERJI=,TS , COMPLETION RECORD 2.5 HSD POWERJETS .', 'COMPLETiON RECORD 2.5 HSD POWERJETS , COMPLETION· RECORD 2.5 HSD POWERJETS ·"cOMf'lETiON RECORD 2.5 HSD POWERJETS 6 SPF, 60 DEGREE PHAZED 'COMPLETìoN 5 INCH RECORD WEATHERFORD WRP PLUG COMPLETìON 5 INCH RECORD 2.5 HSD POWERJETS 6 SPF COMPLETiON .." 51NCH RECORD HALLIBURTON FASDRILL BRIDGE PLLJ" Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. 204-186 204-186 204-186 ~4-207 ..;i(f'¡:¿Ò7 204-207 ...,A04-207 /204-207 203-222 204-114 204-114 Received By: 19-Apr-04 ,-..·.·.w····'·'·'·'·"·'·'"-'..·',·'o..,·-,··,··" 1 0270-1 0545 09-Mar-05 3900-8440 09-Dec-04 4020-5630 Date: JÀ¥~\- ~ tJ '{ ,-J,J~) rF: I~ 204-170 . HAPPY VALLEY·9 COMPLETION RECORD 2.5 HSD POWERJETS 6 SPF HAPPY VAí:Ü~Y:9· 'Ô:JMPLETINön. , RECORD HALLIBURTON FASDRILL BRIDGE p~-~.(]. "" 502312002700 204·170 .·_,·.·.·,.m.w"··"·,···,·..·..·_'.···· , 501231200270 o 5 INCH 'SINCH 18·Dec-04 09-Dec-04 6300-7500 6390·7650 . dlis,fma,pds pds Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. Received By: Date: I ..", a STATE OF ALASKA ALA~IL AND GAS CONSERVATION COM+N REPORT OF SUNDRY WELL OPERATIONS RECEIVED JUL 1 9 2005 PO Box 196247, Anchorage, AK 99519 Stimulate U Alaska O&~ß~ GU"5f\MAm~IOn WaiverD Time ExtensiAr@)Orage Re-enter Suspended Well D 5. Permit to Drill Number: ExploratoryD 2042070 ServiceD 6. API Number: 50-231-20029-00-00 9. Well Name and Number: 1. Operations Abandon U Repair Well U Performed: Alter Casing D Pull Tubing D Change Approved Program D Operat. Shutdown D 2. Operator Union Oil Company of California Name: 3. Address: Plug Perforations ~ Perforate New Pool D Perforate D 4. Current Well Class: Development D Stratigraphic D 7. KB Elevation (ft): 733' 8. Property Designation: Happy Valley Production Facility 11. Present Well Condition Summary: Total Depth Effective Depth Casing Structu ral Conductor Surface Intermediate Production Liner Perforation depth: HV-A11 10. Field/Pool(s): Happy Valley Field, Tyonek measured 10,082 feet true vertical 9,578' feet measured 10,026' feet true vertical 9,522' feet Length Size MD 92 16" 92 1007 9-5/8" 1007 4506 7" 4506 5821 3-1/2" 4261 '-1 0,082' Plugs (measured) Halliburton MagnaRange CIBP at 9280' Junk (measured) n/a TVD Burst Collapse 92 nla nla 1002 5750 psi 3090 psi 4116 7240 psi 5410 psi 3897'-9579' 10,160 psi 10,530 psi Measured depth: 9,106 to 9,156' (see schematic for abandoned perfs) True Vertical depth: 8,602 to 8,652' (see schematic for abandoned perfs) Tubing: (size, grade, and measured depth) 3-/12" 9.2 ppf, L-80 @4,298' Packers and SSSV (type and measured depth) Baker ZXP packer @ 4,246' 12. Stimulation or cement squeeze summary: Intervals treated (measured): R8DMS 8FL JUL 2 0 2005 Treatment descriptions including volumes used and final pressure: n/a Representative Daily Average Production or Injection Data Gas-Met Water-Bbl Casing Pressure o 0 0 o 0 0 15. Well Class after proposed work: ExploratoryD Development D 16. Well Status after proposed work: OilD Gas D WAG D 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Prior to well operation: Subsequent to operation: 14. Attachments: Copies of Logs and Surveys Run Daily Report of Well Operations 13. Oil-Bbl o o Tubing Pressure 500 500 Service D x GINJ D WINJ D WDSPL D I Sundry Number or NIA if C.O. Exempt: 305-143 Contact J. Gary Eller 263-7848 Printed Name Timothy C. Brandenburg ?~? Æçz¡? Signature <'" - ~ C ~,; ~~=- / Form 10-404 Revised 04/2004 Title Drilling Manager Date'"':1-- /1' -c::;s- Phone 907-276-7600 AFE 164050 t~ , G I i~ A L Submit Original Only I .... . API: 50-231-20029 AOGCC: 204-207 1271' FSL, 1263' FEL Sec22, T2S, R13VV, S.M. RT-THF: 16.4' Tbg lift threads - 3W' IBT Tree cxn - 3" Bowen cxn Production Tubino: 3%", 9.2 ppf, L-80, IBT-Mod to 4298' - Annulus loaded with 3% KCI brine plus corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2513' (Macco SF01-CI) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4264" - Baker 80-40 seal assembly 13' of 4.00" OD seals - Muleshoe at 4298' Pluas: Halliburton MagnaRange CIBP at 9280' (6/10/05) Directional Data: max hole angle = 30.0 deg at 3087' KOP = 500' max dogleg < 3 deg/100' HV -11 Actual schematic 6-14-05 .- · · · · · · · · · · · · · · · · ... z .- ~ ~ lPBTD = 10,026' I TD = 10,082' z ~ ::::;g:: . Well Name: Happy Valley #A 11 Field: Deep Creek Unit State: Alaska conductor: 13%",68 ppf, K-55, BTC lto 92', grouted in place ~ Surface Casino: 9"/.", 40 ppf, L-80, BTC to 1007' Cmnt with 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 ppg tail "G". FIT = 16.3 ppg EMVV Intermediate Casino: 7", 26 ppf, L-80, BTC-Mod to 4506' Cmnt with 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 ppg tail "G". FIT = 13.5 ppg EMVV Open Perfs: T-80: 9106' - 9156' (6 spf, 12/4/04) Isolated Perfs T-91: 9406' - 9430' (6 spf, 12/10/04) T-100: 9531' - 9551' (6 spf, 12/3/04) T·105: 9624'·9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30104) Production Liner: 3%", 9.2 ppf, L-80, IBT-Mod liner from 4261' - 10,082' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4246' Cemented with 220 bbl of 12.0 ppg Litecrete Updated by: JGE Primary Job Type Other Stimulation Jobs I Primary Well bore Affected Original Hole AFE No. QC Eng 164055 Daily Operations 6/9/200506:00 - 6/10/2005 00:00 Operations Summary HU slickline. RIH with gauge ring, tag at 10,031'. RIH with pressure bombs, run survey across perfs. RD slickline. 6/10/200500:00 - 6/11/2005 00:00 Operations Summary .RU electric line. RIH with CIBP. Tie-in, set bridge plug at 9280' MD. POOH, RD electric line. 6/22/200500:00 - 6/23/2005 00:00 Operations Summary Blend 3% KCI. Load hole with water. Pump 40 bbl minifrac at 3.5 bpm. Monitor pressure for 2.5 hours. RDMO pump truck. . . . ~ ~~A~ ~ Œ' (ffi ~¡ !j\\.n ¡~ ''ñ'' , ,ï ¡ ',ffi' f! I ' ! IAn \ LL! I jn\ \,<\: li' ,! I Ii; l'""'\u'nì1U'¡ ... .... ¡ ; U,!...iI' \..::::.) . ;:z 0 <-f~, :2-0 7 fF; !J~ FRANK H. MURKOWSKI, GOVERNOR JtI,ASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Tim Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519 Re: Happy Valley HV-A11 Sundry Number: 305-143 Dear Mr. Brandenburg: 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. 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 (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 rt unless rehearing has been requested. C DATED thiSf- day of June, 2005 Encl. Çf1 6-1-05 . STATE OF ALASKP V--S b~/s R ALAS OIL AND GAS CONSERVATION COMM.N '. APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations [2] / Perforate New Pool 0 4. Current Well Class: Abandon U Alter casing 0 Change approved program 0 2. Operator Name: Union Oil Company of California 1. Type of Request: Suspend U Repair well 0 Pull Tubing 0 3. Address: PO Box 196247, Anchorage, AK 99519 7. KB Elevation (ft): 480' MSL 8. Property Designation: Deep Creek Unit \lj6A- &/ ~ I ~OOS Perforate ll'Jask2 .C,V)f¡;ti\lerW,m7cn¡~¡:i:äerU Stimulate 0 Time Exte~~}6h" Re-enter Suspended Well 0 5. Permit to Drill Number: 204-207 ,/ ¡ .J Development Stratigraphic [2] / o 6. API Number: / 50-231-20029 /" Exploratory 0 o Service 9. Well Name and Number: HV-A11 / 10. Field/Pools(s): Happy Valley Field, Tyonek 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): ITotal Depth TVD (ft): I Effective Depth MD (ft): I Effective Depth TVD (ft): IPlugs (measured): 10082 9579 10026 9253 n/a Casing Structu ral Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 9106'-9930' Packers and SSSV Type: Length Size 92 16" 1007 9-5/8 " 4506 7" 5821 3-1/2" I Perforation Depth TVD (ft): 8603'-9427' Baker ZXP packer MD TVD 92 92 1007 1002 4506 4116 4261'-10,082' 3897'-9579' Burst n/a 5750 psi 7240 psi o IJUnk (measured): 8897 Collapse n/a 3090 psi 5410 psi /Tubing Size: ITubing Grade: 3-1/2" L-80 Packers and SSSV MD (ft): 10,160 psi 10,530 psi /Tubing MD (ft): 3991 Baker ZXP packer at 4246' 12. Attachments: Description Summary of Proposal U Detailed Operations Program [2] BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name Timothy C. Brandenburg Title Drilling Manager Signature '7' ~~, ~. c~ Phone 907-276-7600 ~ -~. COMMISSION USE ONLY Date: 13. Well Class after proposed work: Exploratory 0 Development [2] 15. Well Status after proposed work: / 6/10/2005 Oil 0 Gas [2] Plugged WAG 0 GINJ 0 WINJ Contact Gary Eller (263-7848) Date o .- &?-ÐS Conditions of approval: Notify Commission so that a representative may witness SUndry Number: Plug Integrity 0 Other: BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 - 4û4, RBDMS BFL JUN 1 0 2005 COMMISSIONER APPROVED BY THE COMMISSION Date: j J L / S . ervlce o o o Abandoned WDSPL o o .305- 1'-13 . . Happy Valley #All Deep Creek Unit Data Frac Procedure AFE 164055 Objective: Perform a data frac on the T -80 interval in well HV -All to confirm ",/ communication with the wellbore to the formation and to evaluate pressure falloff data for indications of formation permeability. Procedure: 1. MIRV blow down vessel to the wing valve of well HV -All. Record SITP. Blow tubing pressure to 0 psi. Tie into 7" casing of well HV-All using test pump. Pressure up 7" casing to 1500 psi using methanol or diesel. /' 2. MIRV slickline unit. Pressure test lubricator and conduct pre-job safety meeting. Rlli with 2.75" gauges ring. Tag fill at ±1O,034'. POOH. PV tandem pressure/temperature gauges and RIH. Make up and down logging passes 8900' - / 10,000' at 40 fpm. Make a 5-minute stationary stop at 10,000'. POOH. Download gauges, RDMO slickline. 3. MIRV tank for temporary storage of produced water. Tank should be lined and bermed to minimum 110% of capacity. Load tank with ±100 bbl of produced water from Happy Valley field. Blend 3% KCl using the produced water. (Note: Requires 10 lbs of KCl added to 1 barrel of water to make a 3% solution.) /' 4. MIRV pump truck. Conduct pre-job safety meeting. Tie into tubing of well HV- All, pressure test lines to 3000 psi. Load the 3Yz" tubing with 3% KCl water from the Happy Valley "A" Pad. Do not break down perfs at this time by limiting pump pressure to 1500 psi. Anticipate requiring 87 bbl to fully load the /' hole. Bleed off trapped pressure. 5. MIRV electric line unit. Pressure test lubricator and conduct pre-job safety meeting. PV Halliburton Magna-Range CIBP (OD = 2.72", rated for lOk psi differential) for 3~" tubing and setting tool. RIH with CIBP. Correlate depth with CCL to OR/CCL log of 11/3012004. Set CIBP at 9280' to isolate all perfs ,/' below the T80 interval. Tag plug to confirm proper set. POOH, RDMO electric line. 6. Reload temporary water tank with ±70 bbl of produced water from Happy Valley field. Blend 3% KCl using the produced water. (Note: Requires 10 lbs of KCl added to 1 barrel of water to make a 3% solution.) /' 7. MIRV Schlumberger pump truck. Conduct prejob safety meeting. Install 1502- union by Bowen-union crossover on tree cap. RV lines to bullhead produced J. Gary Eller June 7, 2005 . . Happy Valley #All Data Frac Procedure AFE 164055 Page 2 of2 water down 3Y2" tubing. Install micro-motion sensor on suction side of pump. Pressure test lines to 5000 psi and conduct pre-job safety meeting. (Note: MA WP of tree = 5000 psi). Install SPIDR gauge on wing valve to monitor tubing pressure during and after pumping. Record pump rate and pressure versus time on pump computer during breakdown job. Break down T80 perfs at 9106' -9156' . (Note: Maximum allowable pump pressure = 4500 psi.) Perform data frac by bullheading 30 to 40 bbl of water at maximum steady rate into the T80 perfs then shut down to monitor pressure falloff. Continue to record pressure data for ±3 hours. RDMO pump truck after monitoring of pressure falloff data. Bleed off trapped pressure. Send SPIDR data file to Completion Engineer for analysis. J. Gary Eller June 7, 2005 . . Well Name: Happy Valley #11 Field: Deep Creek Unit State: Alaska PROPOSED API: 50-231-20029 AOGCC: 204-207 1271'FSL,1263'FEL Sec22, T2S, R13W, S.M. RT-THF: 16.4' Tbg lift threads - 3W' IBT Tree cxn - 3" Bowen cxn Production Tubinq: 3W', 9.2 ppf, L-80, IBT-Mod to 4298' - Annulus loaded with 3% KCI brine plus corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2513' (Macco SF01-CI) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4264" - Baker 80-40 seal assembly 13' of 4.00" 00 seals - Muleshoe at 4298' Halliburton MagnaRange CIBP at ±9200' (proposed) Directional Data: max hole angle = 30.0 deg at 3087' KOP = 500' max dogleg < 3 deg/100' HV-11 Proposed schematic AI ... :8: AI q,~O' :::;g: / ~ ~ I PBTD = 10,026' I TD = 10,082' :8: .. I Conductor: 13%",68 ppf, K-55, BTC to 92', grouted in place ~ Surface Casinq: 9%", 40 ppf, L-80, BTC to 1007' Cmnt with 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 ppg tail "G". FIT = 16.3 ppg EMW Intermediate Casinq: 7", 26 ppf, L-80, BTC-Mod to 4506' Cmnt with 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 ppg tail "G". FIT = 13.5 ppg EMW Open Perfs: T-80: 9106' - 9156' (6 spf, 12/4/04) Isolated Perfs T-91: 9406' - 9430' (6 spf, 12/10104) T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30104) Production Liner: 3%", 9.2 ppf, L-80, IBT-Mod liner from 4261' - 10,082' Baker ZXP packer, Flexlock liner hanger & 80-40 seal bore at 4246' Cemented with 220 bbl of 12.0 ppg Litecrete Updated by: JGE . API: 50-231-20029 AOGCC: 204-207 1271'FSL, 1263' FEL Sec22, T2S, R13W, S.M. RT-THF: 16.4' Tbg lift threads - 3Y2' IBT Tree cxn - 3" Bowen cxn Production Tubino: 3W', 9.2 ppf, L-80, IBT-Mod to 4298' - Annulus loaded with 3% KCI brine plus corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2513' (Macco SF01-CI) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4264" - Baker 80-40 seal assembly 13' of 4.00" OD seals - Muleshoe at 4298' Directional Data: max hole angle = 30.0 deg at 3087' KOP = 500' max dogleg < 3 deg/100' HV-11 Actual schematic 12-29-2004 ~ z ~ .-' ~ · · · · · · · · · · · · · · · ... :8: ~ I PBTD = 10,026' I TD = 10,082' . Well Name: Happy Valley #11 Field: Deep Creek Unit State: Alaska conductor: 13%",68 ppf, K-55, BTC to 92', grouted in place ... Surface Casino: 9%", 40 ppf, L-80, BTC to 1007' Cmnt with 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 ppg tail "G". FIT = 16.3 ppg EMW Intermediate Casino: 7", 26 ppf, L-80, BTC-Mod to 4506' Cmnt with 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 ppg tail "G". FIT = 13.5 ppg EMW Open Perfs: / T-80: 9106' - 9156'(6 spf, 12/4/04) T-91: 9406' - 9430' (6 spf, 12/10/04) /' T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30/04) Isolated Perfs none Production Liner: 3Y2', 9.2 ppf, L-80, IBT-Mod liner from 4261' - 10,082' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4246' Cemented with 220 bbl of 12.0 ppg Litecrete Updated by: JGE New Cover Sheet for HV-AII Ä~1 ~ ;ZØ7 Bob, Here's the recalculation for the TPI on HV-All on a new cover sheet. Diane «HVllAOGCCformlO-407submitted01200S.xls» Content-Description: HVIIAOGCCformlO-407submittedOI2005.xls ., ,iHVIIAOGCCforml 0-407submitted012005.xls Content-Type: application/vnd.ms-excel 'Content-Encoding: base64 1 of 1 2/7/2005 2:43 PM STATE OF ALASKA ALAS~ AND GAS CONSERVATION COMMI~ WELL COMPLETIOtI OR RECOMPLETION RI!P'ORT AND LOG OilD Gas[] Plugged 0 AbandonedD SuspendedD WAGU 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development [] Exploratory 0 No. of Completions Other Service 0 Stratigraphic Test 0 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 12/3/04 204-207 6. Date Spudded: 13. API Number: October 24,2004 50-231-20029 7. Date TD Reached: 14. Well Name and Number: November 9, 2004 HV-A 11 8. KB Elevation (ft): 15. Field/Pool(s): 733' 9. Plug Back Depth(MD+ TVD): 10,016'/9,512' 10. Total Depth (MD + TVD): 10,082'/9,578' 11. Depth Where SSSV Set: n/a 19. Water Depth, if Offshore: n/a feet MSL 1 a. Well Status: GINJD WINJD WDSPLD 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519-6247 4a. Location of Well (Governmental Section): Surface: 1,271' FSL, 1,263 FEL, Sec. 22, T2S R13W, SM Top of Productive Horizon: 2,768 FSL, 2259 FWL, Sec. 22, T2S, R13W, SM Total Depth: 2782' FSL, 2251' FWL, Sec. 22, T2S, R13W, SM 4b. Location of Well (State Base Plane Coordinates): Surface: X = 228,004, Y = 2,189,814 TPI: X = 226,291 Y = 2,191,322 Total Depth: X = 226,283 Y = 2,191,336 18. Directional Survey: Yes [] No 0 21. Logs Run: PEX, Sonic, GRlCCL, SCMT Happy Valley FieldlTyonek 16. Property Designation: C-061590 17. Land Use Permit: n/a 20. Thickness of Permafrost: n/a 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13-3/8" 68# K-55 0 92' 0 92' Driven See Schematic: for cement detail. 9-5/8" 40# L-80 0 1007' 0 1,001 12-112" 7" 26# L-80 0 4,506 0 4,115' 8-112" 3-1/2" 9.2# L-80 4,261' 10,082' 3,897 9,578 6-1/8" PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): n/a Oil-Bbl: Gas-MCF: Water-Bbl: 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): T-80: 9106' - 9156' (6 spf, 12/4/04) T-91: 9406' - 9430' (6 spf, 12/10/04) T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30/04) 26. Date First Production: Date of Test: n/a Hours Tested: Production for Test Period Calculated 24-Hour Rate .. Oil-Bbl: .. Flow Tubing Press. Casing Press: 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 4,298" 4,248" SIZE 3-1/2" 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Gas-MCF: Choke Size: GaS-Oil Ratio: Oil Gravity - API (corr): Water-Bbl: 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". Form 10-407 Revised 12/2003 none C9F CONTINUED ON REVERSE " r STATE OF ALASKA ALASKA_AND GAS CONSERVATION COMMISS. WELL COMPLETIOtr'"OR RECOMPLETION RE1'ðRT AND LOG 1a. Well Status: OilD GasQ Plugged 0 AbandonedD SuspendedD WAGD 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development Q Exploratory 0 No. of Completions 1 Other Service 0 Stratigraphn:: i_ æJ ) 5. Date Comp.,Su~:; 2! if ,'$þ )2. Permit to Drill Number: Aband.: II ..f2l.1.Q1Ø41:'.VÇ>,. 204-207 6. Date Spudded: 13. API Number: October 24,2004 50-231-20029 7. Date TD Reached: 14. Well Name and Number: November 9, 2004 HV-A 11 8. KB Elevation (ft): 15. Field/Pool(s): ì 733' 9. Plug Back Depth(MD+ TVD): 10,016'/9,512' 10. Total Depth (MD + TVD): I 10,082'/9,578' 11. Depth Where SSSV Set: n/a 19. Water Depth, if Offshore: n/a feet MSL GINJD WINJD WDSPLD 2. Operator Name: Union Oil Company of California 3. Address: PO Box 196247, Anchorage, AK 99519-6247 4a. Location of Well (Governmental Section): Surface: 1,271' FSL, 1,263 FEL, Sec. 22, T2S R13W, SM Top of Productive Horizon: / Total Depth: 2782' FSL, 2251' FWL, Sec. 22, T2S, R13W, 8M 4b. Location of Well (State Base Plane Coordinates): Surface: I X = 228,004, Y = 2,189,814 TPI: X = 226,291 Y = 2,191,322 I Total Depth: I X = 226,283 Y = 2,191,336 18. Directional Survey: Yes Q No 0 21. Logs Run: PEX, Sonic, GRlCCL, SCMT Happy Valley Fieldrryonek 16. Property Designation: C-061590 17. Land Use Permit: nla 20. Thickness of Permafrost: nla 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD I AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13-3/8" 68# K-55 0 92' 0 92' Driven See Schematic for cement detail. 9-5/8" 40# L-80 0 1007' 0 1,001 12-112" 7" 26# L-80 0 4,506 0 4,115' 8-112" 3-1/2" 9.2# L-80 4,261' 10,082' 3,897 9,578 6-1/8" PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): n/a Oil-Bbl: Gas-MCF: Water-Bbl: ..... Oil-Bbl: Gas-MCF: Water-Bbl: ..... 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): T-80: 9106' - 9156' (6 spf, 12/4/04) T-91: 9406' - 9430' (6 spf, 12/10/04) T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130:9910'-9930'(6spf, 11/30104) '" 26. Date First Production: Date of Test: n/a Hours Tested: Production for Test Period Calculated 24-Hour Rate Flow Tubing Press. Casing Press: 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 4,298' 4,248' SIZE 3-1/2" 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED nla n/a Choke Size: IGaS-Oil Ratio: Oil Gravity - API (corr): 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". RBDMS 8Ft FEB !} :2 7005 none Form 10-407 Revised 12/2003 CONTINUED ON REVERSE 28. NAME Beluga Tyonek T1TOP T 4A TOP T5 TOP T6 TOP T7 TOP T8 TOP T10 TOP T12 TOP T17 TOP GEOLOGIC MARKERS 2~. 7,211 7,228 7,333 7,480 7,541 7,688 7,747 7,830 7,915 8,184 TVD 2,208 5,796 5,811 5,908 6,044 6,100 6,237 6,293 6,370 6,450 6,704 29. FORMATION TESTS Include and briefly su.' . e test results. List intervals tested, and attach detailed supporting da necessary. If no tests were conducted, state "None". None 30. List of Attachments: Directional Survey, Schematic, Summary of daily reports. 31, I hereby certify that the foregoing is true and correct to the best of my knowledge. Signature: Contact: Steven S. Lambe 263-7637 Title: Drilling Manager Date: 1/20/2005 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 10/22/04 . . MI/RU 10/23/04 MI/RU 10/24/04 Accept rig at 00:01 hours. RU suction and discharge lines to cellar to pump to shakers. Tag at 36'; drill with motor and 17 1/2 bit taking returns to cellar; hole started taking fluid; drill to 96'. Displace hole to mud and add LCM. PU; rotate down to 96', no losses. POH; break tool joints; LD bit, motor, stabilizer; stand back 2 joints 4" HW and 8" dc. PU 13318 slips and elevators and dog collar clamp; PU and hang Webb Wilson tongs; PU two XOs. PJSM; Run 80.8' of 13318 K-55 68# casing; band 2" PVC to outside, RIH to 77', no circulation, try to wash down; no go; try to run conduit, no go; POH LD PVC; start washing to bottom. Work conductor to 93'. RU and cement 13-3/8" conductor. Attempt to reciprocate pipe--Iost 1.5'. RD cement equipment. Set flow line, RU gas buster lines and choke line to choke house. Make final cut on 13318 casing and break down cement assembly. Weld on 13518 " 5000 psi X 133/8" SOW casing head; lay down beaver slide, blow down mud lines. 1 0/25/04 PU 1 std of 4" HW DP; fix Hyd leak on pipe spinner; move mouse hole t/ RT, too much angle. PU 16 joints of 4" HWDP, std back. LD 8" flex collar, XOs. PU and std back 6 joints 4" HW; 5 joints 5" hw and jars. Clean and set 3000 X 5000 double studded adapter; clean and set 5000 X 5000 spool. NU spool and adapter, and riser. Cut 150' of drill line. PU 12.25" BHA, bit (M1C, stab, pony collar, MWD, XO). Fill pipe, check mud lines, tag bottom at 93'. Drill from 93' to 355'. Trouble at the shoe with gravel; flow line. Hole taking fluid while Drilling at 10 bbllhour average. Circulate hole clean. POH for rest of BHA #2. 12.25" bit 2 RR from HV #10. 10/26/04 RIH wlfull BHA to top of 5" HWDP. Begin drilling with first stand of 4" HWDP. No fill on bottom. Drill to 504'; begin kicking off. Drill/slide as per directional plan to 1008'. Circulate hole clean; pump HV nut plug sweep to determine 39 bbl washout. POH to top of Flex collar. LD 12.25" BHA. Clear floor and rig up WOT to run casing. Hold PJSM with Weatherford, Peak and Nabors hands. RIH with 9.625" L-80 40# buttress casing. The collars on the 9.625" casing seemed to hang up on a lipledge 25' from RT every 4-5 joints. Vetco starting head is 21'.Circ hole; attempt to tag bottom. Set pipe in slips to change out bales. PU cementing head. RU Schlumberger lines. PJSM to cement. Pump 5 bbl water wlSchlumberger, test lines to 4000 psi. Pump mud push with rig; Schlumberger pumped 114 bbl of 12.8 ppg lead cement, 27 bb115.9 ppg tail cement, drop plug and 5 bbl water. Rig displaced with 68 bbl of mud and cement in place at 12:20 am 1082 stks (10 strokes over calculated). Approximately 70 bbl cement returned to surface with no losses to formation while cementing and displacing. Sample of returned cement weighed 12.7 ppg. (saw trace of mud push in returns with 90 bbl of lead slurry pumped, cut lead short to 114 bbl) 10/27/04 Displace cement and bump plug with rig pump as planned. Cement in place at 00:20 hrs. Pressure up to 3500 psi and hold for 30 min, Schlumberger recorded test on chart (good test.) Welder cut section out of flow nipple for preparations to set casing slips. Raise adapterlspacer spool with riser stub, install 9.625 slip/hanger/pack-off. Set 29K on slips. Fluid level in annulus 8' below Vetco starter head. Cut 9.625" casing; RD riser, flowline, adapter spool, spacer spool and 9.625 stub. Set Vetco MB Wellhead, tighten bolts, test to 2400 psi for 15 min. (80% of collapse of 40# 9 5/8", L-80). RU to test. Test BOP with state inspector Mr. Jeff Jones. Test BOP and manifold to 250 psi low and 3500 psi high. 10/28/04 RD test equipment, set wear ring, LD test jt. PU BHA, MWD; function test MWD. RIH w/4" HWDP; fix leaking KR valve on top of Koomey unit. PU DP and stand in derrick; Work on KR valve while PU DP and fix H2S detector at shakers; function test both to insure 100%. Drill out FC, shoe and 20' new hole; CBU change over to saved 9.1 HV-11 (163161) morning report summary, CONFIDENTIAL: last revised 1/31/2005 Page 1. pp~ ~Ud. ~erform FIT to eqUival.f 16.3 MW. (373 psi at 1002' TVD). Drill/. as per directional plan. Slides listed as follows: 1087-1132 at HS; 1181-1231 at 25R; 1276-1331 at 40R; 1370-1425 at 25R; 1465-1520 at 10R; 1560-1613 at 15R; 1654-1674 at 40L; 1812-1832 at 40L; 1875-1900 at 40L; 1938-1960 at 60L; 2001-2021 at 60L 10/29/04 Rotary Drill and Slide - 2128' - 2507'. Circulate and condition hole to short trip. POH to shoe; tight at 1920,1715- 1700; wash and ream from 1450' to 9 5/8" shoe. Install automatic Drill on drum of drawworks. RIH no problems. Drill/slide as needed to maintain angle and direction to 3517'. Circ hole clean, pump survey. Survey Depth 3466' Inc 29.09, AZ 307.09, TVD 3197.94'. POH, short trip, tight hole at 3100,3000,2989-80,2931. Make up top drive at 3008' pump and back ream from this point on. Slides made as follows: 2443-2455 at 80L; 3137-3161 at 180; 3264-3304 at 170L. 10/30/04 Backream from 3100-1430'; pull to shoe at 1007'; RIH to bottom no problems. Drill/slide from 3517' to 4350' at midnight. Formation has become very ratty with occasional bone which slows ROP to 12-20 fph. Slides: 3769- 3809 at 180; 4021-4054 at 160R; 4147-4190 at 180. 10/31/04 Drill 8 1/2" OH to 4560'. Circulate hole clean, pump carbide lag and HV nut plug sweep. Lags show gauge hole, both of them. POH to 5" HWDP. POH to 4067'; start working pipe through swelling clays, Screw in at 4067'; backream and circulate to 2365' where hole conditions allowed straight pull the rest of the way. Break and stand back 5" HWDP, LD BHA. RU Schlumberger for E-Iogs (PEX w/sonic). RIH, set down at 4520'; log up to shoe at 1007'. RD Schlumberger E-line. Pull wear bushing; PU hanger and landing joint, make dummy run to mark landing joint. RU WOT; PJSM with WOT, Peak and Nabors hands. PU shoe, float collar and Bakerlok first 3 joints with stop rings and centralizers. 11/1/04 RIH with 7" L-80 26# buttress casing. Started losing displacement at 3850', Continue to RIH to 3950' lost total displacement and started putting mud away as pipe was lowered. Install head pin and reciprocate pipe, when pipe was pulled up well would swab, when pipe was lowered mud would drop in well bore with casing, Slowly break circulation and slowly reciprocate casing. Was able to establish circulation, spotted 25 bbl LCM pill (Nut plug fine and Barazan) CBU, leaving LCM pill in casing. had a 60% loss rate ( lost 70 bbls) reduced up wt by 17 kip, shut down pump. Continue running 7" casing, tag up at 4511' casing measurements. Attempt to wash down with no returns, made several attempts and only made it to 4512' (30' in on the last planned joint to run,) LD one joint and pick up hanger and landing joint and land casing with shoe at 4506'. RU cement head and lines while circulating with rig pump 5 bbl per min with 25% returns, lost another 70 bbllost a total of about 140 bbl before cementing. PJSM. Pump 3 bbl water and test line to 4000 psi. Pump 30 bbl of 10.2 ppg mud push with rig pump, switch over to Schlumberger, pump 108 bb112.8 ppg lead cement slurry + 14 bbl of 15.8 ppg tail cement slurry, drop top plug, (saw plug leave head) pump 5 bbl water, switch over to rig pump and displace cement with 164.4 bbl of 9.2 ppg MUD. Bumped plug with in 10 strokes of calculated strokes 96% efficient. Cement returns to surface. Cement in place at 09:45 hrs. Pressure up to 3500 psi and test casing for 30 min (good test.) Bleed off pressure float equipment held got back 1 1/4 bbl. Wash out BOPS and flow line. RD Schlumberger cementing head and lines and WOTCO casing tools. Pull landing joint and install 7" pack off test same to 5000 psi. (good test.) RU Schlumberger and run temperature survey. Top of cement at 162' with indications of better quality cement at 250'. RD Schlumberger. Change rams from 7" in bottom pipe rams to 4" while running temperature survey. Set test plug and test 4" pipe rams 250/3500 psi, pull test plug and set wear bushing. Change liners to 5" in mud pump # 1. LD 3 stands of 5" HWDP and Daily jars out of mouse hole. Make up 6 1/8" BHA. Strap and PU 4" HWDP, 4 11/16" jars ( plan on picking up the remainder of the drill pipe to get to TD due to top drive gen-set being down. RIH wI 4" HWDP out of derrick. Pulse test MWD tools. 11/2104 PU DP and stand back in derrick. Test 7" X 9 5/8" annulus. PU DP and single in the hole to 4411'. RD. Break circulation and tag float collar at 4421'. Drill out float collar, shoe, rat hole and 10' of new hole to 4570'. Displace hole to new mud while drilling rat hole. (RIH thru rat hole.) Finish circulate hole clean; line up test pump on hole HV-11 (163161) morning report summary, CONFIDENTIAL: last revised 1/31/2005 Page 2. aft~r ~irc t~rOUgh choke with mUd'mp, shut well in. Pump FIT to 0.70 gradie.20 psi with 9.2 ppg mud. EMW 13.5 PPG RD test pump, clean choke lines. Drilling new 6 1/8" OH from 4570 to 4866' MD. 11/3/04 Drill/slide from 4866' to 6021'. Change #2 MP to 5" liners. Circulate and condition hole for short trip. POH to shoe; minor tight spots worked through without pump or rotary. Tight 20 kip over at 5112',5209',5233',5300'-5310', 5319',5361',5531'· 5528',5553 - 5548' (pulled clean when BHA reached hole section were ghost reamer had been.) Function test rams and annular. (Blind rams and SCR were function tested before trip in hole.) RIH. Slides: 5073-5090 at 180; 5263-5276 at 180; 5463-5476 at 180; 5557-5570 at 180; 5656-5662 at 180; 5746-5759 at 150R; 5841-5854 at180; 5935-5948 at 180. 11/4/04 RIH, break circ, ream to bottom. No fill. Slideldrill from 6021' to 7040'. SLIDES: 6021-6051 at 160R; 6125-6134 at 180; 6220-6240 at 180; 6315-6330 at 150R; 6410-6431 at 150R; 6503-6533 at 170R. 11/5/04 Drill 6 1/8 OH from 7040-7250. Circulate hole for short trip. Trip for new bit #5 Sec FM-3641 with 6-1 O's. Fill pipe; circulate down, tag bottom; no fill. Trip gas of 1120 units. Drill from 7250 to 7723'. Hit coal ledge at 6420 and 6396 POH. Took weight at 6940 RIH. No slides. Gas peaks: 7215-7235 at 600 units; 7305-7320 at435units; 7395-7404 at 290 units; 7550-7580 at 630 units; 7615-7660 at 320 units; 7527-7556 at 1100 units. Coal at 7527, 7695 with 1000 units each. 11/6104 Drill 6 118" OH from 7723-8668'. Circulate hole clean. Ten stand short trip 8668' to 7700. Drill 6 1/8"OH f/8668'- 9200'. NO SLIDES. Gas Peaks: 7825-7840 at 780u; 7863-7873 at 433u; 8720-8730 at 1200u; 9075-9180 at 2500 units. 11n/04 Drill 6 1/8 OH from 9200 to 9704'. Circulate hole clean. POH flnew motor, LD ghost reamer. NO SLIDES. Gas from sand 9620-9640 at 515 units. Total rotary time 16 hrs. Circulate time 2.8 hrs. Conn .7 hrs. 11/8/04 POH to BHA. POH wI BHA, LD ghost reamer, break bit, check out motor. LD motor, PU new motor, RR bit # 5, orient motor to bit, surface test motor and MWD. RIH to shoe; fill pipe. Slip and cut 150' Drill line; service top drive RIH to 9524'; wash and ream to bottom from 9524'. Drill 9704 to 9780'. Change out liner gasket on #2 mud pump Drill 9780-9964'. 11/9/04 Drill 9964' to TO of 10082' ADT 8.3 hrs. Circulate and condition for logs. Drop carbide for washout. Took 23.6 bbl over. POOH for logs. Monitor well at shoe. LD BHA. Held pre-job, RU SWS Eline. RIH on wire line wI PEX + Diphole sonic with GR. Tag at 6865' attempt to work thru, with solid set down and max over pulls 2.4k. Pooh logging to shoe. 11/10/04 RIH wI shortened wire line logging assembly unable to pass 6865' POOH. RD SWS. Strap and PU cleanout assembly. RIH wI cleanout assembly, tag obstruction w/15k at 6872' DPM screw in, pump and attempt to drill up and chase junk to 7472'. Continue RIH on elevators to bottom at 10082'. CBU. Observed small pieces of fiberglass stand off from wire line tool at shakers. Monitor well for flowlloss (ok). POOH, monitor well at shoe, LD BHA. PU 3.5' drill pipe PJSM and PU drill pipe conveyed logging tools. RIH, with DP conveyed assembly, break circulation at 900' and 4400'. Monitor pressures to ensure tools are in place inside garage. HV-11 (163161) morning report summary, CONFIDENTIAL: last revised 1/31/2005 Page 3. 11/11/04 . . RIH with DP conveyed logging tools. Circulate shakers clean, drop log deployment tool, circulate down, and deploy logs out of drill pipe, pump dry job. POOH and log at approximately 30' per minute from 10070' to 4506' Monitor well and POOH wI logging tools. LD logging tools. Pull wear bushing, RU test joint. Test BOPs. LD test joint, run wear bushing. MU cement head, RU Weatherford, hold PJSM, MU 3.5" liner shoe, float and landing collar, fill and test floats. PU 3.5" liner to 2500'. 11/12/04 PU and RIH w/79 joints 3.5" liner, fill on the fly and top off every 5 joints. Circulate at shoe 1.5 tubing volumes. PU and RIH w/42 joints 3.5" liner. PU hanger with seal bore, ZXP packer and tieback. LD WOTCO, RU to run pipe from derrick. RIH with HWDP and 37 stands 4" DP (10027'). Circulate and work pipe, hole packing off, continue to work pipe and circulate to bottom, park at 10082'. PU cement head, RU cementers. Hold PJSM, test lines to 5k, pump 20 bbl chemical wash, 28 bbl mud push, 220 bbl of 12ppg litecrete cement at 2.5 -4 bbl per min. Displace w/ 87 bbl of 3% KCL brine at 2.5~3 bbls per minute, until total returns were lost after 67 bbl away and pressure climbed to 2000 psi reduced pump rate to 1 bbl/min until 70 away and pressure was 2700 psi. Reduced displacement rate to .5 bbl per min and psi of 3100. bumped plug to 4000 psi after 87 bbl ( 5 bbl short, possibly 570 ft. cement inside 3.5" liner) no indication seen at surface of hanger setting as pressure climbed above 2200 psi. Hold 4k on plug for 10 minutes, stack liner weight plus 1 Ok on hanger to bite slips, release pressure (floats held 1.2 bbl back). Release hanger from running tool and stack weight to set packer. Pump down annulus. Test liner packer to 2,000 psi for 10 minutes (good test). Line up and pump down DP to 500 psi pull up until inner seals clear liner top, circulate displacing mud from the DP x 7" annulus with brine until clean fluid seen at shakers. Monitor well and RD cement lines. POOH LD 4" drill pipe and check running tool (ok). 11/13/04 LD cement head assembly. RIH 17 stands DP, POOH and LD. PU Baker polish mill assembly. RIH 45 stands DP, run mill inside seal bore, tag tie back/liner top with locator sub at 4253' DP measurement. CBU (seal bore clean) LD 145 joints DP. LD polish mill assembly and locator sub. Hold PJSM, RU Weatherford to run 3.5" tubing. Pull wear bushing. MU seal assembly, PU and RIH wI 3.5" tubing. Drift tubing. PU chemical injection mandrel, RU Pollard to run injection line. PU and RIH with 3.5" tubing. Sting into seal bore while pumping, catch pressure, PU and space out to with pups to land hanger, PU hanger and landing joint. Pump and spot corrosion inhibitor in annulus, freeze protect with diesel. Land tubing hanger, lock down, test between body seals. Pump down tubing to test lower seal bore and seal assembly to 3500 psi for 30 minutes. Pump down annulus, test annulus and upper seals to 1500 psi for 30 minutes (initial pressure 1570 psi bled to 1540 psi after 30 minutes, fluid bled from drill pipe for 3-5 minutes then stopped.) Bleed off pressure, blow down pumps and top drive, shut annulus valve. Rig down tongs and tubing handling equipment. 11/14~17/04 RDMO drilling rig. 11/18/04 Vetco Grayout and re-tested short tree on HV #11 was able to get good body test with two way check, but appears that valve has leak from top side into gate void (same 50 psi in 10 min) - Plan to change out valve when install new tree. - Grade location wI scaring blade in attempt to get rid of ice and recover remaining froze in liner. SLB on location. PJSM. RU SLB on HV #11 short tree just pack -off and test tool (not working correctly). LD SCMT and PU back up tool and test (ok). Test lubricator and pack off (pack-off leaking). LD lubricator ,and hook up grease. Test lubricator ok same small leak as seen in tree test earlier in the day but no visual leaks. (Note: Tree repaired 11/22/04.) RIH with SLB 1-11/16" SCMT log and set down at 7196' wlm, attemptto work by (no-go) appears to be close to a collar - apply and hold 1250 psi and. POH logging from 7196'. 11/19-20104 RD HV-11 (163161) morning report summary, CONFIDENTIAL: last revised 1/31/2005 Page 4. 11/22/04 . . Vetco tree arrived. Set BPV, ND dry hole tree. NU 3-1/8", 5M tree with SSV. Pull BPV, set 2-way check. Load tree with methanol, pressure test shell to 4600 psi - good. Pull 2-way check. Close bottom master valve. Pressure test top and bottom seals of bottom master valve via grease port to 4700 psi - good. Bleed off pressure. Release Vetco. 11/23-24/04 RU Schlumberger coil tubing. 11/26/04 Continue RU Schlumberger coil tubing. RIH to 7,198 CTM. - Weight check each 2,000' - Circulate down at .25bbl per minute rate from 4,300' Set down firm at 7,196. Clean out 7,196 - 9,614 at 50' per minute. Using 1.2bbl/min at 1,800psi (+1- 400rpm) - Started cleaning out 50' and Picking up 100. Cleaning out 200' - picking up 50' each third time we would pick up 100'. Full drilling at 9,614. Clean out 9,614 - 10,011. Looked like landing collar. Cleaned out in 50' stages picking up 25' each 50' drilled. Running 1.3bbl per min (436rpm) at 2,1 OOpsi off-bottom pressure. Drill Rates = 180 to 240 ft/hr running 1-2,000. 11/27/04 Ream up from 10,011 ctm to 6,000' ctm at 60'/min while pumping at 1.2bbl/min (+1- 400rpm) with +/- 1,800psi. Ream in hole using same rates. CBU. Drop ball to open circ sub. Circ well at 2 bbllmin at 3,500psi for 1/2 btms up. POOH to 7,1 OOmd--CBU twice. Started pumping Nitrogen at 1 ,500scf per minute taking returns to Production Johnson test tank. Once the Nitrogen turned the corner, RIH at 100' per hour to 10,005'. Pumped a total of 4bbl of surfactant in stages while pumping Nitrogen attempting to get a better sweep of the well. Recovered a total of 94 bbl to Johnson tank which was 2 bbl short of calculated but we were no longer getting any fluid back. POH while pumping well up to 1 ,600 psi on the way out. RD. 11/28/04 Schlumberger RD and re-spotted coil unit and equipment on pad. 11/30/04 MI/RU Pollard slickline. PT lubricator and PJSM. SITP = 1600 psi. RIH with 2.80" gauge ring. Tag at 10,034' KB. RIH with 2.85" gauge ring. Tag at 9687' KB. POOH. RIH with full gauge braided-line brush 9600' - 10,034'. POOH. RIH with 2.85" gauge ring. Tag at 9723' KB. RIH to 10,034' KB. POOH. PU 20' of 2.5" spent dummy gun and RIH to 10,034' KB. POOH. RD/MO slickline. RD flowline spool piece. RU pneumatic SSV and chicksan to Unocal test skid. RU SPIDR gauge. MIRU Schlumberger electric line. PJSM. PT lubricator and chicksan to 3500 psi using methanol. RIH with 20' of 2.5",6 SPF, 60-degree phase hollow carrier guns loaded with PJ2506 charges. Tie in with GR to Unocal U-curves. Tag bottom at 10,026' MD. Log up with GR/CCL from 10,000' to 7000'. RIH to 10,010'. Tie in once again, put guns on depth. SITP = 1676 psi. Perf the T-130 Sand 9910' - 9930' at 2240 hrs. POOH. All shots fired. RD Schlumberger. SITP = 1666 psi at 2330 hrs. or 12/1/04 PJSM, RU Schlumberger, test lubricator and flow line to 3000 psi f/5 minutes (ok). RIH w. collar counter and 10ft, 2.5" perf gun (61 shots). Tubing at 1665 psi. Shot T105 sand from 9626' to 9636'. Tubing pressure before shooting at 1670 psi. POOH, RD wireline and secure well. Tubing pressure at 1660 psi with wireline OOH at 17:50. Pressure remained at 1660-1665 psi. Bleed tubing pressure down from 1665 psi to 1000 psi. Monitor pressure, tubing pressure at midnight 1008 psi. 12/2/04 Continue to monitor tubing pressure on Happy Valley # 11. HV-11 (163161) morning report summary, CONFIDENTIAL: last revised 1/31/2005 Page 5. 12/3/04 . . RU wireline. PJSM. Test lubricator to 3000 psi for 5 min. RIH with 30' of 6 SPF 2.5" perf. Shoot T1 05 sand from 9624' to 9654' (414 psi on tubing before perforating.) lost 300 Ibs string weight at shot, regain weight after POOH 30 ft. 417 psi after POOH, lD guns, all shots fired. Monitor tubing pressure, (no change). Make up 20 ft, 6 SPF, 2.5" perf gun w/ collar counter, shot T-100 sand from 9530' to 9550' (419 psi on tubing before perforating.) POOH, lD wireline, secure well. 420 psi on tubing when lubricator lD. Monitor tubing pressure. Pressure built from 420 psi at 16:00 to 434 psi at midnight. ... 12/4/04 Blow down HV#11 from 434 psi to 10 psi. Monitor tubing pressure in HV#11, pressure at 05:00 is 31 psi. RU high pressure hose from HV #1 to HV #11. Pressure test hose to 2200 psi. Pressure up HV #11 to 1600 psi with gas from HV #1. PJSM, RU Schlumberger, arm gun and pressure test lubricator to 3000 psi. RIH with 20', 21/2",6 SPF perf gun. Tie into GR/CCl log dated 11/30/04. Perf T-BO Sand with 121 holes from 9134' to 9154' with 1512 psi on well head. Tubing pressure stayed at 1512 psi after gun was fired. POOH - All shots fired. Tubing pressure was 1511 psi after tools were out of well. (T-BO zone). RIH with 21/2",30',6 SPF perf gun. Tie into GR/CCl log dated 11/30/04. Perf T -BO Sand with 175 holes from 9104' to 9134' with 1514 psi on well head. Tubing pressure stayed at 1514 psi after gun was fired. POOH - All shots fired. Tubing pressure was 1514 psi after tools were out of well. (T-BO zone). RD Schlumberger and turn well over to production. TP was 1509 psi after RD. Production will ,/ monitor well until midnight and then draw well down. Monitor well. TP = 1539 psi at midnight. 12/5/04 Bleed well down from 1539 psi to 1000 psi to Johnson tank. Continue to bleed well down from 1000 psi to 500 psi. Bleed well down from 500 psi to 0 psi. Monitor well. Monitor well. Had built to 136 psi at midnight. 12/1 0/04 PJSM, RU Schlumberger lubricator and pressure test to 2800 psi. RIH w/ 24' of 2 1/2",6 SPF HC. CCl went out at 2200'. POOH, found wire broke in CCL. Run back in hole, tie into GR/CCl log dated 11-30-04 and spot perf gun from 9405' to 9429'. TP was 1439 psi. Fired gun and TP settled at 1437 psi. POOH. RD Schlumberger and turn well over to production. TP was 1424psi after RD. ./ HV-11 (163161) morning report summary, CONFIDENTIAL: last revised 1/31/2005 Page 6. >Infqrmat!on >owell, ,>Directional"s,urveys,,>Fulrve;;¡,:, . Select Well: ' HV11 ,,:,J'1I_ Report Name Well Date Created Position Log HV11 1/20/2005 Well Name CURRENT STATUS API KB Surf X Surf Y {ft) 1ft) 1ft) " q~etRdi~\e] HV11 UNKNOWN 502312002900 733 228,004 2,189,814 MD TVD SSTVD X Off YOff X Y Inc Azim uth (ft) (ft) (ft) (ft) {ft) (ft) (ft) (des) (deg) ° 0 733 0 0 228,004 2,189,814 0.0 0 266 265 468 0 1 228,004 2,189,815 0.7 5 355 354 379 0 2 228,004 2,189,816 0.7 11 448 447 286 0 3 228,004 2,189,817 0.8 15 541 540 193 0 6 228,004 2,189,820 2.4 346 633 632 101 -1 11 228,003 2,189,825 4.6 335 726 725 8 -5 20 227,999 2,189,834 7.0 336 818 816 -83 -11 32 227,993 2,189,846 9.4 330 913 909 -176 -20 46 227,984 2,189,860 11.3 328 951 946 -213 -24 53 227,980 2,189,867 11.6 328 1,036 1,029 -296 -33 68 227,971 2,189,882 13.3 330 1,130 1,121 -388 -45 88 227,959 2,189,902 15.0 327 1,225 1,212 -479 -59 110 227,945 2,189,924 17.1 327 1,320 1,302 -569 -75 135 227,929 2,189,949 19.2 329 1,414 1,390 -657 -92 163 227,912 2,189,977 21.5 329 1,509 1,478 -745 -111 195 227,893 2,190,009 24.1 329 1,604 1,564 -831 -132 229 227,872 2,190,043 26.6 328 1,698 1,647 -914 -155 265 227,849 2,190,079 27.6 327 1,761 1,703 -970 -171 290 227,833 2,190,104 27.4 326 1,823 1,758 -1,025 -188 313 227,816 2,190,127 27.6 325 1,888 1,816 -1,083 -205 338 227,799 2,190,152 27.8 324 1,951 1,872 -1,139 -223 361 227,781 2,190,175 28.0 322 2,014 1,927 -1,194 -241 385 227,763 2,190,199 28.1 321 2,077 1,983 -1,250 -260 407 227,744 2,190,221 28.1 319 2,140 2,038 -1,305 -281 429 227,723 2,190,243 28.2 316 2,203 2,094 -1,361 -302 450 227,702 2,190,264 28.4 314 2/266 2,149 -1,416 -323 471 227,681 2,190,285 28.5 313 2,329 2,204 -1,471 -346 491 227,658 2,190,305 28.4 311 2,393 2,261 -1,528 -369 511 227,635 2,190,325 28.5 309 2,456 2/316 -1,583 -392 530 227,612 2,190,344 28.5 308 2,519 2,371 -1,638 -416 548 227,588 2,190,362 28.8 308 2,582 2,427 -1,694 -440 567 227,564 2,190,381 29.0 307 2/708 2,537 -1,804 -489 604 227,515 2,190,418 29.0 307 2,834 2,647 -1,914 -538 640 227,466 2,190,454 29.1 307 3,087 2,867 -2,134 -637 716 227,367 2,190,530 30.0 308 3,213 2,976 -2,243 -687 755 227/317 2,190,569 29.6 308 3/340 3,087 -2,354 -735 793 227,269 2,190,607 28.8 308 3,466 3,197 -2,464 -784 830 227,220 2,190,644 29.1 307 3,529 3,252 -2,519 -808 849 227,196 2,190,663 29.2 308 3,592 3,308 -2,575 -832 867 227,172 2,190,681 29.0 307 3/718 3,418 -2,685 -882 904 227,122 2,190,718 29.4 306 3,844 3,528 -2,795 -930 940 227,074 2,190,754 28.0 307 3,970 3,639 -2,906 -978 975 227,026 2,190,789 28.3 306 4,097 3,751 -3,018 -1,026 1,011 226,978 2,190,825 28.0 307 4,223 3,863 -3,130 -1,072 1,046 226,932 2,190,860 26.9 308 4,349 .3,975 .-3,242 -1,118 1,081 .86 2,190,895 26.9 307 4,509 4,118 -3,385 -1,176 1,125 28 2,190,939 27.3 307 . 4,642 4,236 -3,503 -1,224 1,162 226,780 2,190,976 27.0 308 4,737 4,321 -3,588 -1,258 1,188 226,746 2,191,002 26.5 307 4,832 4,406 -3,673 -1,292 1,213 226,712 2,191,027 26.1 307 4,926 4,490 -3,757 -1,324 1,238 226,680 2,191,052 26.0 307 5,021 4,576 -3,843 -1,357 1,263 226,647 2,191,077 25.5 307 5,115 4,661 -3,928 -1,388 1,287 226,616 2,191,101 23.7 307 5,210 4,749 -4,016 -1,419 1,310 226,585 2,191,124 23.2 307 5,308 4,839 -4,106 -1,448 1,333 226,556 2,191,147 21.5 308 5,402 4,927 -4,194 -1,475 1,353 226,529 2,191,167 20.7 308 5,497 5,016 -4,283 -1,500 1,373 226,504 2,191,187 19.0 307 5,591 5,106 -4,373 -1,524 1,390 226,480 2,191,204 17.4 305 5,686 5,196 -4,463 -1,547 1,406 226,457 2,191,220 16.6 305 5,781 5,288 -4,555 -1,568 1,421 226,436 2,191,235 15.3 307 5,875 5,379 -4,646 -1,587 1,435 226,417 2,191,249 13.6 304 5,970 5,471 -4,738 -1,605 1,447 226,399 2,191,261 12.2 302 6,065 5,565 -4,832 -1,619 1,457 226,385 2,191,271 9.5 307 6,159 5,658 -4,925 -1,631 1,466 226,373 2,191,280 8.4 308 6,254 5,752 -5,019 -1,641 1,472 226,363 2,191,286 6.4 300 6,349 5,846 -5,113 -1,649 1,478 226,355 2,191,292 5.3 304 6,443 5,940 -5,207 -1,655 1,482 226,349 2,191,296 3.7 306 6,538 6,035 -5,302 -1,659 1,485 226,345 2,191,299 1.5 317 6,632 6,129 -5,396 -1,660 1,486 226,344 2,191,300 1.4 311 6,822 6,319 -5,586 -1,664 1,489 226,340 2,191,303 1.3 302 7,011 6,508 -5,775 -1,669 1,491 226,335 2,191,305 1.6 279 7,199 6,696 -5,963 -1,674 1,492 226,330 2,191,306 1.9 284 7,385 6,882 -6,149 -1,680 1,493 226,324 2,191,307 1.8 289 7,575 7,071 -6,338 -1,686 1,496 226,318 2,191,310 1.9 290 7,764 7,260 -6,527 -1,691 1,498 226,313 2,191,312 1.6 293 7,953 7,449 -6,716 -1,696 1,500 226,308 2,191,314 1.4 293 8,142 7,638 -6,905 -1,700 1,502 226,304 2,191,316 1.4 300 8,331 7,827 -7,094 -1,703 1,504 226,301 2,191,318 1.0 295 8,520 8,016 -7,283 -1,706 1,505 226,298 2,191,319 0.6 291 8,710 8,206 -7,473 -1,708 1,506 226,296 2,191,320 0.9 294 8,899 8,395 -7,662 -1,711 1,507 226,293 2,191,321 0.7 296 9,182 8,678 -7,945 -1,714 1,509 226,290 2,191,323 0.8 318 9,466 8,962 -8,229 -1,716 1,512 226,288 2,191,326 0.8 332 9,744 9,240 -8,507 -1,717 1,516 226,287 2,191,330 0.8 341 10,028 9,524 -8,791 -1,720 1,521 226,284 2,191,335 1.5 328 10,082 9,578 -8,845 -1,721 1,522 226,283 2,191,336 1.5 328 >Informatiol'l '>Well >Directional Surveys >Fu.rvey . Select Well: HV11 - irA. Report Name Well Date Created Position Log HV11 1/20/2005 Well Name CURRENT STATUS API KB Surf X Surf Y (ft) (ft) (ft) HVll UNKNOWN 502312002900 733 228,004 2,189,814 MD TVD SSTVD X Off Y Off X Y Inc Ä;zim uth (ft) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (deg) 0 0 733 0 0 228,004 2,189,814 0.0 0 266 265 468 0 1 228,004 2,189,815 0.7 5 355 354 379 0 2 228,004 2,189,816 0.7 11 448 447 286 0 3 228,004 2,189,817 0.8 15 541 540 193 0 6 228,004 2,189,820 2.4 346 633 632 101 -1 11 228,003 2,189,825 4.6 335 726 725 8 -5 20 227,999 2,189,834 7.0 336 818 816 -83 -11 32 227,993 2,189,846 9.4 330 913 909 -176 -20 46 227,984 2,189,860 11.3 328 951 946 -213 -24 53 227,980 2,189,867 11.6 328 1,036 1,029 -296 -33 68 227,971 2,189,882 13.3 330 1,130 1,121 -388 -45 88 227,959 2,189,902 15.0 327 1,225 1,212 -479 -59 110 227,945 2,189,924 17.1 327 1,320 1,302 -569 -75 135 227,929 2,189,949 19.2 329 1,414 1,390 -657 -92 163 227,912 2,189,977 21.5 329 1,509 1,478 -745 -111 195 227,893 2,190,009 24.1 329 1,604 1,564 -831 -132 229 227,872 2,190,043 26.6 328 1,698 1,647 -914 -155 265 227,849 2,190,079 27.6 327 1,761 1,703 -970 -171 290 227,833 2,190,104 27.4 326 1,823 1,758 -1,025 -188 313 227,816 2,190,127 27.6 325 1,888 1,816 -1,083 -205 338 227,799 2,190,152 27.8 324 1,951 1,872 -1,139 -223 361 227,781 2,190,175 28.0 322 2,014 1,927 -1,194 -241 385 227,763 2,190,199 28.1 321 2,077 1,983 -1,250 -260 407 227,744 2,190,221 28.1 319 2,140 2,038 -1,305 -281 429 227,723 2,190,243 28.2 316 2,203 2,094 -1,361 -302 450 227,702 2,190,264 28.4 314 2,266 2,149 -1,416 -323 471 227,681 2,190,285 28.5 313 2,329 2,204 -1,471 -346 491 227,658 2,190,305 28.4 311 2,393 2,261 -1,528 -369 511 227,635 2,190,325 28.5 309 2,456 2,316 -1,583 -392 530 227,612 2,190,344 28.5 308 2,519 2,371 -1,638 -416 548 227,588 2,190,362 28.8 308 2,582 2,427 -1,694 -440 567 227,564 2,190,381 29.0 307 2,708 2,537 -1,804 -489 604 227,515 2,190,418 29.0 307 2,834 2,647 -1,914 -538 640 227,466 2,190,454 29.1 307 3,087 2,867 -2,134 -637 716 227,367 2,190,530 30.0 308 3,213 2,976 -2,243 -687 755 227,317 2,190,569 29.6 308 3,340 3,087 -2,354 -735 793 227,269 2,190,607 28.8 308 3,466 3,197 -2,464 -784 830 227,220 2,190,644 29.1 307 3,529 3,252 -2,519 -808 849 227,196 2,190,663 29.2 308 3,592 3,308 -2,575 -832 867 227,172 2,190,681 29.0 307 3,718 3,418 -2,685 -882 904 227,122 2,190,718 29.4 306 3,844 3,528 -2,795 -930 940 227,074 2,190,754 28.0 307 3,970 3,639 - 2, 906 -978 975 227,026 2,190,789 28.3 306 4,097 3,751 -3,018 -1,026 1,011 226,978 2,190,825 28.0 307 4,223 3,863 -3,130 -1,072 1,046 226,932 2,190,860 26.9 308 4,349 .3,975 ,-3,242 -1,118 1,081 .86 2,190,895 26.9 307 . 4,509 4,118 -3,385 -1,176 1,125 28 2,190,939 27.3 307 4,642 4,236 -3,503 -1,224 1,162 226,780 2,190,976 27.0 308 4,737 4,321 -3,588 -1,258 1,188 226,746 2,191,002 26.5 307 4,832 4,406 -3,673 -1,292 1,213 226,712 2,191,027 26.1 307 4,926 4,490 -3,757 -1,324 1,238 226,680 2,191,052 26.0 307 5,021 4,576 -3,843 -1,357 1,263 226,647 2,191,077 25.5 307 5,115 4,661 -3,928 -1,388 1,287 226,616 2,191,101 23.7 307 5,210 4,749 -4,016 -1,419 1,310 226,585 2,191,124 23.2 307 5,308 4,839 -4,106 -1,448 1,333 226,556 2,191,147 21.5 308 5,402 4,927 -4,194 -1,475 1,353 226,529 2,191,167 20.7 308 5,497 5,016 -4,283 -1,500 1,373 226,504 2,191,187 19.0 307 5,591 5,106 -4,373 -1,524 1,390 226,480 2,191,204 17.4 305 5,686 5,196 -4,463 -1,547 1,406 226,457 2,191,220 16.6 305 5,781 5,288 -4,555 -1,568 1,421 226,436 2,191,235 15.3 307 5,875 5,379 -4,646 -1,587 1,435 226,417 2,191,249 13.6 304 5,970 5,471 -4,738 -1,605 1,447 226,399 2,191,261 12.2 302 6,065 5,565 -4,832 -1,619 1,457 226,385 2,191,271 9.5 307 6,159 5,658 -4,925 -1,631 1,466 226,373 2,191,280 8.4 308 6,254 5,752 -5,019 -1,641 1,472 226,363 2,191,286 6.4 300 6,349 5,846 -5,113 -1,649 1,478 226,355 2,191,292 5.3 304 6,443 5,940 -5,207 -1,655 1,482 226,349 2,191,296 3.7 306 6,538 6,035 -5,302 -1,659 1,485 226,345 2,191,299 1.5 317 6,632 6,129 -5,396 -1,660 1,486 226,344 2,191,300 1.4 311 6,822 6,319 -5,586 -1,664 1,489 226,340 2,191,303 1.3 302 7,011 6,508 -5,775 -1,669 1,491 226,335 2,191,305 1.6 279 7,199 6,696 -5,963 -1,674 1,492 226,330 2,191,306 1.9 284 7,385 6,882 -6,149 -1,680 1,493 226,324 2,191,307 1.8 289 7,575 7,071 -6,338 -1,686 1,496 226,318 2,191,310 1.9 290 7,764 7,260 -6,527 -1,691 1,498 226,313 2,191,312 1.6 293 7,953 7,449 -6,716 -1,696 1,500 226,308 2,191,314 1.4 293 8,142 7,638 -6,905 -1,700 1,502 226,304 2,191,316 1.4 300 8,331 7,827 -7,094 -1,703 1,504 226,301 2,191,318 1.0 295 8,520 8,016 -7,283 -1,706 1,505 226,298 2,191,319 0.6 291 8,710 8,206 -7,473 -1,708 1,506 226,296 2,191,320 0.9 294 8,899 8,395 -7,662 -1,711 1,507 226,293 2,191,321 0.7 296 9,182 8,678 -7,945 -1,714 1,509 226,290 2,191,323 0.8 318 9,466 8,962 -8,229 -1,716 1,512 226,288 2,191,326 0.8 332 9,744 9,240 -8,507 -1,717 1,516 226,287 2,191,330 0.8 341 10,028 9,524 -8,791 -1,720 1,521 226,284 2,191,335 1.5 328 10,082 9,578 -8,845 -1,721 1,522 226,283 I 2,191,336 ' 1.5 328 . . ,~ . API: 50-231-20029 AOGCC: 204-207 1271'FSL,1263'FEL Sec22, T2S, R13W, S.M. RT-THF: 16.4' Tbg lift threads - 3%" IBT Tree cxn - 3" Bowen cxn Production TubinQ: 3W', 9.2 ppf, L-80, IBT-Mod to 4298' - Annulus loaded with 3% KCI brine plus corrosion inhibitor Completion - Chemical injection sidepocket mandrel at 2513' (Macco SF01-CI) with 1/4", 0.049" wall SS chemical injection line - Locator sub at 4264" - Baker 80-40 seal assembly 13' of 4.00" OD seals - Muleshoe at 4298' Directional Data: max hole angle = 30.0 deg at 3087' KOP = 500' max dogleg < 3 deg/1 00' HV-11 Actual schematic 12-29-2004 ... z ... · · · · · · · · · · · · · · · · ... z ~ ... ~ I PBTD = 10,026' I TD = 10,082' . Well Name: Happy Valley #11 Field: Deep Creek Unit State: Alaska ¡Conductor: 13%",68 ppf, K-55, BTC to 92', grouted in place ~ Surface CasinQ: 9%", 40 ppf, L-80, BTC to 1007' Cmnt with 115 bbl of 12.8 ppg lead and 27 bbl of 15.8 ppg tail "G". FIT = 16.3 ppg EMW Intermediate CasinQ: 7", 26 ppf, L-80, BTC-Mod to 4506' Cmnt with 108 bbl of 12.8 ppg lead and 14 bbl of 15.8 ppg tail "G". FIT = 13.5 ppg EMW Open Perfs: T-80: 9106' - 9156' (6 spf, 12/4/04) T-91: 9406' - 9430' (6 spf, 12/10/04) T-100: 9531' - 9551' (6 spf, 12/3/04) T-105: 9624' - 9654' (6 spf, 12/3 & 12/1/04) T-130: 9910' - 9930' (6 spf, 11/30/04) Isolated Perfs none Production Liner: 3W', 9.2 ppf, L-80, IBT-Mod liner from 4261' - 10,082' Baker ZXP packer, Flexlock liner hanger & 80-40 sealbore at 4246' Cemented with 220 bbl of 12.0 ppg Litecrete Updated by: JGE . Unocal Alaska 909 W. 9th Avenue Anchorage, A~ 99501 Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocal.com . RECE\VED DEC 1 7 '2.004 " o. G Cora,;, ~ommission Þ,\as\(a Oil Q/, as Anchorage UNOC~L~ Date: December 6, 2004 Debra Oudean G & G Technician To: AOGCC Helen Warman 333 W. ib Ave. Ste#100 Anchorage, AK 99501 HAPPY VALLEY 11 _._~______m________._.______ __ ..,_J111_~~~~~I______.n____ ~ _ -L__ ~ _0 .. ~ ._~ --- ð F()R~~TIº~ M_~I:)~()(3_~º-~:·=.__.,__..,.,.,...J~I~º~JI1_119!?g~_~t1_ºg~:~ºo~~_____ IL 1_1_~ _0_ ~~ a 1~º~MJ\J:Iºf\J..~()(3n!Yº_____?:::=-·__~__J?I~ºHj_1119!?09.4-h9º~-_1g0!!?_,..,..,.._ t__1~t.9. _9 L 0 _ _I W a 1º111~~I~(3º'!'~J\~ Ig~ ~Q!:º(3~Q.~____n__ J2_!Ng~L111~1?0~! 19º~-!998? _ ,.',.,. _.t 1~t.9.LºJn _ Q_J ~ ü Iº~J~~~G D~A~Iº§nMUDLO(3_IY_º-~_ __ _.' ~I~ºHl,111~(?.o.o~Jl1_º9i!~1g~_8?_.___.I__J._JQ..J_º-"-n_º.J ~ l~~~g~iA, RW EXPLORE~.~ILES AND FIN~L I) J1111912004!/1008-10082 J 0 II 0 ' l' 0 I 8 Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. I /1 ) I' i J. Ir-wv-f¿" J i . , I Received By: l:fi.. 11'/ j, / [)/Jy Date: ,I '"ì 1/ ./ /) ;1... 'i··-ð ,'-1 /~-t... -v ~(S-f -),67 ç,) í , h . . Unocal Alaska 909 W. 9th Avenue Anchorage, AK 9950 I Tele: (907) 263-7889 Fax: (907) 263-7828 E-mail: oudeand@unocal.com UNOCAL{i> Debra Oudean G & G Technician Date: December t 5, 2004 To: AOGCC Helen Warman 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 rmqrm~~'h1111J!1- HAPPY VALLEY 10&11 .,. 'ÓG;TvPÈ'T~~?~,' "::-:,, 1 SCALE I' }~~' ·1 ,', I~~~~~L:' '; ~~~ IFlLM CDI :'~ NorÈs,"" 1íCb LP HAPPY VALLEY-10 COMPLETION RECORD 2.5 HSD -[SINc-Hf11!1912oo417844-8246 11 1 1'1 I .(, POWERJETS I I I I I ()U( ¡HÞ;PPY VALLEY-10 PERFORATION RECORD 2.5 2506 PJ 6SPF- 5INCH 111/10/200418216-8236 11 11 11 I V HAPPYVALLEY-10 ISLlMCEMENTMAPPINGTOOL 151NCH 111/1/200413520-8312 I 1 11 11 _~_ __J IHAPPYVALLEY-10 l~g~~INABLEMAGNETICRESONANCE ~~H 110/12/200413900-7846 I 1/ 111 I IHAPPY VALLEY-10 DIPOLE SHEAR SONIC TOOL 1~~~HI10/12120041200-7882 'I 1/ 11 0 COMB~DED ONI HAPPY VALLEY0101~~6~1~~ ~~:~~~::~~~IC TOOL J~~HI10/12120041200-78821 t 1\ 0 I ¡HAPPY VALLEY-11' PLATFORM EXPRESS W/ARRAY DIPOLÉ . 12/5 111/9/200414507-6865 I 11' OJ' 0 ,. , SHEAR SONIC TOOL MD ,INCH [HAPPY VALLEY-11 '¡PLATFORM EXPRESS W/ARRAY DIPOLE rvs-.5, 111/9/200414507-6865 'I""" 11 01 0- I SHEAR SONIC TOOL TVD IINCH ' . COMBINED ON ¡HAPPY VALLEY011 DIPOLE SHEAR SONIC TOOL P&S UPPER 1215 "'.,11/9/20041450706865-'," 11 01 0 CD I I DIPOLE MODES MD .INCH ' ¡HAPPY VALLEY-11 DIPOLE SHEAR SONIC TOOL P&S UPPER 1215 '111/9,/200414507-6865 I, 11 01 0 j DIPOLE MODES TVD 'INCH \HAPPY V ALLEY -11 PRESSURE 1 TEMPERATURE SURVEY '[2'INCH-¡-11ï9/200410-4510 "\ 1'\ 011\ J CEMENT TOP IDENTIFICATION ¡.~;;:~"~ ,~~,~;~~~_:~~~,;_~~~_~~~_~~~~~~~;~~__._,._..,._I~,:~~,~ ,.,J~.~~_~~~~.6_:1;;6;:;;~..,_~",L_.,.~.l' '.' 61, .~~j.c,~~B6~ED ,~,~,¡ Please acknowledge receipt by signing and r ning one copy of this transmittal or FAX to (907) 263-7828. ~. Date: /Zf-~I . @ t::? r~\ ~"[ lillU~ æJ_W 1: J i~\~ Æ\ ~rJ ~ if'!.... ~ Lrü ~ L ü Lru . / f FRANK H. MURKOWSKI, GOVERNOR j í í f ! A 0 '/..:z.. D 7 AI4ASKA OIL AND GAS CONSERVAnON COMMISSION í 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 November 17,2004 Kevin Tabler Unocal PO Box 196247 J\nchorage,AJ( 99519 Re: Authorization to begin regular production from the Happy Valley 11 gas development well Dear Mr. Tabler: In correspondence dated November 16, 2004 Union Oil Company of California (UNOCAL) requested permission from the Alaska Oil and Gas Conservation Commission (AOGCC) to begin regular production from the Happy Valley 11 gas development well prior to the issuance of an applied for Conservation Order allowing the drilling and production of the Happy Valley 11 well from a location that does not conform to statewide well spacing rules. The hearing date for the Happy Valley 11 Spacing Exception Conservation Order is December 7, 2004. Unocal has demonstrated the Happy Valley 11 well is located within the Happy Valley Participating Area in the Deep Creek Unit. The Happy Valley Participating Area was approved on November 4, 2004 by the Director of the Division of Oil and Gas in the Alaska Department of Natural Resources. The Participating Area and Unit agreements provide for an equitable allocation of produced substances among the various owners. Therefore, correlative rights are not at issue and the AOGCC hereby approves your request to begin regular production from the Happy Valley 11 subject to the following; 1) The AOGCC will proceed with the scheduled December 7, 2004 hearing on the Happy Valley 7 spacing exception. 2) UNOCAL accepts all liability that may result from producing the Happy Valley 11 well prior to the issuance of a conservation order approving the exception location. J . . NO(¿./1 C lrman mTIfm "- · Unocal Alaska . Union Oil Company of Cal 909 West 9th Avenue, P.O. ''-' x 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 Fax (907) 263-7698 UNOCAL8 v Kevin A. Tabler, Manager Land/Government Affairs November 16, 2004 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 DEEP CREEK UNIT Happy Valley #11 Production Start-up Dear Mr. Crandall: Union Oil Company of California (Unocal), Operator of the Deep Creek Unit, herein request permission to place the Deep Creek Unit Happy Valley #11 (DCHV #11)well on regular production prior to the hearing date of December 7, 2004. As validation that all correlative rights are protected, enclosed is a copy of Unocal's Happy Valley Participating Area Application and the corresponding Division of Oil and Gas decision letter approving establishment of the Happy Valley Participating Area (HVP A). DCHV # 11 is located within the HVP A and the HVP A boundary is Yz mile from the closest point of the Deep Creek Unit boundary. The approved HVP A protects the economic interests of the working interest owners and royalty owners of a common reservoir and the approved production allocation schedule ensures an equitable allocation of revenue to the lessors commensurate with the value of their leases. Additionally, enclosed is a table of the productive zones in DCHV # 11 which will be opened to production. We ask that the enclosed documents be maintained as confidential by the Alaska Oil and Gas Conservation Commission as they contain sensitive information regarding the competitiveness of the surrounding area. Although the base application and the decision are public documents the attachments to same are held as confidential by the Division of Oil and Gas. e e If you require additional information regarding this application, please contact Mr. Ed Turner at 263-7960, or the undersigned at 907-263-7600. cerely, J~~ Enclosures UNOCAL Alaska Inc. Happy Valley #10 Pay Summary ~[~~7f~,".~,",'" '".', ',.,.' '~.'.".""_~~ì~'~~:~,.tl"- .. ·~..I~, ....1;..... MD Top MD Base H (MD) TVD (top TVD (base) H (TVD) 6353 6398 45 5,851 5,895 41 6868 6937 69 6,365 6,435 63 6976 7021 45 6,473 6,518 41 7216 7289 73 6,713 6,786 66 9060 9086 26 8,557 8,583 24 9100 9164 64 8,597 8,661 58 9391 9419 28 8,887 8,916 25 9572 9650 78 9,069 9,146 71 9871 9944 73 9,367 9,441 , 66 501 :t; . ,.~' Zone TZOl1 TZOl2 TZOl1 TZOl2 T17 TZOr 3 T70 TZOI 4 T80 TZOI 5 T91 TZOI 6 T105 T4IIaV T130 'TÿKk Total T1 T10 e The Happy Valley PA is stratigraphically limited to the Beluga and Tyonek Formation Sands from -1,547 feet True Vertical Depth Sub Sea (TVDSS) (2,176 feet Measured Depth) in the Happy Valley Unit No. 31-22 well to -9,368 feet TVDSS (10,678 feet Measured Depth) in the HV-3 well. Unocal mapped the depth of the lowest known gas for each producible interval based on seismic and well control and overlaid them on an aliquot part map grid to determine the Happy Valley P A boundary, which is based on 40-acre aliquot parts as defined by 11 MC 88.185(11).4 The unit boundary, the Happy Valley PA boundary, and well locations are depicted on Figure 1 below. 11 :49 AM 11/16/2004 Ca1rjt,'ln,f:,; /ir':, ' jl ¡;I/'';:' 1.._1." 'L ' Itj CGNFI DENTlJ~l e e Findings and Decision of the Director of the Division of Oil and Gas APPROVING THE FORMATION OF THE HAPPY VALLEY P ARTICIP A TING AREA WITHIN THE DEEP CREEK UNIT Under a Delegation of Authority from the Commissioner of the State Of Alaska Department of Natural Resources November 4, 2004 CONFIDENTIAL tCdHlJENrtAt e . TABLE OF CONTENTS I. APPLICATION FOR THE FORMATION OF THE HAPPY VALLEY PARTICIPATING AREA ........1 II. ANALYSIS OF THE APPLICATION FOR THE FORMATION OF THE HAPPY VALLEY PA...........2 1. PRIOR EXPLORATION AND DEVELOPMENT ACTIVITIES AND THE GEOLOGICAL AND ENGINEERING CHARACTERISTICS OF THE RESERVOIR ................................................................ ..... ...................................... 2 2. THE ApPLICANT'S PLAN OF DEVELOPMENT FOR THE DEEP CREEK UNIT............................................................6 3. THE ECONOMIC COSTS AND BENEFITS TO THE STATE ........................................................................................6 4. THE ENVIRONMENTAL COSTS AND BENEFITS .......................................................................... ........................... 7 5. OTHER RELEVANT FACTORS ................................................................................. ............ ............................... ... 8 III. FIND IN GS ..... ......... ................. ....... ........... ............................... ..................... .......... ................. ............................ 8 1. PROMOTE THE CONSERVATION OF ALL NATURAL RESOURCES...........................................................................8 2. PROMOTE THE PREVENTION OF ECONOMIC AND PHYSICAL WASTE.................................................................... 9 3. PROVIDE FOR THE PROTECTION OF ALL PARTIES OF INTEREST, INCLUDING THE STATE...................................... 9 IV. D ECIS I ON ..... .............. ....... .................. .................... ..... ........ ........................ ...... ....................... ...... ..... ........ ....1 0 Attachment 1. Exhibit A, Unit Tract Description and Ownership Schedule Attachment 2. Exhibit B, Map of the Deep Creek Unit Boundary Attachment 3. Exhibit C, Happy Valley P A Production Allocation Schedule Attachment 4. Exhibit D, Map of the Happy Valley P A Attachment 5. Exhibit E, Happy Valley P A Expense Allocation Schedule Attachment 6. Exhibit F, Deep Creek Unit Expense Allocation Schedule Attachment 7. Exhibit G, Deep Creek Unit First Plan of Development e e I. Application for the Formation of the Happy Valley Participating Area The Deep Creek Unit is located on the Kenai Peninsula, approximately five miles inland from the nearest communities of Ninilchik and Happy Valley. The State of Alaska, Department of Natural Resources, Division of Oil and Gas (the State, the DNR, or the Division, as appropriate) and Cook Inlet Region Inc. (CIRI) approved the formation of the Deep Creek Unit and the initial plan of exploration effective December 31, 2001. The unit area encompasses 22,656.90 acres. Approximately 40.37% of the unit area, lies within three State leases and 59.45% of the unit area, lies within five CIRI leases. The remaining .18% of the Deep Creek Unit (39.99 acres) is unleased federal acreage managed by the Bureau of Land Management (BLM). The State and CIRI jointly administer the Deep Creek Unit Agreement (the Agreement). On September 1, 2004, Union Oil Company of California (Unocal), the Deep Creek Unit Operator, applied to form the Happy Valley Participating Area (Happy Valley PA) within the unit area. Unocal submitted the Deep Creek Unit Happy Valley PA Application (the Application) in accordance with 11 AAC 83.351 and Article 9 of the Deep Creek Unit Agreement (the Agreement). The Application included the following exhibits to the Unit Agreement: Exhibit A, a schedule describing the Deep Creek Unit; Exhibit B, a map of the Deep Creek Unit; Exhibit C, a schedule allocating unitized substances within the Happy Valley P A; Exhibit D, a map of the Happy Valley P A; Exhibit E, Happy Valley Allocation of Participating Area Expense; Exhibit F, Allocation of Unit Expense; and Exhibit G, First Unit Plan of Development and Operations (First POD). On September 23, 2004, the Division received a revised First POD that addressed exploration within the unit area and outside of the proposed Happy Valley P A. Unocal originally proposed that the Happy Valley P A include portions of four leases encompassing a total of 1,410 acres. Unocal corrected the legal descriptions and submitted revised Exhibits A and F on September 10, 2004, and revised Exhibits C and E on September 16, 2004. Unocal reduced the area proposed for inclusion in the Happy Valley PA and submitted revised Exhibits C, D, and E on October 12, 2004. On November 2, 2004, the Division received final version of Exhibits C and E with corrected legal descriptions, tract acreages, and allocation percentages. The final versions of Exhibits A, B, C, D, E, F, and G are Attachments 1 though 7 to this Findings and Decision, respectively. Unocal also provided geological, geophysical, and well data to support the Application. The proposed Happy Valley PA contains a portion of one State lease, ADL 384380, and portions of three CIRI leases in the north half ofthe Deep Creek Unit. DNR issued oil and gas lease ADL 384380 following Cook Inlet Sale 78 held on October 31, 1994, on State lease form DOG 9208. With an effective date of January 1, 1995, the seven-year primary term of ADL 384380 expired on December 31,2001. A portion of ADL 384380 was committed to the Deep Creek Unit as Tract 2, effective December 31, 2001. The lease was severed, the non-unitized portion of the lease expired, and the unitized portion is extended indefinitely by the Agreement. Unocal proposed including portions of the following three CIRI leases in the Happy Valley PA: C- 061588 (Tract 3); C-061589 (Tract 4); and C-061590 (Tract 5). The primary terms of the all three of these leases expired on December 17, 2003, but the lease terms were extended Deep Creek Unit, Happy Valley PA Findings and Decision Page 1 e e Leased State of Alaska .Q~~þ~re~L·:~it~' r ~ _ TRACT:>.':: at... I î- /. C¡~161¡5!38 _at H,'I "- /~~aPIfJY Va!'. P," j I ~ '\! ';'r /: 5", \.~ d ,'~ Ii .: '. ¡ " ¡:=J Cook Inlet Region, Inc. [~] Unleased mineral estate II AIuIIa DepartmeaC 8INatlll'alRe._ ÐiYIIIoa 81014 Gu 0deIIer 2814 TRACT 8 .CIRL6J5~t Star...PJld +-;-.. Well '\ Deep Creek Unit, Happy Valley P A Findings and Decision Page 5 e e 2. The Applicant's Plan of Development for the Deep Creek Unit Unocal proposed a one-year term for the First POD, September 1, 2004 to August 31, 2005, which supersedes the last quarter of the current Deep Creek Unit Plan of Exploration. The First POD includes plans to develop the reserves underlying the Happy Valley PA and plans to explore the unit area outside of the participating area. Unocal will complete construction of gas handling facilities on the Happy Valley pad and gathering lines that will connect it to the Kenai Peninsula pipeline network. Sustained production ITom the Happy Valley PAis scheduled for November 2004. Unocal plans to commingle production ITom multiple zones in the Tyonek and Beluga sandstones, process the hydrocarbon stream in the gas processing facility located on the Happy Valley pad, and ship pipeline quality gas through the pipeline that connects the Deep Creek Unit to the Kenai-Kachemak Pipeline. Unocal's First POD also includes plans to drill two or more additional development wells in the Deep Creek Unit from the Happy Valley pad. Unocal has approved pennits and is currently drilling HV-9 and HV-I0. Unocal may establish another pad to develop the reserves in the western portion of the Happy Valley P A. Primary gas treatment facilities may be located on the second development pad and a gathering line installed to ship the gas to the Happy Valley pad where it will be processed for sale. Exploration activities outside of the Happy Valley PA include both exploration drilling and seismic evaluation. Unocal installed the Star pad in the southern end of the Deep Creek Unit in 2004, and drilled the Star # 1 well, which bottom-holed outside of the unit area. A flow test of the Star #1 well produced gas ITom the Tyonek fonnation at a rate of 0.5 MMCFPD at 413 psig FTP. Unocal plans to recomplete and test uphole zones in the Star #1 well during the tenn of the First POD. Further delineation of this southern accumulation may justifY fonning another participating area and expanding the unit area. During the term of the First POD, Unocal will process and evaluate the seismic data acquired over the Deep Creek Unit area, which should improve Unocal's understanding of the underlying hydrocarbon accumulations. The Application, along with the First POD, contains sufficient plans and commitments to explore and develop the Deep Creek Unit to support fonning the Happy Valley PA. It protects the interests of the public, CrR!, and the State by committing the Applicants to drill delineation and production wells in the Happy Valley Reservoir, and to explore additional prospects outside of the participating area. Therefore, Unocal's plans for development ofthe Happy Valley Reservoir and exploration of the unit area support approval of the Application under the section .303(b)(4) criteria. 3. The Economic Costs and Benefits to the State Approval of the proposed Happy Valley P A and the First POD will result in both short-tenn and long-term economic benefits to the State. Happy Valley P A production will generate construction jobs in the short-term and some long-term employment in the Kenai Peninsula Borough. The long-term goal is to maximize the physical and economic recovery of hydrocarbons ITom the Happy Valley P A. Development and production ITom the Happy Valley Deep Creek Unit, Happy Valley PA Findings and Decision Page 6 e e P A will provide royalty and tax revenues to the State over the life of the field. The lessees may reinvest revenues in new exploration and development in the State. Additionally, the Happy Valley P A will deliver new natural gas supplies and help stabilize the local and regional economy. Royalty, tax, and employment benefits derived fTom production and economic development will far exceed any additional administrative burdens associated with permitting Happy Valley P A facilities, administering the unit leases or collecting royalties on production. In summary, the economic benefits outweigh the costs. The working interest owners made meaningful commitments to explore and develop the unit area and the State will receive taxes, royalties, and increased economic activity. Moreover, the discovery of additional gas reserves in Cook Inlet may help to maintain stable, low cost energy supplies for the surrounding area. Therefore, DNR's evaluation of the section .303(b)(5) economic criteria supports approval of the Application. 4. The Environmental Costs and Benefits Approval of the Happy Valley PA in itself has no environmental impact. Formation of the Happy Valley PAis an administrative action and does not authorize any on-the-ground activity. State and federal agencies will analyze the potential effects on the environment when they review applications for permits to conduct exploration and development in the unit area. Unitization allows the unit operator to explore and develop the resources under a single unit plan rather than on a lease-by-lease basis. The unit operator will consolidate facilities and space gas wells as close together as possible to minimize environmental impacts of development. Future exploration and development will also utilize existing logging roads. Additionally, Unocal expects to develop this proposed participating area in concert with unitized exploration and development of other known and potential natural gas resources on the Kenai Peninsula via a common carrier pipeline, which will allow for further consolidation of facilities and pipelines. Article 8.2 of the Agreement requires that a Unit Plan of Operations must be consistent with the leases, mitigation measures, and lessee advisories developed by DNR for the State's most recent Cook Inlet Areawide lease sale. Cook Inlet 2004 Areawide Mitigation Measures were developed specifically for this region and include habitat and wildlife protection such as stream and waterbody setbacks and seasonal use restrictions to protect sensitive birds and animals. Unitization does not waive or reduce the effectiveness of the mitigating measures that condition the lessee's right to conduct operations on these leases. Exploration and development within the Deep Creek Unit is subject to these provisions, if proposed operations involve State surface or subsurface. When the unit operator submits a Unit Plan of Operations for approval, the Division will apply the current mitigation measures uniformly across the unit, ensuring environmental protections that might not otherwise occur on private lands. However, for operations solely on CIRI lands, the Division does not have the authority to approve a plan of operations or impose the State's mitigation measures. The Deep Creek Unit is within the Alaska Coastal Zone, and therefore it is subject to the Alaska Coastal Management Program (ACMP), whether the activity is on State or CIRI land. The appropriate federal, State, and local agencies must determine if the Unit Operator's exploration Deep Creek Unit, Happy Valley P A Findings and Decision Page 7 e e or development plan is consistent with ACMP, and the lessees may not commence drilling or development operations until all agencies have granted the required permits. Unocal will develop the Happy Valley PA from a gravel pad and an existing road on private surface lands. The Unit Operator designed the Happy Valley pad to minimize impacts to the surrounding natural environment, specifically wetlands and riparian habitat, and no wetlands fill or fish stream permits were necessary. Unocal acquired the necessary air emission and drilling waste disposal permits. The benefits of consolidated exploration and development, application of the State's Areawide mitigation measures, and the use of existing roads, balance the potential costs to the surrounding environment. Forming the Happy Valley PA minimizes the environmental impacts and costs of exploration and development of the unit area supports approval of the Application under the section .303(b)(I) criteria. 5. Other Relevant Factors The Agreement requires joint approval of the Application by the DNR and ClRI because the Happy Valley Reservoir lies within both State and ClRI leases. The Happy Valley P A will be the first participating area jointly managed by the DNR and ClRI. Unocal constructed the Happy Valley pad on ClRI acreage and directionally drilled to the adjacent State lease. The Division and ClRI agreed to Unocal's proposal to allocate production from the Happy Valley PA based on surface acreage. With joint management of the Happy Valley P A, the State and ClRI will review Unocal's plans to delineate and develop the reservoir. The Deep Creek Unit Plans of Development must be consistent with State regulations and include plans to explore the area outside of the Happy Valley P A. Although the majority of production from the Happy Valley P A will be allocated to the ClRI leases, the Division will have an equal say in the approval of those plans. Reaching agreement on an acceptable development plan and an equitable allocation of production required the cooperation of all parties. Joint management of the Deep Creek Unit and the Happy Valley P A provides for development of State and private lands under a unified plan that reduces environmental impacts, conserves resources, and protects the interests of all parties. Joint management of the Happy Valley PA supports approval of the Application under II AAC 83.303(b)(6). III. Findings I. Promote the Conservation of all Natural Resources The Happy Valley P A will promote the conservation of both surface and subsurface resources through unitized (rather than lease-by-Iease) development. Approval of the Application will reduce both the number of facilities required to explore for and develop reserves and the aerial extent or the footprint required to accommodate those facilities. The formation of oil and gas units, as well as the formation of participating areas within units, Deep Creek Unit, Happy Valley PA Findings and Decision Page 8 e e generally conserves hydrocarbons. Formation of the Happy Valley PA will provide for efficient, integrated development of the Tyonek and Beluga reservoirs within the Deep Creek Unit. A comprehensive operating agreement and plan of development governing the area will help avoid duplicative development efforts on and beneath the surface. There will be environmental impacts associated with reservoir development. However, all unit development must proceed according to an approved plan of development. Additionally, before undertaking any specific operations on State land, the Division must approve a Unit Plan of Operations. DNR may condition its approval of a Unit Plan of Operations and other permits on performance of the mitigation measures developed for the most recent Cook Inlet Areawide lease sale in addition to those in the leases. Compliance with mitigation measures will minimize, reduce or avoid adverse environmental impacts. Creating the Happy Valley PA will help maximize oil and gas recovery, while minimizing negative impacts on other natural resources. This reduction in environmental impacts and conservation of hydrocarbon resources is in the public interest. 2. Promote the Prevention of Economic and Physical Waste Forming a participating area prevents economic and physical waste by eliminating redundant expenditures for a given level of production, and by avoiding loss of ultimate recovery with the adoption of a unified reservoir management plan. Marginally economic reserves, which otherwise would not be produced on a lease-by-lease basis, can be produced ITom the Happy Valley PA in combination with more productive leases. Facility consolidation lowers capital costs and promotes optimal reservoir management. Pressure maintenance and secondary recovery procedures are easier to design and achieve through joint, unitized efforts than would otherwise be possible. In combination, these factors allow the unit operator to develop and produce less profitable areas of a reservoir in the interest of all parties, including the State. Reducing costs and environmental impacts through unitized operations will expedite development of reserves and will promote greater ultimate recovery of oil and gas ITom the unit area. This may increase and extend the State's income stream ITom production taxes and royalties. Formation of the Happy Valley PA will facilitate the equitable division of costs and allocation of the hydrocarbon shares, and provide for a diligent development plan that helps to maximize hydrocarbon recovery ITom the reservoir. Further, the formation of a participating area, which enables commingled production, facility sharing opportunities, and adoption of a unified reservoir management strategy, may allow for the development of economically marginal hydrocarbon accumulations. 3. Provide for the Protection of all Parties ofInterest, Including the State Because hydrocarbon recovery will more likely be maximized under a unified plan, the Happy Valley P A protects the economic interests of the State, CIRI, and the overriding royalty interest owners. Formation of the Happy Valley PA advances the efficient evaluation and development of the hydrocarbon resources while minimizing impacts to the area's cultural, biological, and Deep Creek Unit, Happy Valley PA Findings and Decision Page 9 e e environmental resources. Fonnation of the Happy Valley PA protects the economic interests of the working interest owners and royalty owners of a common reservoir. The approved production allocation schedule ensures an equitable allocation of revenue to the lessors commensurate with the value oftheir leases. The Happy Valley PA will not diminish access to public and navigable waters beyond those limitations imposed by law or already contained in the oil and gas leases covered by the Agreement. The Agreement provides for future expansions and contractions of the participating area, as warranted by data obtained by exploration or otherwise. The Happy Valley P A and the Agreement thereby protect the public interest, the rights of the parties, and the correlative rights of adjacent landowners. IV. Decision The Division reviewed the statutes, oil and gas unitization regulations, the Deep Creek Unit Agreement, and materials supplied by Unocal in support of the Application. I find that formation of the Happy Valley P A within the Deep Creek Unit will promote the conservation of all natural resources, promote the prevention of economic and physical waste, and provide for the protection of all parties in interest including the State, as discussed above. The Application adequately and equitably protects the public interest, is in the State's best interest, and it meets the requirements of AS 38.05.180(p) and 11 AAC 83.303. Therefore, I approve the Application under 11 AAC 83.351(b). Unocal requested that approval ofthe Happy Valley PA be effective September 1,2004, which is consistent with the proposed tenn of the First POD. "The Proper Authority will establish the effective date of the initial Participating Area. That effective date shall be no later than the date of the first Sustained Unit Production."s Subject to concurrent approval by CIRI, the effective date ofthe Happy Valley PA will be September 1,2004, and Unocal may commence production. The Happy Valley PA is limited to the 1,239.99 acres described in Exhibit C and depicted in Exhibit D. The Happy Valley PA encompasses approximately 5.5% of the Deep Creek Unit, including a portion of one State lease, and portions of three CIRI leases. The Happy Valley P A encompasses all unitized substances in the Beluga and Tyonek Fonnation Sands from -1,547 feet TVDSS to -9,368 feet TVDSS within the boundary of the approved participating area. DNR accepts Exhibits A, B, C, D, E, F, and G to be true and correct as submitted; those exhibits are attached hereto as Attachments 1 through 7, respectively. I approve the allocations of production and costs for the tracts within the Happy Valley P A shown on Exhibits C and E dated November 1, 2004. DNR assigned Accounting Code "DCHV" to the Happy V alley P A for royalty accounting purposes, which Unocal shall reference on monthly operator and royalty reports. I approve the First POD set forth in Exhibit G for the period from September 1, 2004 through S Article 9.5 of the Agreement Deep Creek Unit, Happy Valley PA Findings and Decision Page 10 e e August 31, 2005. In accordance with Article 8.1.1 of the Agreement and State regulation 11 AAC 83.343, the unit operator must submit a Second Plan of Development (Second POD) to the Commissioner and the President at least 90 days before the First POD expires, by June 2, 2005. Before submitting its proposed Second POD, Unocal shall schedule a meeting with the Division and CIRI to present its current interpretation ofthe reservoirs underlying the Deep Creek Unit. A person affected by this decision may appeal it, in accordance with 11 AAC 02. Any appeal must be received within 20 calendar days after the date of "issuance" of this decision, as defined in 11 AAC 02.040 (c) and (d), and may be mailed or delivered to Thomas E. Irwin, Commissioner, Department of Natural Resources, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269-8918; or sent by electronic mail to dnr appeals@dnr.state.ak.us. This decision takes effect immediately. Ifno appeal is filed by the appeal deadline, this decision becomes a final administrative order and decision of the department on the 31 st day after issuance. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from any regional information office of the Department of Natural Resources. Orif!inal sif!fled bv Mark D. Mvers. Director Mark D Myers Division of Oil and Gas November 4, 2004 Date cc: Thomas E. Irwin, DNR Commissioner Kirk McGee, CIRI John Norman, Chairman AOGCC Jeff Landry, Assistant Attorney General Attachments: Attachment 1. Exhibit A, Unit Tract Description and Ownership Schedule Attachment 2. Exhibit B, Map ofthe Deep Creek Unit Boundary Attachment 3. Exhibit C, Happy Valley P A Production Allocation Schedule Attachment 4. Exhibit D, Map of the Happy Valley PA Attachment 5. Exhibit E, Happy Valley PA Expense Allocation Schedule Attachment 6. Exhibit F, Deep Creek Unit Expense Allocation Schedule Attachment 7. Exhibit G, Deep Creek Unit First Plan of Development Deep Creek Unit, Happy Valley PA Findings and Decision Page 11 ¡kef' c.~~ U ' ;' fb,I1ib!J A Lm.! 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HVPA DeeiSlonl Attachment 5 ¡ - J Deep Creek Unit ExhibitE naPVY Valley Allocation of l>articipating Area Expe.nsc Effi:çtive 9/112004 ¡k<p Çr~ U!!il (ii;j¡iQ,¡ 1j\$1 Upod*" 91112!)!», p~~¢: ! ~), 3 e S<>:!iM 10; AJ~ E»cl\Ñinr '-<>I I 0f su.-vt')' 946'}, 600,01 ~; S«IiMlJ: WK.!],) ¡;,.~; S«Ii;:m 14; AII,649_; Sç,:¡¡Í9'\ JS: AU,ó4h~!1$; $~I¡j)¡\ , ð: NEV., ¡¡}~i\'1i'ANW%, $\4Nw SM, S$C ¡¡;;",,; IS J.JOC# CIRJ# m:W;19.J C,flIiJ5$$ 18.1)0% CIm<¡¡;¡,i'hiUip; AI""b, In< 5(?;,1, (pj Ú(¡";Ä OJ ¡~i¡>~~t/),R~~ M..;&ioo. Atmkn I' W~" ~\Ilj 4, ,$!I,m "';ok blot ~, lac HJIJ,ìW% ,'\J!l.o;Irn Srn,w LIItId ¡¡-Y¡¡o ASJ$,3th'r2, T~ A."d a. \19') '1<1',-,,; s~¡¡,¡ S\I!'\'\ìY*: U"S. $t¡!'\'~.r!!4:Ø, L/>t$J;lUd 4 (¡(¡""",I)' ¡,,~ M 141 i), ¡,<;>?!i ¡k",. $®t_ 11:1; s""'(}1!4.WJiHml,,, NWl14. '¡:.,'Wlf4 NWIf4, 6() _I$,; S«Iión31: ~"AltQ;¡,n""m; Sc:eIîtm 32: ~"'" An, 644""",,,; ~Ii(¡,t, 3$: $t¡,~y~j,; .;\Í/; 64ì1_,,~; ClRII'ro4","1OII Coml""'Y J511% J :<4"4 W\ll))% Ü2 01 e Ttm-mlril'.2&wIJl, ~' Maidi.... ~" T~çt ~a DI1s¡:r1ptiøl1 T¡,m1ilini¡>.2 SQoIh, ~ 1,3 ~id~,~ H w~ s.,wII,d 1,I>JM Tract Acroage 2",""9,9{; \;oç # i\OLII "case {# U¡,>t:# Cfl'J~ W)09f).2. JM38¡í \(I:W)~ C4ìá1581 Ç~II1I~1 Re,gjoo, loc; WQOQ% ¡OO{lð% 2.511$''; R¡¡yúlty ¡'«,cenl ¡8úô'% A1m3" OR!U Ownllr (~_1'¡¡í#~AJ~, !!W. 15lf'h oRIn ~nt , tillloo Oil CðmÞ""r ,,¡ C¡¡¡¡¡¡',I1iu Working Int~l'~t Ownership Hlú.W,¡% Wørking Interest Owner '¥~ 'frat-t Mlnl\/'!d OI'l'lWIf Min,;!I"IÛ tl1terfl$t Exhibit F Aßocatian of Unit EXDense ,~!~c~m.nt 6 I -,~.. ',- ,......_-"'~.........._. '~.'-'-'~""=' HVPA Decision Deep Creek Un,it I~Cfwk VtI;, E\hw" f ¡,"'" Vpd~: 'WlflOO4 PJJ{tc 2 of !i«t.w, ~1il>n !XX; # ADI.# (!309<iS ;¡¡91H 1ko!C,pf A1I<$I;¡¡, ~ ()fNItl! f:¡¡RÞ$\:ì'W'~ 1$)"$ Cí)wwl>f'bí!l¡~ AfMk1\; ¡~ 50'7. C¡lHfuruí. ¡µ}.m% 01 J'Q\\mtlip3 $111.III>, g~ Mtrl4j¡¡n, ¡\¡",\.KA 3 WMt~_ 259. , , WI) Õ\!% e ~ S«tkJn ~, !i«tJoo $«{Joo 5<:o;tkm SMJoo S~"" s......C)' ~ SWJ!JIII$ 1¡¡"",y 41 n, 5pctia1 Sumt¡o:¡; liS SUf'''Y 41n, HJ04t1t$; ¡XXII /<PI.# !O~ :1$9:~16 $!ui\< "r ,\I:a<I<,,-, f:k¡>I!rl,"",,1I "fN~tm,,,-t ¡¡.;WI""" Co"')cufMlír~ A.I..k>, ttl~ t,;,¡ü", Oil C"'II1"",,y ,.,¡ C¡¡ jf(1frn,,- ¡rolì9% 46 T9W~h¡p 5 s.wIJ1, R~~ ,M,,;i4i¡,,¡,~ T"'>'!IS.tIíp2 &:>uIh, Rq<: M«ìd....., AJ!1!ik" S~ n An. ~"'¡¡IJ¡! l,¡¡,¡ J \IJ1'¡~ {~>m",",J;,_ '" t,¡,( 2)pftlS$;¡''I#\', 411WM ""M; ~ 1): AJI,. ~49 l<;fCS; ~:!7; A¡¡,Mo-~; ~Joo U: Ail. 64(1_; ~km :14; AU, 6411 _ç.; H Witt!, :¡"'lMtd 5,762.68 t.UJ.:.fMto/i 2 :wv.. 5f1*;~ lJOC# enu # 1019305 C'X'It f!lf., R~ii:m. tr¡.:, c·j)6¡m h~, !iItw" Oil Comv_y t>f C.Jíf¡,f'11U1 HYJOO% ellS 114 Tr fct 13 w~ s...,,,,,¡j TI'II<:tLegaJlmcliptwn n Tøw!lÙlip 1 Sœ!h, R~ M~r~ Mí>!ro '..~c"!;i¡ A ood ¡¡ or 13 w~ &'w!lfd 3,(Ì;\i),{).j Tl'IICt Mmfrnl M¡~f1I ft.4)"tlly mnn A~re¡¡g~ tease # Ownn lnterosí Pa-t~ní ¡}wß~r , U344J ¡JOC II lj)$9394 (~lnI1:l ~.11W, 1®1ì{¡% ]~,OO% C',,--i1'b¡lhþ_ CWiI (;-961589 to( !h~, 000/. $.00% Workittg tnÚ:r~í Ownenbìp %&% ORnl !'\W;:"ßf !\w.W% WQrl<ing Iní~t Owner % Imw Cr.m; Uß!I hJ¡iful f L~s¡ U !<t¡!¡:c W IIZOO1 r- '" :; (~.f S«¡óoo WI$ I !# 4 ¡""iW/Ä'<\ j; I tl N I /'1" SF-1M,: 14; s.q¡"., All; ~ioo All; e T'QWI1$I)lp J $œtk I!lI1\iII! !4 WØ$t.,Sot_4 Mt~ SUlk",14: AI!; . @ T~ '1 $wtk ~ 1, WØ$t., s.,\Wlld J9W ''''~<I Mcorìdian, AIAAfu ~¡¡ 1i_y U.SS\IfI'1:y94$9,1ß\ ¡,;;'Ì.99a<:t¢~ Tlltl\! Hili! ¡\Ø'''''ge ::tt{t56:9U Hllu Explin~-lJ"ÌOftOU COfflP'lIlY QIC3 fondª HlÍ)'X, t e ¡¡tM Trat\! Tra<!tLegftl D~t,riptJQn 0$ Tm>'llfilii¡> 3 ~tk !tang<! U \\'<:>1, s.".>md Mt¡,idi"", ,~.. ' 1,54600 l'Nld Aer~~ VOC # CllUifi Lease # I }~ e,m ¡ !t1i<:!:R<3'oo; ¡nc, C--ú6!$91 ~li¡l<!nl Owner 0000% Mjg'lf~ Imeres! IUtöo/. Rl)y~llr Pm'\WIII bç, OlUU ûwlllir 5t1% ORIO P(!rcent WQrking [nœrest Ownership 1Ç(\,{ifiJ1{, W(¡mIllg In!~¢$1 Ov.1H1f % Unoc~1 AI.tlcs ìJl'JÌCnOijC<ï~j)Y OfC !)Qíi WiB:M $tIJC AvenUE'- '~j . !i~247 7~OO . HVPA Decision Attachment 7 ¡ UNO Ké\linA, rtlb~~r, Mnnag~r L ð'I'1,¿./r,3¡:}Wt11l11i!;!;;tAfttAT$ September 23, 2004 Mr. Tom hwio, CO'mml$Sion~r Alaska Department of Natural Resources. Division of Oil and G(¡I$ 550 W. 7u-. Avenue,Süite 800 Anchorage, A~aska 99501-3560 27 DiVISION OF ort. AND GAS Mr. Carl Marrs, President Cook Inlet Region Inc, 2525CStr~t, Suite 500 Anchorage, Alaska' 99509-3;';30 DEEP CREEK UNIT State of Alaska \" , " ,n . .........:'.._". First Unit Plan of Development and Operation Revised~-23-04 Gentlemen: hî accord~noew¡th Article 8 of the Deep Creek Unit Agreement and 11AAC 83.343, Uni·on Oil Company of Califomia·(Unocal), as Unit Operator, r~specUuUysubmits the following. Revised' Plan of Develöpmenfand Operations. This, Plan contains revisions to the First Unit Plan or Development submitted to you on August 31,2004, per the request of Department of Natural Resources (DNR) per'$onnel. I. pf;.RI Q.Q This Plan shall cover the period from September 1, 2004 to August 31,2005. First Plan of Df;.velOp September 23, 2004 Page 2 II. DRIL~JNG/REMEDJA~fR.QGRA~ A. Plan of Exploration RevJew 1. Remedial Work - The NNA #1 wellbore was tested in additional intervals with no œmmercial gas tèstß. Operations to convert the NNA #1 to a disþoS<;lI well wereoomp!eted sucl1a$performing a MH. 2. Doring, the Exproration plan, nIne (9) wells werødrillad in the Deep Creek Unit. a. HV~1 - Dril~ In 2003 to 10.872' MD 19,700' TVD. Completed in the Tyonek formation. Test rate was 4.1 MMCFGPDat 1.122 psig FTP. b; HV~2 - Drilled in 2003 to 10.225' MD /9,812' TVD. Completed in the Tyonek formation. Test rate was 2.6 MMCFGPD aU395 þsig FTP. c. HV~3 - Drilled in 2004 to 11,345' MD I 10.772' TVD. No test rlilts establisheçt atthi$ time. d. HV-4- DriUed in 2004 to 10,625' MD 110.5151 TVD. No test rate estabUshed at this time. e, HV-5- UnsuöeessruJly drmed'in·2004 to objective. No test rate established at this time. t HV-6 - Drilled in 2004 1011,798' MD 110,400' TVD. Notes! rate established at this time. g, HV-7 - Drilled in 2004 to 9,118 MD ¡ 7,140' TVD. No test rate estabJishedat this time. HV-8 - DríUeø in 2004 tOo 8,900 MD /6,734' TVD. Tested ¡nthe: TyonekformaUon at 0.6 MMCFGPD al,902 þslg FTP.. Tested In the Beluga formation at 1.2 MMCFGPDat 865 psig FTP. i. Star #1 - Drilled In 2004 to 9,130' MD ra,640' TVD. Tested in the Tyonekformation at 0.5 MMCFGPDat 413psig FTP B. First Plan Potential Work 1, Drill two (2) develOopment weHs in the Deep Creek Unit. a. Two (2) or more development wens in Happy Valley Devélopmentarea dependìngon results. First Plan of Developm September 23. 2004 Page 3 evised b. A4ditJonaJ develQpment Mtlls may bedriUad in the Star Dßvelopment area dep$nding on the ff¿¡;sults of the recompletlon work and uphoJ.e zone te$ting in th.ð St3.r#1 well. The Star Well was drilled from a!\'uH1'a'tœ location within the Unit boundary to a location outside of the southem portion of the Unit If testing IS$ucœml..d and additional welis are drilled to deiimi:)ate a new accumulation, the Unit will be expanded., if necessary, to encompass the araalextent of the newly defined re$ervoJr snda Participating Area wm be established. 2. Workover ,of the existing wells, a. Star#1 - Reoomplete and test uphole ZOOOs, b.Possible recompletion candidatès will be identified from the existing Happy Valley DevelQpmentarea as necessary, 3. As requi~d under the Plan ófExpJol1tUon, Unocal acquired approximately 105 miles of 2D seismic data over the Ur¡it area. About half of the datacoUected was over the Happy Valley PA area and will be the first data worked by Ouf staff, The balance of seismic data over the southern area of the Unit has now beenproœsæø and will Qe evaluated over the plEtn period. All required Sundries and Permits wíllbe obtEtìned for this work UI. OEf;Bt\:nNG-PROQUCING PRQ§.R8M A Plan of Exploration Review 1. No Production occurred during the Exploration Plan as the facilities and,píþelines were not in operation. 2. During the Exploration Plan - an Aquifer Exemption and Dhi5posal Injection ApplicatiOn were submitted to the AOGCC for the NNA#1 wellbore Within the Deep Creek Unit Pending approval of these applications, the NNA #1 wilt be utilized asa water disposal ¡cuttings disposal well. Potential Work 1. Anappliœtion for a 'Beluga I Tyonek Participating area is b(?ing submitted for the Haþpy Vaney Portion of the Deep Creek Unit, 2. Production is estimated to commence during N{J~fì1ber, 2004. Fin,t Plan of Develðp September23, 2004 Page 4 Revised C. Well Production Summ.ary 1, No PtPduction occurred during the Exploratiön Plan, IV.su8E~çe AND F ACllITYSJpeBATION~ A. Plan of Exploration Review 1. During the ExpJoratiön Plan a gas pipeline instalJationcommenœd connecting the Happy ValJey Pad to the KKPl line. This in~tallation is ongoing and is scheduled to Þe completed by November, 2004, 2. Installation ofa gas pröœssingfaciiity commenœdon the main Happy Valley pad. Gas will be sold via the newly instailed pipelîne cClnnecting the Deep Creek Unit to KKPl. Facility Start up is scheduled for November, with minor fuel gas use if! October to run generators prior to start up. B. Potential Work 1, A new pad may be established in, the Deep Creek Unit This pad will be approximately 4,000 feet west of the existing main Happy Vailey pad. All requiredparmits wi!! be secured prior toconstructìon of this new pad. 2. Primary gas treating ·rhay occur on the new pad with final gas processing for safes occurring on the main Happy VaJl~y pact 3. A water dj~PQsal facility m~y be estabfishedadj.acentto the NNA#1 weUoore. 4. Installation of gas compression f~cÎlities may occur at the main Happy VaUey Pad. The Unit Operator respectfullY requests approval of the foregoing First Plan of Development and Operations for the Deep Creek Unit UnocliJ, reservês the right to propose modifications to this Plan should conditions so Wårrant; however, no modifi~tions will bð, made without firstobtliining permi$sÎoll from theappropriategovemmenœlagéncìes. First Pian of Develop September 23, 2004 PageS Revised P!ea$e direchmyquesooO$ regarding this plan to Ralph Affinito, Reservoir Engineer, at 263~7947 or Mark Lynch. Geologist at 263-7851. Sincerely, UNION OIL COMPANYOFCAlJFORNIA Unit Operator . "I ,tlcJJ~ ".......,'~'''v,--~>,.-....,. ,~ n A Tabler By . c<;: Alaska Oil and Gas Conservation Commission e Unocal Alaska Union Oil Company of Ca¡a 909 West 9th Avenue, P..196247 Anchorage, Alaska 9951 Telephone (907) 276-7600 Fax (907) 263-7698 UNOCALe Kevin A. Tabler, Manager Land/Govemment Affairs August31,2004 . Mr. Tom Irwin, Commissioner Director, Division of Oil and Gas Alaska Department of Natural Resources 550 W. ¡th Avenue, Suite 800 Anchorage, AK 99501-3560 ,',..... /~ 1.,..../ Mr. Carl Marrs, President Cook Inlet Region Inc. 2525 C Street, Suite 500 Anchorage, Alaska 99509-3330 RE: Deep Creek Unit Happy Valley PA Application Cook Inlet Area State of Alaska Gentlemen: Union Oil Company of California (Unocal), as operator of the Deep Creek Unit (DCU), hereby applies for the designation and establishment of the Happy Valley (HV) Participating Area (PA) effective September 1,2004, pursuant to 11 AAC 83.351 (Participating Area) and Article 9 of the Deep Creek Unit Agreement (Participating Area). Enclosed with this application is a Geologic & Engineering Report supporting the formation of the PA. Additionally, enclosed pursuant to Article 9 of the DCU Agreement, and included as part of this application, are Exhibits C, 0, E, F and G to be incorporated as part of the DCU Agreement. f' j-~ ;, G I .. ...' ,.~ ji¡ " Deep Creek Unit PA.' DNRlCIRI August 31, 2004 Page: 2 e' .. The proposed PA includes one (1) State of Alaska (DNR) tract and three (3) Cook Inlet Region Inc. (CIRI) Tracts, for a total of four (4) tracts comprising 1410 acres of land reasonably known to be underlain by Unitized Substances and known or reasonably estimated through use of geological, geophysical, engineering data and actual well performance, to be capable of producing or contributing to production of Unitized Substances in Paying Quantities. Both Unitized Substances and Paying Quantities are defined by statute. Unocal, over the last three (3) years, has conducted an aggressive exploration drilling program far in excess of that required by the initial Plan of Exploration. As a result of our drilling and delin,ation efforts, the DCU is ~oised to begin customer deliveries and sales of n.tural gas in the fourth (4t ) quarter 2004, upon the completion of a Kenai Kachem~k Pipeline (KKPL) company pipeline extension to the Happy Valley pad \complex. The enclosed structure maps, well ~ata, geological and geophysical information submitted with this application, variþs slightly from the maps and information discussed and reviewed at the Auglust 19, 2004, pre-application meeting. New well data and structural interpretati~n, particularly in the Beluga interval, has necessitated the revisions provided¡ in this application as the "lowest known gas" is larger in areal extent and involve~ both DNR and CIRI tracts. , Given the complexity and low rate Óf production from each individual reservoir and the lenticular and discontinuoutn,ature of the sands, the only economically viable approach to development of hese reservoirs will be to commingle production and combine the Lower nd Upper Tyonek and Beluga Reservoirs into one participating area. The co bination of these reservoirs facilitates the seasonal deliverability of gas in the rinter and storage of gas in the summer, significantly increasing the economip viability of the DCU. Establishing the HV PA as propose~, will provide for the earliest production of gas reserves underlying the DNR tr,ct and CIRI tracts while, at the same time, protecting the correlative rights of thþ DNR and CIRI, as royalty owners, and ConocoPhillips Alaska, Inc. and CI~I Production Company, as overriding royalty interest owners. ! I The proposed HV PA is in the best ihterest of the State of Alaska and CIRI, and is consistent with the authority and ~riteria for DNR and CIRI approval. As operator of the unit, Unocal reSpeCtf~"y requests DNR and CIRI approval of this application to form the proposed HV P A. In support of this application, we re uest that all geologic, engineering and well data be kept confidential. \ Deep Creek Unit P¡'.' DNR/CIRI August 31,2004 Page: 3 e!' As time is of the essence, we respectfully request your expedited review of this application. Should you have any puestions, please do not hesitate to contact the undersigned at (907) 263-7600. \ Sincerely, Union Oil Company of California evin A. Tabler Its Attorney-in-Fact Enclosures cc: AOGCC Deep Creek Unit Exhibit A 01 Township 2 South, Range 13 West, Seward Meridian, Alaska Working Tract Mineral Mineral Royalty ORRI ORRI Interest Acreage Lease # Owner Interest Percent Owner Percent Ownership 2,569.96 UOC# 1029392 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.500000% Union Oil Company of CIRI # C-061587 Inc. California Working Interest Owner % Tract Tract Legal Description 100.00% - Sec. 1: All, 647.08 acres; Sec. 2: All, 642.88 acres; Sec. 11: All, 640 acres; Sec. 12: All, 640 acres. 02 Township 2 South, Range 13 West, Seward 2,133.67 UOC# 1030902 State of Alaska, Department 100.00% 12.50% CIRI Production 3.500000% Union Oil Company of 100.00% Meridian, Alaska ADL# 384380 of Natural Resources Company Califomia Section 16: Surveyed, WII2 NEII4 NWII4, ConocoPhillips Alaska, 1.500000% NWII4 NWII4, 60 acres; Inc. Section 31: Surveyed. All, 623.72 acres; Section 32: Surveyed, All, 640 acres; Section 33: Surveyed, All, 640 acres; Special Surveys: U.S. Survey 9469, Lots 3 and 4 (formerly known as Lot 2), 159.96 acres Alaska State Land Surveys: A.S.LS. 80-72, Tracts A and B, 9.99 acres; e Township 2 South, Range 13 West, Seward 2,780.01 UOC# 1029393 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.500000% Union Oil Company of 100.00% Meridian, Alaska COO # C-061588 Inc. California Section 10: All, Excluding Lot 1 of U.S. Survey 9469,600.01 acres; Section 13: WY2, 320 acres; Section 14: All, 640 acres; Section 15: All, 640 acres; Section 16: NEv.., EY2NEv..NWV., SY2NWV., SY2, 580 acres; Deep Creek Unit Exhibit A Last Update: 9/112004 Page 1 of3 Working Working Tract Mineral Mineral Royalty ORRI ORRI Interest Interest Tract Tract Legal Description Acreage Lease # Owner Interest Percent Owner Percent Ownership Owner % 04 Township 2 South, Range 13 West, Seward 2,534.43 UOC# 1029394 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.500000% Union Oil Company of 100.00% Meridian, Alaska CIRI # C-061589 Inc. California Section 20: All, Excluding Tracts A and B of ASLS 80-72, 632.99 acres; Section 21: All, 640 acres; Section 29: All, 640 acres; Section 30: All, 621.44 acres, 05 Township 2 South, Range 13 West, Seward 3,040.04 UOC# 1029395 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.500000% Union Oil Company of 100.00% e Meridian, Alaska CIRI # C-061590 Inc. California Section 22: All, Excluding Lots 3 and 4 (formerly known as Lot 2) ofUSS 9469, 480.04 acres; Section 23: All, 640 acres; Section 27: All, 640 acres; Section 28: All, 640 acres; Section 34: All, 640 acres; 06 Township 3 South, Range 14 West, Seward 5,762.68 UOC# 1030906 State of Alaska, Department 100.00% 12.50% ConocoPhillips Alaska, 1.500000% Union Oil Company of 100.00% Meridian, Alaska ADL# 389226 of Natural Resources Inc. California Section 1: Surveyed, All, 641.94 acres; Section 2: Surveyed, All, 640.70 acres; Section 3: Surveyed, All, 640.04 acres; Section 10: Surveyed, All, 640.0 acres; Section 11: Surveyed, All, 640.0 acres; Section 12: Surveyed, All, 640.0 acres; e Section 13: Surveyed, All, 640.0 acres; Section 14: Surveyed, All, excluding U.S, Survey 4717, 637.26 acres; Section 15: Surveyed, All, excluding U.S. Survey 4717,637.74 acres; Special Surveys: U.S. Survey 4717, 5.00 acres; 07 Township 3 South, Range 13 West, Seward 1,250.12 UOC# 1030905 State of Alaska, Department 100.00% 12.50% ConocoPhillips Alaska, 1.500000% Union Oil Company of 100.00% Meridian, Alaska ADL# 389225 of Natural Resources Inc. California Section 6: Surveyed, All, 625.22 acres; Section 7: Surveyed, All, 624.90 acres; Deep Creek Unit Exhibit A Page 2 of3 Last Update: 9/112004 Tract Tract Legal Description 08 Township 3 South, Range 13 West, Seward Meridian, Alaska Section 5: Lots I to 4 inclusive, S1I2 NI/2, SE1I4, SW1I4; Section 8: All; Section 18: All; Township 3 South, Range 14 West, Seward Meridian e Section 24: All; 09 Township 2 South, Range 13 West, Seward Meridian, Alaska Special Survey: U.S. Survey 9469, Lot 1,39.99 acres e Deep Creek Unit Exhibit A Last Update: 9/1/2004 Working Working Tract Mineral Mineral Royalty ORRI ORRI Interest Interest Acreage Lease # Owner Interest Percent Owner Percent Ownership Owner % 2,546.00 UOC# 1029396 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.500000% Union Oil Company of 100.00% CIRI # C-06159I Inc. California 39.99 unleased BLM Total Unit Working Interest Net Acres Unit % Acreage Owner 22,656.90 Uncommited 39.99 0.18% Union Oil Company 22,616.91 99.82% of California Page 3 of 3 - -------- Cook Inlet Deep Creek Unit Exhibit B I I Unit Boundary L UnitTracts I I State Leases CIRI Leases Revised September 1 , 2004 Scale: 1:100,000 Tract Tract Legal Description 02 Township 2 South, Range 13 West, Seward Meridian, Alaska e Special Surveys; that portion of U.S. Survey 9469, Lots 3 & 4 within Section 22, WII2 and the WII2NEI/4, containing 145.84 acres. .03 Township 2 South, Range 13 West, Seward Meridian, Alaska Section 15: SEII4SWII4 04 Township 2 South; Range 13 West, Seward Meridian, Alaska Section 21: EII2NEI/4, SWI/4NEII4, EII2SWI/4, SEI/4. 05 Township 2 South, Range 13 West, Seward Meridian, Alaska Section 22: WIn. and NWI/4NEII4 excluding Lots 3 and 4 of U.S. e Survey 9469, 254.15 acres; Section 27: NW1/4NWI/4, 40 acres; Section 28: NEI/4, NEI/4NWII4, SII2NWII4, NII2SWII4, NWII4SEI/4, 400 acres; containing 694.15 acres. Happy Valley Parcipation Area - Exhibit C Last Update: I 11112004 Deep Creek Unit Exhibit C Happy Valley Participating Area Effective 9/1/2004 Tract Working Working Tract Mineral Mineral Royalty ORRI ORRI Interest Interest Acreage Lease # Percentage Owner Interest Percent Owner Percent Ownership Owner % 145.84 UOC # 1030902 11.761400% State of Alaska, 100.00010 12.5000% COO Production Company 3.50010 Union Oil Company of California 100.00% ADL # 384380 Department ofNaturaJ ConocoPhillips Alaska, Inc. 1.50010 Resources 40.00 UOC # 1029393 3.225800% Cook Inlet Region, Inc. 100.00% 18.0000% ConocoPhillips Alaska, Inc. 1.50% Union Oil Company of California 100.00% COO # C-061588 360.00 UOC # 1029394 29.032500% Cook Inlet Region, Inc. 100.00010 18.0000010 . ConocoPhillips Alaska, Inc. 1.50010 Union Oil Conipany of California 100.00% COO# C-061589 694.15 Total PA Acreage 1,239.99 UOC # 1029395 55.980300% Cook Inlet Region, Inc. 100.00% COO # C-061590 ConocoPhillips Alaska, Inc. Union Oil Company of California IÒO.oo% 18.0000% 1.50% Total Tract Percentage 100.000000% Working Interest Owners Uncommitted Union Oil Company of California PA% 0.0000% 100.0000% Page I ofl Deep Creek Unit Exhibit D Happy Valley Participating Area I Unit Boundary ~I UnitTracts Happy VaHey Participating Area I State leases CIRi leases Effective September 1, 2004 Scale: 1 :100,000 Deep Creek Unit Exhibit E Happy Valley Allocaûon of Participaûng Area Expense Effective 9/1/2004 Tract Working Working Tract Mineral Mineral Royalty ORRI ORRI Interest ' Interest Tract Tract Legal Description Acreage Lease # Percentage Owner Interest Percent Owner Percent Ownership Owner' % 02 Township 2 Soulb, Range 13 West, 14S.84 UOC # 1030902 II. 7614000~ State of Alaska, 100.00% 12.S000"/o CIRI Production Company 3.S00/o Union Oil Company of California 100.000/0 Seward Meridian, Alaska ADL # 38~380 Department ofNatura1 ConocoPhillips Alaska, Inc. 1.50% Resources Special Surveys; that portion of U.S. e Survey 9469, Lots 3 &. 4 within Section 22, WII2 and the }, WI12NEI/4, containing 14S.84 acres. 03 Township 2 South, Range 13 West, 40.00 UOC # 1029393 3.2258000/0 Cook Inlet Region. Inc. 100.00% 18.0000"/0 ConocoPhillips Alaska, Inc. I.SO% Union Oil Company of California 100.00% Seward Meridian, Alaska COO # C-06IS88 Section IS: SEII4SWII4 04 Township 2 Soulb, Range 13 West, 360.00 UOC # 1029394 29;0325000A> Cook Inlet Region. Inc. 100.00% 18.0000"10 CooocoPhillips Alaska, Inc. 1.50% Union Oil Company of California 100.00% Seward Meridian, Alaska COO # C-06IS89 Section21: EII2NEI/4, SWII4NEI/4, EI12SWII4, SEII4. OS Township 2 South, Range 13 West, 694.15 UOC # 1029395 S5.9803000/o Cook Inlet Region, Inc. 100.00% 18.??oo% ConocoPhillips Alaska, Inc. 1.50% Union Oil Company of California 100.000/0 Seward Meridian, Alaska COO # C-G61590 Section 22: WII2 and NWI/4NEII4 excluding Lots 3 and 4 of U.S. Survey 9469, 254.15 acres; e Section 27: NWI/4NWI/4, 40 acres; Section 28: NEI/4, NEI/4NWl/4, SII2NWII4, NII2SW1/4, NWII4SEII4, 400 acres; containing 694.15 acres. Total PA Total Tract Working Interest Acreage Percentage Owners PA% 1,239.99 100.000000% Uncommitted 0.0000% Union Oii Company of 100.0000% California Happy Valley Parcipation Area - Exhibit E Last Update: 111112004 Page 1 ofl Tract Tract Legal Description 01 Township 2 South, Range 13 West, Seward Meridian, Alaska e Sec. 1: All, 647.08 acres; Sec. 2: All, 642.88 acres; Sec. II: All, 640 acres; Sec. 12: All, 640 acres. 02 Township 2 South, Range 13 West, Seward Meridian, Alaska Section 16: Surveyed, WII2 NE1I4 NWI/4, NWl/4 NWI/4, 60 acres; Section 31: Surveyed. All, 623.72 acres; Section 32: Surveyed, All, 640 acres; Section 33: Surveyed, All, 640 acres; Special Surveys: U.S. Survey 9469, Lots 3 and 4 (fonnerly known as Lot 2), 159.96 acres Alaska State Land Surveys: AS.LS. 80-72, Tracts A and B, 9.99 acres; - Township 2 South, Range 13 West, Seward Meridian, Alaska Section 10: All, Excluding Lot 1 of U.S. Survey 9469, 600.01 acres; Section 13: W%, 320 acres; Section 14: Al~ 640 acres; Section 15: All, 640 acres; Section 16: NEV.. BY2NE~NWV.. SY.NWY.. SV2, S80 acres; Deep Creek Unit Exhibit F Last Update: 9/112004 Deep Creek Unit Exhibit F Allocation of Unit Exnense Tract Acreage Lease # 2,569.96 2,133.67 2,780.01 uoc# COON UOC# ADU UOC# CIRI # Mineral Owner Mineral Interest 1029392 Cook Inlet Region. Inc. C-061587 100.00% 1030902 State of Alaska, Department 100.00% 384380 ofNaturaI Resources 1029393 Cook Inlet Region, Inc. C-061S88 100.00% Royalty Percent ORRI Owner ORRI Percent 18.00% ConocoPhiUips Alaska, 1.50% Inc. 12.S00.4 ConocoPhillips Alaska, 1.500.4 Inc. ClRI Production 3.50% Company 18.00% ConocoPhiJlips Alaska, l.SOO.4 Inc. Working Interest Ownership Union on Company of California Union Oil Company of California Union Oil Company of California ï5)tE©l!\W1!íÖ';' ~ SfP 1 0 2004 !::!J DIVISION OF OIL AND GAS Working Interest Owner % 100.00% 100.00% 100.00% Page 1 of3 Working Working Tract Mineral Mineral Royalty ORRI ORRI Interest Interest Tract Tract Legal Description Acreage Lease # Owner Interest Percent Owner Percent Ownership Owner % 04 Township 2 South, Range 13 West, Seward 2,534.43 UOC# 1029394 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.50% Union Oil Company of 100.00% Meridian, Alaska CIRI# C-061589 Inc. California Section 20: All, Excluding Tracts A and B of ASLS 80-72, 632.99 acres; Section 21: All, 640 acres; Section 29: All, 640 acres; Section 30: All, 621.44 acres, 05 Township 2 South, Range 13 West, Seward 3,040.04 UOC# 1029395 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhillips Alaska, 1.50% Union Oil Company of 100.00% e Meridian. Alaska COO # C-061590 Inc. California Section 22: All, Excluding Lots 3 and 4 (formerly known as Lot 2) ofUSS 9469, 480.04 acres; Section 23: All, 640 acres; Section 27: All, 640 acres; Section 28: All, 640 acres; Section 34: All, 640 acres; 06 Township 3 South, Range 14 West, Seward 5,762.68 UOC# 1030906 State of Alaska, Department 100.00% 12.50% ConocoPhiUips Alaska, 1.50% Union Oil Company of 100.00% Meridian, Alaska ADL# 389226 of Natural Resources Inc. California Section 1: Surveyed, All, 641.94 acres; Section 2: Surveyed, All, 640.70 acres; Section 3: Surveyed, All, 640.04 acres; Section 10: Surveyed, All, 640.0 acres; Section 11: Surveyed, All, 640.0 acres; Section 12: Surveyed, All, 640.0 acres; Section 13: Surveyed, All, 640.0 acres; e Section 14: Surveyed, All, excluding U.S. Survey 4717,637.26 acres; Section 15: Surveyed, All, excluding U.S. Survey 4717,637.74 acres; Special Surveys: U.S. Survey 4717, 5.00 acres; 07 Township 3 South, Range 13 West, Seward 1,250.12 UOC# 1030905 State of Alaska, Department 100.00% 12.50".4 ConocoPhillips Alaska, 1.50% Union Oil Company of 100.00% Meridian, Alaska ADL# 389225 of Natural Resources Inc. California Section 6: Surveyed, All, 625.22 acres; . D ¡gœll\\Æ\1V Section 7: Surveyed, All, 624.90 acres; ~ SEP 1 0 2004 Deep Creek Unit Exhibit F DIVISION OF Page 2 of 3 Last Update: 9/112004 OIL AND GAS Tract Tract Legal Description 08 Township 3 South. Range 13 West, Seward Meridian, Alaska Section 5: Lots 1 to 4 inclusive, SI/2 Nl/2, 5B1/4, SW1/4~ Section 8: AIl~ Section 18: All; Township 3 South, Range 14 West, Seward Meridian e Section ~4: All; 09 Township 2 South. Range 13 West, Seward Meridian, Alaska Special Survey: U.S. Survey 9469, Lot 1,39.99 acres Working Working Tract Mineral Mineral Royalty ORRI ORRI Interest Interest Acreage Lease # Owner Interest Percent Owner Percent Ownership Owner % 2,546.00 UOC# 1029396 Cook Inlet Region, Inc. 100.00% 18.00% ConocoPhißips Alaska, 1.50% Union Oil Company of 100.00% ClRI# C-061591 Inc. California 39.99 unleased BLM Total Unit Acreage 22,656.90 Unit Expense· Union Oil Company of California 100% e Deep Creek Unit Exhibit F Last Update: 9/112004 ~ŒowreD' SEP 1 0 2004 lQ; DIVISION OF OIL AND GAS Page 3 of 3 ~ e; e; EXHIBIT G DEEP CREEK UNIT State of Alaska Revised First Unit Plan of Development and Operation In accordance with Article 8 of the Deep Creek Unit Agreement and 11AAC 83.343, Union Oil Company of California (Unocal), as Unit Operator, respectfully submits the following Revised Plan of Development and Operations. This Plan contains revisions to the First Unit Plan of Development submitted to you on August 31,2004, per the request of Department of Natural Resources (DNR) personnel. I. PERIOD This Plan shall cover the period from September 1, 2004 to August 31, 2005. II. DRILLING/REMEDIAL PROGRAM A. Plan of Exploration Review 1. Remedial Work - The NNA #1 wellbore was tested in additional intervals with no commercial gas tests. Operations to convert the NNA #1 to a disposal well were completed such as performing a MIT. 2. During the Exploration plan, nine (9) wells were drilled in the Deep Creek Unit. a. HV-1 - Drilled In 2003 to 10,872' MD /9,700' TVD. Completed in the Tyonek formation. Test rate was 4.1 MMCFGPD at 1,122 psig FTP. b. HV-2 - Drilled in 2003 to 10,225' MD /9,812' TVD. Completed In the Tyonek formation. Test rate was 2.6 MMCFGPD at 695 psig FTP. c. HV-3 - Drilled in 2004 to 11,345' MD 110,772' TVD. No test rate established at this time. d. HV-4 - Drilled in 2004 to 10,625' MD 110,515' TVD. No test rate established at this time. e. HV-5 - Unsuccessfully drilled In 2004 to objective. No test rate established at this time. f. HV-6 - Drilled In 2004 to 11,798' MD / 10,400' TVD. No test rate established at this time. g. HV-7 - Drilled in 2004 to 9,118 MD 17,140' TVD. No test rate established at this time. h. HV-8 - Drilled in 2004 to 8,900 MD /6,734' TVD. Tested in the Tyonek formation at 0.6 MMCFGPD at 902 psig FTP.. Tested in the Beluga formation at 1.2 MMCFGPDat 865 psig FTP. Revised First Plan of De.opment September 23,2004 Page 2 - i. Star #1 - Drilled in 2004 to 9,130' MD 18,640' TVD. Tested in the Tyonek formation at 0.5 MMCFGPD at 413 psig FTP B. First Plan Potential Work 1. Drill two (2) development wells in the Deep Creek Unit. a. Two (2) or more development wells in the Happy Valley Development area depending on results. b. Additional development wells may be. drilled in the Star Development area depending on the results of the recompletion work and uphole zone testing in the Star #1 well. The Star Well was drilled from a surface location within the Unit boundary to a location outside of the southern portion of the Unit. If testing is successful and additional wells are drilled to delineate a new accumulation, the Unit will be expanded, if necessary, to encompass the areal extent of the newly defined reservoir and a Participating Area will be established. 2. Workover of the existing wells. a. Star #1 - Recomplete and test uphole zones. b. Possible recompletion candidates will be identified from the existing Happy Valley Development area as necessary. 3. As required under the Plan of Exploration, Unocal acquired approximately 105 miles of 20 seismic data over the Unit area. About half of the data collected was over the Happy Valley P A area and will be the first data worked by our staff. The balance of seismic data over the southern area of the Unit has now been processed and will be evaluated over the plan period. All required Sundries and Permits will be obtained for this work III. OPERATING-PRODUCING PROGRAM A. Plan of Exploration Review 1. No Production occurred during the Exploration Plan as the facilities and pipelines were not in operation. 2. During the Exploration Plan - an Aquifer Exemption and Disposal Injection Application were submitted to the AOGCC for the NNA#1 wellbore within the Deep Creek Unit. Pending approval of these applications, the NNA #1 will be utilized as a water disposal I cuttings disposal well. Revised First Plan of De'opment September 23, 2004 Page 3 - B. Potential Work 1. An application for a Beluga I Tyonek Participating area is being submitted for the Happy Valley Portion of the Deep Creek Unit. 2. Production is estimated to commence during November, 2004. C. Well Production Summary 1. No production occurred during the Exploration Plan. IV. SURFACE AND FACILITY OPERATIONS A. Plan of Exploration Review 1. During the Exploration Plan a gas pipeline installation commenced connecting the Happy Valley Pad to the KKPL line. This installation is ongoing and is scheduled to be completed by November, 2004. 2. Installation of a gas processing facility commenced on the main Happy Valley pad. Gas will be sold via the newly installed pipeline connecting the Deep Creek Unit to KKPL. Facility Start up is scheduled for November, with minor fuel gas use in October to run generators prior to start up. B. Potential Work 1. A new pad may be established in the Deep Creek Unit. This pad will be approximately 4,000 feet west of the existing main Happy Valley pad. All required permits will be secured prior to construction of this new pad. 2. Primary gas treating may occur on the new pad with final gas processing for sales occurring on the main Happy Valley pad. 3. A water disposal facility may be established adjacent to the NNA#1 wellbore. 4. Installation of gas compression facilities may occur at the main Happy Valley Pad. The Unit Operator respectfully requests approval of the foregoing First Plan of Development and Operations for the Deep Creek Unit. Revised First Plan of De.opment September 23, 2004 Page 4 . Unocal, reserves the right to propose modifications to this Plan should conditions so warrant; however, no modifications will be made without first obtaining permission from the appropriate governmental agencies. Please direct any questions regarding this plan to Ralph Affin, ito Reservoir Engineer, at 263-7947 or Mark Lynch, Geologist at 263-7851. Sincerely, UNION OIL COMPANY OF CALIFORNIA Unit Operator ~ JAolL evin A. Tabler By cc: Alaska Oil and Gas Conservation Commission - - EXHIBIT G DEEP CREEK UNIT State of Alaska First Unit Plan of Development and Operation In accordance with Article 8 of the Deep Creek Unit Agreement and 11AAC 83.343, Union Oil Company of California (Unocal), as Unit Operator, respectfully submits the following Plan of Development and Operations. I. PERIOD This Plan shall cover the period from September 1, 2004 to August 31, 2005. II. DRILLING/REMEDIAL PROGRAM A. Plan of Exploration Review 1. Remedial Work - The NNA #1 wellbore was tested in additional intervals with no commercial gas tests. Operations to convert the NNA #1 to a disposal well were completed such as performing a MIT. 2. During the Exploration plan, nine (9) wells were drilled in the Deep Creek Unit. a. HV-1 - Drilled in 2003 to 10,872' MD /9,700' TVD. Completed in the Tyonek formation. Test rate was 4.1 MMCFGPD at 1,122 psig FTP. b. HV-2 - Drilled in 2003 to 10,225' MD /9,812' TVD. Completed in the Tyonek formation. Test rate was 2.6 MMCFGPD at 695 psig FTP. c. HV-3 - Drilled in 2004 to 11,345' MD /10,772' TVD. No test rate established at this time. First Plan of Developrr..) August 31 2004 . Page 2 et d. HV-4 - Drilled in 2004 to 10,625' MD 110,515' TVD. No test rate established at this time. e. HV-5 - Unsuccessfully drilled in 2004 to objective. No test rate established at this time. f. HV-6 - Drilled in 2004 to 11,798' MD 110,400' TVD. No test rate established at this time. g. HV-7 - Drilled in 2004 to 9,118 MD 17,140' TVD. No test rate established at this time. h. HV-8 - Drilled in 2004 to 8,900 MD 16,734' TVD. Tested in the Tyonek formation at 0.6 MMCFGPD at 902 psig FTP. . Tested in the Beluga formation at 1.2 MMCFGPD at 865 psig FTP. i. Star #1 - Drilled in 2004 to 9,130' MD 1 8,640' TVD. Tested in the Tyonek formation at 0.5 MMCFGPD at413 psig FTP B. First Plan Potential Work 1. Drill two (2) development wells in the Deep Creek Unit. a. Two (2) or more development wells in the Happy Valley Development area depending on results. r b. Additional development wells may be drilled in the Star Development area depending on the results of the recompletion work and uphole zone testing in the Star #1 well. 2. Workover of the existing wells. a. Star #1 - Recomplete and test uphole zones. ,b. Possible recompletion candidates will be identified from the existing Happy Valley Development area as necessary. All required Sundries and Permits will be obtained for this work III. OPERATING-PRODUCING PROGRAM A. Plan of Exploration Review 1. No Production occurred during the Exploration Plan as the facilities and pipelines were not in operation. 2. During the Exploration Plan - an Aquifer Exemption and Disposal Injection Application were submitted to the AOGCC for the NNA#1 wellbore within the Deep Creek Unit. Pending approval of these applications, the NNA #1 will be utilized as a water disposal 1 cuttings disposal well. First Plan of Develop~ ¡ August 31, 2004 ., Page 3 _I B. Potential Work 1. An application for a Beluga I Tyonek Participating area is being submitted for the Happy Valley Portion of the Deep Creek Unit. 2. Production is estimated to commence during November, 2004. C. Well Production Summary 1. No production occurred during the Exploration Plan. IV. SURFACE AND FACILITY OPERATIONS A. Plan of Exploration Review 1. During the Exploration Plan a gas pipeline installation commenced connecting the Happy Valley Pad to the KKPL line. This installation is ongoing and is scheduled to be completed by November, 2004. 2. Installation of a gas processing facility commenced on the main ,Happy Valley pad. Gas will be sold via ,the newly installed pipeline connecting the Deep Creek Unit to KKPL. Facility Start up is scheduled for November, with minor fuel gas use in October to run generators prior to start up. B. Potential Work 1. A new pad may be established in the Deep Creek Unit. This pad will be approximately 4,000 feet west of the existing main Happy Valley pad. All required permits will be secured prior to construction of this new pad. 2. Primary gas treating may occur on the new pad with final gas processing for sales occurring on the main Happy Valley pad. 3. A water disposal facility may be established adjacent to the NNA#1 wellbore. 4. Installation of gas compression facilities may occur at the main Happy Valley Pad. The Unit Operator respectfully requests approval of the foregoing First Plan of Development and Operations for the Deep Creek Unit. Unocal, reserves the right to propose modifications to this Plan should conditions so warrant; however, no modifications will be made without first obtaining permission from the appropriate governmental agencies. First Plan of DeveloPrlJa} August 31. 2004 . Page 4 e! Please direct any questions regarding this plan to Ralph Affinito, Reservoir Engineer, at 263-7947 or Mark Lynch, Geologist at 263-7851. Sincerely, UNION OIL COMPANY OF CALIFORNIA Unit Operator By Kevin A. Tabler cc: Alaska Oil and Gas Conservation Commission e e Page 1 of 8 GEOLOGIC AND ENGINEERING REPORT TO ACCOMPANY APPLICATION FOR APPROVAL OF THE INITIAL HAPPY VALLEY PARTICIPATING AREA OF THE DEEP CREEK UNIT, KENAI PENINSULA BOROUGH STATE OF ALASKA Mark Lynch - Geologist, Unocal Alaska Jeff Sauve - Geophysicist, Unocal Alaska Submitted to State of Alaska Department of Natural Resources Division of Oil and Gas September 1, 2004 CONTENTS 1. INTRODUCTION 2. EXPLORATION HISTORY 3. STRATIGRAPHY AND HYDROCARBON GENERATION 4. STRUCTURE AND TRAPPING 5. DISTRIBUTION OF NATURAL GAS WITHIN THE UNIT 6. PRODUCTION OF GAS FROM THE UNIT 7. LIST OF ATTACHED FIGURES O:\Happy Vàlley\P A_Application_Aug04\DCU _P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL It e Page 2 of 8 INTRODUCTION This geologic and engineering report is submitted by Union Oil Company of California (UNOCAL) in support of its application for the designation and establishment of the initial Happy Valley Participating Area in the Deep Creek Unit on the Kenai Peninsula. The Deep Creek Unit (DCU) is located approximately 15 miles south of the town of Ninilchik on the Kenai Peninsula. Elevations in the unit area are generally less than 1000 feet above mean sea level. The topography dips gently to the northwest. The DCU is drained by numerous small creeks, the largest of which are Deep Creek, Clam Creek and Stariski Creek. The nearest gas field currently producing from Tyonek and Beluga reselVoirs is the Ninilchik Unit, located approximately 12 miles to the north. The Happy Valley field is located in the northern part of the DCU, and is comprised of an asymmetric anticline that is bounded on the east-southeast by a high-angle reselVe fault. One noticeable transverse normal fault bisects the north end of the feature, effectively forming a lateral seal within the reselVoir section. To date, no hydrocarbons have been found on the downthrown (north) side of that normal fault. The Happy Valley Participating Area, as designated in this report, is limited to the areal extent of known gas accumulations within the Happy Valley field structure in the northern part of the DCU. Maps of each of the principle reservoirs and the known limits of gas pay within them are included at the end of this report. EXPLORATION HISTORY Exploration for oil and gas on the Kenai Peninsula began in the late 1950s and continued sporadically through the early 1970s. Although significant gas reselVes were discovered at the Kenai Gas Field, no commercial discoveries were made on the southern Peninsula, and existing well control is sparse. (Prior to 2000, fewer than 20 wells had been drilled on the southern Kenai Peninsula since 1958). Most of the exploratory wells were drilled to test for Hemlock oil potential on the structures that parallel the west coast of the Peninsula. Very few wells have been drilled in the interior of the Peninsula. Gas shows were noted within the Beluga and Tyonek formations in many of the wells, but none were completed due to the lack of access to available markets. The first two wells drilled within the DCU were the Standard Oil Company of California Deep Creek Unit #1 and the Superior Oil Company Happy Valley Unit #31-22. O:\Happy Valley\P A_Application~ug04\DCU_P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL e It Page 3 of 8 The Deep Creek Unit #1 well was drilled to a total depth of 14,221 ft in 1958 by Standard Oil Company of California, in Sec. 15, T2S, R13W. The well was drill stem tested (DST) in two different intervals, one in the Tyonek and one in the Hemlock. No oil or gas production was found and the well was abandoned as a dry hole. Superior Oil Company drilled the Happy Valley Unit #31-22 well to a total depth of 13,550 ft in 1963 in Sec 22, T2S, R13W, approximately one mile south of the Deep Creek Unit #1 well. No zones were tested, and this well was plugged and abandoned as a dry hole. No other exploratory wells had been drilled in the DCU area until 2001, when UNOCAL drilled the NNA #1 well in Sec. 11-T2S-R13W to a depth of 10,590 in an effort to establish Tyonek gas production from the Unit. That well was tested and found to be wet or tight in numerous intervals, and was not completed as a gas well. UNOCAL returned to the Happy Valley structure in June, 2003, and drilled the Happy Valley #1 discovery well in Sec. 22-T2S-R13W to a total measured depth of 10,871 feet. The well tested gas from two different Lower Tyonek reservoirs. The Happy Valley field discovery was confirmed by the Happy Valley #2 well drilled in July, 2003. This well flowed gas from two other Lower Tyonek reservoirs not seen in Happy Valley #1. Since 2003, UNOCAL has drilled six (6) additional delineation wells and acquired approximately 65 line miles of new 2D seismic data over the Happy Valley field in an attempt to delineate the structure and reservoir distribution within the field. Information on the 11 wells currently extant within the Happy Valley field area is contained in Table 1, below. O:\Happy Valley\P A_Application_Aug04\DCU _P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL Table 1. Wells Within the Happy Valley Field Area, Deep Creek Unit Perforated Perforated Interval Interval MD SSTVD N/A N/A Well Standard Oil Deep Creek Unit #1 Superior Oil Happy Valley #31-22 Unocal NNA #1 Unocal Happy Valley #1 Unocal Happy Valley #2 Unocal Happy Valley #3 Unocal Happy Valley #4 Unocal Happy Valley #5 Unocal Happy Valley #6 Unocal Happy Valley #7 Unocal Happy Valley #8 e e Spud Date 3/19/1958 9/9/1963 N/A N/A 12/17/2001 6182' - 9647' 5495' - 8954' 6/17/2003 7978' - 10730' 6374' - 8826' 7/15/2003 6784' - 10052' 5673' - 8907' 2/3/2004 9228' - 10678' 7922' - 9365' 2/6/2004 9277' - 9888' 8474' - 9070' 2/8/2004 N/A N/A 4n /2004 10854'-10882' 8728' - 8756' 6/17/2004 9998-10018' 7999' - 8018' 7/20/2004 5235' - 8581' 2738' - 5697' STRATIGRAPHY AND HYDROCARBON GENERATION Page 4 of 8 Current Status Plugged and abandoned Plugged and abandoned Class II disposal candidate Awaiting gas pipeline Awaiting gas pipeline Awaiting gas pipeline Awaiting gas pipeline Suspended Awaiting gas pipeline Suspended Awaiting gas pipeline The non-marine strata of the Tertiary Tyonek and Beluga formations comprise over 8,000 ft of gross section in the DCU area. Innumerable channel sandstone bodies are interbedded with coal seams of variable thickness and lateral extent in both the Tyonek and Beluga formations. Individual sandstone bodies are lenticular and discontinuous in nature, and are not always correlative between adjacent wells, but collectively may comprise a meander belt or braid plain deposit that may extend for many miles in any given direction. These stratal geometries are demonstrated on the Geologic Cross Sections that were provided to the Division of Oil and Gas at the pre-application meeting in the DOG office in Anchorage on August 19, 2004. It is generally accepted that the Tyonek and Beluga formations are part of a self- sourcing natural gas petroleum system-that is, the substantial Tertiary coal measures of the Tyonek and Beluga formations generate dry methane gas that migrates into, and is trapped within, adjacent sandstone reservoirs. Examination of drill cuttings, core, wireline log and mudlog data from the wells within the Happy Valley field area indicates a substantial coal volume with promising coal maturity and gas content over the proposed PA. It is likewise widely held, and supported by all existing well data within the Happy Valley field area, that the coals and associated clastic rocks of the Tyonek and Beluga formations are not capable of sourcing liquid (oil) hydrocarbons. None of O:\Happy Valley\P A_Application_Aug04\DCU_P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL e It Page 5 of 8 the Happy Valley wells drilled by UNOCAL have found any traces of liquid hydrocarbons. STRUCTURE AND TRAPPING The Happy Valley field is situated on the northernmost anticlinal feature within the DCU. This simple, southwest-northeast trending, doubly-plunging domal closure is bounded on the southeast flank by a high angle reverse fault, and is bisected by a single down-to-the-north- normal fault; these faults are labeled Fault "A" and Fault "B" respectively, on each of the structure maps in the figures that accompany this report. Examples of this faulting can be readily observed on the proprietary and confidential 2D seismic panels that UNOCAL provided to DOG in the 19-August meeting in Anchorage. To date, most of the exploratory drilling and all of the successful gas tests have occurred within the fault block that is to the south of Fault "B" (on the upthrown side). Unocal has successfully tested gas from various Lower Tyonek sands in the Happy Valley #1, Happy Valley #2 and Happy Valley #3 wells; both Upper Tyonek and Beluga sands have been found productive upthrown to Fault "B", in the Happy Valley #8 well. No successful tests of gas have occurred downthrown to Fault "B" in either the NNA #1, Happy Valley #7 and/or Deep Creek Unit #1 wells. While the channelized nature of the Beluga and Tyonek reservoirs allows for the possibility of stratigraphic traps, and also for sand pinchouts in an unpredictable fashion within the area that might be expected to contain gas, such occurrences are difficult-if not impossible-to predict given the sparse well control and fair-to- poor quality 2D seismic data. Therefore, it is recommended that the Happy Valley PA be established on the simple principles of structural control on gas accumulation, by using the lowest known occurrence of gas on structure as observed in any given well. That is the procedure which UNOCAL followed in making the maps that accompany this report. The figures that accompany this report show the Happy Valley field structure at a variety of reservoir levels, including Lower and Upper Tyonek and Beluga sands. On each map is depicted the lowest known extent of the gas accumulation (LKG) for that reservoir, given the available well data. (No attempt has been made to use the existing 2D seismic to further delineate individual reservoirs, as the data is simply not of high enough quality to allow it to be used in such a manner.) It will be recognized that the different Tyonek and Beluga reservoirs appear to have different areas of gas accumulation, based on the current state of mapping in the field. The lower Tyonek reservoirs are currently thought to have the smallest areal extent, due in large part to the decreasing size of the structure with O:\Happy Valley\PA_Application_Aug04\DCU _P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL e . Page 6 of 8 depth. The Upper Tyonek and Beluga reservoirs seem cover much more area, due in part to the gentle structural dip present at these depths. It is anticipated that the proven size of any given reservoir may change with time and the acquisition of additional well control; therefore, UNOCAL has proposed that the minimum number of leases be included in the initial PA, such as would be necessary to completely account for the currently mapped limits of the field. DISTRIBUTION OF NATURAL GAS WITHIN THE UNIT Current maps suggest that Tyonek and Beluga gas pay is present underneath all or parts of sections 15, 21, 22, 27 and 28 in T2S-R13W, an area which includes parts of three CIRlleases (C061588, C061589, C061590) and one State lease (ADL 384380). In determining the areal distribution of pay within the Unit area, UNOCAL followed the common industry practice of assigning reserve potential only to that reservoir volume that can be demonstrated to be updip of the lowest known occurrence of gas (LKG) within any given reservoir. The majority of the productive area for all reservoirs is on the CIRlleases, however, all or part of the 160 acre State Lease ADL 384380 should be included in the Initial Happy Valley Participating Area as it contains acreage that falls within the lowest known limits of the gas accumulation in each of five proven Tyonek reservoirs and the two proven Beluga reservoirs. These reservoirs, which are depicted in the accompanying figures, include: 1) Tyonek T120 Reservoir - This reservoir encompasses roughly 505 acres down to the LKG at -8749 ft observed in the Happy Valley #1 well. The T120 Reservoir was encountered only in the Happy Valley #1 well; thus, it's actual extent and continuity can not be determined from existing data. The T120 Reservoir is not observed in the Happy Valley # 31-22 well, within ADL 384380. 2) Tyonek T80 Reservoir - Approximately 375 acres are contained within the area encompassed by the LKG of the T80 reservoir. Although it hasn't been tested on the State lease, the T80 Reservoir is present on ADL 384380 as indicated by the Happy Valley #31-22 well, where it appears to be gas-bearing on the basis of well log character that is analogous to the successful T80 test in Happy Valley #2. 3) Tyonek T70 Reservoir - Approximately 482 AC are encompassed by the LKG of the T70 reservoir. This reservoir appears to have a strong stratigraphic trap component, as it is not present in every well. It is impossible do determine where the sand will be present; thus, it should be attributed the potential for reserves on both the State and CIRlleases. O:\Happy Valley\P A_Application_Aug04\DCU_P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL e tit Page 7 of 8 4) Tyonek T1 0 Reservoir - The probable extent of gas pay within the T10 reservoir includes 836 acres updip of an apparent gas-water contact at -5700' TVDSS. Gas pay is seen in multiple wells, including Happy Valley #31-22 and Happy Valley #3, both of which penetrate the sand on ADL 384380, and Happy Valley #1 and #2, which penetrate the T10 reservoir on CIRllands. 5) Tyonek T1 Reservoir - The T1 reservoir appears to be gas-bearing on the State and CIRlleases as indicated by the well logs obtained in the Happy Valley #31-22 and Happy Valley #3 well on ADL 384380, and in Happy Valley #1 and #2 on CIRllands. As of the date of this application, two Beluga reservoirs have been successfully tested in the Happy Valley #8 well. Unocal has been actively remapping the Beluga structure concurrent to testing these reservoirs, and the maps presented with this report differ slightly from those shown at the pre-application meeting on 19-August. In the current interpretation, the probable productive area of these reservoirs-as delimited by the LKG of each reservoir as seen in the Happy Valley #8 well-is larger than previously depicted, and now includes both CIRI and State leases. The two proven Beluga reservoirs are: 1) Beluga BLG-50 Reservoir - The probable producing area of this reservoir includes 565 AC in the area delimited by the LKG observed at -3520' TVDSS in Happy Valley #8 well. 2) Beluga BLG-40 Reservoir - Approximately 980 acres, including both State and CIRllands, are likely to be productive in the within the area defined by the LKG seen at -2801' TVDSS in the Happy Valley #8 well. PRODUCTION OF GAS FROM THE UNIT UNOCAL is currently building natural gas production facilities on the Happy Valley pad, with an anticipated start-up date of November 1,2004. Due to the expected low rates from individual reservoirs, it will be necessary for UNOCAL to commingle production from Lower and Upper Tyonek and Beluga reservoirs whenever practical and where reservoir pressures are similar enough to prevent subsurface cross-flow and the potential redistribution of reserves. With that in mind, UNOCAL proposes that a single Participating Area be established to encompass all of the currently identified Beluga and Tyonek reservoirs within the field, and also any future new reservoirs of the same age that might be found within the mapped limits of the Happy Valley field structure. O:\Happy Valley\P A_Application_Aug04\DCU_P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL e e Page 8 of 8 LIST OF INCLUDED FIGURES FIGURE 1: Stratigraphic column for Cook Inlet basin FIGURE 2: Structure map of the T120 sand FIGURE 3: Structure map of the T80 sand FIGURE 4: Structure map of the T70 sand FIGURE 5: Structure map of the T10 sand FIGURE 6: Structure map of the T1 sand FIGURE 7: Structure map of the BLG-50 sand FIGURE 8: Structure map of the BLG-4 sand FIGURE 9 Proposed Happy Valley PA outline NOTES 1) Structural cross sections depicting the general attitude of the Tyonek and Beluga strata in the Happy Valley field were provided to DNR-DOG at the pre-application meeting on August 19, 2004 and are therefore not duplicated in this report. 2) Copies of all newly-acquired, UNOCAL proprietary and confidential 2D seismic lines were provided to DNR-DOG at the August 19 pre-meeting, and are not duplicated with this report. SECURITY OF INFORMATION The applicant requests that this Geologic and Engineering Report and Figures be considered confidential and that the contents of this Report and its accompanying Figures be disclosed only to those persons who are required to review the application for the designation of this proposed Unit. O:\Happy Valley\P A_Application_Aug04\DCU _P A_ Geo&EngrRpt.doc 09/01/04 12:15 PM MTL e e MAPS AND FIGURES TO ACCOMPANY APPLICATION FOR APPROVAL OF THE INITIAL HAPPY VALLEY PARTICIPATING AREA OF THE DEEP CREEK UNIT, KENAI PENINSULA BOROUGH STATE OF ALASKA Submitted to State of Alaska Department of Natural Resources Division of Oil and Gas September 1, 2004 M. Lynch - Geologist, Unocal Alaska J. Sauve, Geophysicist, Unocal Alaska e e -s U) Go W 1&1 :) > ~ UNOCAL ... æ 0 FORMATION THICKNESS DESCRIPTION -c PALY STAGE CI) > 1&1 a: D.2 ZONES '" U) ð l- e ALLUVIUM AND PLEISTOCENE ;:) GLACIAL DEPOSITS 0 ----- ----- STERLING FORMA rlOH MASSIVE SANDSTONE AND PLIOCENE 0' . 11tOOO' CONGlDIERA TE BEDS WlTlI aCCASleNAL THIN LlBNIYE BED i)- ----. II Q. BELUGA FORMATION CLAYSTONE. SILTSTDNE. AND ;:) 0' . 6000' THII SANDSTONE BEDS. TItIN ~ (,) 0 SUBBITUMINOUS COAL BEDS - >- ~:=ill~~ MIOCENE 0 a: a: N « e" SANDSTONE. CLAYSTOIE AND 0 - TYONEK FORMATION SlL TSTDIE INTERBEDS AND .p- IV z t- - 4000' . 7700' MASSIVE BURRITUMINOUS COAL w a: e BEDS . w Z .....-------- (,) t- W · ~ HEMLOCK FORMATION SANDSTONEANDCONGlGMERATE · V OLIGOCENE 300' . 900' TUFFACEOUS SIL TSTOIIE AND --------... WEST FORELAND CLAYSTOIE. SCATTERED VI FORMA rlON SANDSTONEANO CONGLOIERATE · EOCENE 300' - 1000' BEDS VII _________ '" ----'--'-0--'--- -------- RESTS UNCONFORMABLY ON OLDER TERTIARY, CRETACEOUS AND JURASSIC ROCKS. STRATIGRAPHIC NOMENCLATURE FOR KENAI GROUP, COOK INLET BASIN AND UNOCAL PAL YNOGICAL ZONES. (After Calderwood and Fackler, 1972 and R.A. Ballog - Unocal Westem Region Paleo Lab., July, 198~) FIGURE 1: Stratigraphic Column, Cook Inlet basin e e Co . g. '0. 01> . - t"II . · ~ - · '0 OC) Co · Co · Co ~ - '0 -01> .g · Co · ~ - '0 -... Co · Co ~Co · ~ - · '0 -~ Co · Co · Co Co . Co Co . Co- ~. t"II . · ~ - Co Co Co 000- C 000 - C t"II C D> . Co "- Co Co '0- 000 - t"II o JOO 1000 UOO 2000ft -=-=- · ~.~ ,,- ~ -g ..... UNOCAL.Co A'".-'o1 1 :2279J F~1tI SurfrtI'!! nllm!! Ha.'D'DV' V", 11...V' T 1?0 fm CO'DV' of HVto'D T71 Lln& tln!1t Dee'D Creek Unit K.eWlo; Pe:t1;'11S11 h ['lJrIoII:1ur "'0: Sc:dI!I! 100 1 :22795 LlfI!.. nllm!! DIIIII! 1vnchmt 08/1712004 FIGURE 2: TYONEK 1120 RESERVOIR T120 RESERVOIR LKG -8749 in HV1 Area to LKG = 505 AC e e 00 . 00 00 . 00 ~. rei . 230000 232000 . . I. . . . I . " " " I "1' ~ · 00 -00 00 · 00 ·00 ,. 110.) .... · '0 _00 00 · 00 ·00 .110.) .... · '0 -. 00 · 00 00 .110.) .... · '0 _110.) 00 · 00 ·00 ~ C) g. 00- ~. rei . ~ 00 . g. '0- 00 .... rei o JOO 1000 ¡jOO 2000ft ~ 1 ~279j FItt.Itt/ lSurf*r.1! ndml! Ha:DDv V;¡,ll",v T80 fm CODV of HVtODT70: LIn.!! tln:!Jt neeD Creek U:nit K.eWlo; Pe:tt;'I1snl;¡, ['1iIn~"''' s..:.. 100 1 :2279.s LItI!.. ndml! .0- Ivnchmt 0811612004 FIGURE 3: TYONEK T80 RESERVOIR T80 RESERVOIR LKG -7939 in HV2 Area to LKG = 375 AC e e o· o O' 0- ~. r<I . · ~ - '0 -0> .g ·0 · ~ - · '0 -~ o · 0 ·0 o· g. 00- ~. r<I . o JOO 1000 ljOO 2000~ IIt::IIt::::I.I - · QO QO o · 0 ·0 " ....t<o.~. ~;¡:i ..... UNOCAL.O . A'IU"a o . g. '0- 00 .... r<I ~"la.5d. U279j FJt!.1d Surf*:~ ndm~ Ha.'D'DV V..:ll1""v HVto'DT70.,..~11;:n19Û4_nÅ T Lln.l/ rln!d: nee'D Creek U :t1;t !<:ên;.; Pe:t1;11sn 1..:1 ['11II-.....11: SIi:_ 100 1 :22795 LltI!r ndm~ ~ 1v:ncluut 08/1612004 FIGURE 4: TYONEK T70 RESERVOIR T70 RESERVOIR LKG -7936 in HV1 Area to LKG = 482 AC e e 00 . g. M- 0. - M' · ~ ~ · 00 -00 00 · 00 ·00 · ~ .... · 10 000 00 · 00 ·00 00 . g. 10- 0. . - M · ~ .... · 10 0- .g ·00 -/ - . · ~ .... · 10 -.... 00 · 00 00 00 00 00 00- 0. - M ~ , , 00 j, 00 00 , (1)- (1) ~ - M . I Z. _5fi5fi~ a 2!: -567 AI- ~\¡1 , ~ .... · 000 -000 00 · 00 ·00 ,~ .,.,. o '00 1000 UOO 2000& ~ r I CONFIDENTIAL /~ · 000 _0- 00 ..... UNOCALeoO --Ald.at.. -. 00 . g. 10- (1) - M 110 RESERVOIR GWC -5700' in HV1, HV2, HV3 Area to GWC = 836 AC Fldl Surf*'': n......: HAnny VAl1jOy TIO fm Cony ofGcntrs-ton~ Un.!! ..tn!d: neen Creek U:nit Kêl1A; Pel1;'I1S\1b C"".aøur ..,,:: So::IIIII! 100 I :22795 Utrt.,. n......: DIIiII! Ivncnmt 08/1712004 FIGURE 5: TYONEK T10 RESERVOIR e 222000 224000 226000 228000 230000 232000 .10.) - '0 .10.) ·8 · 00 :10.) - · '0 -00 ,8 · 00 8 . ~f>¡,~'" ~~ f ~1 UNOCAL. Ai .iI.~it o 1000 2000 3000 .000ft l:2J209 Fld/ Surf*'r! ndmr! Ha.'D'DV V;, l1".v T 1 fm CO'DV of T 0'0 TV -'7-6i Un.&! tln!d: nee'D Creek U 1'I;t Kew.; Pe1'l;11S'I1 b ['lOno!Wr ..., s.:dIII! 50 1 :25209 U:tI!r ndmr! DdIII! Ivnchmt 0813112004 FIGURE 6: TYONEK T1 RESERVOIR T1 RESERVOIR LKG -5124' in HV8 Area to LKG = 517 AC · e 00 . 00 ~ -) .... M' u .- 00 U 00 00 00 o 1000 2000 3000 40000& fill ~ J f(;/// /'/..'" ( I' I CONFIDENTIAL UNOCALe A'II.~", 1 :2J209 FIit.ItI SurfrtII.~ ndm~ Ha:DDV' V :.11~V' RT .G50 fm CODV' of MTT.4 ( Un.!l ttn!1t neeD Cleek U lI;t K.eW'; Pell;11SI1 b ['œoll!lur"''' Sc:doIi! 50 1 :25209 U:h!r ndm~ J:IiIoII! Ivnc:hmt 08ß 1 f2004 FIGURE 7: BELUGA BLG-50 RESERVOIR BLG-50 RESERVOIR LKG -3520' in HV8 Area to LKG = 565 AC e e ,/ .w...· 00 "'\ ._/ g . \-..........,.--~.-' :;¡: ~ ) ;::; ./ 222000 224000 226000 228000 230000 232000 \ 00 ~ .... IØ -00 00 00 . 00 00 ~ .... IØ ~ 00 00 00 o 1000 2000 3000 .000b I CONFIDENTIAL :~ .... . IØ ,.)-g ~ 00 ~'~: 0 f\., ~ -~t ~~~ ~ ~:! 00 .--0 ~~~:?~ ; _--/ '"' .,- - 01 .:::..___.".1 J ....../'., g .. --__...__ ~-- .....~ 01 ·f'·, ./.- ~---' .' I \ /..¥'.I· _------ .............. . }\·(I"'/~"'-- /o~ \11((r/ -'0'--1. ~=~~~>~..:\\ . ........_....~...:\ '1.\.1\ UNOCAL. A'II.Mla ,/'./. ~ /./~...../~ i I, l /.. g 'I) r; 00 // ----......,.,... 00 . 00 00 . ....- CD - n .. 1 :U209 StuftItte.~ n.....~ 'AT .G40 fm CODV' of MTT.1 ( tfr'i!1t Kew.; Pe:rl;'I'I>;n h s.:dIIi! 1 :25209 ~ 0813112004 FIGURE 8: BELUGA BLG-40 RESERVOIR Flttlll HADDV' v" 11".V' Un.!! DeeD C:reek U :rI;t 1:'1iIn.t!ur ..., BLG-40 RESERVOIR LKG -2801' in HV8 Area to LKG = 980 AC 50 U:II!rn.....~ Iv:nduut . e 218000 220000 222000 224000 226000 228000 230000 232000 ~~. . ., I ., . .~ ., . . I. .. .~' . ., . I. ., . .. . .. .,. .. . . .~. . ''':~.:..J' . .. . '~, ···~NN"i}.~oi ., ~. :: .do. DCl-O 1 : o. I ""'P'"' ~ g . . ~ 00 _ _ __ ....... _ ..J .. <10 ~ . . g ~ . . 0 . . O. g. '0. QI) . .... ~ ...~ . . . .. ., :~ .... · '0 .01 .g · 0 O. o O' '0- 0> . .... ~ . Outline of proposed Initial Happy Valley Participating Area t-----+ I i I ! i i I , -+ I I ¡ -_._~-~.--_..._-- g. O' ..,. ~. ~ . ~ · .... · '0 .. o , 0 · 0 o. o O' ~- 0> . .... ~. .~ .... · '0 -~ .g · 0 o. o ~~f~ ~ v :~ .... · '0 -0 .g · 0 o. o o' QI)- QI) . .... ~ . ~ .... · 00 _00 .g · 0 .. , ....";t ... .~ .... · 00 -01 .g · 0 C061590 J .~ .... · 00 -. .g · 0 o. o O' ..,.- QI) . .... ~ . J , 0 1000 2000 3000 ~OOO:t't 1 :23209 I CONFIDENTIAL UNOCAL8 "', A....... Productive Areas to LKG of All Reservoirs TYONEK RESERVOIRS BELUGA RESERVOIRS An!d: Ken;¡; Pe!!;'I'\SI11.:1. s.:,* 1 :25209 DdiII! 08f3112004 FIGURE 9: PROPOSED HAPPY VALLEY PA F~JJ Ha.nnv V;o n...v Uno!! Deen Creek U !!;t rClnoll!lur ~,,' Stuf*'r!. n_r!. U:tI!rn_r!. IVIIClunt Repairs nabors 129 Kr VALVE . . P1D:::Jì.- Zoq -"2.07 «Nabors 12910-28-04.xls» jim During our BOP Test it was found that we had a leeking KR Valve for manifold pressure on the koomey unit & bad H2S gas detector at the shaker, both repairs were made on 10/28/04 before drilling out as directed by Mr. Jeff Jones. Doug R Nienhaus Unocal DSM Happy Valley Drilling 776-6614 cell# 223-6947 nienhausd@unocal.com Content-Description: Nabors 12910-28-04.xls Content-Type: application/vnd.ms-excel Content-Encoding: base64 1 of! 10/29/20047:52 AM . . rm '--' FRANK H. MURKOWSKI, GOVERNOR AI,Jt.SIiA ORAND GAS CONSERVATION COMMISSION 333 W. 7"' AVENUE. SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Tim Brandenburg Drilling Manager Union Oil Company of California (Unocal) P.O. Box 196247 Anchorage, Alaska 99519 Re: Happy Valley # 11 Union Oil Company of California (Unocal) Permit No: 204-207 Surface Location: 1271' FSL, 1263' FEL, SEe. 22, T2S, R13W, SM Bottomhole Location: 2769' FSL, 2934' FEL, SEC. 22, T2S, R13W, SM Dear Mr. Brandenburg: Enclosed is the approved application for permit to drill the above referenced development well. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. UNOCAL assumes the liability of any protest to the spacing exception that may occur. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission itness any required test. Contact the Commission's petroleum field inspector at (907) 65 -360 (pager). ((Jrel, BY ORDER O~ ]:HE COMMISSION DATED this~ay of October, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. . . UNOCAL~ Alaska Resources To: Mr. Bob Crandall, Senior Geologist Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Ste. 100 Anchorage, Alaska 99501 From: D. Buthman, Unocal Geologist Date: 10/22/2004 Re: Happy Valley #11 Stratigraphy and confining strata above 1000' Shallow Confining Strata Based on offset well infonnation, specifically at the Happy Valley #10 (mudlog figure below), sufficient confining strata, including tuffaceous claystones, carbonaceous laminations, thin calcite crusts, and black to brown firm coals beds, occur at approximately 1050' measured depth in the Happy Valley #10 well. Cementing the surface casing between 1050 and 1100 feet, just below the base of the coarse porous sandstone, and circulating cement to surface, should adequately confine reservoirs below. . Page 1 Remarks SUfIIeJf Dala, Mud Reports, other Info. SAND (800' TO 920')= VERY UGHi GRAY OVERALL; DOM MILKY WHITE. L T TO MED 0RAY, L T TO MED 0REENI$H 0RAY, CLEAR. oee DARK REDDISH ORAN0E; CLASTS RANGE FRQM VERY FINE LOWER TQ MEDIIJM UPPER. DOM VERY FINE TO FINE; ANGULI\R TO ROUNDED. DOM SUBANGU.l.A.R TO SUBROUN ); COM FROSTED GRAINS. oee PITTED GRAINS; COMPOSED OF 80% QUARTZ, 20% META I..ITHICS, TRACE JASPER; GRAIN SIZE INeR WITH DEPTH SO THAT BY 900' GRAINS RANGE FROM VERY fiNE TO <JRANULES WITH fiNE TO COARSE DOMINATING; LOWER ZONE IS 60% QUARTZ, 4(¡% META UTHles; TOTAI..LY UNCONS THROUGHOUT: NO ACID REACTION; EST FAIR TO GOOD POR AND PERM. TUFFACEOUS CLAYSTONE (\1ZQ' TO 950')= I..T BROWNISH GRAY. PALE YELSH BROWN. oce I..T TO MED GREENISH GRAY; VERY SOfT TO oee FIRM: MUSHY TO OCC MOD BR'TTI..E; BLOCKY AND IRREG CTGS: MATTE LUSTER SMOOTH TO MOD GRITTY TEXTURE: NON CALC; INTERBEDDED WITH TUFFACEOUS SLTST. DRILL TO 855' CASING DEPTH. DRILL TO 965' RUN LEAK OfF TEST SAND (\175' TO 1Q35') = VERY LIGHT GRAY OVERALL: COMMON MILKY WHITE. LI()HT TO MEDIUM GRAY, LIGHT TO MEDIUM GREENISH GRAY; OCCASIONAL PALE YELLOWISH BROWN, REDDISH ORANGE, BLACK; CLASTS RAN0E FROM VERY FINE LOWER TO MEDIUM UPPER; MOSTLY FINE RAN0E;ANGULAR TO ROUNDED; MODERATE SORTING IN THE fiNE TO MEDIUM RANGE: COMPOSED OF 70% OUARTZ, 30% METAMORPHIC LlTHICS: TRACE AMOUNT Of JASPER: TOTALLY UNCONSOLIDATED IN THE SAMPLES; SOME GRAINS WITH A THIN CRUST Of CALCITE: CLAY MATRIX INFERRED, TUFFACEOUS SILTSTONE (1035' TO 1100')~ LIGHT BROWNISH GRAY. OCCASIONALLY WITH SLIGHT ()REENISH HUES; SOFT TO fiRM: CRUMBLY TO OCCASIONALLY MODERATELY \IIÞ Page 2 CRUM8LY TO OCCASIONALLY MIJDERATELY TOUGH; IRREGULAR, 8LOCKY AND SU88LOCKY CUTTINGS HABIT; MATTE, EARTHY LUSTER WITH SCATTERED MICRO SPARKLES; GRITTY, A8RASIVE TEXTURE; ARGILLACEOUS; LOCALLY COMMON VERY fiNE SAND ORAINS; OCCASION/IL THIN CAR80NACEOUS LAMINATIONS AND STREAKS; SCATTERED MICRO MICA TUFFACEOUS CLAYSTONE (1105' TO '1180')- lIOHT TO MEDIUM ORAY, MEDIUM TO DARK BROWNISH ORAY. OCCASIONALLY LIGHT TO MEDIUM OREENlSH GRAY; VERY SOFT TO FIRM; MOSTLY APPEARS AS CLAY WITH SLIOHTLY fiRM LUMPS; OCCASIONALLY AS MODERATELY INDURATED SU88LOCKY AND IRREOULAR CUTTINGS; MUSHY TO CRUMBLY. MODERATELY BRITTLE; MATTE TO MODERATELY 0RI TO MUNDANT VERY f ORAINS DESEMINATED THROU0HOUT; COMMON CARBONACEOUS SPECKS AND STREAKS; LOCALLY MODERATELY CALCAREOUS; LOCALLY VERY SILTY, GRADIN0 TO AND INTERBEDDED WITH TUFFACEOUS SILTSTONE. SAND (11ØO' TO 1260')- Ll0HT 0RAYWITH SLIGHT GREENISH HUES OVERALL; MOSTLY MILKY WHITE. LIGHT TO MEDIUM GRAY. LIGHT TO MEDIUM GREENISH GRAY, OCCASIONALLY MODERATE 8ROWN. RARELY REDD'SH ORANGE; CLASTS RAN0E FROM VERY FINE LOWER TO VERY COARSE UPPER; THE MAJOR'TY OF GRAINS ARE FINE TO MEDIUM RAN0E; ANGULAR TO ROUNDED. DOMINANTLY SUBAN0ULAR TO TO SU8ROUND; POORLY SORTED OVERA,LL; MODERATELY SORTED 'N THE FINE TO M8DIUM GRAIN RANGE; COMPOSED OF 70% QUARTZ, 30% METAMORPHIC LlTHICS, TRACE AMOUNTS OF JASPER; TOTALLY UNCONSOLIDATED IN SAMPLES; SLIGHT ACID REACTION; CLAY"" SAND (1270' TO 1350')- Ll0HT TO MEDIUM GRAY OVERALL WITH SLIGHT GR8ENISH HUES; GRAINS ARE MILKY WHITE TO CLEAR. LIGHT TO MEDIUM 0RAY. LIGHT TO MEDIUM GREENISH GRAY, BLACK. RARELY DARK REDD'SH ORANGE; CLASTS RAN0E FROM VERY F'NE LOWER TO COARSE UPPER. DOMINANTLY FINE TO MEDiUM RANGE; ANGULAR TO ROUNDED. MOSTLY SUB,A,NGULAR TO SU8ROUND; MODERATELY SORTED 'N THE FINE TO MEDIUM RAN0E; COMMON FROSTED GRAINS; COMPOSED OF 6D% QUARTZ, 40% METAMORPH'C LlTHICS; RARE JASPER; MANY GRAINS HAVE A THIN CRUST OF CALCITE ON SURFACES; MODERATE TO VIGOROUS ACID REACTION; CLAY MATR'X INFERRED; ESTIMATED FAIR POROSITY AND PERMEAa'LlTY. Happy Valley #10 Epoch mudlog. 4iI Page 3 , . . Winton- The revised program for the 7" intermediate string will be as follows: 9-5/8" shoe depth 1004' MD /1000' TVD: as per the 10-401 8-1/2" hole /7" shoe depth 4535' MD /4150' TVD as per the 10-401 Plan 350' of 15.8 ppg Tail Plan Lead cement to 500' (504' inside 9-5/8") - 3,685' lead cement + 25% excess over the larger of either logged Caliper volume or fluid Caliper Volume. Dowell's CEM-NET will be added to the lead slurry in the 1-2 ppb range for the lead above the top beluga - 3200' TVD. following the set up of the cement and prior to drilling out the 7" shoe, a 30 minute pressure test of 1500 psi will be performed and charted on the 7" by 9-5/8" annulus. If losses are encountered during the cement job. a temperature survey will be run on slickline to determine the TOC. On a side note, the intermediate section will be control drilled with a Rock bit to reduce the cuttings load and help prevent drilling induced losses. The production water based mud will be used on this interval as noted in the 10-401. If you have any questions or concerns, please contact me directly. Thank you, Steven Lambe .. . Unocal Corporation . P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCAL. Tuesday, October 19, 2004 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 RE. EIVE,D OCT 1 :~2004 AI L," O":¡ ,.,:', f'ommission !aSrH! II I,,)! \,I" Al1t~horage Attn: Commission Chair John Norman Re: Application for Permit to Drill (Form 10-401) Happy Valley #11 Dear Commissioner Norman, Attached for your approval is an application for permit to drill (Form 10-401) for the Happy Valley #11 Well. Unocal respectfully requests a waiver of the requirement for a diverter on the 12-1/4" /' surface hole as allowed under AOGCC Regulation 20 AAC 25.035 (h) (2). Please refer to attached supporting documentation. Unocal respectfully requests a waiver of the requirement for an alternate BOPE test (" frequency as allowed under AOGCC Regulation 20 AAC 25.035 (h) (1). The anticipated spud date is approximately OctObW004. If you have any questions please contact myself at 263-7657, or Mr. Steven~; @ 263-7637. ~:~~~ - ~7 Drilling Manager SSL/s Enclosure ORIGINAL / ,,!,GÆ-. lC{t-z-/2-C01- ALAe. OIL AND ~:~T~g~S~~;A~ON COM.'O~ECËIVED PERMIT TO DRILL ocr 1 ~:~ 2004 20 MC 25.005 ,^-task nil Ji:, r., ,,- .. 11 b. Current Well Class: Exploratory U' f>èlJèl'ò'Pmë~tf€ßj1;,. ~l1'UUa8l~one D Stratigraphic Test 0 Service 0 DevelorAndt~age 0 Single Zone 0 5. Bond: Blanket 0 Single Well D 11. Well Name and Number: Bond No. 5534278 Happy Valley #11 / 6. Proposed Depth: 12. Field/Pool(s): MD: 10104 TVD: 9600 Tyonek 7. Property Designation: C-061590 , 1 a. Type of Work: Drill L:J Redrill D Re-entry 0 2. Operator Name: Union Oil Company of California (Unocal) 3. Address: PO Box 196247, Anchorage, Alaska, 99519 4a. Location of Well (Governmental Section): Surface: 1271' FSL, 1263' FEL, Sect 22, T2S, R13W, SM Top of Productive Horizon: 2769'FSL, 2934'FEL, Sect22,T2S, R13W,SM Total Depth: 2769'FSL,2934'FEL, Sect 22, T2S, R13W,SM 4b. Location of Well (State Base Plane Coordinates): Surface:x- 228004 y- 2189813.8 Zone- 16. Deviated wells: Kickoff depth: Maximum Hole Angle: 18. Casing Program: Size Casing 13-3/8 12.25 9.625 8.5 7 6.125 3.5 Specifications Hole NA Weight Grade 72 K-55 40 L-80 26 L-80 9.3 L-80 Coupling Weld Butt-ABM Butt-ABM Butt-ABM 19. Total Depth MD (ft): 4 500 feet 28 degrees cE·Af5i5i9ximate Spud Date: 1 0/2~04 . Distance to Nearest 3040 Property: 240 10. KB Elevation 15. Distance to Nearest Well (Height above GL): 16.5 feet Within Pool: 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.03,5) Downhole: 4291 Surface: 3369 /" Setting Depth Quantity of Cement c.f. or sacks 8. Land Use Permit: NA 9. Acres in Property: 250 Top Bottom Length 100 1004 4535 5754 TVD (including stage data) 100 Drilled & cemented 1000 84 bbls (50 % excess) / 4150 96 bbls (20% excess) r' 9600 183 bbls (30% excess) ~ MD TVD MD 0 0 100 0 0 1004 0 0 4535 4350 3987 10104 PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Structural Conductor Surface Intermediate Production Liner Length Perforation Depth MD (ft): Size MD TVD Cement Volume Perforation Depth TVD (ft): Time v. Depth Plot L::J Shallow Hazard Analysis U Drilling Fluid Program 0 20 AAC 25.050 requirements 0 Date Contact Filing Fee L::J BOP Sketch L::J Property Plat 0 Diverter Sketch 0 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Printed Name ... Tim B7nbUrg Signature -z-:.. ,V"":> ~ Commission Use Only IAPI Numb : I Permit Approval 50- .2 3/- ..:z.. 0 ð.2. 9 Date: BopE f-o ~ÇOO jlH l . quired Yes 0 No i ~ulfide m!Ç,a~urys J' Yes 0 f\ o OS s (A. ) (2. ) at \1 ~tev- wcv. \) (h)(¡I/ c..rrQY'j,{.~fe.. f?,OPE If'Çt- 20. Attachments: Other: Ppf!~ 12.. Approved by: Form 10-401 Revised 12/2003 Drilling Program L::J Seabed Report 0 Title Drilling Manager Phone Date 10/19/2004 263-7657 I See cover letter for other requirements. Mud log required Yes 0 No ,g Directional surveJ required Yes~ No 0 ¡~~~~~~ l ~ Q1D?fate~. '\Ie ell' ();2 ~t.I THE COMMISSION í 1'-/ V I OR\G\NAL þDU5 ~icate " 81 . WAIVER REQUEST Unocal respectfully requests a waiver to; (1.) AOGCC regulations 20 AAC 25.035 (C) WAIVER #1 : Unocal request permission to drill the 12-1/4" surface hole to a depth of +/- 1003 MD/1 OOO'VD' without a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) "Upon request f the operator, the commission will, in its discretion, approve a variance...... (2) from the diverter system requirements in (C) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. " Based on our experience drilling 12 %" surface holes in Happy Valley #1-10 it has been proven conclusively that no shallow gas hazards exist beneath this pad to a depth of at least 2654' VD. The 12-1/4" surface hole for Happy Valley #11 will be drilled from the same pad as Happy Valley Wells #1 through #10. For the purpose of basic risk mitigation, Unocal will utilize a gel/native spud mud which is expected to weigh approximately 9.0 - 9.2 ppg when drilling at the planned surface hole TD of 1003', to eliminate the risk of a shallow water flow. \ . . Happy Valley #11 Bullet Procedure Install cellar for containment Prepare pad & install liner, tankage & berms Turnkey rig move on same pad (includes riserlflowline nipple up) Rig Acceptance. Hold pre-spud & HES meetings. Drill in Conductor, Cement, Mix mud, RU pipe handling equipment, etc. P/U portion of BHA Clean out conductor & drill out shoe PU remainder of BHA & drill string Drill 12 1/4" hole from: 0' to: 1004' MD /1000' VD ,/' Circ clean & pump carbide indicator Pump out to BHA & POH LID BHA Clean rig floor & RU to run 9 5/8" csg RIH w/ 9 5/8" surface casing Land casing, M/U head, establish circulation RU to cement & conduct safety meeting / Pressure test lines & cement 9 5/8" casing RD casing running equipment '. /) NU & test MBs wellhead // I NU BOPE, chokelkilllines & test to 250 ý1,59Ø,O psi PU BHA CJ RIH wI 8 1/2" steerable BHA " Drill out & perform LOT ~,.""""" Changeover from spud mud to CI-WB Drill 8 1/2" hole from: 1003' to: D 14150' VD /' Circulate clean (& pump nut plug sweep) POH wI 8 1/2" BHA POH reaming & LID BHA RU & run 7" casing " Land casing (includes washing down) & circulate / Cement 7" casing RD cementers & casing running equipment Set pack-off & test 7" casing / Change 7" rams to 4" rams / MU steerable BHA & test RIH Drill out & perform LOT Drill 6 1/8" hole from: 4,338' MD to: 7,200' MD /6,842' VD / Drill 6 1/8" hole from: 7,200' MD to: 10,104' MD /9,600' VD Circulate sweep, SIT, check for swabbing, etc. POH (assumes pump out required due to swab) RU Reeves E-line unit, run quad combo RIH, C&C, POOH & LID DP Less 4,150' /" RU & run 3 1/2" Liner RIH w/ Liner on DP. Circulate, reciprocate & conduct safety meeting / RU, test lines, pump cement, Set hanger & Packer, & check floats Circulate Well Clean. Test Packer. Circulate to Completion Brine POOH LD DP. RU E-line. RIH and Pull Bond Log. RD E-line. & Prep to run tubing. MU & RIH 3-1/2" Completion String / Space out & Land Seals Test Tubing, Liner & annulus. ND BOPE NU & test tree Clean rig & pits, release rig Location: X=228,003.722 E, Y=2.189,813.828 N Lat: 59Q 59' 09.142" N, Long: 151° 29' 07.032" W 1271' FSL, 1263' FEL, Sec22, T2S, R13W, S.M. RKB =: 26.5' AGL GL =: 716.4' AMSL RKB elevation =: 732.9' AMSL 13-3/13" 72 oof butt welded. drilied/driven to +/-100' BGL 12-114" hole (drilled w/out diverter, AOGCC waiver requested, confirm approval) 9.2 ppg KCL- WBM Cement to surface req'd w/350' 15.8 ppg G tail & 654' 12.8 ppg extended G lead 3-1/2" 9.3 ppf l-80 BTC A.B. Mod liner from 4350' MD to 10,104' MD/9600' VD Liner Cemented with 12.0 Litecrete from 10,104' up to 4,350' + 30% excess. Planned TD 10,104' MD /9,600' VD Static BHT =: 36.8°F + (0.0136 x TVD) Job Template #1 REVISED: 10/19/04 DRAWN BY: SSL . . S. Kenai Gas project Happy Valley #11 7" SHOE DESIGN SUMMARY & SKETCH 9-5/8" shoe 984 ft BML ~ (1,000 ft TVD) \ I \ I \ / \ 8-1/2" Hole I \ I \ I \ I \ I \ I - mdb/01decOO METHOD 2: ... RT - MSL = 16.5 ft ... .& WD = 0 ft with 0.447 PSI/FT Gradient ... DESIGN DOWN: MW = 9.3 PPG Pform = 9.3 PPG EMW KT = 14 BBLS at 0 PPG FG = 0.8 PSI/FT Gas Gradient = 0.02 PSI/FT Drill Pipe = 4 INCH 9-5/8" shoe ~ , The shallowest 7 " shoe depth = 946 ft BML or 963 ft TVD ~ \ I \ I \ ~ I The deepest 8-1/2 in hole \ that can be drilled = I 4,181 ftBMLor4,197ftTVD \ I \ 8-1/2" Hole I \ I \ I \ I \ TD = 4,134 ft BML or 4,150 ft TVD I METHOD 1: · DESIGN UP: MW = 9.3 PPG Pform = 9.3 PPG EMW KT = 14 BBLS at 0 PPG FG = 0.8 PSI/FT Gas Gradient = 0.05 PSIIFT Drill Pipe = 4 INCH . . GENERAL INPUT DATA Field Well Name RT-MSL Water Depth Sea Water Gradient Casing Size to be Designed Hole Size Drilled for This Casing S. Kenai Gas project Happy Valley #11 16.5 ft Oft 0.447 psilft 7 inch 8-1/2 inch DESIGN METHOD 1: From TD up to find the shallowest allowable shoe depth Hole Size Below the Shoe Next Section Total Vertical Depth Next Section Total Vertical Depth Next Section Gas Gradient (first approximation: 0.03) Kick Intensity cannot be less than 0 ppg Mud Weight Estimated Formation Pressure at Next Section TD Fracture Gradient Kick Tolerance Drill Pipe Outside Diameter 8-1/2 inch 4,150 ft TVD RKB 4,134 ft TVD BML 0.050 psilft 0.0 PPG 9.3 PPG 9.3 PPG EMW 0.80 psilft 14.0 bbl 4 inch ICalculation results acceptable. Minimum shoe depth = 963 ft TVD RKB 1142 DESIGN METHOD 2: From upper casing shoe down to find the deepest hole which can be drilled without fracturing the upper casing shoe Upper Casing Size Upper Casing Shoe Depth Upper Casing Shoe Depth Upper Gas Gradient (first approximation: 0.007) Hole Size below the Upper Casing Shoe Kick Intensity cannot be less than 0 ppg Mud Weight Estimated Formation Pressure Fracture Gradient Kick Tolerance Drill Pipe Outside Diameter 9-5/8 inch 1,000 ft TVD RKB 984 ft TVD BML 0.020 psilft 8-1/2 inch 0.0 PPG 9.3 PPG 9.3 PPG EMW 0.80 psilft 14.0 bbl 4 inch ICalculation results acceptable. Maximum shoe depth = 4,197 ft TVD RKB mdb/01decOO 2788 . . S. Kenai Gas project Happy Valley #11 3-1/2" SHOE DESIGN SUMMARY & SKETCH 7 " shoe 4,134 ft BML~ (4,150 ft TVD) \ I \ I \ I \ 6-1/8" Hole I \ I \ I \ I \ I \ I - mdb/01 decOO METHOD 2: ¡ RT - MSL = 16.5 ft ! WD = 0 ft with 0.447 PSI/FT Gradient DESIGN DOWN: MW = 9 PPG Pform = 9.5 PPG EMW KT = 20 BBLS at 0.5 PPG FG = 0.7 PSI/FT Gas Gradient = 0.02 PSI/FT Drill Pipe = 4 INCH , The shallowest 3-1/2" shoe depth = 4,012 ft BML or 4,029 ft TVD '" The deepest 6-1/8 in hole that can be drilled = 9,587 ft BML or 9,603 ft TVD 7 "shoe..... 6-1/8" Hole TD = 9,584 ft BML or 9,600 ft TVD METHOD 1: .- \ I \ I \ I \ I \ I \ I \ I \ I \ I \ I a DESIGN UP: MW = 9 PPG Pform = 9.5 PPG EMW KT = 20 BBLS at 0.5 PPG FG = 0.7 PSI/FT Gas Gradient = 0.05 PSI/FT Drill Pipe = 4 INCH . . GENERAL INPUT DATA Field Well Name RT-MSL Water Depth Sea Water Gradient Casing Size to be Designed Hole Size Drilled for This Casing S. Kenai Gas project Happy Valley #11 16.5 ft Oft 0.447 psilft 3-1/2 inch 6-1/8 inch DESIGN METHOD 1: From TD up to find the shallowest allowable shoe depth Hole Size Below the Shoe Next Section Total Vertical Depth Next Section Total Vertical Depth Next Section Gas Gradient (first approximation: 0.067) Kick Intensity (Swab kick = 0.0 ppg intensity) Mud Weight Estimated Formation Pressure at Next Section TD Fracture Gradient Kick Tolerance Drill Pipe Outside Diameter 6-1/8 inch 9,600 ft TVD RKB 9,584 ft TVD BML 0.050 psilft 0.5 PPG 9.0 PPG 9.5 PPG EMW 0.70 psi/ft 20.0 bbl 4 inch ICalculation results acceptable. Minimum shoe depth = 4,029 ft TVD RKB 1142 DESIGN METHOD 2: From upper casing shoe down to find the deepest hole which can be drilled without fracturing the upper casing shoe Upper Casing Size Upper Casing Shoe Depth Upper Casing Shoe Depth Upper Gas Gradient (first approximation: 0.03) Hole Size below the Upper Casing Shoe Kick Intensity (Swab kick = 0.0 ppg intensity) Mud Weight Estimated Formation Pressure Fracture Gradient Kick Tolerance Drill Pipe Outside Diameter 7 inch 4,150 ft TVD RKB 4,134 ft rvD BML 0.020 psilft 6-1/8 inch 0.5 PPG 9.0 PPG 9.5 PPG EMW 0.70 psilft 20.0 bbl 4 inch ICalculation results acceptable. Maximum shoe depth = 9,603 ft rvD RKB mdb/01 decOO 7132 . ' . . UNDCAL Maximum Anticipated Surface Pressure Calculation Happy Valley Well #11 Kenai Peninsula, Alaska Assumptions: 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a 0.447 ~ft gradient from surface to planned total depth at 9,600' VD BRT. 2. The MAS.P. during drilling operations will be governed by the 7" shoe frac gradient, and is calculated based on a full column of gas between the 7" shoe and the surface. The shoe for HV #11 will be at the same depth as the shoe in HV well #3 thus the nearby LOT data from approximately 4013' VD is useful for relatively accurate kick tolerance & MASP calculations. 3. The MAS.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. M.A.S.P. During Production Life: / Max. pore pressure at T.D. = 9,600 ' VD x 0.447 = 4291 psi MAS.P. (tbg leak at surface) = 4291 psi - (0.096 psi/ft * 9,600 ft) = = 3369 psi / M.A.S.P. While Drilling 6-1/8" hole at 9,600' VD: Max. Est. Frac pressure at 7" shoe = 4150 ft. x 0.81 psi/ft* = = 3362 psi MAS.P. during drilling = 3362 psi - (.096 psilft x 4150 ft.) = = 2964 psi M.A.S.P. While Drilling 8-1/2" hole at 4,150' VD: Max. Est. Frac pressure at 9-5/8" shoe = 1000 ft. x 0.8 psi/ft** = = 800 psi MAS.P. during drilling = 800 psi - (.08 psi/ft x 1000 ft.) = = 720 psi WELL: Happy Valley #11 Sect. 1 Sect. 2 Sect. 3 12 1/4" hole MUD WT. 8 1/2" hole MUD WT. 6-1/8" hole MUD WT. SECTION CASING BOTTOM TOP 1 9-5/8" 1,004 0 TVD 1,000 0 2 7" 4,535 0 TVD 4,150 0 3 31/2" 10,104 4150 TVD 9,600 2757 Calculation & Casing Design Factors Happy Valley Well #11 Kenai Peninsula, Alaska FIELD: South Kenai Gas DATE: 18-0ct-04 DESIGN BY: Steven Lambe 9.1 PPG 9.1 PPG 9.3 PPG MASP=720 psi" MASP= 2.964 psi MASP= 3,369 psi Production Mode e TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIP}'ON /,/0 BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE LENGTH WT. GRADE THREAD LBS LBS 1000 LBS SF TENSION PSI' PSI SF COlL. PSI" PSI SF BURST 1004 40 K-55 BTC 40,160 40.160 1300 32.37 440 1,950 4.43 866 3,450 3.98 4535 5954 26 L-80 8.30 /'1,826 4.224 10,530 BTC-mod 117,910 117,910 979 3,090 9.2 L-80 207 3.78 IBT-mod 54,777 54.777 ** See attached sheet for calculation of MASP * Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psi/ft) and the casing evacuated for the internal stress (0 psi/ft) Note: All wellhead components are rated to 5000 psi working pressure, with the exception of the X-mas tree and tree adapter spool, which are rated to 6500 psi workingi>ressure. 1.69 /3,717 2.49 3,717 5,750 10,160 1.55 /' 2.73 . . ' . . Property qrids and formulas for Happy Valley #11 Well Specifics: Casing Program 12 X" hole (95/8" casing) 8 W' hole (7" casing) 6 1/8" hole (3.5" casing) MD TVD Footaae 1004' 1000' 1004' 4535' 4150' 3531' 10104' 9600' 5569' Suñace Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: o - 950' Density 9.0 -9.2 System Formulation: Product Water KCI KOH Barazan D PACL EZ Mud DP Aldacide G Baracor 700 Barascav D Viscosity Plastic Viscosity 60 - 85 6 - 16 Yield Point 35 - 45 APIFL <8 Il!::! 8.5-9.0 6%KCI, EZ Mud Concentration 0.905 bbl 20 ppb (30K chlorides) 0.2 ppb (9 pH) 1.5 -2 ppb (as required 35-45 YP) 1 ppb 0.75 ppb 0.1 ppb 1 ppb 0.5 ppb (add as the well spuds) Intermediate Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: 950' - 2500' 2500' - 3846' Density 9.0 -9.2 9.1 - 9.3 System Formulation: Product Water KCI KOH Barazan D Dextrid EZ Mud DP Aldacide G Baracor 700 Barascav D Viscosity 40-53 40-50 Plastic Viscosity 6 - 15 6 - 15 Il!::! 8.5-9.0 8.5-9.0 Yield Point 15 - 25 15 - 25 API FL <8 <8 6%KCI, EZ Mud Concentration 0.905 bbl 19.8 ppb (30K chlorides) 0.2 ppb (9 pH) 1.25 ppb (as required 35 YP) 1-2 ppb 0.75 ppb 0.1 ppb 1 ppb 0.5 ppb (maintain per dilution rate) . . Production Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: 3846 - 6578' ~~ System Formulation: Product Water KCI KOH Barazan D Dextrid PACL EZ Mud DP Aldacide G Baracor 700 Barascav D Viscosity Plastic Viscosity 40-50 6 - 15 Yield Point 15 - 25 6%KCI, EZ Mud Concentration 0.905 bbl 19.8 ppb (30K chlorides) 0.2 ppb (9 pH) 1.25 ppb (as required 35 YP) 1-2 ppb 1 ppb 0.75 ppb 0.1 ppb 1 ppb 0.5 ppb (maintain per dilution rate) APIFL <5 P..!:!. 8.5-9.0 ..... ..... Ground level /' 7" J( 3-1/2" outlet 11"!MMas ../·1 Wellhead ~ Lw;j 9-5/8" J( 7" outlet 9-5/8" x (Cemented) )r '4 ,. 13-3/8" J( 11 10'0" : 8' HAPPY VALLEY #11 PLAN DAYS VERSUS DEPTH 1 IVI Ii V.__·~ 1._."'.> · .- UNOCAL UNOCAL Location: Kenai Peninsula, Alaska Slot: HV#11 Field: South Kenai Gas Field Well: HV #11 I Installation: Happy Valley Wellbore: HV#11 Ver3 ¢:: 0 -500 L{) N II E 0 0 Q) (ij 0 en 500 1000 1500 2000 2500 3000 - 3500 - CD J2 - £; 4000 C. CD C 4500 ñ; () = 5000 ~ ~ CD 5500 :J ~ t- I V 6000 6500 ~ 7000 7500 8000 8500 9000 9500 10000 KOP 5.00 \ \ 10.00 ¡\ b. 9 518" Surface casing 20.00 DLS: 2.50 deg/100ft 25.00 End of Build 27.89 27.98 27.88 Seale 1 em = 200 ft East (feet) -> -2400 -2000 -1600 -1200 -800 -400 -0 DLS: 1.17 deg/100ft 3 1/2" Liner T80 Target I TO ~ End of Drop \ ~' " ~~:nd of Hold 7" Casin Beluga Target g ~ ~ End of Turn End of Build \ 9 5/8" Surface casing ~\ KOP \ ofT om \ 7" Casing ~ ~ Beluga Target End of Hold 25.00 22.00 DLS: 1.50 deg/100ft 16.00~ 13.00 10.00 7.00 \ 4.00 1.00 End of Drop 400 2000 1600 1200 ^ I Z 0 800 ;::s. ':1' - ø' 400 CD - - (J) (' '" 0 ar (' 3 II -400 I\) a a ;: ! Created by: Planner Date plotted: 19-0et-2004 - Plot reference is HV #11 Ver 3. Ref wellpath is HV #11 Ver 3. Coordinates are in feet reference HV#11. True Verueal Depths are reference Rig Datum. Measured Depths ere reference Rig Datum. Rig Datum: Datum #1 Rig Datum to mean sea level: 732.50 ft. ..!'lot North is aiigned to TRUE North. WELL PROFILE DATA ---¡-- Inc AzI TVD North Point MD East Tie on 0.00 0.00 330.00 0.00 0.00 0.00 End of Hold 500.00 0.00 330.00 500.00 0.00 0,00 End of Build 1620.00 28.00 330.00 1575.95 232.32 -134.13 2080.84 28.00 318.50 1983.15 407.16 ·259.99 2541.68 28.00 307.00 2390.35 553.38 -418.18 4931.01 28.00 307.00 4500.00 1228.45 -1314.03 End otTum EndofTum End of Hold End of Drop 6797.68 0.00 307.00 6293.25 1497.53 -1671.10 T.D.&EndofHold 10104,4310,00 307,00 9600.001,497,53 -1671.10 I T80 Target ~ 3 1/2" Liner j ¡ l TD -500 -0 500 1000 1500 2000 2500 3000 Scale 1 em; 25Mertical Section (feet) -> Azimuth 311.86 with reference 0.00 N, 0.00 E from HV#11 INTEQ I deg/10Oft I v. Sect 0,00 0,00 0,00 0.00 2,50 254.94 1.17 1465.35 1.17 680.74 0.00 1798.42 1.50 2243.92 0,00 Id INTEQ UNOCAL Location: Field: Installation: Kenai Peninsula, Alaska South Kenai Gas Field Happy Valley Scale 1 em = 50 ft -1500 -1400 -1300 -1200 -1100 -1000 1900 -'---~ 1800 1700 1600 1500 1400 1300 1200 1100 ^ 1000 Z' Q) .æ 900 - = r... 0 800 Z 700 600 500 o\<¡..o;'.... . 4800 -900 East (teet) -> -800 ~oo -600 . 0 100 1900 1800 1700 1600 4500 [ 1500 4300 1400 4200 1300 Slot: Well: Wellbore: HV#11 HV #11 HV#11 Ver3 ~004J00 ~ 0~, ~'" ~""" """'" 6500+' , 64~+, ~900 6~-' ~ 61~O:O'+, 3800 ~ 5900+, 3700 ~':§< 5~7;;"" ~ 3800 ~~, ~ 5500'"" 3500 5400~~,", 3400 5200--"-, 5100", ~3300 50004::':;,;" ~<#' ~2'" 4700:~",,, ",~O .....~3100 3DOO 2900 4500'+" -~ ,....-' 2300 4400::~", ."' .# ',2200 42"':,,,,_:",~ #' ~ """'::;.::".< ~ '" 2~800 2800 38"'''', ".,#' é' 37~'", '"-,,,$-# ~,,_. +',,,'I>.¡P 2300 ~, ,-_,#' #' ~"OO 34~"", "-''';<\~'\'~# ~2100 3300'_,,"~"~~#~1§> ~ 3200--~-, -"-',.;"¢¡, ~ 3100', '\...'#,.. \900 3000', .:.#...'" '\. ...r::P 1800 2900 ~ ': ..ø' "00 .;~:\"::""\'00, ,2300 3200'''+~ ~2200 3100\"__ ~~ \ '''~~, 1500 ~ 2100 2800\ 2400"__ 1400~2000 2700\ 2300'+', 600 _ ...,:-? <§> 2600\ 1300 "t'900 ""'400'<: -" ,d":~:':~ #:~'" >'': ~v 1300'" 2200" 1600+ 1000~ 2100' . 200Ô 1400, 1200" " 1~-ì: + ;",¡ l100~;¡","~'';>q,''q, 500 400 300 '-!ViIa" .,,# 200 ¢:: 0 100 It) ~ II E 0 0 ( ) ro 0 en -100 I 4700 4800 2800 '",2500 ',2400 1900 .1800 ,it :,<f' ,of ,of -1500 -1400 -1300 -1200 -1100 -1000 Scale 1 cm = 50 ft -900 -800 -700 -600 East (teet) -> -500 -100 -400 -300 -200 I I ~ 5600 ~ 5500\ 5400\ 5300 ., 5200\ 5100\ 5000 ~ 4900 \ 4800 \ 4700 \ 4600 t 4500 , 4400 '1- 4300 ~ 4100 4200 ~ 4000 4100 t ""'" \ 3900 \ 3800 t 3100 r 3600 ¡ 3500 t 3400 \ 3300 \ 3200t 3100T 3000 ~ 2900~ 2800. 2100\ 2600t }2SOO l2400 '.~500 -... j' -500 -400 -300 -200 -100 o 1200 1100 1000 ^ Z 0 900 ;:¡. :r - ¡;' 800 (I) - - 700 600 500 400 [ 300 200 (j) 100 0 w CD 0 0 3 II C11 0 -100 ;:I! 3900 3100 3600 3500 3400 100 UNOCAL u Location: Kenai Peninsula, Alaska Field: South Kenai Gas Field Installation: Happy Valley Slot: HV#11 Well: HV#11 Wellbore: HV #11 Ver 3 Scale 1 cm = 50 ft -1800 -1700 -1600 -1500 ~~ ~.I' ~~t ,.I' . ,.'" ~Zz ~~ ~# if é' .I' ~ 6200'. '.# 6100 ~ ~ ~ 6000" ~o/..,- ~~ ~ ~ 5700~" '.~... ..t 55IXi"", ~ 5400'~ 530à'>, 52005~~ ~ ,*,<S' SOOÒ", ~~ ~ '900". ~,.§ > 4900' , . .'./' ~<§> -'" 4700::00"" ".. ..¢:,#' ~ ¥ 45OO~oo, ''-. ,#' ~ .¡f 43()(}~oo. ',,~ ..t '<z(# ~<§> 4100' . ~', .I' .<§> 4000", ... <§I ~ 3900,,-, ''>~: ~ ...# "00_ . ,if..", " 3700'"OÒ' . ,....t.,..,....'" ":\;'" " ,,## -I' 3500'" '> ,,'" '1.# 3400.. ", ~",......~#' .... 3300 ::00. . .~«~'" S> " .I' ,\..;10~ if 3000'", ···...\.,,:f 200Ò-' 1-¿., 28OÒ'''_~ ~ ;,>'¿ 1800 r~ 1700 1600 ~ 1500 j 1400 1300 1200 1100 1000 ^ . - - 900 ( ) J2 - :5 800 "- 0 Z 700 600 500 - ~",9700 9500 ", 9200' 9000 . 8800' _~¿." 8600~" "'>"0,. 8200' '. eooo ' 3000'", 400 300 HV#8 200 100 ¢::: 0 ll') 1/ 0 E (,) OJ -100 (ij (,) (f) 100 en ~- 0 Q) "0 ¡¡¡ 0 0 ~- 3 ~.~ II -100 CJ1 0 ;::I! -1400 East (feet) -> -1200 -1100 -10iio -900 -500 -300 -400 -1300 -800 -700 -600 .L I ~ 5500\ 5400 \ 3300~ 7800" 7600"" 7400' 7~'>' 7~"--, 6800 " """- " 2800"', 6400+' 2100"·" 2600' 2500 ", 2400 , 2200 +-", 2100"" 3100'- .¡f ,# ~'" ,# ,# -1800 -1700 -1600 -1500 -1400 Scale 1 cm = 50 ft -1300 -1200 -1100 -1000 -900 East (feet) -> -800 -600 -400 -700 -500 -300 1800 1700 1600 1500 1400 1300 1200 1100 1000 ^ I 900 Z 0 :+ ::r 800 - ø' CI) - - 700 600 500 400 300 200 1800 5500\ 5400 \ 1700 5300 \ ~ 1600 100 en ~ 0 Q) ëD 0 0 I'\litl 3 II ~."".,."""" -100 U1 "<¡, 0 ~ . UNOCAL . B.. ~uLs INTEQ Location: Kenai Peninsula, Alaska Field: South Kenai Gas Field Installation: Happy Valley Slot: HV#11 Well: HV#11 Well bore: HV #11 Ver 3 Scale 1 cm = 50 ft -1800 -1700 -1600 East (feet\ -> -1200 -1100 -10(1"0 -900 -1400 -800 -700 -600 -500 -400 -300 -1500 -1300 1800 1700 1600 1500 1400 1300 1200 1100 1000 ^ I - - 900 ( ) .e - = 800 ... 0 Z 700 600 500 400 300 200 100 ¢::: 0 It) II 0 E () .- ( ) -100 ro () rn rLLU ot", 4.;.'j> ~~ #'ø> , '" ~.,f ~,:;~ ~ ¡P ~'" ~. ~ "~. ~ R0o. 8400' "- ~~" 82~~,., '" '" 7800", ~ # 7600'" '..'- 7400" ~ to.~ ~'" ',.'" 7000','. ~" 6800",~ ~ þ,# 6600' .... 8400~,~" ~'~~ .,f 6000 " {;.~ 2700'" ~1~'" #' ""'.;00, ~ 2000' ""'~,. Y 52005~~" ~ ~* SOOÒ':';';;;'-" ~.,~",", ~~># ",'" -'" 4700::00,., "'-""'" ....r::::.# ¥ 45<JÒ', '"'- ot .# 44CKi',- '..... ~ ,,00', .~ ~ 4200'~~ "', #' '): 4§:> 4100-" ". "'"' I' '00'1'" -'. é' ~ '000", -', #' .......1' """, ",~# ~ ~ ,roò-, ,,_~ #' ~ </," """, "Ô'''' ...... , "-. ,# '" ~~ '500";;,." :'00 :._,.,;~;~~«~## ~ 3200", "'''~" qf 3100· ,<~~# 4' 3000~', "#' ..~:~ . 3000''', 2000' , 2800"'" 2500 " 2400 "'- 2200 '- 2100", ,f' "- 1100'" ,# ~'" -1800 -1700 -1600 -1500 -1400 Scale 1 cm = 50 ft -1300 -1200 -1100 -1000 -900 East (feet) -> -800 -700 -600 -500 -400 -300 1500 1400 1300 1200 1100 1000 ^ I 900 Z 0 ;:¡. =r 800 - ¡;' ( ) - - 700 600 500 400 300 200 . . allaE.'. UNOCAL ,HV#11 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Wellbore: HV #11 Ver 3 Well path: HV #11 Ver 3 Date Printed: 19-0ct-2004 INTEQ L All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 732.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 311.86 degrees Bottom hole distance is 2243.92 Feet on azimuth 311.86 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . IIIIBeAtill UNOCAl ,HV#11 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 Wellbore: HV #11 Ver 3 Wellpath: HV #11 Ver 3 Date Printed: 19-0ct-2004 INTEQ f--0.OO 0.00 330.00 0.00 O.OON O.OOE 0.00 0.00 228003.72 2189813.83 100.00 0.00 330.00 100.00 O.OON O.OOE 0.00 0.00 228003.72 2189813.83 200.00 0.00 330.00 200.00 O.OON O.OOE 0.00 _ - 0.00 228003.72 ~ 2189813.83 300.00 0.00 330.00 300.00 O.OON O.OOE 0.00 0.00 228003.72 2189813.83 400.00 0.00 330.00 400.00 O.OON O.OOE 0.00 0.00 228003.72 2189813.83 500.00 0.00 330.00 500.00 O.OON O.OOE 0.00 _ - 0.00 228003.72 - 2189813.83 600.00 2.50 330.00 I 599.97 1.89N 1.09W 2.50 2.07 228002.67 2189815.74 700.00 5.00 330.00 699.75 7.55N 4.36W 2.50 8.29 227999.53 2189821.48 I~OO'OO 7.50 330.00 799.14 16.98N 9.80W 2.5JL..... :- 16.63 227994.30 - 2169631.02 900.00 10.00 330.00 897.97 30.15N 17.41W 2.50 33.09 227986.99 2189844.36 1000.00 12.50 330.00 996.04 47.05N 27.16W 2.50 51.63 227977.62 2189861.47 1100.00 15.00 330.00 1093.17 67.63N 39.05W 2.50 74.21 227966.20 ¡----- 2189882.32 1200.00 17.50 330.00 1189.17 91.86N 53.04W 2.50 100.80 227952.76 2189906.86 1300.00 20.00 330.00 1283.85 119.70N 69.11W 2.50 131.35 227937.32 ~ 2189935.04 1400.00 22.50 330.00 1377.05 151.08N 87.23W 2.50 165.79 227919.91 2189966.83 1500.00 25.00 330.00 1468.57 185.96N 107.36W 2.50 204.06 227900.56 2190002.15 1600.00 27.50 330.00 1558.25 224.26N 129.48W 2.50 246.09 227879.31 2190040.93 1620.00 28.00 330.00 1575.95 232.32N 134.13W 2.50 254.94 227874.64 2190049.10 1700.00 27.93 328.01 1646.61 264.48N 153.45W 1.17 290.78 227856.25 2190081.68 1800.00 27.89 325.51 1734.98 303.62N 179.10W 1.17 336.01 227831.49 2190121.39 1900.00 27.89 323.01 1823.37 341.57N 206.41W 1.17 381.68 227805.03 2190159.94 2000.00 27.93 320.51 1911.75 378.33N 235.38W 1.17 427.78 227776.90 2190197.34 2080.84 28.00 318.50 1983.15 407.15N 259.99W 1.17 465.35 227752.94 2190226.71 2100.00 27.98 318.02 2000.07 413.86N 265.98W 1.17 474.28 227747.10 2190233.55 2200.00 27.91 315.53 2088.41 448.01N 298.06W 1.17 520.96 227715.80 2190268.40 2300.00 27.88 313.03 2176.79 480.67N 331.55W 1.17 567.70 227683.05 2190301.81 2400.00 27.90 310.53 2265.18 511.82N 366.42W 1.17 614.46 227648.89 2190333.74 2500.00 27.96 308.04 2353.54 541.47N 402.67W 1.17 661.24 227613.31 2190364.19 2541.68 28.00 307.00 2390.35 553.38N 416.18W 1.17 680.74 227598.07 2190376.45 2600.00 28.00 307.00 2441.84 569.86N 440.05W 0.00 708.02 227576.58 2190393.41 2700.00 28.00 307.00 2530.13 598.11N 477.54W 0.00 754.80 227539.74 2190422.50 2800.00 28.00 307.00 2618.43 626.37N 515.03W 0.00 801.58 227502.89 2190451.59 2900.00 28.00 307.00 2706.72 654.62N 552.53W 0.00 848.36 227466.04 2190480.67 3000.00 28.00 307.00 2795.02 682.88N 590.02W 0.00 895.14 227429.19 - 2190509.76 - 3100.00 28.00 307.00 2883.31 711.13N 627.52W 0.00 941.91 227392.34 2190538.85 3200.00 28.00 I 307.00 2971.61 739.38N 665.01W 0.00 988.69 227355.49 2190567.94 3300.00 28.00 I' 307.00 3059.90 767.63N 702.50W 0.00 1035.47 227318.64 2190597.02 3400.00 28.00 \ 307.00 3148.20 795.89N 740.00W 0.00 1082.25 227281.79 2190626.11 3500.00 28.00 307.00 3236.49 824.14N 777.49W 0.00 1129.03 227244.94 - 2190655.20 ~ 3600.00 28.00 307.00 3324.79 852.40N 814.98W 0.00 1175.80 227208.09 2190684.29 3700.00 28.00 307.00 3413.08 880.65N 852.48W 0.00 1222.58 227171.24 2190713.37 3800.00 28.00 307.00 3501.38 908.90N 889.97W 0.00 1269.36 227134.39 2190742.46 3900.00 28.00 307.00 3589.67 937.16N 927.47W 0.00 1316.14 227097.54 2190771.55 4000.00 28.00 307.00 3677.97 965.41 N 964.96W 0.00 1362.92 227060.69 2190800.64 4100.00 28.00 307.00 3766.26 993.66N 1002.45W 0.00 1409.69 227023.~ 2190829.72 4200.00 28.00 307.00 3854.55 1021.92N 1039.95W 0.00 1456.47 226986.99 2190858.81 4300.00 28.00 307.00 3942.85 1050.17N 1077.44W 0.00 1503.25 226950.15 2190887.90 4400.00 28.00 307.00 4031.15 1078.42N 1114.93W 0.00 1550.03 226913.30 2190916.99 4500.00 28.00 307.00 4119.44 1106.68N 1152.43W 0.00 1596.81 226876.45 2190946.07 4600.00 28.00 307.00 4207.73 1134.93N 1189.92W 0.00 1643.58 226839.60 2190975.16 4700.00 28.00 307.00 4296.03 1163.18N 1227.41W I 0.00 1690.36 226802.75 2191004.25 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 732.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 311.86 degrees Bottom hole distance is 2243.92 Feet on azimuth 311.86 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . ......c.-.. UNOCAL ,HV#11 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 3 Wellbore: HV #11 Ver 3 Wellpath: HV #11 Ver 3 Date Printed: 19-0ct-2004 INTEQ 4800.00 28.00 307.00 4384.32 1191.44N 1264.91W 0.00 1737.14 226765.90 2191033.34 4900.00 28.00 307.00 4472.62 1219.69N 1302.40W 0.00 1783.92 226729.05 2191062.42 f--<l931.01 28.00 307.00 4500.00 1228.45N 1314.03W 0.00 1798.42 226717.62 2191071.44 _ 5031.01 26.50 307.00 4588.90 1256.01N 1350.60W 1.50 1844.05 226681.68 2191099.81 5131.01 25.00 307.00 4678.97 1282.15N 1385.29W 1.50 1887.33 226647.58 2191126.73 5231.01 23.50 307.00 4770.14 1306.87N 1418.09W 1.50 1928.26 226615.35 2191152.18 5331.01 22.00 307.00 4862.36 1330.14N 1448.97W 1.50 1966.79 226584.99 2191176.13 5431.01 20.50 307.00 4955.56 1351.95N 1477.92W 1.50 2002.90 226556.55 2191198.59 5531.01 19.00 307.00 5049.67 1372.29N 1504.91W 1.50 2036.57 226530.02 2191219.53 5631.01 17.50 307.00 5144.64 1391.14N 1529.92W 1.50 2067.77 226505.44 2191238.93 5731.01 16.00 307.00 5240.39 1408.48N 1552.93W 1.50 2096.48 226482.82 2191256.78 5831.01 14.50 307.00 5336.87 1424.31N 1573.94W 1.50 .2122.69 226462.18 2191273.08 5931.01 13.00 307.00 5434.00 1438.61 N 1592.92W 1.50 2146.37 226443.52 2191287.81 6031.01 11.50 307.00 5531.72 1451.38N 1609.86W 1.50 2167.52 226426.87 2191300.95 6131.01 10.00 307.00 5629.96 1462.61N 1624.76W 1.50 2186.10 226412.23 2191312.51 6231.01 8.50 307.00 5728.66 1472.28N 1637.60W 1.50 2202.12 226399.61 2191322.47 6331.01 7.00 307.00 5827.74 1480.39N 1648.37W 1.50 2215.55 226389.03 2191330.82 6431.01 5.50 307.00 5927.15 1486.95N 1657.06W 1.50 2226.40 226380.48 2191337.57 6531.01 4.00 307.00 6026.80 1491.93N 1663.67W 1.50 2234.65 226373.98 2191342.70 6631.01 2.50 307.00 6126.64 1495.34N 1668.20W 1.50 2240.30 226369.54 2191346.21 6731.01 1.00 307.00 6226.59 1497.18N 1670.64W 1.50 2243.34 226367.14 +-- 2191348.10 6797.68 0.00 307.00 6293.25 1497.53N 1671.11W 1.50 2243.92 226366.68 2191348.46 6800.00 0.00 307.00 6295.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 6900.00 0.00 307.00 6395.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7000.00 0.00 307.00 6495.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7100.00 0.00 307.00 6595.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7200.00 0.00 307.00 6695.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7300.00 0.00 307.00 6795.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7400.00 0.00 307.00 6895.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7500.00 0.00 307.00 6995.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7600.00 0.00 307.00 7095.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7700.00 0.00 307.00 7195.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7800.00 0.00 307.00 7295.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 7900.00 0.00 307.00 7395.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 - 8000.00 0.00 307.00 7495.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8100.00 0.00 307.00 7595.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8200.00 0.00 307.00 7695.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8300.00 0.00 307.00 7795.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8400.00 0.00 307.00 7895.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8500.00 0.00 307.00 7995.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 - 8600.00 0.00 307.00 8095.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8700.00 0.00 307.00 8195.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8800.00 0.00 307.00 8295.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 8900.00 0.00 307.00 8395.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 9000.00 0.00 307.00 8495.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 9100.00 0.00 307.00 8595.57 1497.53N 1671.11W 0.00 2243.92 226366.68 - 2191348.46 - 9153.13 0.00 307.00 8648.70 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 9200.00 0.00 307.00 8695.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 9300.00 0.00 307.00 8795.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 9400.00 0.00 307.00 8895.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 9500.00 0.00 307.00 8995.57 1497.53N 1671.11W 0.00 2243.92 226366.68 2191348.46 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and NO's are from Rig ( Datum #1 732.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 311.86 degrees Bottom hole distance is 2243.92 Feet on azimuth 311.86 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated , ' . . u.ac..~. UNOCAL ,HV#11 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: HV #11 Ver 3 Well path: HV #11 Ver 3 Date Printed: 19-0ct-2004 L.,,(TEQ 1497.53N 1497.53N 1497.53N 1497.53N 1497.53N 1497.53N 1497.53N 226366.68 226366.68 226366.68 226366.68 226366.68 226366.68 226366.68 All data is in Feet unless otherwise stated Coordinates are from Slot MO's are from Rig and TVO's are from Rig ( Datum #1 732.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 311.86 degrees Bottom hole distance is 2243.92 Feet on azimuth 311.86 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated 2191348.46 2191348.46 2191348.46 2191348.46 2191348.46 2191348.46 2191348.46 . . . . ....Ø~.L. UNOCAL ,HV#11 Happy Valley, South Kenai Gas Field,Kenai Peninsula, Alaska PROPOSAL LISTING Page 5 Wellbore: HV #11 Ver 3 Wellpath: HV #11 Ver 3 Date Printed: 19-0ct-2004 INTEQ 9 5/8" Surface ~sinq 7" Casinq 3 1/2" Liner 0.00 0.00 O.OON O.OOE 1004.05 1000.00 47.81N 27.60W HV #11 Ver 3 0.00 0.00 0.00 0.00 O.OON O.OON O.OOE O.OOE 4534.61 10104.43 4150.00 9600.00 1116.46N 1497.53N 1165.40W 1671.11W HV #11 Ver 3 HV #11 Ver 3 HV#11 - Beluga T t-180ct04 HV#11-T80Tgt- 1511.49N 1697.11W 8602.00 15 Oct 04 N59 5924.02! W151 226341.00 2191363,00 15-Jan-2004 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig ( Datum #1 732.5ft above mean sea level) Vertical Section is from O.OON O.OOE on azimuth 311.86 degrees Bottom hole distance is 2243.92 Feet on azimuth 311.86 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated . . . . UNOCALe UNOCAL HV#11 Ver3, HV#11 Ver3 HV#11, Happy Valley CLEARANCE LISTING Page 1 Date Printed: 19-0ct-2004 South Kenai Gas Field, Kenai Peninsula, Alaska INTEQ Ellipse separations are reported ONLY if BOTH wells have uncertainty data Only Depth and Maç¡netic Reference Field error terms are correlated across tie points Proximities beyond f! with expansion rate of ft/1 000f! are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casinç¡s are NOT included Hole size/Casinç¡s ARE subtracted from Centre-Centre distance Ellipses scaled to 2.85standard deviations. Closinç¡ Factor Confidence limit of 99.80% Errors on Ref start at Slot Permanent Datum (0.00) Report uses Revised: (D-C)/E Factor Calculation Happy ValleV#3 Happy HV#5 HV#5 Happy Valley 32.51 745.97 745.97 29.49 754.59 7.97 853.02 Valle 5 Happy HV#1 HV#1 Happy Valley 32.68 508.53 508.53 32.07 508.53 20.45 656.17 ValleV#1 Happy HV#4 HV#4 Happy Valley 32.99 0.00 882.31 32.23 882.31 10.49 853.02 ValleV#4 HV#8 HV#8 HV#8 Happv Vallev 73.42 363.45 363.45 7ldL 426.51 19.& 754.59 HV#7 HV#7 HV#7 Happv Vallev 81.47 734.17 734.17 78.72 754.59 17.64 1033.46 J Happy HV#2 HV#2 Happy Valley 103.45 0.00 10104.43 104.20 0.00 1.94 9153.13 Valle 2 HV#10 HV#10 HV#10 Happv Vallev 141.19 707.24 707.24 137.70 738.19 16.00 1640.42 HV#9 HV#9 HV#9 Happy Vallev 169.02 65.62 200.00 168.59 262.47 45.36 754.59 Happy HV#6 HV#6 Happy Valley 206.45 0.00 0.00 207.16 32.81 43.94 1246.72 ValleV#6 All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig ( Datum #1 732.5f! above mean sea level) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 99.56 (1 D) Prepared by Baker Hughes Incorporated . . UROCAL. UNOCAL HV #11 Ver 3, HV #11 Ver 3 HV#11, Happy Valley CLEARANCE LISTING Page 2 Date Printed: 19-0ct-2004 South Kenai Gas Field, Kenai Peninsula, Alaska INTEQ All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig ( Datum #1 732.5ft above mean sea level) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 99.56 (10) Prepared by Baker Hughes Incorporated · . UNOCAL Created by; Planner Date plotted: 19.0ct.2004 Plot reference is HV #11 Var 3. Ref wellpath is HV #11 Var 3. Coordinates are in feet reference HV#11. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Datum #1 Rig Datum to mean sea level: 732.50 ft. Plot North is aligned to TRUE North. Location: Kenai Peninsula, Alaska Field: South Kenai Gas Field Installation: Happy Valley Slot: Well: Wellbore: UNOCAL HV#11 HV #11 HV #11 Ver 3 TRUE NORTH 350 0 10 340 20 200 290 330 30 320 40 310 50 300 60 70 280 80 270 90 260 100 25~ 110 240 120 230 13'0, \yoo 1500 220 <900.. 1 0 140 \\ 1300 .,~ ~~ 200 9400 19G 9300 '-.9200 180 " 9100 ~ 160 \~400 ,,: 1$b ,\1500 1\700'-\ '. \' >J~~O , , .1900 .900 210 ~/ ~ 800\. ".9600 2 0 900 \, 170 1500\ ~ 1600\ Normal Plane Travelling Cylinder - Feet ~ ~ \ 1600 ~ '~ All depths shown are Measured depths on Reference Well Happy Valley 11 Spacing Exception Information. . . «HV _Lse_Map.ppt» «HappyValley11-SpacingException.pdf» Bob- Attached above is the color version of Exhibit "A" as previously submitted. I am submitting Exhibit "B" that details the wells drilled to date wrt to lease lines and proximity. Happy Valley #1 has been shot in the T-25, T-40, T-70, and T-120 sands. A PL (production Log) shows the T-25 and T-40 were not contributing. The T-120 is currently below a plug. Happy Valley #2 has been shot in the T-10, T-17, T-80, and T-91 sands. The T-1 0 & T-17 were not contributing on a PL. The T-80 was Frac'd and a water interval is now contributing in the T-80 interval. Happy Valley #3,4,6, and 7 are non commercial and are not planned to be connected to the system. Redrills are being evaluated. Happy Valley #5 will be re-permitted as a Class II injection well. The 010 will be submitted shortly. Happy Valley # 8, 9, and 10 are all targeting the Beluga and Upper Tyonek intervals. Evaluation is currently on going. Happy Valley #11 is being drilled to target the T-80 sand in close proximity (250' North) of the existing HV #2 well bore. Winter deliverability from the T-80 sand is in question in HV #2 with respect to the water production and HV #11 is intended to produce this interval. Pending sustained well flowing data, the T-80 interval in HV #2 may be isolated and HV #11vyjU",geJJ¡¡eJ.o.cat'.¡ . e T-80 sand. ': .fu"ii','¡\1<i,,:,~;;,'~'~:·_{"'¡::;;'1:;'"'j!¡\""'Mi!\:"'A"\}i.:I" The, P().t\i~I,#i,p"tQ~ieW"Wîth"'~~t¡'ciPated approval prior to November 1 st. The Pool Rulesifl" by,¡~é1TìDer 15th,'2004 as per your conversations with Kevin Tabler and Ralph Affinito. 'i" _~i;fI.ri:' 4/-1" The cuttings from HV #11 will be injected into the annulus of NNA #1. The 010 hearing for Class II injection in NNA #1 is scheduled for November 9th, with an earliest approval expected the 19th of November. HV #11 will be completed before NNA #1 is converted in status to a Class II injection well. .i' if f If you have any questions or need clarification, please contact me directly at 263-7637. ~ All the best, ""'I>, s;¡"'t~~~~tii,/,jli,¡" 'W\r¡~F~ji~~Ji\ijJ.~j!;..,\~:~jfI;XJl~ ' ". " "~, '(4í1i&j¡i\~~#iPi\J\'~~,'¡!~\"+li>i¡;¡,b'~¡f}!li;~j'J'i1>:;;';'¡,·"r"\'!}¡p;i'\'~'-~~i{~'¥I·:,.,.".;, Steven Lambe Content-Description: HV _ Lse _ Map.ppt Content-Type: application/vnd.ms-powerpoint Content-Encoding: base64 lof2 10/20/2004 12:40 PM Happy Valley 11 Spacing Exception Infonnation. . . Content-Description: HappyV alleyll-SpacingException.pdf i I HappyV alleyll-SpacingException.pdt' I Content-Type: application/octet-stream Content-Encoding: base64 20f2 10/20/2004 12:40 PM 8 9 17 24 28 26 25 C..061590 34 DEEP CREEK UNIT HAPPY VALLEY 11 EXHIBIT A N A 0.5 0.25 0 0.5 3 lies Alaska State Plane Zone 4, NAD27 PROPOSED WELL HV#11 GRID N:2189813.828 GRID E:228003.722 LATITUDE: 59°59'09.142"N LONGITUDE: 151 °29'07.032"W ELEV.716' SEC 22 SEC 23 SEC 27 SEC 26 APPLICANT: UNDI:AL 909 w. 9th Avenue e Revisions: Anchorage, AK 99519-7685 Dwg: I 043096hv11 Date: 10/18/04 4 . '-''-''\.\\\'' ,'<-: OF At.. " _- ~~""""""'~C\ " _ A.. ~., ...\JL I - 0....,'·· "~r. I : * ....49l1:i '7* ~ ...................................... , ", , , ", ,. . . . .. . . .. .. . . . . .... .. .. . . .. . .... .. ///II , ~ ". M. SCOTT McLANE:" ... I '" . .~- "Ii''ð.... 4928-$ ....,ff- I ;P~D ..... ......~'? .:- I I>b_' . .. . .. '-~"'-_ " . ''U¡C"tSSIQtoIÞ.'- " ,\\\,\,,-,-' HAPPY VALLEY NO.1 PAD -.J (f) LL f'.. N . OILWELL RD. SCALE 1 inch = 300 ft. ~o 450 I 600 I NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27 ALASKA STATE PLANE ZONE 4. 2) BASIS OF ELEVATION: NGS BM V82 NAVD88. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BLM MONUMENTS AT SW CORNER SECTION 10 AND SE CORNER SECTION 12 T2S R13W SM FOUND THIS SURVEY 1263' FEL , N SECTION 22 TOWNSHIP 2 SOUTH RANGE 13 WEST SEWARD MERIDIAN ALASKA Grid HAPPY VALLEY NO. 11 WELL AS-STAKED SURFACE LOCATION NINILCHIK, AK P.O. 80x 468 SOLDOTNA, AK 99669 Project: 043096 ~ Consulting ~roup ~ Testing TEL 907.283.4218 FAX 907.283.3265 FIGURE: 1 . . ....., , . . TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME!fý¡1 t{,/kf -II II PTD# 20 9- ~ '.0 1 X Development Service CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API number last two. (2) digits are between 60-69) Exploration Stratigraphic ~'CLUE ". Tbe permit is for a new weUbore segment of existing weD, , Permit No, .' API No. Production. sbould continue to be reponed as a function 'of tbe original API number. stated above. HOLE In accordance witb 20 AAC 25.005(1), an records, data and logs acquired ,for tbe pilot bole must be dearly differentiated In botb name (name on permit plus PH) and APJ Dumber (50 70/80) from records, data and logs acquired for well (name on permit). PILOT (PH) SPACING EXCEPTION x DRY DITCH SAMPLE The permit is approved subject ·to fuU compliance witb 20 AAC 25..0SS~ Approval to perforate and produce is contingent upon issuance of ~ conservation order approvinJ a spacing' e:J ception. ÚiA JCJ('" A (_ {Company Name) assumes tbe liability of any protest 10 the spacing .e:JCeption tbat may occur. AlJ dry ditch sample sets submitted to tbe Commission must be in no greater than 30' sample intervals from below tbe permafrost or from wbere samples are first caught and ] 0' sample iIiter:vals tbrougb target zones. Field & Pool HAPPY VALLEY, UNDEFINED GAS - 290500 Well Name: HAPPY VALLEY 11 Program DEV Well bore seg 0 PTD#: 2042070 Company UNION OIL CO OF CALIFORNIA Initial ClassfType DEV 11-GAS GeoArea Unit On/Off Shore On Annular Disposal ~ Administration 1 Pe(mit. fee. attache~. _ . - - - - - -- ...... Yes - - - - - - - - - - - - ~ - - - - - - - 2 .Leasenumbe.r .appropriat.e. - - - - - - - - - - - - - - - - - - - - · Yes - - - - - - - - - - - - - - - - - - - - - - - - 3 _U_nique. well.n.ame_aod Ol!.mb_e( _ _ _ _ _ _ _ . _ _ _ _ _ _ . . . _ _ . . . _ . _.. _. _ _. Yes - - - - - - - - - - . - - - - - - - - - - - . - - - - -. - - - - - - - - -. - - - -. . - - - - - - - -- 4 WeJlJocated in.a.define~.pool. . . . . . . . . . - - - - - - No _ . _ . . The. Happy: Valley: field. h.as prove.n. to be a comple.xdeveJopmeotproje.ct. Haph Affinito(26.3:7947j isJea.ding th.e 5 We.IIJocated pr.ope.r _distance. f(om driJling unitb_ound.a¡:y. . - - - - - - No . _ _ . . project te.am. pre.p_a(inQ. anappplicatioo for pool rules.. The application should .be re.ady: 1111.5/0.4. . 6 We.llJocated prope.r .distance3rom otbe.r welJs. . _ . _ _ _ . . . . ...... No_ . . . A spa.cing exceptioo will be Je.q,uiredfor.tbis welt Ibis AE>D was acçompa_nied by: an applic;ationfor.tbe. Qrde.r. 7 _S_uffjcientacreaQ.eaYailable In.dJilJiog unjt _ _ . - - - - - - No _ _ . . Steve Lam.be (263-7637) is completing the_application ,at this ,time and a beariog notice should be. prepaJe.d 8 Jfdeviated, js. weJlbore platincJu.ded . - - - - - -- - - - - - - ........ Yes · lat.e( t.oday, 1012010.4 HPC . . . . . - - - - - - - - - - - - - - - - - - - - -- 9 Operator only: affected party _ . . . . - - - - - - - - _....... Yes - - . - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - 10 .Operator bas.appropriate.bond inJorce. _ _ . _ _ _ . . _ _ . _ _ . . . . _ _ _.. _. _ _ _ _Yes - - -. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 PeUTJit. c;ao be iSSl!.ed wjtbout co.nse.rvation orde.r. . - - - - -- _.. _.... No - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - Appr Date 12 Pe(mit. c:.ao be issued witbout ad.mioist(atÏ\/e_approvaJ . - - - - - - · Yes - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - -- RPC 10/20/2004 13 Can permit be approved before 15-day wait Yes The approval letter needs to stipulate Unocal assumes all risk from drilling the well without a spacing order, . 14 Well .located within area and_strata ,authorized by ojectioo Orde( # (put 10# in_c.ommeots). (For .NA - - - - - - - - - - - - - - - - - - - 15 _AJI wells_within Jl4.mile_are.a_of reyi!:JW jdeotified (For s;ervjcewell onlY:L _ _ _ _ . _ _ . . . . _ _ _ NA - - - - - . - - - - - - - - - - - - - - - - - -- 16 PJe.-produ.ced injector; ~uration.of pr!:J-pro~uctioo less than. 3 mOnths. (Fors!:Jrvice well QnJy) . . .NA - - - - - - - 17 AGMP.Fïllding ,of CQn,Si,Sleocy.has beeJl,is;sued_ forJbis pr.oiect . . . · .NA - - - - - - - - - - - - - - - Engineering 18 C90du_clor st(ing.PJOv[d!:Jd . . . . · Yes . . . . . 13_-3/S"@.10Q'. 19 _S_uúacecasing.p.rQtects alLknown USDWs _ . . . . . . _ . . . . . . . _ · Yes - - - - - - - - - - - - - - - - - - - 20 .CMTv_ol.adequ.ate_to circ.ul.ate.oncond.uctoc& SUJf.csg . - - - - - . . . . ,Yes · Adequate ex.œs;s, . _ _ _ . 21 _CMT v.ol ad!:Jquate. to tie-in Jong ,string lo.suú csg · Yes - - - - - - - - - - - - - - - - - - - - 22 _CMTwill coYer.alll<ooWJl.pro_ductiYe bori;!:on_s - - - - - - - - - - · . . _ . ,Yes 23 _C.asiog de.sigos; adequa.te. fo( C,T" B&.p,ermafr9st _ _ . . . . . . · Yes - - - - - - 24 A~equaleJankage_oJfeserve pit. . . . . . . . . _ _ . _ _ · Yes - - - - - - - - - - - - - 25 Jta_re-~(ilL has a_ tOA03 for abandollment beeo app.roved . . . · NA . . _ . New welt . . . . . _ _ . . . . . _ . 26 A~equale ,well bore separatjOJl_proj>9s;ed _ - - - - - - - -. - - - - - - -- _.. _ _ Yes - - - - - - - - - - - - - - - - - - - - - - - -- 27 Jf.div!:Jrte.rreq.uired, does it.me!:Jl r!:JguJations _ _ . . _ - - - - -- _.... No_ · Waiyer.reques;tect _ _ _ . . . . Appr Date 28 .DJilliog flujd program schematic & eq,uiplistadequat.e _ _ . . . . · Yes . Max. MW9A ppg. _ . . . . . . . WGA 10/21/2004 29 .BQPEs,.d.o.they meet.reguJatioo . . . - - - - - - - - - - - - · Yes - - - - - - - - - - - - -- e 30 _BQPEpre.ss ra.tiog app(op(iate;te.st t.o.(pu.t psig in_comments). . . . . . . Yes . . Test to .3500 psi. .MSf> 33.69 psi. 31 _C_hokemanifold cQmpJies w/APIRf>-53 (May 84)_ _ . . . . . . . . · . . . . ,Yes 32 Work will oCC.U( without.operation .shutdo_wn - - - - - - · . . _ . Yes 33 .Is presence of H2S gas. p,robable . - - - - - - - - - - - - - - ..... No_ 34 Mecba.nicaLcood,ilioo ofwe.lIs within AOR verified (for.s.ervice welJ onJyj .NA Geology 35 Pe(mit. G.élO be iSSl!.ed w/o hydroge.n. sulfide. meaSjJ(es · Yes 36 D_ata.pJe.s!:Joted Oil pote_ntial ove.rpres;surezones. . · _ _ . . ,Yes Appr Date 37 _Seismic.analysjs of sbaJlow gas.zooe.s . _NA RPC 10/20/2004 38 ,Seabed _conditioo survey.(if off-sho(e) . . . _ . . . . .NA 39 . Conta.ct namelphoneJorweekly progres;s.reports [I · .NA Geologic Date: Engineering Date ~z/~ Commissioner: Commissioner: o'J5 /D/22/ f:- . . Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Penllitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding infomlation, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. - . . . UNOCALe Happy Valley #11 TABLE OF CONTENTS WELL RES UME .............. .................... ................................................ ..... .......... ......................... ...... ...... 3 PROCEDURES and GENERAL DiSCUSSiON........................................................................................5 GEOLOGICAL DISCUSSION ..................................................................................................................6 LITHOLOGY REViEW...... ......... ......... ...................... ............................... ................... ........... ........ .......... 9 SURVEYS .............................................................................................................................................24 DAILY MUD PROPERTIES ..................................... .............. ....... ............ ........ ..................................... 27 BIT RECORD .......................................................... ........ ................. ..... ........... ..................................... 28 [;I EP()CH 2 UNOCALe Happy Valley #11 · WELL RESUME Company: Unocal Alaska Resources, Inc. Well: Happy Valley #11 Field: Deep Creek Region: Cook Inlet Location: Section 22, T2S, R 13W, SM Coordinates: 1271' FSL,1263' FEL Elevation: Rig floor elevation = 732.5' AMSL GL = 716.0' AMSL County, State: Kenai Peninsula Borough, Alaska API Index: 50-2312-00-29 · Spud Date: October 22 , 2004 Total Depth: 10082' Contractor: Nabors Drilling Alaska Company Representative: Doug Niehaus, Shane Hauck, Jim Brown RigIType: Nabors #129/ Land Epoch Logging Unit: #30 Epoch Personal: Brian O'Fallon Ralph Winkelman Company Geologist: Mark Lynch · [:j El)()C·H 3 · · · UNOCALe Happy Valley #11 Casing Data: 13 3/8" landed at 96' 9 518" landed at 1008' 7" landed at 4506' Hole size: 12 ~"" to 1008' 8 %"" to 4560' 6 1/8" to 1 0082' Mud Type: Spud to 1 008' KCL POLYMER to 10082' Logged Interval: Full Logging below 9 5/8" @ 1008' Electric Logging Co: Schlumberger Wireline, Reeves Drill Pipe Conveyed Logs Run: Schlumberger 4560' to 1008', 9865' to 4506' 10082' to 4506' Reeves ~ El)()CH 4 . . . UNOCALe Happy Valley #11 PROCEDURES and GENERAL DISCUSSION Epoch supplied a full computerized Rigwatch system (which included measurements block height, drill rate, pit volumes, pump rates, pump pressure, flow line, return flow, hook load, torque, and rotary speed) for all operations. Display monitors for the company man, tool pusher and mud engineer, and touch- screen (Azonix) displays for the driller and pit watcher provided graphics of the information. Hydrogen flame ionization (FID) Total Gas and (FID) Gas Chromatograph instruments detected and analyzed formation gases. Mud gas was continuously generated by an optimally positioned Quantitative Gas Measurement (QGMTM, Texaco patent) electrically driven gas trap, and drawn to the detectors by vacuum pump. The gas system was tested and calibrated on a regular basis. Unocal Alaska Resources, Inc. spudded Happy Valley #11 on October 22nd, 2004 with Nabors Drilling Alaska #129. Epoch commenced DML TM logging on the 28th, out of 95/8" surface casing at 1008'. Epoch commenced logging in 8 %" intermediate hole which was drilled with water base KCL Polymer mud from 1008' to 4560' and completed on October 31 , 2004 with no drilling problems. A carbide was dropped at 4560' showing a nearly gauged hole. Intermediate casing was set at 4506', and the well was drilled to a total depth of 10082' with no significant problems with normal drilling. Total Depth was reached 10:03 am on November 9,2004. A carbide lag showed approximately 49 barrels over gauged hole. Cuttings collection and analysis commenced from under surface pipe on October 28th, 2004. Cuttings samples were caught at thirty foot intervals and at smaller intervals if the drill rate allowed during high gas intervals to 10082'. Ten foot spot samples where caught depending on the rate of penetration. Down hole electric wireline data was obtained by Schlumberger, logging the intermediate hole from 4560' to 1008'. Schlumberger encountered an obstruction in the 61/8", and was unable to log from bottom at 10082, and logged only from 6865' to casing shoe and 4506'. Reeves logged with drill pipe conveyed logging from 10082' to 4506' ~ EP()CH 5 UNOCALe Happy Valley #11 · GEOLOGICAL DISCUSSION Happv Vallev #11 The primary objectives of Happy Valley #11 were quality Beluga and Tyonek formation gas sands, and to twin the Happy Valley #2, after completion difficulties on that well. Numerous zones of interest were encountered. The following intervals include sand or graded sands or sandy zones with significant gas increases over background, some of which are coal enhanced. The high gas is listed for each interval. Geologic Descriptions encompassing these intervals can be found in the Lithology Review in this report: INTERVAL GAS (UNITS) REMARKS 4705' to 4745' 125 units Sand 4790' to 4826' 248 units Sand 5055' to 5075' 140 units Sand and Coal 5278' to 5295' 269 units Sand and Coal 5495' to 5535' 324 units Sand 5595' to 5650' 182 units Sand 6380' to 6395' 147 units Sand and Coal 6445' to 6460' 123 units Sand 6610' to 6620' 148 units Sand 6730' to 6815' 156 units Sand and Coal 6870' to 6940' 1027 units Sand 6980' to 7000' 355 units Sand · 7215' to 7235' 597 units Sand 7305' to 7320' 435 units Sand 7395' to 7405' 287 units Sand 7425' to 7430' 285 units Sand 7550' to 7580' 631 units Sand 7615' to 7660' 320 units Sand 7825' to 7840' 779 units Sand and Coal 7863' to 7873' 433 units Sand and Coal 8720' to 8730' 1200 units Sand 8880' to 8890' 487 units Sand 9075' to 9180' 2491 units Sand 9400' to 9420' 389 units Sand 9520' to 9540' 379 units Sand and Coal 9555' to 9565' 382 units Sand 9620' to 9640' 515 units Sand 9715' to 9721' 497 units Sand 9755' to 9762' 462 units Sand 9917' to 9933' 172 units Sand · [:I El)()CH 6 · · · UNOCALe Happy Valley #11 DAILY ACTIVITY SUMMARY (Note: All daily summaries reported at 24:00:00 of listed date.) 10/28/04 Finished testing BOPs, and picked up BHA. Serviced Rig and picked up and laid back drill pipe. Tripped in hole with HWDP, and tagged cement at 926'. Cleaned out casing and drilled new hole from 1008' to 1028', and F.I.T.: 15.4 PPG EMW. Drilled ahead, rotating and sliding, 1028' to 1968', worked on top drive, and drilled to 2163', 1 0/29/04 Drill 2163' to 2507', circulate and condition hole fo 30 minutes. Wiper trip to shoe, pulling through tight spots at 1920', 1715', and 1700', and washing from 1450' to shoe. Trip in and drill ahead from 2507' to 3517', and circulate and condition hole. Begin wiper trip. 10/30/04 Wiper trip to shoe, backreaming and circulating after third stand pulled. Trip in and wash to bottom on last stand, 55 units of trip gas. Drill ahead, mostly rotating and some sliding, from 3516' to 4356', 10/31/04 Drill from 4356' to 4560', backream last double and survey off bottom. Remove joint, drop carbide, circulate bottoms up and circulate out carbide, showing approximately guaged hole. Circulate and condition hole, and trip out backreaming and circulating to approximately 2200' when top drive failed. Pull out of hole, lay down BHA, and rig up and run wireline. Rig up and begin run casing. 11/1/04 Ran Casing and lost returns at 1092'. Finished running csig and circulated with minimal returns, Rigged up Schlumberger and cemented casing. Bumped plug and held 3500 psi for 30 minutes, and rigged up and tested BOPs. Picked up BHA, and picking up drill pipe while mixing mud. 11/2/04 Finish picking up drill pipe and mixing mud. Wait on parts, repair top drive and draw works. Trip in hole, tag cement at 4211', and drill out cement, shoe and new formation down to 4570'. Circulate and clean hole, and displace cement comtaminated mud out of hole. Rig up and perform F./.T. to 13.5 ppg EMW. Drill ahead from 4570' to 4866' 11/3/04 Drill, rotating and some sliding, from 4866' to 6021', circulate out and clean hole. Wiper trip to shoe, some tight spots until approximately 900 feet off bottom, or position above bit of ghost reamer. Tripping to bottom. 11/4/04 Finish wiper trip washing to bottom final stand, 52 units of trip gas, and drill ahead, rotating and sliding, from 6021' to 7043', ~ El)()CH 7 · · · UNOCALe Happy Valley #11 11/5/04 Drill ahead, rotating, from 7023' to 7249', and circulate bottoms up and condition hole. Trip out of hole, working pipe at 6510'. Change bit (NB#5), and trip in hole. Wash to bottom on last stand, and drill ahead, 1120 units of trip gas, from 7249' to 7723'. Gas Peaks over 600 units: COAL(1166u@7527),SAND(631 u@7556),COAL(932u@7695') 11/6/04 Drill, rotating, from 7723' to 8668', circulate bottoms up and condition hole. Wiper trip 10 stands, washing to bottom on last stand, 392 units of trip gas. Drill ahead, rotating, from 8668' to 9213'. Gas Peaks over 600 units: COAL(779u@7834'), COAL(655u@8069'), COAL(618u@8141'), COAL(789u@8209'), COAL(805u@8385), COAL(900u@8706'), SAND(1200u@8725), COAL(732u@8802), COAL(985u@8977'), COAL(1140u@9039'), SAND(2491 u@9082'), SAND(759u@9164') 11nl04 Drill, rotating, from 9213' to 9704', and circulate bottoms up and clean hole. Tripping out of hole for new mud motor and possibly new bit. Gas Peaks over 600 units: COAL(611 u@9425') 11/8/04 Pull out of hole and change out pump liners to 4" (from 5''), mud motor and lay down ghost reamer. Inspect bit (#5) and rerun. Trip in hole and wash down last three stands. Network lost due snapped cable, drill 9704 to 9707' and work pipe until network running, 873 units of trip gas. Drill ahead, rotating, from 9707' to 9965', circulating off bottom with pump #1 and working on pump #2 at 9747' and 9910'. No gas peaks over 600 units. 11/9/04 Drill from 9965' to 10082', total depth. Run survey and drop and circulate out carbide, 10720 strokes or 49 barrels over gauge hole. Pull ten stands and pump dry job, and pull out of hole and lay down BHA. Rig up and run e-Iogs, unable to get past 6865', and log out of hole. 11/10/04 Finish wireline and rig down Schlumberger. Run in hole to 6865' and circulate and condition through obstruction, maximum 220 units of gas. Trip in to bottom and circulate and condition hole, maximum 75 units of gas. Trip out of hole and lay down BHA. Rig up Reeves to run drill pipe conveyed log and run in hole. 11/11/04 Trip in hole with drill pipe conveyed logging tool, and circulate bottoms up, 162 units of trip gas, and begin logging. Log from TD to casing shoe at 4506'. Pull out of hole and lay down logging tools. Rig up and test BOPE. Pick up cement head and rig up to run 3 1/2" liner. Running liner. 11/12/04 Finish running 3 %" liner, circulate bottoms up and clean hole, and cement liner as per procedure. 11/13/04 Epoch released after pressure test. (j El)()CH 8 UNOCALe Happy Valley #11 . LITHOLOGY REVIEW Commence logging Happy Valley #11 at 08:15 on 10/28/2004. TUFFACEOUS CLAYSTONE (1008' -1100') = medium light gray some with faint brownish hue, to medium gray; soft to finn; smooth to silty/very fine sandy texture; very slight very finely disseminated carbonaceous matter to trace flakes; some grading to siltstone and very fine sandstone, to locally interbedded fine to medium lower sand; rare carbonaceous and locally interbedded coal. SAND (1100' -1140') = medium light gray; fine to coarse grains; subangular: moderate sphericity; poorly to moderately sorted and matrix and grain supported in silty ashy clay matrix; 60% quartz, and 40% very dark gray to gray to green to rust to tan grains, including chert and other silicates, partially siliceous lithics, volcanic, and calcite debris, estimate mostly poor clay infil porosity; no oil indicators CONGLOMERATIC SAND (1140' -1200') = medium light gray to medium gray; fine to very coarse grains and scattered pebbles; subangular to subrounded; poorly to moderately sorted and grain and matrix supported in silty ashy clay matrix; 60% quartz, and 40% gray to green to dark gray to rust to yellow to white mostly silicates including metalithics, volcanics, chert, partially siliceous lithics, and calcite debris; estimate poor to fair porosity; no oil indicators. . TUFFACEOUS CLAYSTONE (1200' -1320') = light gray with light grayish brown secondary hues; very soft; very soluble; amorphous, shapeless cuttings; silty to clayey texture; dull, earthy lustre; poor cohesiveness; poor to fair adhesiveness; hydrophilic; moderately expansive when hydrated; commonly grading to light gray ashy tuff and tuffaceous siltstone; non calcareous with trace calcite fragments; commonly acts as supporting matrix for loosely consolidated sands; no oil indicators. SAND/CONGLOMERATIC SAND (1260' -1380') = light gray overall with individual grain dominantly clear to frosted quartz and volcanic glass, light translucent gray, white with trace to common of varicolor liths, black, green to greenish blue, rust to translucent pink; very fine upper to very coarse upper with pebble fragments, dominantly coarse lower to medium lower; angular to subangular; poorly sorted; disaggregated with common light gray to grayish brown clayeyl ashy supporting matrix; non calcareous; rare loosely consolidated pieces of very ashy sandstone; estimate poor porosity; no oil indicators. COAL (1385' - 1405') = black with trace dark brown secondary hues; very finn to hard; brittle at times; platy to blocky cuttings; planar fracture common; dull to earthy lustre; matte to gritty texture trace to common dark brown resinite along bedding planes; trace dull yellow mineral fluorescence associated with resinite; no visible outgassing noted. TUFFACEOUS CLAYSTONE (1400' -1520') = light gray with light grayish brown secondary hues; very soft; very soluble; amorphous, shapeless cuttings; silty to clayey texture; dull, earthy lustre; poor cohesiveness; poor to fair adhesiveness; hydrophilic; moderately expansive when hydrated; commonly grading to light gray ashy tuff and tuffaceous siltstone; non calcareous with trace calcite fragments; no oil indicators present. SAND/CONGLOMERATIC SAND (1450' -1600') = light gray overall with individual grain dominantly clear to frosted quartz and volcanic glass, light translucent gray, white with trace to common of varicolor liths, black, green to greenish blue, rust to translucent pink ;very fine upper to very coarse upper with pebble fragments, dominantly coarse lower to medium lower; angular to subangular; poorly sorted; disaggregated with common light gray to grayish brown clayey/ ashy supporting matrix; non calcareous; rare loosely consolidated pieces of very ashy sandstone; estimate poor porosity; no oil indicators. . [:I El)()C·H 9 UNOCALe Happy Valley #11 · TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE ( 1550' -1660') = light grayish brown with light to medium brown secondary hues; generally very soft with scattered firmer pieces; shapeless, globular to rare tabular to wedge shaped cuttings; silty to clayey texture; dull to earthy lustre; poor adhesiveness; poor to fair cohesiveness; hydrophilic; moderately expansive when hydrated; commonly acts as supporting matrix for loosely consolidated sands; common light grayish white ashy tuff; trace visible shards; non to slightly calcareous overall, trace calcite pieces; no oil indicators present. SAND ( 1640' -1750') = light brown to light brownish gray with individual grains dominantly light gray to translucent to clear, with trace amounts of black and dark green tQ greenish gray; fine lower to medium upper, dominantly fine upper to medium lower; angular to subangular; moderately fair sorting; disaggregated with common light to med brown to brownish gray clayey/ silty supporting matrix; non calcareous with trace very fine/ silty sandstone; light gray; fragile; very calcareous; pulverulent; trace to common black, microthin carbonaceous laminations and inclusions; continued light grayish white ashy tuff; no oil indicators present. TUFFACEOUS SILTSTONE ( 1700' - 1820') = light to medium gray with light brown secondary hues; very soft; pasty; shapeless, amorphous cuttings; very soluble; silty to clayey texture; dull lustre; trace thin coal beds; trace scattered sand throughout; trace ashy tuff; no oil indicators present. TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE (1770' -1880') = light to medium gray; very soft; mushy; shapeless mass; very soluble; very easily washed away; silty to clayey texture; dull lustre; poor adhesiveness and cohesiveness; hydrophilic; very expansive when hydrated; trace black carbonaceous material; trace sand; no oil indicators present. TUFFACEOUS SILTSTONE ( 1820' -1920') = light to medium gray with light brown secondary hues; very soft; pasty; shapeless, amorphous cuttings; very soluble; silty to clayey texture; dull lustre; trace scattered sands throughout; no oil indicators present. · TUFFACEOUS CLA YSTONEI TUFFACEOUS SILTSTONE ( 1870' - 1940') = light to medium gray; very soft; mushy; shapeless mass; very soluble; very easily washed away; silty to clayey texture; dull lustre; poor adhesiveness and cohesiveness; hydrophilic; very expansive when hydrated; trace black carbonaceous material; trace sand; no oil indicators present. TUFFACEOUS SILTSTONE ( 1920' -1960') = light to medium gray; very soft; mushy; silty; very soluble; slimy; amorphous, shapeless cuttings; silty texture; greasy lustre; poor adhesiveness and cohesiveness; non calcareous; rare trace sand and carbonaceous material. SAND ( 1960' - 2020') = dominantly light gray to translucent and clear quartz and volcanic glass, trace amounts of varicolored liths of bluish green, black, tan, rust and pale pink; very fine upper to medium upper, dominantly fine upper to lower; angular to subangular; moderately well sorted; disaggregated with abundant light gray siltyl clayey supporting matrix; trace calcite fragments rare pebble fragments in 2020' sample; trace black carbonaceous material; no oil indicators present. TUFFACEOUS CLA YSTONEI TUFFACEOUS SILTSTONE ( 2000' - 2090') = light to medium gray; very soft; mushy; shapeless mass; very soluble; very easily washed away; silty to clayey texture; dull lustre; poor adhesiveness and cohesiveness; hydrophilic; very expansive when hydrated; no oil indicators present. TUFFACEOUS CLAYSTONE (2070' - 2210') = light gray with light brown secondary hues; very soft to occasionally firm and brittle; dominantly shapeless, globular cuttings, occasionally wedge to tabular; silty to clayey texture; dull to slightly greasy lustre; hydrophilic; expansive when hydrated; very soluble; poor to fair adhesiveness and cohesiveness; non calcareous; note color change to darker brown in 2110' sample; no oil indicators · COAL (2115' - 2180') = grayish black to brownish black; subbituminous, firm and slightly brittle with angular to subplaty fracture, dense with common visible lamina, and dull polish to vitreous luster; to [:j El)()CH 10 UNOCALe Happy Valley #11 . lignite, slightly firm to slightly malleable, flaky to crunchy fracture, common lamina with organic clay residue on parting; grading to carbonaceous shale with increasing organic clay content. SAND (2210' - 2235') = very light gray to medium light gray; fine to very fine and scattered medium grains; subangular; poorly to occasionally moderately sorted and mostly matrix supported in ashy calcareous clay, to occasionally dense and grain supported with calcareous cement; 60% quartz, and 40% gray to very dark gray to greenish gray to occasionally green to rare rust and tan, including silicates and partially siliceous lithics; estimate mostly very poor to poor porosity; no oil indicators. TUFFACEOUS CLAYSTONE (2250' - 2380') = medium gray to medium light gray to rare brownish hue; soft to moderately soft and hydrophilic; smooth to siltylvery fine sandy texture; some slightly to moderately sandy with fine to medium grains of composition similar to above sand; grading matrix supported sand; non to slight calcareous matter; occasional inclusions or streaks of hard calcareous tuffaceous shale; rare calcareous white ash fall tuff; rare streaks brownish organic clay to trace grading carbonaceous shale. TUFFACEOUS CLAYSTONE (2380' - 2440') = medium gray to medium light gray to occasionally medium dark gray, some with faint brownish hue; soft and hydrophilic to moderately soft to slightly firm; smooth to silty/slight very fine sandy texture; often with slight to moderate fine to medium sand grains including quartz and dark gray to gray to greenish gray silicates and hard sometimes calcareous lithics; occasionally grading matrix supported sand; very slightly calcareous overall. TUFFACEOUS CLAYSTONE (2440' - 2500') = medium gray to medium light gray, some with brownish hue to occasionally brownish gray, to occasionally light gray; soft to moderately soft and hydrophilic, to occasionally slightly firm; clayey to moderately siltylvery fine sandy texture; often slightly to occasionally moderately organic grading carbonaceous shale with interbedded coal; non to very slightly calcareous overall. . TUFFACEOUS CLAYSTONE (2500' - 2550') = medium gray to medium dark gray to medium light gray; soft to moderately soft and soluble; clayey to slightly siltylvery fine sandy texture, including quartz, carbonaceous lithic, metalithic and minor mica silts and fines; locally moderately to very sandy with increase metalithics and some fine to trace medium grains; locally thinly interbedded coal with minor associated carbonaceous shale. SAND (2550' - 2590') = medium gray to medium dark gray; very fine to coarse grains; subangular; poor to moderately high sphericity; poorly to some moderately sorted and matrix and grain supported in ashy clay; 40% quartz, and 60% mostly very dark gray to gray silicates, predominantly metalithics, and minor partially siliceous lithics; estimate mostly poor clay infil porosity; no oil indicators. TUFFACEOUS CLAYSTONE ( 2600' - 2720') = light to medium gray with light brown to light brownish gray secondary hues; very soft to slightly firm; dominantly shapeless to rounded balls in firmer pieces; silty to clayey texture; dull to earthy lustre; poor adhesiveness and cohesiveness; hydrophilic; soluble; moderately expansive when hydrated; non calcareous; trace pebbles; trace black carbonaceous material; no oil indicators present. COAL ( 2670' - 2740') = black; hard; brittle at times; platy to wedge shape; planar fracture dominant; resinous to earthy lustre; smooth to matte texture; no outgassing visible; present as very thin beds in dominantly siltstone! claystone formation; trace fine grain sand. TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE ( 2700' - 2800') = light to medium gray with light brown secondary hues; very soft; formless, shapeless cuttings; very silty; silty to clayey texture; slimy to mushy; greasy lustre; hydrophilic; very soluble; expansive when hydrated; poor cohesiveness and adhesiveness; non calcareous; trace very thin coal stringers; no oil indicators. . TUFFACEOUS CLAYSTONE ( 2760' - 2840') = light to medium gray with light brown to light brownish gray secondary hues; very soft to slightly firm; shapeless cutting silty to clayey texture; dull to earthy ~ EP()C·H 11 UNOCALe Happy Valley #11 · lustre; poor adhesiveness and cohesiveness; hydrophilic; soluble; moderately expansive when hydrated; non calcareous; trace sand; trace black carbonaceous materiall thin coal beds. SAND ( 2800' - 2920') = light gray with individual grains dominantly clear to translucent and frosted quartz and volcanic glass, trace black, rust, and dark greenish gray; very fine upper to rare pebble, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated with rare trace very fine sandstone; dark gray; very calcareous; note all sand in this interval is present in trace amounts in dominantly silt! claystone formation. TUFFACEOUS CLA YSTONEI TUFFACEOUS SILTSTONE ( 2880' - 2960') = light to medium gray; very soft; mushy; shapeless mass; very soluble; very easily washed away; silty to clayey texture; dull lustre; poor adhesiveness and cohesiveness; hydrophilic; very expansive when hydrated; trace black carbonaceous material; trace sand; no oil indicators present. COAL ( 2930' - 3020') = black; hard; brittle at times; platy to wedge shape; planar fracture dominant; resinous to earthy lustre; smooth to matte texture; trace outgassing bubbles present; present as thin beds in dominantly siltstone and claystone formation; trace fine to medium grain sand. TUFFACEOUS CLAYSTONE (2960' - 3060') = light to medium gray with light brown to light brownish gray secondary hues; very soft to slightly firm; shapeless cutting silty to clayey texture; dull to earthy lustre; poor adhesiveness and cohesiveness; very soluble; hydrophilic; moderate expansive when hydrated; trace thin coal stringers. SANDSTONE ( 3040' - 3100') = note: present in trace amounts; medium to dark gray with varicolored individual grains; very fine to medium grain; pooriy sorted hard; very well consolidated; very calcareous cement; angular to subangular individual grains; sandstone pieces are shattered fragments; no oil indicators. · TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE ( 3070' - 3160') = medium gray to light gray with light to medium brown to brownish gray secondary hues; very soft; occasionally sticky; shapeless, globular cuttings; slimy to curdy; silty to clayey texture; greasy to earthy lustre; poor to fair adhesiveness; poor cohesiveness; hydrophilic; very soluble; moderate to very expansive when hydrated; non calcareous with rare trace pebble size sandstone fragments, very calcareous; fine grain; very hard; trace black carbonaceous material! coal present as very thin beds. TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE (3150' - 3240') = light to medium gray; very soft; mushy; shapeless mass; very soluble; very easily washed away; silty to clayey texture; dull lustre; poor adhesiveness and cohesiveness; hydrophilic; very expansive when hydrated; trace black carbonaceous material; trace sand; no oil indicators present. COAL ( 3170' - 3260') = black; hard; brittle at times; platy to wedge shape; planar fracture dominant; resinous to earthy lustre; smooth to matte texture; trace outgassing bubbles present; present as thin beds in dominantly siltstone and claystone formation; trace fine to medium grain sand; no oil indicators. SAND ( 3200' - 3320') = light gray with individual grains dominantly clear to translucent and frosted quartz and volcanic glass; very fine upper to rare very coarse, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated with common light gray, clayey supporting matrix; non calcareous; note all sand in this interval is present in trace amounts in dominantly silt! claystone formation; trace very thin coal beds; no oil indicators. · TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE ( 3300' - 3420') = medium gray to light gray with light to medium brown to brownish gray secondary hues; very soft; occasionally sticky; shapeless, globular cuttings; slimy to curdy; silty to clayey texture; greasy to earthy lustre; poor to fair adhesiveness; poor cohesiveness; hydrophilic; very soluble; moderate to very expansive when hydrated; non calcareous; continued thin to occasionally thicker coal beds. ~ El)()C·H 12 UNOCALe Happy Valley #11 . COAL ( 3370' - 3430') = black; hard; brittle at times; platy to wedge shape; planar fracture dominant, trace conchoidal and birdeye fracture; resinous to slight earthy lustre; smooth to matte texture; trace outgassing bubbles present; continued trace fine to medium grain clear to translucent quartz grains. TUFFACEOUS CLAYSTONE! TUFFACEOUS SILTSTONE ( 3400' - 3510') = light to medium gray; very soft; mushy; shapeless mass; very soluble; very easily washed away; silty to clayey texture; dull lustre to greasy lustre; poor to fair adhesiveness poor cohesiveness; hydrophilic; very soluble; moderate to very expansive when hydrated; non calcareous; trace loose fine to medium quartz grains; trace thin coal stringers; trace light gray to light grayish white ashy tuff; no oil indicators. TUFFACEOUS CLAYSTONE (3510' - 3600') = medium light gray to medium gray; soft to moderately soft; and hydrophilic to moderately hydrophilic; smooth to slight silty texture; mostly slightly to occasionally moderately sandy including very fine to fine and scattered medium to coarse grains, includes dark metalithics and quartz; occasionally grading matrix supported sand; slightly speckled carbonaceous silts and fines; non to slightly calcareous. COAL (3560' - 3680') = black to grayish black to brownish black; mostly subbituminous, very firm and slightly brittle, angular to subplaty platy fracture, dense and often with visible lamina, and dull polish to some shiny luster; to rare lignite, flaky to crunchy; and earthy to resinous luster; associated with minor carbonaceous shale with variably organic tuffaceous clays and moderate to abundant carbonaceous partings. . TUFFACEOUS CLAYSTONE (3680' - 3730') = medium gray to medium light gray to medium dark gray; moderately soft to soft; moderately hydrophilic to hydrophilic; some smooth clayey texture to some slightly to moderately siltylvery fine sandy texture; to grading silty matrix supported sand with fine to very fine and scattered medium grains, including mostly quartz and metalithics; very slight carbonaceous silts and fines decreasing in sandy zones and locally grading to carbonaceous shale with increase carbonaceous matter including partially disseminated flakes and partings; locally thinly interbedded coal; trace calcareous grading mudstone. SAND (3725' - 3765') = medium dark gray to medium gray; very fine to coarse grains; angular to subangular; poor to moderate sphericity; poorly sorted and grain and matrix supported in ashy clay; 50% quartz, and 50% mostly dark gray to gray to greenish gray metalithics; estimate poor porosity; no oil indicators. TUFFACEOUS CLAYSTONE (3760' - 3900') = light to medium gray with light brown secondary hues; very soft to slightly firm; sticky at times; shapeless, globular cuttings; silty to clayey texture; slimy to mushy consistency; greasy luster poor to fair adhesiveness; poor cohesiveness; hydrophilic; moderate to very soluble; expansive when hydrated; non calcareous; trace clear, fine grain sand; trace black carbonaceous material! thin coal beds common COAL ( 3870' - 3920') = black; hard; brittle at times; platy to wedge shape; planar fracture dominant, trace conchoidal and birdeye fracture; resinous to slight earthy lustre; smooth to matte texture; no outgassing bubbles present; continued trace fine to medium grain sand; trace light gray to light grayish white, ashy tuff. SAND ( 3880' - 4000') = medium gray over all with individual grains dominantly light to dark gray, translucent gray, white, clear to translucent white, black and trace light green to greenish gray; very fine upper to rare very coarse upper, dominantly fine lower to medium low angular to subangular with rare broken pebble fragments; poor to fair sorting; disaggregated with common medium gray clay supporting matrix; non calcareous; trace thin coal beds; trace whitish gray ashy tuff, very fragile; no oil indicators. . TUFFACEOUS CLAYSTONE (3940' - 4060') = light to medium gray with light brown secondary hues; very soft to slightly firm; sticky at times; shapeless, globular cuttings; silty to clayey texture; slimy to mushy consistency; greasy luster poor to fair adhesiveness; poor cohesiveness; hydrophilic; moderate to f;I El)()CH 13 UNOCALe Happy Valley #11 · very soluble; expansive when hydrated; non calcareous; trace grayish white ashy tuff; trace black carbonaceous material! thin coal beds common; nut plug sweep up in 4000' - 4060' sample interval. SAND (4000' - 4120') = light gray with individual grains dominantly clear to translucent and frosted quartz and volcanic glass; very fine upper to coarse lower, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated with common light gray, clayey supporting matrix; non calcareous; no oil indicators. TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE ( 4060' - 4180') = light to medium gray with very light brown secondary hues; very soft and sticky; amorphous, shapeless cuttings; rare firmer pieces show black, microthin, carbonaceous laminations and inclusions; silty to clayey texture; greasy to earthy lustre; poor to fair adhesiveness; poor cohesiveness; hydrophilic; moderately soluble; expansive when hydrated; trace to common, gray to light grayish white ashy tuff; commonly grading to clayey matrix supporting loose sands; trace thin coal beds. SAND ( 4140' - 4240') = medium gray over all with individual grains dominantly light to dark gray, translucent gray, white, clear to translucent white, black and trace light green to greenish gray; very fine upper to rare coarse upper, dominantly fine lower to medium lower; angular to subangular; poor to fair sort disaggregated with common medium gray clay supporting matrix; non calcareous; no oil indicators. TUFFACEOUS CLAYSTONE (4180' - 4300') = medium to light gray with light brown secondary hues; very soft to moderately firm; sticky at times; silty to clayey texture; greasy to earthy lustre; soluble in part; hydrophilic; moderately expansive when hydrated; firmer pieces show dark brown to black, microthin, carbonaceous laminations and inclusions; trace light grayish white, ashy tuff; non calcareous; trace amounts of loose sand. · SAND ( 4260' - 4380') = light gray with individual grains dominantly clear to translucent and frosted quartz and volcanic glass, and slight to moderate dark metalithics; very fine upper to medium upper, dominantly fine upper to medium lower; angular to subangular; poor to fair sorting; unconsolidated with common light gray, clayey supporting matrix; non calcareous; no oil indicators. TUFFACEOUS CLAYSTONE (4380' - 4450') = medium gray to medium light gray; soft to moderately soft; hydrophilic; smooth to moderately gritty/silty texture; very slight overall silts and fines of carbonaceous matter; occasional slightly to rare moderately organic clay and grading carbonaceous shale; locally thinly interbedded coal; often slightly to some moderately sandy with fine to very fine and scattered medium grains of mostly very dark gray to gray silicates and minor shard-like quartz; locally grading matrix supported sand; non calcareous. COAL (4310' - 4530') = grayish black to black to brownish black; subbituminous, very firm and slightly brittle, dense with some visible lamina, subplaty to hackly to angular fracture, and dull polish to resinous luster; to lignite, slightly firm to crunchy to slightly malleable, irregular to flaky fracture, and earthy to resinous luster; thinly bedded in non to variably organic claystone and carbonaceous shale. TUFFACEOUS CLAYSTONE (4450' - 4560') = medium gray to medium light gray occasionally with faint brownish hue; smooth to moderately silty/gritty texture; very slight overall silts and fines of carbonaceous matter, to locally flakes and partings occasionally grading to carbonaceous shale and locally interbedded coal; often slightly to occasionally moderately sandy with very fine to fine grains. SAND ( 4580' - 4690') = light to medium gray overall with individualliths dominantly light to dark gray, light translucent gray, clear, white, black and trace red to reddish brown liths; very fine lower to medium upper, dominantly fine lower to upper; subangular to subrounded; moderately well sorted; unconsolidated with common light to medium gray clayey supporting matrix; non calcareous with trace amounts of 'Baracarb' mud additive present (crushed marble); trace black carbonaceous material! very thin coal beds; trace to common light grayish white, ashy tuff; very fragile; trace nut plug; no oil indicators. · [:I El)()CH 14 UNOCALe Happy Valley #11 . TUFFACEOUS CLAYSTONE (4640' - 4800') = medium to light gray with light grayish white secondary hues; very soft to slightly firm; slimy to tacky; sticky at times; shapeless, amorphous cuttings; silty to clayey texture; dull to earthy lustre; hydrophilic; moderate to very soluble; moderately expansive when hydrated; poor cohesiveness; fair to good adhesiveness; non to slightly calcareous trace black, microthin carbonaceous laminations and indusions; trace thin coal beds; trace dark gray to black sandy siltstonel silty sandstone; very well consolidated; very calcareous cement; trace to common light grayish white ashy tuff, grading to gritty day. SAND (4790' - 4830') = medium gray to medium dark gray; very fine to coarse lower, and scattered coarse upper to trace pebble; subrounded to angular, subangular overall; moderate to moderately high sphericity; estimate poorly to some moderately sorted and grain and matlix supported in ashy day; 50% quartz, and 50% very dark gray to gray mostly silicates including metalithics, and minor lithics; estimate mostly poor to some fair porosity and permeability; no oil indicators. TUFFACEOUS CLAYSTONE (4830' - 4900') = medium light gray to medium gray to light brownish gray; occasionally grading light gray tuff; soft to moderately soft; smooth to moderately siltylfine sandy texture; some slightly to moderately organic brownish clay; very slight overall disseminated carbonaceous silts and fines, to locally increasing flakes and partings grading to carbonaceous shale with minor interbedded coal. TUFFACEOUS CLAYSTONE (4900'-4970') = medium light gray to medium gray; soft and soluble; slightly silty texture overall; slightly scattered fine to medium floating meta lithic grains; overall slight silts, fines, and micropartings of carbonaceous matter, to locally grading carbonaceous shale with increased partings, and local thinly interbedded coal. . TUFFACEOUS CLAYSTONE (4970'-5020') = medium gray to medium light gray; soft and soluble; slightly silty texture overall; trace floating fine to medium metalithic grains; slight moderate silts fines flakes and partings of carbonaceous matter, grading carbonaceous shale with increased partings in non to some variably organic day; thinly interbedded to interlaminated coal. TUFFACEOUS CLAYSTONE (5020' - 5080') = medium light gray to medium gray; soft and soluble; slightly silty texture overall; overall slightly sandy with very fine to fine quartz, metalithics, and lithics, locally grading matrix supported sand; very slight silts, fines and flakes of carbonaceous matter and streaks carbonaceous shale and coal. TUFFACEOUS SHALE ( 5075' - 5110') = medium gray with faint olive hue; hard to moderately firm; platy to angular fracture; moderately calcareous to calcareous; streaks in tuffaceous daystone; slight remnant carbonaceous matter. TUFFACEOUS CLAYSTONE (5070' - 5170') = medium light gray to medium gray; soft to slightly firm; clayey to very slightly silty texture; slightly sandy overall with very fine to fine grains of calcareous matter, metalithics, carbonaceous matter, and other lithics; occasionally grading very light gray ash fall tuff; rare with increase carbonaceous matter and with streaks and thin beds of coal. COAL (5100' - 5260') = grayish black to brownish black; lignite to minor subbituminous; slightly firm to very firm; crunchy to crumbly to malleable to flaky to angular fracture; occurs as thin beds, streaks, and clasts in tuffaceous claystone; grades carbonaceous shale some with increase organic clay content, to some variably organic with partings, fines, and flakes of carbonaceous matter. TUFFACEOUS CLAYSTONE (5170' - 5260') = medium gray to medium light gray to light gray; soft to slightly firm; soluble; overall slightly silty to sandy, induding very fine to fine grains; very slight to slight carbonaceous silts and fines locally grading to carbonaceous shale and interbedded with coal. TUFFACEOUS CLAYSTONE (5260' - 5320') = medium light gray to medium gray; soft to moderately . soft; soluble; slightly silty to sandy, induding very fine to fine grains of quartz, metalithics, and minor [:I El)()C·H 15 UNOCALe Happy Valley #11 . calcareous matter; slight to locally moderate silts, fines, flakes, and partings of carbonaceous matter with thinly interbedded coal. TUFFACEOUS CLAYSTONE (5320' - 5410') = medium gray to medium light gray; soft and soluble to slightly finn; slightly siltylfine sandy overall; slightly calcareous overall including minor streaks and inclusions of calcareous shale and silty to fine sandy calcite; slight to moderate silts, fines, and flakes of carbonaceous matter with locally thinly interbedded coal; grading in part to carbonaceous shale with non to slightly organic clays and increasing carbonaceous matter and carbonaceous partings. TUFFACEOUS CLAYSTONE (5400' - 5480') = medium gray to medium light gray; soft and soluble to slightly finn; very slight silty texture overall; trace calcareous matter; moderate to slight silts, fines, and flakes of carbonaceous matter, grading in part to carbonaceous shale with non to slightly organic clays with increasing carbonaceous matter including micropartings and minor partings; some thinly interbedded coal and coal streaks. SAND (5480' - 5540') = medium gray overall; very fine to medium lower grains; angular to subangular; moderate overall sphericity; poorly to occasionally moderately sorted in ashy clay matrix; estimate mostly matrix supported and minor grain supported, slight overall fining upward sequence; 50% quartz and minor calcite; 50% gray to dark gray to black including partially siliceous lithics and metalithics; estimate mostly poor porosity and penneability; no oil indicators. TUFFACEOUS CLAYSTONE (5540' - 5590') = medium light gray to medium gray; soft and soluble; overall slightly to some moderately silty to sandy occasionally grading matrix supported sand; slight overall silts, fines, flakes, and micropartings of carbonaceous matter; occasionally grading carbonaceous shale and coal. . SAND ( 5560' - 5660') = light to medium gray overall with individual grains dominantly clear to translucent light gray, light to medium gray, and lesser amounts of dark gray to black liths; very fine lower to rare medium lower, dominantly very fine upper to fine lower; subangular to subrounded; moderate to well sorted; unconsolidated with ashy to clayey supporting matrix common; estimate poor porosity and permeability; no oil indicators. COAL (5640' - 5750') = black; moderately hard; brittle at times; dominantly planar fracture with birdeye and conchoidal fracture common; platy to flaky; resinous to vitreous lustre; smooth texture; trace visible outgassing bubbles; present as thin beds in dominantly clay and sand fonnation; trace grayish white, ashy tuff. TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE (5680' - 5800') = light to medium gray with medium brown and dark gray secondary hues; soft to slightly finn; shapeless, globular cuttings dominant with finner pieces, rounded to nodular; silty to clayey texture; greasy to earthy lustre; hydrophilic; moderately soluble; slight to moderately expansive when hydrated; non calcareous; trace to common, black, microthin, carbonaceous laminations and inclusions; trace thin coal beds SAND ( 5740' - 5880') = medium to dark gray overall with moderate to strong 'salt and pepper appearance', individual grains dominantly medium to dark gray to black, with lesser amounts of clear to light translucent gray and white; very fine lower to medium lower, dominantly very fine upper to fine lower; subangular to subrounded; moderate to well sorted; unconsolidated with ashy to clayey supporting matrix common; estimate poor porosity and penneability; note rare trace dark gray to black sandy siltstone to silty sandstone; very hard; very calcareous cement; appear as broken fragment; no oil indicators present. . TUFFACEOUS CLAYSTONE ( 5800' - 5960') = medium to light gray with light to medium brown secondary hues; very soft to occasionally finn; sticky; shapeless, globular cuttings, occasionally rounded tabular in finner pieces; silty to clayey texture; greasy to earthy lustre; hydrophilic; soluble in part; moderately expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; trace to common, black, microthin carbonaceous laminations and inclusions; continued trace ~ El)()CH 16 UNOCALe Happy Valley #11 . very fine sandstonel coarse siltstone; dark gray to black; very hard; very calcareous; common thin coal beds throughout. COAL (5900' - 6020') = black; moderately hard; brittle at times; dominantly planar fracture with birdeye and conchoidal fracture common; platy to flaky; resinous to vitreous lustre; smooth texture; trace visible outgassing bubbles; present as thin beds in dominantly clay and sand fonnation; trace grayish white, ashy tuff SAND (5900' - 6100') = medium to dark gray overall with moderate to strong 'salt and pepper appearance', individual grains dominantly medium to dark gray to black, with lesser amounts of clear to light translucent gray and white; very fine lower to medium lower, dominantly very fine upper to fine lower; subangular to subrounded; moderate to well sorted; estimate poor penneability and porosity; no oil indicators. TUFFACEOUS CLAYSTONE (6010'-6130') = medium light gray to medium gray; soft and soluble to slightly finn, occasionally grading to light gray ash fall tuff; slightly to occasionally moderately siltylfine sandy texture, locally grading very fine to fine grained matrix supported sand; slight silts and fines of carbonaceous matter, to locally grading carbonaceous shale with non to variably organic clays and increase in carbonaceous matter including flakes, micropartings, and partings; locally thinly interbedded coal. COAL (6130' - 6200') = grayish black to black to brownish black; subbituminous, hard and dense to slightly brittle with some visible lamina, irregular hackly to subplanar fracture, and dull polished luster; to lignite, brittle to crumbly, platy to flaky to pulverulent, with increase overall in organic clay content including organic clay residue on partings, to grading to carbonaceous shale with variably tuffaceous and organic clays and slight to moderate carbonaceous partings and lamina. . TUFFACEOUS CLAYSTONE (6130' - 6300') = medium gray to medium light gray to medium dark gray to light brownish gray; locally grading to light gray ash tuff; soft: and soluble to slightly finn; smooth to some moderately siltylfine sandy texture; occasionally grading to matrix supported very fine to fine grain sand; occasionally grading siltstone; rare calcareous siltstonelvery fine sandstone; slight to some moderate very fine silts, silts, fines, flakes, micro lenses and partings of carbonaceous matter; commonly grading to carbonaceous shale, some thinly interbedded coal in tuffaceous claystone and carbonaceous shale. COAL (6300' - 6315') = grayish black to brownish black to dusky brown; lignite, brittle to crunchy to crumbly, pulverulent to flaky; with high organic clay content overall; to subbituminous, very finn and slightly brittle, dense with some visible lamina, angular to subplaty to hackly fracture; massive to grading to carbonaceous shale. TUFFACEOUS CLAYSTONE (6315' - 6400') = medium light gray to medium gray to light gray, occasionally with brownish hue to brownish gray; very soft: and soluble to slightly finn; very ashy; slightly to some moderately silty/sandy, some grading to siltstone and matrix supported very fine to fine grained matrix supported ashy sand, including mostly quartz grains and some dark lithics and metalithics; very slight carbonaceous silts and fines; occasional variably organic clay to locally grading carbonaceous shale with interbedded coal. SAND ( 6400' - 6520') = light to medium gray overall with individual grains dominantly clear to translucent light gray, light to medium gray, and lesser amounts of dark gray to black liths; very fine lower to rare medium lower, dominantly very fine upper to fine lower; subangular to subrounded; moderate to well sorted; unconsolidated with light gray clay supporting matrix common; non calcareous; estimate poor permeability and porosity; common thin coal beds throughout; no oil indicators present. . COAL ( 6480' - 6600') = black with trace very dark brown secondary hues; moderately hard; brittle at times; blocky to platy with very finely ground up cuttings due to bit action; generally planar fracture with scattered conchoidal and birdeye fracture; smooth to occasionally slightly gritty texture; resinous to earthy [:I El)()CH 17 · · · UNOCALe Happy Valley #11 lustre; commonly grading to carbonaceous shale; dominantly present as thin beds throughout with occasional thicker beds; no to trace visible outgassing bubbles. SAND ( 6560' - 6700') = light gray with a 'salt and pepper' appearance, individual grains dominantly clear to translucent quartz and volcanic glass, trace medium to dark gray, black. and light translucent green liths; very fine lower to fine upper, dominantly very fine upper to fine lower; angular to subangular, trace subrounded; very well sorted; unconsolidated with rare fragile, cement fragments that are non to slightly calcareous; dominantly very light gray, ashy to clayey supporting matrix common; trace to common light grayish white ashy tuff; visible shards common; continued thin coal bedsl carbonaceous shale throughout no oil indicators. TUFFACEOUS CLAYSTONE ( 6640' - 6780') = very light gray to medium gray with light brown secondary hues; very soft to occasionally very finn and brittle; dominantly amorphous, shapeless cuttings; finner pieces are rounded and occasionally show PDC bit 'scooped out' appearance; silty to clayey to somewhat gritty texture from suspended very fine sands; greasy to dull, earthy lustre; moderately soluble; hydrophilic; expansive in part when hydrated; non calcareous; trace to common black, microthin carbonaceous laminations and inclusions; abundant very light gray to grayish white, ashy tuff; very fragile; common visible shards; common thin coal beds. COAL ( 6770' - 6880') = black with trace very dark brown secondary hues; moderately hard; brittle at times; blocky to platy with very finely ground up cuttings due to bit action; generally planar fracture with scattered conchoidal and birdeye fracture; smooth to occasionally slightly gritty texture; resinous to earthy lustre; commonly grading to carbonaceous shale; dominantly present as thin beds throughout with occasional thicker beds; no to trace visible outgassing bubbles. SAND ( 6720' - 6860') = light to medium gray overall with individual grains dominantly clear to translucent light gray, light to medium gray, and lesser amounts of dark gray to black liths; very fine lower to rare medium lower, dominantly very fine upper to fine lower; subangular to subrounded; moderate to well sorted; unconsolidated with light gray clay supporting matrix common; non calcareous. SAND (6870' - 6935') = very light gray to light grayish white overall from ashy tuff component, individual grains dominantly clear to translucent white to frosted white with trace medium to dark gray, black and light translucent green; very fine lower to rare medium upper, dominantly fine upper to very fine upper angular to subangular; moderately well sorted; unconsolidated with very ashy tuff; very calcareous; ash is whitish gray; pulverulent; fragile; abundant glassy shards; common supporting matrix of disaggregated sands; estimate fair to good porosity and penneability; no sample fluorescence; no oil indicators. TUFFACEOUS CLAYSTONE ( 6940' - 7050') = medium to light gray with light to medium brown secondary hues; very soft to occasionally finn; sticky; shapeless, globular cuttings, occasionally rounded tabular in finner pieces; silty to clayey texture; greasy to earthy lustre; hydrophilic to moderately hydrophilic; poor fair cohesiveness; non calcareous. TUFFACEOUS SILTSTONE (6940' - 7050') = medium light gray, often with brownish hue to light brownish gray, to occasionally grayish brown; soft to moderately soft and hydrophilic; very ashy; mostly slightly to moderately sandy often grading very fine to fine grained ashy sand, to streaks grain supported fine to medium sandstone with calcareous cement; some decreasing silty grading to ashy claystone as described above; often very slightly to occasionally slightly to moderately organic; non to some slightly calcareous. COAL (7055' - 7090') = brownish black to grayish black.; very finn to slightly finn; lignite grading to subbituminous; subplaty to hackly to flaky to crumbly; dense with some visible lamina, and dull pOlished to vitreous luster; to increasing organic clay content, and dull resinous to earthy luster; some massive, to thinly bedded and grading to carbonaceous shale. TUFFACEOUS SILTSTONE (7050' -7210') = medium light gray, some with brownish hue to occasionally light brownish gray to grayish brown to medium gray; soft to moderately soft and hydrophilic; grading to [:"I El)()C·H 18 UNOCALe Happy Valley #11 . and interbedded with tuffaceous claystone and ashy sand; sand predominantly very fine to fine angular to subangular grains in ashy clay matrix with streaks fine to medium subangular to subrounded; often slightly to occasionally moderately organic; mostly non to slightly calcareous with some calcareous and grading to ash fall tuff in 7150' to 7180' sample. SAND (7210' - 7245') = light gray; very fine to medium, especially very fine upper to medium lower; subangular overall; poorly to some moderately sorted; 85% quartz, and 15% silicates and lithics; non calc grading calc ash. SAND (7250' - 7350') = very light gray to light grayish white overall from ashy tuff component, individual grains dominantly clear to translucent white to frosted white with trace medium to dark gray, black and light translucent green; very fine lower to rare coarse upper, dominantly fine lower to medium lower; angular to subrounded, dominantly subangular poor to fair sorting; dominantly disaggregated with common ash supported pieces; very calcareous; ash is whitish gray; pulverulent; fragile; abundant glassy shards; estimate fair to good porosity and penneability; no sample fluorescence; no oil indicators. COAL ( 7340' - 7450') = black with trace very dark brown secondary hues; moderately hard; brittle at times; blocky to platy with very finely ground up cuttings due to bit action; generally planar fracture with scattered conchoidal and birdeye fracture; smooth to occasionally slightly gritty texture; resinous to earthy lustre; commonly grading to carbonaceous shale; dominantly present as thin beds throughout with occasional thicker beds; abundant visible outgassing bubbles from thicker beds. . TUFFACEOUS CLAYSTONE/TUFFACEOUS SILTSTONE (1400' -1520') = medium to dark gray with light gray secondary hues, occasional dark to medium brown secondary hues; slightly finn to moderately hard and brittle; platy to subdiscoidal shaped cuttings; silty to clayey to gritty texture; dull to earthy lustre; fair to good cohesiveness; poor adhesiveness; commonly grading to a sandy siltstone; trace black, microthin carbonaceous laminations and inclusions; abundant light grayish white ashy tuff associated with sand; overall sample appearance is dirty brown with abundant carbonaceous materiall coal beds throughout; non calcareous except for sandI ashy tuff, high gas zones. SAND ( 7460' - 7600') = light brownish gray overall with moderate 'salt and pepper' appearance, individualliths dominantly clear to translucent quartz and volcanic glass, light gray with lesser amounts of dark gray to black liths, trace rust and light greenish gray; very fine lower to medium lower, dominantly fine upper to lower; angular to subangular; moderately well to well sorted; unconsolidated with common light brown to light brownish gray, clayey supporting matrix; very calcareous; estimate poor to fair penneability and porosity; common to abundant coal beds throughout. SAND (7600' - 7680') = light gray to medium light gray, some with faint brownish hue; very fine to medium lower, especially fine lower to very fine; angular to subangular; moderate to high sphericity; moderately to poorly sorted in silty ashy clay matrix; clay matrix; streaks very light gray ash fall tuff, non calcareous to calcareous; grain and matrix supported grading to sandy claystone and siltstone; some interbedded slightly organic nOn sandy claystone; 80% quartz, and 20% black to dark gray to minor green and rust lithics and silicates; overall very poor to poor estimated penneability. COAL (7685' - 7700') = grayish black to black to brownish black; subbituminous to lignite; very finn to finn, dense and slightly brittle to brittle, with angular to hackly to subplaty fracture; to slightly finn and crunchy to crumbly, pulverulent to platy to flaky fracture, with overall increasing organic clay content; massive. TUFFACEOUS CLAYSTONE (1100' -7890') = light brownish gray to medium light gray, some with brownish hue, to medium gray to light gray; soft to slightly finn and hydrophilic to moderately hydrophilic, to occasionally moderately finn to finn and calcareous in part; earthy to silty/fine sandy texture; some grading to very fine to fine grained sandstone; slightly organic overall to locally grading carbonaceous shale, associated with interbedded coal. . ~ El)()CH 19 UNOCALe Happy Valley #11 · SAND (7700' - 7890') = medium light gray some with brownish hue, to some light gray; very fine to fine grains; angular to subangular; moderate to high sphericity; matrix supported in overall slightly calcareous ashy clay matrix, to some grain supported and poorly to moderately consolidated some with calcareous cement; 80% quartz, and 20% gray to black to slight greenish gray, green, and rust, including lithics and silicates; very poor to poor overall porosity and penneability; some gas apparently coal enhanced. TUFFACEOUS CLAYSTONE (7890' -7960') = medium light gray, often with faint brownish hue, to medium gray; moderately soft to soft, hydrophilic to slightly hydrophilic; slightly to moderately silty/very fine sandy; often grading tuffaceous siltstone to very fine to fine grained ashy sand; non to slightly organic; occasionally moderately organic with locally interbedded coal and carbonaceous shale; locally grading ash fall tuff; non to slightly calcareous. SAND (7960' - 8000') = medium light gray often with faint brownish hue; very fine to fine lower and scattered fine upper to medium grains; angular to subangular; poorly sorted in silty ashy and non to slightly organic clay matrix; 85% quartz, and 15 % black to gray to rare grayish green to green lithics and silicates; estimate very poor porosity overall. COAL (8000' - 8075') = grayish black to black; subbituminous; very finn to finn; slightly brittle to brittle; dull polished luster; hackly to subplaty fracture; massive to occasional thin beds interbedded in various lithologies. · SANDSTONE (8010' - 8120') = medium light gray some with very faint brownish hue; very fine to fine grains; angular to subangular; moderate sphericity; mostly poorly to moderately sorted, to occasionally moderately well sorted; grain and matrix supported; poorly to occasionally moderately consolidated with ashy clay and often slightly to moderately calcareous; grading to and interbedded with tuffaceous claystone and siltstone and locally thinly interbedded coal; 80% quartz, and 20% mostly darklithics and silicates; very poor porosity to streaks poor to fair porosity in fine grained moderately well sorted sandstones. COAL (8135' - 8215') = black to grayish black, subbituminous to bituminous; very finn to slightly finn; slightly brittle to brittle; hackly to angular to subplaty to flaky fracture; smooth polished luster; massive, SAND (8050' - 8195') = medium light gray to light gray; very fine to fine grains; angular to subangular; moderate to moderately high sphericity; poorly to moderately sorted and matrix and grain supported in ashy, variably calcareous clay matrix and cement; 90% quartz, and 10% darklithics and silicates; grading to sandyl silty tuffaceous claystone, siltstone, and ash fall tuff; very poor to poor overall porosity. SAND (8210' - 8290') = medium light gray to medium gray to light gray; very fine to fine grains; subangular to angular; moderate to high sphericity; poorly to moderately sorted and matrix and grain supported in variably calcareous ashy clay matrix and cement; friable to poorly consolidated; grading to tuffaceous siltstone and tuffaceous claystone; 85% quartz, and 15% black to gray to minor green to pink lithics and silicates; locally interbedded coal and carbonaceous shale; poor to very poor porosity. SAND (8290' - 8390') = medium light gray some with faint brownish hue to medium gray to light gray; very fine to medium lower grains; subangular to angular; moderate to high sphericity; poorly to moderately sorted and matrix and grain supported in variably calcareous ashy clay matrix and cement; friable to poorly consolidated; thin zones moderately well consolidated and calcareous grading to calcareous tuff; grading to tuffaceous siltstone and tuffaceous claystone; 85% quartz, and 15% black to gray to minor green to pink lithics and silicates; locally interbedded coal and carbonaceous shale; very poor to poor and possible minor fair porosity. · TUFFACEOUS CLAYSTONE (8390' - 8450') = medium gray to medium light gray; slightly finn to moderately soft; slightly soluble to moderately hydrophilic; clayey to some moderately siltylfine sandy texture; mostly non to slightly calcareous; massive to grading to tuffaceous siltstone and sandstone; increasing to slightly to moderately calcareous grading to siltstone and sandstone; non to slightly organic with traces to slight carbonaceous silts and fines; locally increasing organic and minor interbedded coat. ~ El)()CH 20 UNOCALe Happy Valley #11 · SANDISANDSTONE (8450' - 8500') = medium light gray; very fine to medium lower; subangular; moderate to high sphericity; moderately sorted and grain and matrix supported in ashy calcareous clay and calcareous cement; poorly to moderately well consolidated; grading grainy calcareous tuff in part; 85% quartz and calcite; 15% dark lithics and silicates; estimate very poor to poor porosity. TUFFACEOUS CLAYSTONE (8500' - 8560') = medium gray to light brownish gray; slightly finn to moderately soft; moderately soluble; earthy to clayey to some silty/very fine sandy texture; non to moderately calcareous grading tuffaceous shale; mostly slightly organic and locally interbedded coal. COAL ( 8500' - 8660') = black with dark gray and dark grayish brown to dark brown secondary hues; hard; brittle at times; blocky to platy; dominantly planar fracture; scattered conchoidal and birdeye fracture; smooth to trace gritty texture; resinous to slightly earthy luster abundant visible outgassing bubbles; trace dull yellow mineral fluorescence from resinitel amber along coal bedding planes, no other fluorescence noted. SAND I SANDSTONE (8600' - 8700') = light brownish gray with individual grains dominantly light translucent gray, clear to frosted, with lesser amounts of dark gray to black, trace light greenish gray very fine lower to rare coarse lower, dominantly fine upper to lower; angular to subangular; poor to fair sorting; unconsolidated with brownish gray, clay supporting matrix; moderate to very calcareous; estimate poor to fair porosity and penneability; no oil indicators. · SAND (8700' - 8840') = very light gray to light grayish brown overall from ashy tuff component, individual grains dominantly clear to translucent white to frosted white with trace medium to dark gray, black and light translucent green; very fine lower to rare medium upper, dominantly fine lower to medium lower; angular to subrounded, dominantly subangular poor to fair sorting; dominantly disaggregated with common ash supported pieces; very calcareous; ash is whitish gray with light brown secondary hues; pulverulent; fragile; abundant glassy shards; estimate fair to good porosity and penneability; no sample fluorescence common coal beds throughout; no oil indicators present. TUFFACEOUS CLAYSTONEI TUFFACEOUS SILTSTONE ( 8780' - 8900') = light brownish gray with light brown secondary hues; very soft; shapeless, amorphous cuttings silty to clayey texture; dull to earthy lustre; very soluble; hydrophilic; commonly gives sands their brownish hue; acts as supporting matrix for sands that are not ashy tuff supported; gives samples overall dirty appearance; non calcareous. SAND I SANDSTONE (8800' - 8950') = light brownish gray with individual grains dominantly light translucent gray, clear to frosted, with lesser amounts of dark gray to black, trace light greenish gray very fine lower to rare coarse lower, dominantly fine upper to lower; angular to subangular; poor to fair sorting; unconsolidated with brownish gray, clay supporting matrix; moderate to non calcareous; estimate poor to fair porosity and penneability; trace to abundant light grayish white, ashy tuff, very calcareous no oil indicators. COAL ( 8900' - 9050') = black with very dark brown secondary hues; hard to brittle; flaky to scaly to platy, finely ground up from bit action; planar fracture dominant with scattered conchoidal and birdeye fracture; resinous to slight earthy lustre; smooth to slightly silty texture in less developed coal; commonly grading to dark brown to brownish black carbonaceous shale; abundant visible outgassing bubbles present; scattered dull yellowish white mineral fluorescence from amberl resinite along coal bedding planes. SAND I SANDSTONE (9000' - 9070') = light brownish gray with individual grains dominantly light translucent gray, clear to frosted, with lesser amounts of dark gray to black, trace light greenish gray very fine lower to rare coarse lower, dominantly fine upper to lower; angular to subangular; poor to fair sorting; unconsolidated with light brownish gray clay supporting matrix giving overall sample a dirty appearance; non to slight calcareous; estimate poor penneability and porosity. · SAND (9070' - 9160') = very light gray to light grayish brown overall from ashy tuff component, individual grains dominantly clear to translucent white to frosted white with trace medium to dark gray, black and ~ EI)()CH 21 . . . UNOCALe Happy Valley #11 light translucent green; very fine lower to very coarse upper, dominantly fine upper to medium lower; angular to subrounded, dominantly subangular poor to fair sorting; dominantly disaggregated with common ash supported pieces; non calcareous; ash is whitish gray with light brown secondary hues; pulverulent; fragile; abundant glassy shards; estimate fair to good porosity and penneability; no sample fluorescence; no oil indicators. TUFFACEOUS SHALE (9160'· 9200') = medium gray to medium light gray, some with very faint brownish hue; slightly finn to finn; wedge shaped to platy; smooth to fine silty texture; texture in part due to moderately to slightly calcareous; grading light gray calcareous ash fall tuff and non calcareous claystone. ASH FALL TUFF (9200' .9260') = light gray to very light brown; slightly finn; moderately calcareous; some slightly organic associated with carbonaceous shale and coal; some sandy associated with sandstone. TUFFACEOUS CLAYSTONE (9215' ·9340') = medium gray to medium light gray, some with brownish hue to occasionally light brownish gray; finn and slightly siliceous to slightly calcareous, to slightly finn to moderately soft; overall non to slightly to occasionally moderately calcareous; earthy to resinous to silty to fine sandy texture; silty to sandy texture in part due calcite; overall non to slightly organic and traces of carbonaceous, to locally carbonaceous partings associated with interbedded coal. TUFFACEOUS CLAYSTONE (9340' ·9385') = medium light gray mostly with brownish hue to medium gray to light brownish gray to grayish brown; moderately soft to soft, and soluble, to occasionally slightly finn; earthy to slightly silty texture; mostly non to slightly organic with traces carbonaceous siltslfines, to locally organic and grading to carbonaceous shale especially associated with coal; non to slightly calcareous. SAND (9385' TO 9510') = medium light gray to light gray; very fine to medium lower, especially very fine to fine; subangular; moderate overall sphericity; matrix and grain supported in ashy clay and calcite matrix; friable to moderately consolidated; grading in part to calcareous ash fall tuff; 90% quartz, and 20% gray to black to rare green lithics and silicates; estimate very poor to poor porosity. COAL (9420' - 9520') = black to grayish black; subbituminous to bituminous; very finn and slightly brittle, to slightly finn and brittle; angular to conchoidal to subplaty to flakey; massive to some thin zones with slight organic clay residue on fracture planes grading lignite. SAND (9500' . 9650') = very light gray to light grayish white overall from ashy tuff component, individual grains dominantly clear to translucent white to frosted white with trace medium to dark gray, black and light translucent green; very fine lower to rare coarse upper, dominantly fine lower to medium lower; angular to subrounded, dominantly subangular poor to fair sorting; dominantly disaggregated with common ash supported pieces; very calcareous; ash is whitish gray; pulverulent; fragile; abundant glassy shards; estimate fair to good porosity and penneability; no sample fluorescence; abundant coal beds throughout no oil indicators present. COAL ( 9530' - 9680') = black with very dark brown secondary hues; hard to brittle; flaky to scaly to platy, finely ground up from bit action; planar fracture dominant with scattered conchoidal and birdeye fracture; resinous to slight earthy lustre; smooth to slightly silty texture in less developed coal; commonly grading to dark brown to brownish black carbonaceous shale; abundant visible outgassing bubbles present; scattered dull yellowish white mineral fluorescence from amberl resinite along coal bedding planes. TUFFACEOUS CLAYSTONE (9720'.9760') = light to medium gray to medium brownish gray; soft to finn; fragile to pulverulent; flaky to scaly cuttings; silty to slightly gritty texture dull to earthy lustre; poor adhesiveness; poor to fair cohesiveness; non calcareous; trace black to very dark brown, microthin carbonaceous laminations and inclusions; occasionally grading to carbonaceous shale. ~ El)()CH 22 · · · UNOCALe Happy Valley #11 SAND I SANDSTONE (9750' - 9810') = light brownish gray with individual grains dominantly light translucent gray, clear to frosted, with lesser amounts of dark gray to black, trace light greenish gray very fine lower to rare coarse lower, dominantly fine upper to lower; angular to subangular; poor to fair sorting; unconsolidated with light brownish gray clay supporting matrix giving overall sample a dirty appearance; non to slight calcareous; estimate poor penneability and porosity. COAL ( 9710' - 9870') = black with very dark brown secondary hues; hard to brittle; flaky to scaly to platy, finely ground up from bit action; planar fracture dominant with scattered conchoidal and birdeye fracture; resinous to slight earthy lustre; smooth to slightly silty texture in less developed coal; commonly grading to dark brown to brownish black carbonaceous shale; no visible outgassing bubbles present. SAND/CONGLOMERATIC SAND (9860' - 9930') = very light gray to light grayish white overall with individual grains dominantly clear to frosted quartz and volcanic glass, white, light translucent gray, with trace amounts of dark gray to black pale rose to dusky red, light translucent green; very fine lower to very coarse upper with broken fragments, dominantly medium upper to lower; angular to subangular; poorly sorted; disaggregated with scattered sandstone pieces; fragile; non to very calcareous; common white ashy tuff. COAL (9935'-10010') = black to grayish black; subbitumous; very finn and slightly to moderately brittle with hackly to splintery to angular fracture; non to occasional slight organic clay residue; appears interbedded in ash fall tuff, calcareous slightly conglomeratic ashy calcareous sand; and variably organic claystone and carbonaceous shale. SANDSTONE /CONGLOMERATIC SAND(10030'-10070') = light gray to yellowish gray; fine upper to very coarse with scattered chert conglomerate; grading to very fine to medium lower 10250-60' sample; angular to subangular; moderately well consolidated with clayey calcareous cement, to poorly consolidated in calcareous to non calcareous ashy clay and grading to ash fall tuff; very poor to fair visible porosity. [:1 El)()CH 23 UNOCALe Happy Valley #10 SURVEYS Survey Inclin- Course True Vertical Coordinates Closure Dogleg Build Walk Vertical Depth ation Azimuth Length Depth Section N/S EIW Distance Angle Severity Rate Rate (ft) (deg) (deg) (ft) (ft) (ft) (ft) (ft) (ft) (deg) (d/100') (d/100') (d/100') 0 0.00 0.00 0 0 0 0.00 S 0.00 W 0.00 180.00 0.00 0.00 0.00 266 0.74 4.82 266 265.99 1.03 1.71 N 0.14 E 1.72 4.82 0.28 0.28 1.81 355 0.72 10.58 89 354.99 1.67 2.83 N 0.30 E 2.85 5.95 0.09 -0.02 6.47 448 0.75 14.51 93 447.98 2.25 4.00 N 0.56 E 4.04 7.91 0.06 0.03 4.23 541 2.44 346.45 93 540.98 4.16 6.51 N 0.24 E 6.52 2.14 1.95 1.82 356.92 633 4.60 335.33 92 632.76 9.16 11.77 N 1.76 W 11.90 351.52 2.45 2.35 -12.09 726 7.02 335.61 93 725.28 17.78 20.33 N 5.66 W 21.11 344.45 2.60 2.60 0.30 818 9.45 329.60 92 816.32 30.13 31.97 N 11.80 W 34.08 339.74 2.80 2.64 -6.53 913 11.33 328.42 95 909.76 46.50 46.65 N 20.64 W 51.01 336.13 1.99 1.98 -1.24 951 11.61 327.60 38 947.00 53.76 53.06 N 24.64 W 58.50 335.09 0.85 0.74 -2.16 1036 13.34 329.93 85 1029.99 71.31 68.77 N 34.14 W 76.77 333.60 2.12 2.04 2.74 1130 15.04 327.08 94 1121.12 93.39 88.39 N 46.20 W 99.74 332.40 1.95 1.81 -3.03 1225 17.11 326.84 95 1212.40 118.79 110.44 N 60.55 W 125.95 331.27 2.18 2.18 -0.25 1320 19.20 328.53 95 1302.67 147.26 135.46 N 76.35 W 155.50 330.59 2.27 2.20 1.78 1414 21.47 329.40 94 1390.81 178.47 163.46 N 93.17 W 188.15 330.32 2.44 2.41 0.93 1509 24.06 328.73 95 1478.40 213.59 194.98 N 112.08 W 224.90 330.11 2.74 2.73 -0.71 1604 26.63 328.06 95 1564.25 252.57 229.61 N 133.40 W 265.55 329.84 2.72 2.71 -0.71 1698 27.59 326.63 94 1647.92 293.85 265.66 N 156.52 W 308.34 329.50 1.23 1.02 -1.52 1761 27.37 326.31 63 1703.81 321.98 289.90 N 172.58 W 337.38 329.23 0.42 -0.35 -0.51 1823 27.59 325.33 62 1758.82 349.75 313.56 N 188.65 W 365.94 328.97 0.81 0.35 -1.58 1888 27.75 323.88 65 1816.38 379.19 338.17 N 206.13 W 396.04 328.64 1.06 0.25 -2.23 1951 28.04 322.16 63 1872.06 408.10 361.71 N 223.86 W 425.38 328.25 1.36 0.46 -2.73 2014 28.09 320.74 63 1927.66 437.32 384.89 N 242.33 W 454.82 327.80 1.06 0.08 -2.25 2077 28.12 318.62 63 1983.23 466.72 407.51 N 261.53 W 484.22 327.31 1.59 0.05 -3.37 [:I E'}~()(~H . . . UNOCALe Happy Valley #11 2140 28.23 316.16 63 2038.77 496.32 429.40 N 281.67 W 513.54 326.74 1.85 0.17 -3.90 2203 28.44 314.49 63 2094.22 526.17 450.66 N 302.69 W 542.88 326.11 1.30 0.33 -2.65 2266 28.45 313.21 63 2149.61 556.16 471.45 N 324.33 W 572.23 325.47 0.97 0.02 -2.03 2329 28.43 311.04 63 2205.01 586.15 491.57 N 346.58 W 601.46 324.81 1.64 -0.03 -3.44 2393 28.46 309.25 64 2261.29 616.62 511.22 N 369.88 W 631.00 324.11 1.33 0.05 -2.80 2456 28.48 308.12 63 2316.67 646.61 529.99 N 393.32 W 659.99 323.42 0.86 0.03 -1.79 2519 28.77 307.65 63 2371.97 676.72 548.52 N 417.14 W 689.12 322.75 0.58 0.46 -0.75 2582 29.00 307.40 63 2427.13 707.06 567.06 N 441 .28 W 718.53 322.11 0.41 0.37 -0.40 2708 29.01 306.71 126 2537.33 767.94 603.88 N 490.04 W 777.69 320.94 0.27 0.01 -0.55 2834 29.10 306.60 126 2647.47 828.88 640.41 N 539.13 W 837.12 319.91 0.08 0.07 -0.09 3087 30.03 308.20 253 2867.53 953.33 716.24 N 638.27 W 959.37 318.29 0.48 0.37 0.63 3213 29.65 308.03 126 2976.82 1015.89 754.94 N 687.60 W 1021.14 317.67 0.31 -0.30 -0.13 3340 28.78 308.03 127 3087.67 1077.73 793.13 N 736.42 W 1082.30 317.12 0.69 -0.69 0.00 3466 29.09 307.09 126 3197.94 1138.52 830.28 N 784.75 W 1142.45 316.62 0.44 0.25 -0.75 3529 29.16 307.51 63 3252.97 1169.09 848.87 N 809.14 W 1172.72 316.37 0.34 0.11 0.67 3592 28.95 306.79 63 3308.05 1199.58 867.34 N 833.53 W 1202.93 316.14 0.65 -0.33 -1.14 3718 29.37 306.34 126 3418.08 1260.71 903.92 N 882.84 W 1263.51 315.68 0.38 0.33 -0.36 3844 28.01 306.98 126 3528.61 1320.95 940.02 N 931.36 W 1323.28 315.27 1.11 -1.08 0.51 3970 28.33 306.23 126 3639.68 1380.18 975.49 N 979.11 W 1382.12 314.89 0.38 0.25 -0.60 4097 28.01 306.87 127 3751.64 1439.88 1011.19 N 1027.28 W 1441.46 314.55 0.35 -0.25 0.50 4223 26.89 307.98 126 3863.45 1497.78 1046.48 N 1073.41 W 1499.11 314.27 0.98 -0.89 0.88 4349 26.94 307.05 126 3975.80 1554.65 1081.21 N 1118.65 W 1555.76 314.03 0.34 0.04 -0.74 4509 27.32 306.75 160 4118.20 1627.34 1125.02 N 1176.99 W 1628.19 313.71 0.25 0.24 -0.19 4642 27.00 308.19 133 4236.54 1687.87 1161.95 N 1225.18 W 1688.55 313.48 0.55 -0.24 1.08 4737 26.54 307.18 95 4321.35 1730.54 1188.11 N 1259.04 W 1731 .12 313.34 0.68 -0.48 -1.06 4832 26.15 307.18 95 4406.49 1772.56 1213.58 N 1292.63 W 1773.04 313.19 0.41 -0.41 0.00 4926 26.00 307.42 94 4490.92 1813.75 1238.62 N 1325.49 W 1814.15 313.06 0.20 -0.16 0.26 5021 25.49 307.44 95 4576.59 1854.89 1263.70 N 1358.26 W 1855.22 312.93 0.54 -0.54 0.02 5115 23.67 306.95 94 4661.97 1893.86 1287.34 N 1389.40 W 1894.12 312.82 1.95 -1.94 -0.52 5210 23.19 306.98 95 4749.13 1931.50 1310.06 N 1419.59 W 1931.70 312.70 0.51 -0.51 0.03 5308 21.47 308.22 98 4839.78 1968.62 1332.76 N 1449.09 W 1968.79 312.61 1.82 -1.76 1.27 [:I El)()(~H 25 . . . UNOCALe Happy Valley #11 5402 20.69 308.10 94 4927.49 2002.36 1353.65 N 1475.68 W 2002.50 312.53 0.83 -0.83 -0.13 5497 18.98 306.63 95 5016.85 2034.49 1373.23 N 1501.28 W 2034.60 312.45 1.87 -1.80 -1.55 5591 17.37 305.44 94 5106.85 2063.66 1390.48 N 1524.98 W 2063.74 312.36 1.76 -1.71 -1.27 5686 16.62 304.77 95 5197.01 2091.24 1406.46 N 1547.70 W 2091.29 312.26 0.82 -0.79 -0.71 5781 15.26 306.77 95 5288.36 2117.17 1421.69 N 1568.87 W 2117.21 312.18 1.54 -1 .43 2.11 5875 13.61 304.04 94 5379.39 2140.45 1435.29 N 1587.95 W 2140.47 312.11 1.90 -1.76 -2.90 5970 12.21 302.20 95 5471.98 2161.43 1446.90 N 1605.71 W 2161.44 312.02 1.54 -1.47 -1.94 6065 9.51 306.70 95 5565.27 2179.15 1456.94 N 1620.51 W 2179.16 311.96 2.98 -2.84 4.74 6159 8.44 307.94 94 5658.12 2193.77 1465.82 N 1632.18 W 2193.77 311.93 1.16 -1.14 1.32 6254 6.37 300.02 95 5752.33 2205.89 1472.75 N 1642.24 W 2205.89 311.89 2.42 -2.18 -8.34 6349 5.29 303.87 95 5846.84 2215.38 1477.83 N 1650.44 W 2215.38 311.84 1.21 -1.14 4.05 6443 3.68 306.31 94 5940.54 2222.68 1482.03 N 1656.47 W 2222.68 311.82 1.72 -1.71 2.60 6538 1.46 316.79 95 6035.44 2226.92 1484.71 N 1659.75 W 2226.92 311.81 2.38 -2.34 11.03 6632 1.43 311.10 94 6129.41 2229.28 1486.36 N 1661.46 W 2229.28 311.82 0.16 -0.03 -6.05 6822 1.31 301.50 190 6319.36 2233.79 1489.05 N 1665.10 W 2233.79 311.81 0.14 -0.06 -5.05 7011 1.65 279.00 189 6508.30 2238.20 1490.61 N 1669.62 W 2238.20 311.76 0.35 0.18 -11.90 7199 1.92 283.98 188 6696.21 2243.26 1491.79 N 1675.35 W 2243.27 311.68 0.17 0.14 2.65 7385 1.81 289.26 186 6882.11 2248.72 1493.51 N 1681 .15 W 2248.74 311.62 0.11 -0.06 2.84 7575 1.89 290.45 190 7072.01 2254.41 1495.60 N 1686.92 W 2254.44 311.56 0.05 0.04 0.63 7764 1.63 293.07 189 7260.92 2259.86 1497.74 N 1692.31 W 2259.90 311.51 0.14 -0.14 1.39 7953 1.40 293.34 189 7449.85 2264.59 1499.71 N 1696.91 W 2264.64 311.47 0.12 -0.12 0.14 8142 1.35 293.94 189 7638.80 2268.96 1501.73 N 1700.95 W 2269.02 311 .44 0.09 -0.03 3.49 8331 1.04 295.34 189 7827.76 2272.78 1503.58 N 1704.43 W 2272.85 311.42 0.17 -0.16 -2.43 8520 0.65 291.27 189 8016.74 2275.43 1504.70 N 1706.98 W 2275.50 311.40 0.21 -0.21 -2.15 8710 0.92 294.27 190 8206.72 2277.89 1505.72 N 1709.38 W 2277.97 311.38 0.14 0.14 1.58 8899 0.69 296.36 189 8395.70 2280.44 1506.85 N 1711.78 W 2280.52 311.36 0.12 -0.12 1.11 9182 0.81 318.11 283 8678.68 2284.07 1509.09 N 1714.64 W 2284.16 311.35 0.11 0.04 7.69 9466 0.76 331 .72 284 8962.65 2287.83 1512.25 N 1716.88 W 2287.91 311.37 0.07 -0.02 4.79 9744 0.83 340.77 278 9240.62 2291.33 1515.77 N 1718.41 W 2291.40 311.41 0.05 0.03 3.26 10028 1.50 327.63 284 9524.56 2296.71 1520.85 N 1721.08 W 2296.76 311.47 0.25 0.24 -4.63 10082- 1.50 327.63 54 9578.54 2298.07 1522.05 N 1721.84 W 2298.12 311.48 0.00 0.00 0.00 ~ El)()(=H 26 . . . UNOCALe Happy Valley #11 DAILY MUD PROPERTIES Date FI Depth Den FV PV YP Gels API Cake Solids NAP/H20 Sand PH CI Ca Temp FiI 1 0/27/04 68 1008 9.20 48 12 22 10/14/18 5.6 1.010.0 3.9 1.0/92.5 0.50 8.50 32500 80 1 0/28/04 84 1960 9.00 44 11 19 8/10/12 5.8 1.010.0 2.5 2.0/93.0 0.25 8.50 31000 80 10/29/04 96 3391 9.20 45 16 19 6/10/14 5.0 1.010.0 4.0 2.0/91.5 0.10 9.00 31000 120 1 0/30/04 102 4212 9.20 52 22 19 5/9114 5.0 1.0/0.0 4.2 2.0/91.5 0.10 8.50 28500 120 10/31/04 80 4560 9.30 53 25 21 5/10/15 4.6 1.0/0.0 4.6 2.0/90.5 0.10 8.50 29500 140 11/01/04 68 4531 9.20 58 21 19 8/10/12 5.6 1.0/0.0 3.4 1.0/93.0 0.10 8.10 32000 100 11/02104 80 4696 9.20 49 17 19 4/618 5.6 1.0/0.0 3.4 2.0/92.0 0.10 9.50 32500 60 11/03/04 90 6021 9.30 53 18 17 3/5/7 4.2 1.0/0.0 5.0 3.5/89.0 0.25 9.30 32000 40 11/04/04 94 7040 9.30 55 20 17 4/6/7 3.9 1.0/0.0 5.1 3.0/89.5 0.25 8.90 31000 40 11/05/04 91 7530 9.30 58 20 18 4/5/6 3.8 1.010.0 5.1 2.5/90.0 0.25 8.70 30000 40 11/06/04 93 9125 9.30 58 16 12 3/4/6 3.6 1.0/0.0 5.2 2.5/90.0 0.25 9.30 29000 40 11/07/04 92 9704 9.30 55 16 13 3/4/6 3.5 1.0/0.0 5.2 2.0/90.5 0.25 9.00 29000 40 11/08/04 92 9915 9.30 52 16 11 2/3/5 3.5 1.0/0.0 5.2 2.0/90.5 0.25 9.00 29000 40 11/09/04 NA 10082 9.30 48 16 10 2/3/5 3.7 1.0/0.0 5.3 2.0/90.5 0.25 9.00 28000 40 11/10/04 NA 10082 9.30 56 13 10 2/4/7 3.4 1.0/0.0 5.7 2.0/90.0 0.10 9.40 29500 40 11/11/04 NA 10082 9.35 55 14 9 2/4/6 3.6 1.010.0 5.7 2.0/90.0 0.10 9.20 29000 20 11/12/04 . [~ E·l)OC=H . 27 . UNOCALe Happy Valley #11 BIT RECORD Bit Grading I 0 D L B G 0 R N U U 0 E A T E N T L C A U H A E E L A R G E S R R T I E R 0 C I N N R R H 0 G C 0 0 A N S H P W W R A U S S R L L E D Bit Size Make Type SIN TFA Depth Depth Ftg. Hrs. Ave Ave Ave Ave No. In Out FtlHr WOB RPM PSI 2rr 12.25 HTC MX-C1 6026447 0.70 92 1008 916 NA NA NA NA NA N N N N N N N N) A A A A A A A 3 8.50 HTC MX-C1 5052376 0.70 1008 4560 3552 37.2 95.5 10.9 71.5 1644 1 2 w F 2 E T[ t a R 4 6.125 HTC HCM-406 7102177 0.59 4560 7249 2689 41.9 64.2 6.3 68.8 1991 0 1 w A X I N RO t 0 5 6.125 SEC FM-3641 10586123 0.46 7249 9704 2455 39.2 62.6 5.0 59.7 2524 2 3 w N X I N RO t M~ 5rr1 6.125 SEC FM-3641 10586123 0.46 9704 10082 378 17.3 21.9 3.0 59.8 2062 4 7 w a X I H T[ t C . U EPOC:H . ,'. 28 . . . . Unocal Alaska DAILY WELLSITE REPORT g EPOCH Happy Valley 11 REPORT FOR Doug Niehaus I Jim Brown DATE Oct 28, 2004 TIME 23:59:59 DEPTH 2163.00 YESTERDAY 1008.00 24 HOUR FOOTAGE 1155 PRESENT OPERATION Drilling CASING INFORMATION 95/8"@ 1008' DEPTH SURVEY DATA 2077' AZIMUTH 318.62 VERTICAL DEPTH 1983.23' INCLINATION 28.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 3 81/2" HC MX-C1 5052376 3X16,1X12 1008' 1155' 8.0 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 404.8 @ 1705.00 18.0 @ 1989.00 167.8 196.77734 FTIHR SURFACE TORQUE 3896 @ 1688.00 0 @ 1961.00 1322.3 2573.58472 AMPS WEIGHT ON BIT 21 @ 1829.00 0 @ 1426.00 7.4 5.21580 KLBS ROTARY RPM 98 @ 1615.00 0 @ 1961.00 47.9 92.81406 RPM PUMP PRESSURE 1595 @ 2146.00 879 @ 1008.00 1164.5 1428.75122 PSI DRILLING MUD REPORT DEPTH 1960' MW 9.00 VIS 44 PV 11 YP 19 FL 5.8 Gels 8/10/12 CL- 31000 FC 5.8 SOL 2.5 SD 0.25 OIL 2.0 MBL 6.2 pH 8.50 Ca+ 80 CCI MWD SUMMARY INTERVAL TOOLS TO DPIG: 1155 FT/13.75 HRS = 84 FT/HR; Connections: 76 min.; Surveys: 77 min.; DT: 2 hr. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 31 @ 2120.00 o @ 1125.00 8.3 TRIP GAS NA CUTTING GAS 0 @ 2163.00 o @ 2163.00 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 5071 @ 1914.00 89 @ 1125.00 1457.4 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 2163.00 o @ 2163.00 0.0 AVG 0 PROPANE (C-3) 0 @ 2163.00 o @ 2163.00 0.0 CURRENT 0 BUTANE (C-4) 0 @ 2163.00 o @ 2163.00 0.0 CURRENT BACKGROUND/AVG 19u/8u PENTANE (C-5) 0 @ 2163.00 o @ 2163.00 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY IRE MARKS GAS DESCRIPTION LITHOLOGY SAND AND CONGLOMERATIC SAND 40%, COAL 5%, CLAYSTONE 40%, SILTSTONE 15% PRESENT LITHOLOGY CLAYSTONE 80%, SILTSTONE 20% DAILY ACTIVITY Finished testing BOPs, and picked up BHA. Serviced Rig and picked up and laid back drill pipe. Tripped in hole with SUMMARY HWDP, and tagged cement at 926'. Cleaned out casing and drilled new hole from 1008' to 1028', and F.I.T.: 15.4 PPG EMW. Drilled ahead, rotating and sliding, 1028' to 1968', worked on top drive, and drilled to 2163'. EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon Unocal · DAILY WELLSITE REPORT n EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Oct 29,2004 TIME 23:59:59 DEPTH 3516.00 YESTERDAY 2163.00 PRESENT OPERATION Wiper Trip 24 HOUR FOOTAGE 1353 CASING INFORMATION 95/8"@ 1008' DEPTH SURVEY DATA 3466' INCLINATION 29.09 VERTICAL DEPTH 3197.94' AZIMUTH 307.09 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS T/B/C PULLED 3 81/2" HC MX-C1 5052376 3X16,1X12 1008' 2508 20.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 267.4 @ 2888.00 9.0 @ 2360.00 134.4 130.10951 FTIHR SURFACE TORQUE 5066 @ 3488.00 0 @ 2390.00 2721.1 3769.79297 AMPS WEIGHT ON BIT 20 @ 2280.00 0 @ 2318.00 10.7 13.42131 KLBS ROTARY RPM 101 @ 2236.00 0 @ 3284.00 83.4 91.86420 RPM PUMP PRESSURE 2135 @ 3486.00 832 @ 2508.00 1702.9 2079.58936 PSI DRILLING MUD REPORT DEPTH 3391' MW 9.2 VIS 45 PV 16 YP 19 FL 5.0 Gels 6/10/14 CL- 31000 · FC 1/0 SOL 4.0 SD 0.10 OIL 2.0 MBL 5.0 pH 9.0 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS DPIG: 1353 FT/18.33 HRS = 73.8 FT/HR; Connection: 110 min.; Surveys: 68 min.; Trip: 5 hr. 40 min. GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL HIGH LOW 111 @ 2481.00 4 @ 2382.00 o @ 3516.00 0 @ 3516.00 CHROMATOGRAPHY (ppm) 22036 @ 2481.00 836 @ 2444.00 24 @ 3373.00 0 @ 2447.00 o @ 3516.00 0 @ 3516.00 o @ 3516.00 0 @ 3516.00 o @ 3516.00 0 @ 3516.00 NONE LITHOLOGY IRE MARKS AVERAGE 28.3 0.0 TRIP GAS WIPER GAS 78u@2507' SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 14u/28u 5532.2 0.8 0.0 0.0 0.0 GAS DESCRIPTION LITHOLOGY 10% SAND, 5% COAL, 60% CLAYSTONE, 25% SILTSTONE PRESENT LITHOLOGY 60% CLAYSTONE, 40% SILTSTONE DAILY ACTIVITY Drill 2163' to 2507', circulate and condition hole fo 30 minutes. Wiper trip to shoe, pulling through tight spots at SUMMARY 1920',1715', and 1700', and washing from 1450' to shoe. Trip in and drill ahead from 2507' to 3517', and circulate and condition hole. Begin wiper trip. EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 · REPORT BY Brian O'Fallon Unocal Alaska DAILYWELLSITE REPORT g EPOCH · Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Oct 30, 2004 TIME 23:59:59 DEPTH 4356.00 YESTERDAY 3516.00 24 HOUR FOOTAGE 840 CASING INFORMATION 95/8" @ 1008' DEPTH SURVEY DATA 4223' INCLINATION 26.89 PRESENT OPERATION Drilling AZIMUTH 307.98 VERTICAL DEPTH 3863.45 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 3 81/2" HC MX-C1 5052376 3X16,1X12 1008' 3348' 33.6 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 177.1 @ 3518.00 4.9 @ 3769.00 79.6 80.49982 FTIHR SURFACE TORQUE 4903 @ 4060.00 -7 @ 3772.00 3121.3 4060.65259 AMPS WEIGHT ON BIT 23 @ 4231.00 0 @ 3644.00 14.7 15.16629 KLBS ROTARY RPM 98 @ 3644.00 0 @ 3787.00 80.2 95.54282 RPM PUMP PRESSURE 2288 @ 4137.00 1061 @ 3517.00 2081.2 2226.59497 PSI DRILLING MUD REPORT DEPTH 4212 MW 9.20 VIS 52 PV 22 YP 19 FL 5.0 Gels 5/9/14 CL- 28500 · FC 1/0 SOL 4.2 SD 0.10 OIL 2.0 MBL 5.0 pH 8.50 Ca+ 120 CCI MWD SUMMARY INTERVAL TO TOOLS DPIG: 840 FT/17.1 HRS=49.1 FT/HR; Connection: 79 min.; Survey: 36 min.; Trip: 6.9 hrs. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 88 @ 3990.00 9 @ 4255.00 29.0 CUTTING GAS 0 @ 4356.00 0 @ 4356.00 0.0 CHROMATOGRAPHY (ppm) METHANE (C-1) 17631 @ 3990.00 1803 @ 4255.00 5692.6 ETHANE (C-2) 19 @ 3605.00 0 @ 4337.00 1.6 PROPANE (C-3) 0 @ 4356.00 0 @ 4356.00 0.0 BUTANE (C-4) 0 @ 4356.00 0 @ 4356.00 0.0 PENTANE (C-5) 0 @ 4356.00 0 @ 4356.00 0.0 HYDROCARBON SHOWS NONE INTERVAL LlTHOLOGY/REMARKS TRIP GAS WIPER GAS 55u@3516' SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 31u/29u GAS DESCRIPTION LITHOLOGY 20% SAND, 10% COAL, 20% SILTSTONE, 50% CLAYSTONE PRESENT LITHOLOGY 20% SAND, 20% COAL, 20% SILTSTONE, 40% CLAYSTONE DAILY ACTIVITY Wiper trip to shoe, backreaming and circulating after third stand pulled. Trip in and wash to bottom on last SUMMARY stand, 55 units of trip gas. Drill ahead, mostly rotating and some sliding, from 3516' to 4356'. EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon · UNOCAL · Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Oct 31,2004 TIME 23:59:59 DAILY WELLSITE REPORT U EPOCH DEPTH 4560.00 YESTERDAY 4356.00 24 HOUR FOOTAGE 204 CASING INFORMATION 95/8" @ 1008' DEPTH SURVEY DATA 4509' BIT INFORMATION NO. SIZE TYPE 3 81/2" HC MX-C1 · DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.20 VIS FC 1/0 SOL MWD SUMMARY INTERVAL TO SIN 5052376 104.1 4666 25 95 2285 52 4.2 PV SD INCLINATION 27.32 JETS 3X16,1X12 INTERVAL IN OUT 1008' 4560' FOOTAGE 3552' PRESENT OPERATION Run 7" Casing AZIMUTH 306.75 HOURS 37.2 AVERAGE 64.2 4139.2 17.3 91.8 2183.5 Gels 5/9/14 pH 8.50 VERTICAL DEPTH 4163.49' CONDITION TIBIC REASON PULLED Csg PI. HIGH @ 4444.00 13.7 @ 4429.00 2479 @ 4531.00 2 @ 4360.00 62 @ 4517.00 1043 DEPTH 4212' 22 YP 19 0.10 OIL 2.0 LOW @ 4453.00 @ 4401.00 @ 4454.00 @ 4401.00 @ 4453.00 FL 5.0 MBL 5.0 CURRENT AVG 58.74496 4212.74609 19.81187 88.11494 2207.69287 FTIHR AMPS KLBS RPM PSI CL- 28500 Ca+ 120 CCI TOOLS DPIG: 204 FT/4.5 HRS=45.33 FT/HR; Connection: 12 min.; Survey: 4 min; Trip: 11 hrs.; Wireline: 5 hrs:; Casing: 3.5 hrs. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 148 @ 4364.00 20 @ 4407.00 35.7 CUTTING GAS 0 @ 4560.00 0 @ 4560.00 0.0 CHROMATOGRAPHY (ppm) METHANE (C-1) 27251 @ 4364.00 4087 @ 4472.00 6974.6 ETHANE (C-2) 16 @ 4364.00 2 @ 4465.00 4.1 PROPANE (C-3) 0 @ 4560.00 0 @ 4560.00 0.0 BUTANE (C-4) 0 @ 4560.00 0 @ 4560.00 0.0 PENTANE (C-5) 0 @ 4560.00 0 @ 4560.00 0.0 HYDROCARBON SHOWS NONE INTERVAL LITHOLOGY IRE MARKS TRIP GAS NA WIPER GAS NA SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 20u/36u GAS DESCRIPTION LITHOLOGY 20% SAND, 10% COAL, 20% SILTSTONE, 50% CLAYSTONE. PRESENT LITHOLOGY 10% SAND, 30% SILTSTONE, 60% CLAYSTONE DAILY ACTIVITY SUMMARY Drill from 4356' to 4560', backream last double and survey off bottom. Remove joint, drop carbide, circulate bottoms up and circulate out carbide, showing approximately guaged hole. Circulate and condition hole, and trip out backreaming and circulating to approximately 2200' when top drive failed. Pull out of hole, lay down BHA, and rig up and run wireline. Rig up and begin run casing. · EPOCH PERSONNEL ON BOARD 4 REPORT BY Brian O'Fallon DAILY COST $2790 UNOCAL · DAILY WELLSITE REPORT U EPOCH Happy Valley #11 REPORT FOR Jim Brown I Doug Niehaus DEPTH 4560.00 YESTERDAY 4560.00 24 HOUR FOOTAGE 0 CASING INFORMATION 95/8" @ 1008' DEPTH SURVEY DATA 4509' DATE Nov 1, 2004 TIME 23:59:59 BIT INFORMATION NO. SIZE TYPE 3 8 1/2" HC MX-C1 · DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.20 VIS FC 1/0 SOL MWD SUMMARY INTERVAL TOOLS TO DPIG: NA GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION 27.32 SIN 5052376 JETS 3X16,1X12 INTERVAL IN OUT 1008' 4560' PRESENT OPERATION Pick up Drill Pipe and Mix mud. AZIMUTH 306.75 VERTICAL DEPTH 4163.49' HIGH LOW NA @ NA @ NA @ NA @ NA @ NA @ NA @ NA @ NA @ NA @ DEPTH 4506' 58 PV 21 YP 19 3.4 SD 0.10 OIL 1.0 HIGH LOW 36 @ NA 5 @ NA @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ AVERAGE 18 NA LITHOLOGY IRE MARKS CONDITION REASON FOOTAGE HOURS TIBIC PULLED 3552' 37.2 Csg pt. AVERAGE CURRENT AVG NA NA FTIHR NA NA AMPS NA NA KLBS NA NA RPM NA NA PSI FL 5.6 Gels MBL 2.5 pH CL- 32000 Ca+ 100 CCI 8/10/12 8.10 TRIP GAS 36u@4560' WIPER GAS NA SURVEY NA CONNECTION GAS HIGH NA AVG NA CURRENT NA CURRENT BACKGROUND/AVG NA/18 GAS DESCRIPTION LITHOLOGY NA PRESENT LITHOLOGY 10% SAND, 30% SILTSTONE, 60% CLAYSTONE DAILY ACTIVITY Ran Casing and lost returns at 1092'. Finished running csig and circulated with minimal returns. Rigged up SUMMARY Schlumberger and cemented casing. Bumped plug and held 3500 psi for 30 minutes, and rigged up and tested BOPs. Picked up BHA, and picking up drill pipe while mixing mud. EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 · REPORT BY Brian O'Fallon UNOCAL DAILY WELLSITE REPORT g EPOCH · Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 02, 2004 TIME 23:59:59 DEPTH 4866.00 YESTERDAY 4560.00 24 HOUR FOOTAGE 306 CASING INFORMATION 7"@4506' DEPTH SURVEY DATA 4642' INCLINATION 27.00 PRESENT OPERATION Drilling AZIMUTH 308.19 VERTICAL DEPTH 4236.54' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 4 61/8" HCM 406 - Rebuilt 7102177 3x16 4560' 306' 3.5 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT A VG RATE OF PENETRATION 430.0 @ 4562.00 18.8 @ 4615.00 105.2 57.12891 FT/HR SURFACE TORQUE 5797 @ 4855.00 1385 @ 4697.00 4756.8 4084.14063 AMPS WEIGHT ON BIT 19 @ 4560.00 0 @ 4571.00 6.0 4.22053 KLBS ROTARY RPM 88 @ 4560.00 12 @ 4790.00 76.0 79.94970 RPM PUMP PRESSURE 2343 @ 4715.00 969 @ 4571.00 1802.7 1685.01770 PSI DRILLING MUD REPORT DEPTH 4696' MW 9.20 VIS 49 PV 17 YP 19 FL 5.6 Gels 4/6/8 CL- 32500 · FC 1.010.0 SOL 3.4 SD 0.10 OIL 2.0 MBL 2.5 pH 9.5 Ca+ 60 CCI MWD SUMMARY INTERVAL TO TOOLS DPIG: 306 FT/4.3 HRS=71.2 FT/HR; Connection: 15 min.; Survey: 19 min. GAS SUMMARY (units) DITCH GAS CUTTING GAS HIGH LOW @ 4793.00 @ 4613.00 @ 4866.00 0 @ 4866.0'0 CHROMATOGRAPHY (ppm) @ 4793.00 224 @ 4613.00 @ 4793.00 0 @ 4734.00 @ 4866.00 0 @ 4866.00 @ 4866.00 0 @ 4866.00 @ 4866.00 0 @ 4866.00 247 o AVERAGE 46.5 0.0 METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL 43955 25 o o o 9048.4 3.2 0.0 0.0 0.0 TRIP GAS 88u@4560' WIPER GAS SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 45/46 GAS SANDS: 4705'-4745', 125u; 4790'-4826', 248u LITHOLOGY IRE MARKS GAS DESCRIPTION LITHOLOGY 30% SAND, 5% COAL, 25% SILTSTONE, 40% CLAYSTONE PRESENT LITHOLOGY 30% SILTSTONE, 70% CLAYSTONE DAILY Finish picking up drill pipe and mixing mud. Wait on parts, repair top drive and draw works. Trip in hole, tag cement ACTIVITY at 4211', and drill out cement, shoe and new formation down to 4570'. Circulate and clean hole, and displace SUMMARY cement comtaminated mud out of hole. Rig up and perform F.I.T. to 13.5 ppg EMW. Drill ahead from 4570' to 4866' · EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon . . . UNOCAL DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 02, 2004 TIME 23:59:59 DEPTH 4866.00 YESTERDAY 4560.00 24 HOUR FOOTAGE 306 CASING INFORMATION 7"@4506' DEPTH SURVEY DATA 4642' BIT INFORMATION NO. SIZE 4 6 1/8" INCLINATION 27.00 AZIMUTH 308.19 INTERVAL SIN JETS IN OUT FOOTAGE HOURS 7102177 3x16 4560' 306' 3.5 HIGH LOW AVERAGE 430.0 @ 4562.00 18.8 @ 4615.00 105.2 5797 @ 4855.00 1385 @ 4697.00 4756.8 19 @ 4560.00 0 @ 4571.00 6.0 88 @ 4560.00 12 @ 4790.00 76.0 2343 @ 4715.00 969 @ 4571.00 1802.7 TYPE HCM 406 - Rebuilt DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.20 VIS FC 1.010.0 SOL MWD SUMMARY INTERVAL TOOLS 49 PV 3.4 SD DEPTH 4696' 17 YP 19 0.10 OIL 2.0 FL 5.6 Gels MBL 2.5 pH TO DPIG: 306 FT/4.3 HRS=71.2 FT/HR; Connection: 15 min.; Survey: 19 min. GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL HIGH LOW 247 @ 4793.00 @ 4613.00 o @ 4866.00 0 @ 4866.00 CHROMATOGRAPHY (ppm) 43955 @ 4793.00 224 @ 4613.00 9048.4 25 @ 4793.00 0 @ 4734.00 3.2 o @ 4866.00 0 @ 4866.00 0.0 o @ 4866.00 0 @ 4866.00 0.0 o @ 4866.00 0 @ 4866.00 0.0 GAS SANDS: 4705'-4745', 125u; 4790'-4826', 248u LlTHOLOGY/REMARKS GAS AVERAGE 46.5 0.0 PRESENT OPERATION Drilling VERTICAL DEPTH 4236.54' CONDITION TIBIC REASON PULLED CURRENT AVG 57.12891 4084.14063 4.22053 79.94970 1685.01770 FT/HR AMPS KLBS RPM PSI 4/6/8 9.5 CL- 32500 60 CCI Ca+ TRIP GAS 88u@4560' WIPER GAS SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 45/46 DESCRIPTION LITHOLOGY 30% SAND, 5% COAL, 25% SILTSTONE, 40% CLAYSTONE PRESENT LITHOLOGY 30% SILTSTONE, 70% CLAYSTONE DAILY Finish picking up drill pipe and mixing mud. Wait on parts. repair top drive and draw works. Trip in hole, tag cement ACTIVITY at 4211', and drill out cement, shoe and new formation down to 4570'. Circulate and clean hole, and displace SUMMARY cement comtaminated mud out of hole. Rig up and perform F.I.T. to 13.5 ppg EMW. Drill ahead from 4570' to 4866' DAILY COST $2790 EPOCH PERSONNEL ON BOARD 4 REPORT BY Brian O'Fallon . . . UNOCAL DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 03,2004 TIME 23:59:59 DEPTH 6021.00 YESTERDAY 4866.00 24 HOUR FOOTAGE 1155 PRESENT OPERATION Trip In CASING INFORMATION 7" @ 4506' DEPTH SURVEY DATA 5970' AZIMUTH 302.20 VERTICAL DEPTH 5472.01 INCLINATION 12.21 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 4 6 1/8" HCM 406 - Rebuilt 7102177 3x16 4560' 1461 19.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 191.7 @ 4981.00 6.2 @ 4867.00 93.6 28.67864 FT/HR SURFACE TORQUE 7358 @ 5729.00 -34 @ 5947.00 4855.4 5209.12695 AMPS WEIGHT ON BIT 12 @ 5445.00 0 @ 5085.00 6.0 4.39662 KLBS ROTARY RPM 81 @ 5053.00 -1 @ 5275.00 70.7 76.24886 RPM PUMP PRESSURE 2655 @ 5456.00 974 @ 4867.00 1948.6 1717.52209 PSI DRILLING MUD REPORT DEPTH 6021 MW 9.3 VIS 53 PV 18 YP 17 FL 4.2 Gels 3/5/7 CL- 32000 FC 1.010.0 SOL 5.0 SD 0.25 OIL 3.5 MBL 3.0 pH 9.3 Ca+ 40 CCI MWD SUMMARY INTERVAL TOOLS TO DPIG: 1155 FT/20.7 HRS = 55.8 FT/HR; Connections: 52 min.; Surveys: 78 min.; Trip: 3.3 hrs. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 324 @ 5527.00 6 @ 5147.00 73.4 TRIP GAS CUTTING GAS 0 @ 6021.00 0 @ 6021.00 0.0 WIPER GAS 52u@6021' CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 61154 @ 5527.00 1223 @ 5147.00 14219.3 CONNECTION GAS HIGH 0 ETHANE (C-2) 46 @ 5902.00 0 @ 5637.00 8.2 AVG 0 PROPANE (C-3) 5 @ 5049.00 0 @ 5469.00 0.2 CURRENT 0 BUTANE (C-4) 0 @ 6021.00 0 @ 6021.00 0.0 CURRENT BACKGROUND/AVG 35u/73u PENTANE (C-5) 0 @ 6021.00 0 @ 6021.00 0.0 HYDROCARBON Sand (Coal enhanced): 5055'-5075', 140u; 5278'-5295', 269u; Sand: 5495'-5535', 324u; 5595'-5560', SHOWS 182u. INTERVAL LITHOLOGY IRE MARKS GAS DESCRIPTION LITHOLOGY 10% COAL, 20% SAND, 20% SILTSTONE, 50% CLAYSTONE PRESENT LITHOLOGY 40% COAL, 10% SAND, 10% SILTSTONE, 40% CLAYSTONE DAILY ACTIVITY Drill, rotating and some sliding, from 4866' to 6021', circulate out and clean hole. Wiper trip to shoe, some tight SUMMARY spots until approximately 900 feet off bottom, or position above bit of ghost reamer. Tripping to bottom. EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon UNOCAL . DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 04, 2004 TIME 23:59:59 DEPTH 7043.00 YESTERDAY 6021.00 24 HOUR FOOTAGE 1022 PRESENT OPERATION Drilling CASING INFORMATION 7" @4506' DEPTH SURVEY DATA 6822' INCLINATION 1.31 AZIMUTH 301.50 VERTICAL DEPTH 6319.39' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 4 61/8" HCM 406 - Rebuilt 7102177 3x16 4560' 2483' 38.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 186.4 @ 6309.00 8.0 @ 6131.00 70.9 36.06126 FTIHR SURFACE TORQUE 7879 @ 6555.00 0 @ 6128.00 5573.4 6355.69678 AMPS WEIGHT ON BIT 13 @ 6113.00 0 @ 6307.00 6.4 6.51636 KLBS ROTARY RPM 80 @ 6358.00 0 @ 6422.00 64.3 77. 73269 RPM PUMP PRESSURE 2582 @ 6625.00 1233 @ 6221.00 2049.7 2117.33716 PSI DRILLING MUD REPORT DEPTH 7040 MW 9.30 VIS 55 PV 20 YP 17 FL 3.9 Gels 4/6/7 CL- 31000 FC 3.9 SOL 5.1 SD 0.25 OIL 3.0 MBL 3.0 pH 8.90 Ca+ 40 CCI . MWD SUMMARY INTERVAL TOOLS TO DPIG: 1022 FT/23.5 HRS = 43.5 FT/HR; Connection: 53 min.; Survey: 72 min.; Trip: 0.5 hrs. GAS SUMMARY (units) DITCH GAS CUTTING GAS HIGH LOW 1027 @ 6897.00 8 @ 6504.00 o @ 7043.00 0 @ 7043.00 CHROMATOGRAPHY (ppm) 208350 @ 6897.00 1773 @ 6504.00 13109.6 161 @ 6897.00 0 @ 6699.00 10.1 41 @ 6897.00 0 @ 6699.00 1.1 o @ 7043.00 0 @ 7043.00 0.0 o @ 7043.00 0 @ 7043.00 0.0 GAS SHOWS: SAND AND COAL: 6380'-6395'(147u), 6730'-6815'(156u); SAND: 6445'-6460'(123u), 6610'- 6620'(248u), 6870'-6940'(1027u), 6980'-7000'(355u) LlTHOLOGY/REMARKS AVERAGE 66.9 0.0 TRIP GAS WIPER GAS 52u@6021' SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENTBACKGROUND~VG METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL GAS DESCRIPTION LITHOLOGY 20% SAND, 10% COAL, 30% SILTSTONE, 40% CLAYSTONE PRESENT LITHOLOGY 30% CLAYSTONE, 50% SILTSTONE; 20% SAND DAILY ACTIVITY Finish wiper trip washing to bottom final stand, 52 units of trip gas, and drill ahead, rotating and sliding, SUMMARY from 6021' to 7043'. . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon UNOCAL . DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Jim Brown I Doug Niehaus DATE Nov 05, 2004 TIME 23:59:59 DEPTH 7723.00 YESTERDAY 7043.00 24 HOUR FOOTAGE 680 PRESENT OPERATION Drilling CASING INFORMATION 7" @ 4506' DEPTH SURVEY DATA 7575' INCLINATION 1.89 AZIMUTH 290.45 VERTICAL DEPTH 7072.04' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 5 61/8" SEC FM 3641 10586123 3X16 7249' 474' 6.1 4 61/8" HCM 406 Rebuilt 7102177 3x16 4560' 7249' 2689' 41.9 drill rate DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 191.8 @ 7554.00 22.2 @ 7345.00 78.4 67.92453 FTIHR SURFACE TORQUE 8810 @ 7695.00 2740 @ 7071.00 7324.1 8400.44238 AMPS WEIGHT ON BIT 13 @ 7176.00 1 @ 7536.00 5.9 6.07385 KLBS ROTARY RPM 77 @ 7059.00 32 @ 7071.00 62.8 57.69500 RPM PUMP PRESSURE 2792 @ 7595.00 1447 @ 7251.00 2365.2 2669.98584 PSI DRILLING MUD REPORT DEPTH 7530' . MW 9.30 VIS 58 PV 20 YP 18 FL 3.8 Gels 4/5/6 CL- 30000 FC 3.8 SOL 5.1 SD 0.25 OIL 2.5 MBL 3.5 pH 8.70 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS DPIG: 680 FT/11.8 HRS=57.6 FT/HR; Connection: 31 min.; Survey: 18 min.; Trip: 12.2 hrs. GAS SUMMARY (units) DITCH GAS CUTTING GAS HIGH LOW 1166 @ 7527.00 14 @ 7251.00 o @ 7723.00 0 @ 7723.00 CHROMATOGRAPHY (ppm) 227223 @ 7527.00 2850 @ 7251.00 19730.1 215 @ 7527.00 0 @ 7443.00 18.8 62 @ 7527.00 0 @ 7289.00 4.2 6 @ 7694.00 0 @ 7691.00 0.0 o @ 7723.00 0 @ 7723.00 0.0 GAS SHOWS: SAND: 7215'-7235'(597u), 7305'-7320'(435u), 7395'-7405'(287u), 7425'-7430'(285u), 7550'- 7580'(631 u), 7615'-7660'(320u). LlTHOLOGY/REMARKS AVERAGE 102.2 0.0 TRIP GAS 1120u@7249' WIPER GAS NA SURVEY 0 CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 82/102 METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL GAS DESCRIPTION LITHOLOGY 10% COAL, 40% SAND, 30% SILTSTONE, 20% CLAYSTONE PRESENT LITHOLOGY 30% SAND, 20% SILTSTONE, 50% CLAYSTONE DAILY Drill ahead, rotating, from 7023' to 7249', and circulate bottoms up and condition hole. Trip out of hole, working pipe ACTIVITY at 6510'. Change bit (NB#5), and trip in hole. Wash to bottom on last stand, and drill ahead, 1120 units of trip gas, SUMMARY from 7249' to 7723'. Gas Peaks over 600 units: COAL(1166u@7527'),SAND(631u@7556'),COAL(932u@7695') . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon UNOCAL · DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 06, 2004 TIME 23:59:59 DEPTH 9213.00 YESTERDAY 7723.00 24 HOUR FOOTAGE 1490 CASING INFORMATION 7" @ 4506' DEPTH SURVEY DATA 9182' BIT INFORMATION NO. SIZE TYPE 5 61/8" SEC FM 3641 · DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.30 VIS FC 1.0/0.0 SOL MWD SUMMARY INTERVAL TOOLS INCLINATION 0.81 AZIMUTH 318.11 INTERVAL SIN JETS IN OUT FOOTAGE HOURS 10586123 3X16 7249 1964' 23.3 HIGH LOW AVERAGE 280.3 @ 7914.00 10.0 @ 9124.00 98.7 11059 @ 9146.00 3862 @ 8197.00 8832.3 15 @ 8166.00 1 @ 8978.00 5.6 64 @ 8527.00 30 @ 8786.00 59.5 3133 @ 8939.00 1417 @ 8786.00 2615.7 58 5.2 DEPTH 9125' 16 YP 12 0.25 Oil 2.5 Gels pH PRESENT OPERATION Drilling VERTICAL DEPTH 8678.68' CONDITION TIBIC REASON PULLED PV SD Fl MBl 3.6 5.5 CURRENT AVG 24.78147 9386.09961 6.30561 60.62673 2433.68530 FT/HR AMPS KLBS RPM PSI 3/4/6 CL- 29000 9.30 Ca+ 40 CCI TO DPIG: 1490 FT/21.6 HRS=69.0 FT/HR; Connection: 88 min.; Survey: 28 min.; Wiper Trip: 2.4 hrs. HIGH LOW 2491 @ 9082.00 19 @ 8339.00 161.8 o @ 9213.00 0 @ 9213.00 0.0 CHROMATOGRAPHY (ppm) 510118 @ 9082.00 1065 @ 8490.00 31305.3 1258 @ 9082.00 5 @ 8339.00 50.9 319 @ 9082.00 0 @ 7846.00 15.5 66 @ 9082.00 0 @ 7844.00 0.5 o @ 9213.00 0 @ 9213.00 0.0 GAS SHOWS: SAND AND COAL: 7825'-7840'(779u), 7863'-7873'(433u); SAND: 8720'-8730'(1200u), 8880'- 8890'(487u), 9075'-9180'(2491 u) LlTHOLOGY/REMARKS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL AVERAGE TRIP GAS WIPER GAS 392u@8668' SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENTBACKGROUND~VG GAS DESCRIPTION LITHOLOGY 15% COAL, 35% SAND, 20% SILTSTONE, 30% CLAYSTONE PRESENT LITHOLOGY 20% COAL, 30% SAND, 50% CLAYSTONE AND SHALE Drill, rotating, from 7723' to 8668', circulate bottoms up and condition hole. Wiper trip 10 stands, washing to bottom on last stand, 392 units of trip gas. Drill ahead, rotating, from 8668' to 9213'. Gas Peaks over 600 units: COAL (779u@7834'), COAl(655u@8069'), COAL(618u@8141'), COAl(789u@8209'), COAl(805u@8385'), COAL (900u@8706'), SAND(1200u@8725'), COAL(732u@8802'), COAl(985u@8977'), COAl(1140u@9039'), SAND (2491 u@9082'), SAND(759u@9164') DAILY ACTIVITY SUMMARY · EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon UNOCAL . DAILY WELLSITE REPORT fI EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 07,2004 TIME 23:59:59 DEPTH 9704.00 YESTERDAY 9213.00 24 HOUR FOOTAGE 491 PRESENT OPERATION Trip for mud motor (bit?) CASING INFORMA nON 7" @ 4506' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 9466' 0.76 331.72 8962.65' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 5 61/8" SEC FM 3641 10586123 3X16 7249 2455 39.2 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT A VG RATE OF PENETRATION 82.4 @ 9638.00 6.8 @ 9550.00 37.3 14.75098 FTIHR SURFACE TORQUE 11256 @ 9335.00 5130 @ 9521.00 9510.0 9556.68555 AMPS WEIGHT ON BIT 10 @ 9262.00 0 @ 9413.00 3.2 1.70549 KLBS ROTARY RPM 73 @ 9351.00 36 @ 9521.00 61.0 57.49529 RPM PUMP PRESSURE 2938 @ 9258.00 1598 @ 9332.00 2355.6 2151.50073 PSI DRILLING MUD REPORT DEPTH 9704' MW 9.30 VIS 55 PV 16 YP 13 FL 3.5 Gels 3/4/6 CL- 29000 FC 1.010.0 SOL 5.2 SD 0.25 OIL 2.0 MBL 6.5 pH 9.00 Ca+ 40 CCI . MWD SUMMARY INTERVAL TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL TO DPIG: 491 FT/18.3 HRS = 26.8 FT/HR; Connection: 25 min.; Survey: 9 min.; Trip: 5.7 hrs. HIGH LOW AVERAGE 104.5 0.0 TRIP GAS NA WIPER GAS NA SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 50u/104u 611 @ 9425.00 13 @ 9314.00 o @ 9704.00 0 @ 9704.00 CHROMATOGRAPHY (ppm) 120769 @ 9425.00 2775 @ 9314.00 20525.7 224 @ 9559.00 0 @ 9703.00 38.1 149 @ 9559.00 0 @ 9682.00 15.1 13 @ 9670.00 0 @ 9397.00 0.8 o @ 9704.00 0 @ 9704.00 0.0 GAS SHOWS: SAND AND COAL: 9520'-9540'(379u); SAND: 9400'-9420'(389u), 9555'-9565'(382u), 9620'- 9640'(515u) LITHOLOGY IRE MARKS GAS DESCRIPTION LITHOLOGY 10% COAL, 30% SAND, 20% SILTSTONE, 40% CLAYSTONE PRESENT LITHOLOGY 60% SAND, 10% SILTSTONE, 30% CLAYSTONE DAILY ACTIVITY Drill, rotating, from 9213' to 9704', and circulate bottoms up and clean hole. Tripping out of hole for new mud SUMMARY motor and possibly new bit. Gas Peaks over 600 units: COAL(611 u@9425') . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon UNOCAL . DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Doug Niehaus I Jim Brown DATE Nov 08, 2004 TIME 23:59:59 DEPTH 9965.00 YESTERDAY 9704.00 24 HOUR FOOTAGE 261 CASING INFORMATION 7" @ 4506' DEPTH SURVEY DATA 9744' . BIT INFORMATION NO. SIZE TYPE 5 61/8" SEC FM 3641 RR5 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.30 VIS FC 1.010.0 SOL MWD SUMMARY INTERVAL TO INCLINATION 0.83 SIN 10586123 INTERVAL IN OUT 7249 9704 9704 FOOTAGE 2455' 261' PRESENT OPERATION Drilling AZIMUTH 340.77 HOURS 39.2 9.2 AVERAGE 39.0 9343.9 3.1 59.5 2153.1 Gels 2/3/5 pH 9.00 VERTICAL DEPTH 9240.65' CONDITION T/B/C GOOD CURRENT AVG 5.06471 8527.71094 5.54937 61.96212 2209.50464 CL- 29000 Ca+ 40 REASON PULLED RE RAN FTIHR AMPS KLBS RPM PSI CCI TOOLS DPIG: 261 FT/11.3 HRs=23.0 FT/HR; Connection: 8 min.; Survey: 4 min.; Trip; 11.8 hrs; DT: 0.9 hrs. (0.2 Network, 0.7 Pumps) JETS 3X16 52 5.2 HIGH 141.6 @ 9757.00 5.1 10082 @ 9925.00 6422 9 @ 9957.00 0 62 @ 9908.00 40 2504 @ 9958.00 897 DEPTH 9915' PV 16 YP 11 SD 0.25 OIL 2.0 FL 3.5 MBL 6.5 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 497 @ 9719.00 20 @ 9833.00 73.8 TRIP GAS 873u CUTTING GAS 0 @ 9965.00 0 @ 9965.00 0.0 WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 93591 @ 9719.00 4021 @ 9833.00 14537.2 CONNECTION GAS HIGH 0 ETHANE (C-2) 221 @ 9759.00 1 @ 9705.00000 33.5 AVG 0 PROPANE (C-3) 72 @ 9759.00 0 @ 9705.00000 11.8 CURRENT 0 BUTANE (C-4) 9 @ 9759.00 0 @ 9781.00 0.3 CURRENT BACKGROUND/AVG 22u/74u PENTANE (C-5) 0 @ 9965.00 0 @ 9965.00 0.0 HYDROCARBON SHOWS GAS SHOWS: SAND: 9715'-9721 '(497u), 9755'-9762'(208u), 9917'-9933'(172u) INTERVAL LlTHOLOGY/REMARKS GAS DESCRIPTION LOW @ 9965.00 @ 9799.00 @ 9723.00 @ 9840.00 @ 9748.00 LITHOLOGY 10% COAL, 40% SAND, 30% SILTSTONE, 20% CLAYSTONE PRESENT LITHOLOGY 40% SAND, 50% SILTSTONE, 10% CLAYSTONE DAILY ACTIVITY SUMMARY Pull out of hole and change out pump liners to 4" (from 5"), mud motor and lay down ghost reamer. Inspect bit (#5) and rerun. Trip in hole and wash down last three stands. Network lost due snapped cable, drill 9704 to 9707' and work pipe until network running, 873 units of trip gas. Drill ahead, rotating, from 9707' to 9965', circulating off bottom with pump #1 and working on pump #2 at 9747' and 9910'. No gas peaks over 600 units. . EPOCH PERSONNEL ON BOARD 4 DAILY COST $2790 REPORT BY Brian O'Fallon UNOCAL DAILY WELLSITE REPORT (J EPOCH · Happy Valley #11 REPORT FOR Shane Hauck I Jim Brown DATE Nov 09,2004 TIME 23:59:59 DEPTH 10082.00 YESTERDAY 9965.00 24 HOUR FOOTAGE 117 CASING INFORMATION 7" @4506' DEPTH SURVEY DATA 10028' INCLINATION 1.50 AZIMUTH 327.63 PRESENT OPERATION Logging VERTICAL DEPTH 9524.56' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED rr5 61/8" SEC FM 3641 10586123 3X16 9704' 10082' 378' 17.3 T.D. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 44.4 @ 9986.00 3.7 @ 10050.00 18.0 5.64680 FTIHR SURFACE TORQUE 10202 @ 10018.00 7622 @ 10078.00 9477.0 8499.36914 AMPS WEIGHT ON BIT 8 @ 10000.00 0 @ 10055.00 2.8 6.33184 KLBs ROTARY RPM 62 @ 9974.00 55 @ 9988.00 61.1 60.70154 RPM PUMP PRESSURE 2363 @ 9987.00 1471 @ 10062.00 1873.7 1599.24976 PSI DRILLING MUD REPORT DEPTH 10082' MW 9.3 VIS 48 PV 16 YP 10 FL 3.7 Gels 2/3/5 CL- 28000 · FC 1.010.0 SOL 5.3 SD 0.25 OIL 2.0 MBL 6.5 pH 9.00 Ca+ 40 CCI MWD SUMMARY INTERVAL TO TOOLS DPIG: 117' FT/10.3 HRS=11.4 FT/HR; Connection: 4 min.; Survey: 10 min.; Trip: 8.7 hrs, Log 5.0 hrs. GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 102 @ 9986.00 12 @ 9990.00 29.4 CUTTING GAS 0 @ 10082.00 0 @ 10082.00 0.0 CHROMATOGRAPHY (ppm) METHANE (C-1) 20875 @ 9986.00 2459 @ 9990.00 5805.7 ETHANE (C-2) 67 @ 9998.00 6 @ 9983.00 18.0 PROPANE (C-3) 25 @ 9998.00 2 @ 9983.00 7.6 BUTANE (C-4) 7 @ 10079.00 0 @ 10001.00 1.6 PENTANE (C-5) 0 @ 10082.00 0 @ 10082.00 0.0 HYDROCARBON SHOWS NONE INTERVAL LlTHOLOGY/REMARKS TRIP GAS NA WIPER GAS NA SURVEY CONNECTION GAS HIGH 0 AVG 0 CURRENT 0 CURRENT BACKGROUND/AVG 20u/29u GAS DESCRIPTION LITHOLOGY 15% COAL, 30% SAND, 15% SILTSTONE, 40% CLAYSTONE PRESENT LITHOLOGY 60% COAL, 10% SAND, 30% CLAYSTONE DAILY ACTIVITY Drill from 9965' to 10082', total depth. Run survey and drop and circulate out carbide, 10720 strokes or 49 barrels SUMMARY over guage hole. Pull ten stands and pump dry job, and pull out of hole and lay down BHA. Rig up an run e-Iogs, unable to get past 6865', and log out of hole. EPOCH PERSONNEL ON BOARD 4 DAIL Y COST $2790 · REPORT BY Brian O'Fallon . . . UNOCAL DAILY WELLSITE REPORT g EPOCH Happy Valley #11 REPORT FOR Shane Hauck I Monty DATE Nov 10, 2004 TIME 23:59:59 DEPTH 10082.00 YESTERDAY 10082.00 24 HOUR FOOTAGE 0 CASING INFORMA nON 7" @ 4506' DEPTH SURVEY DATA 10028' BIT INFORMATION NO. SIZE TYPE RR5 61/8" SEC FM 3641 DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.30 VIS FC 1.010.0 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION 1.50 PRESENT OPERATION Log with DP (Reeves) AZIMUTH 327.63 VERTICAL DEPTH 9524.56' INTERVAL CONDITION REASON SIN JETS IN OUT FOOTAGE HOURS TIBIC PULLED 10586123 3X16 9704' 10082' 378' 17.3 T.D. HIGH LOW AVERAGE CURRENT AVG NA @ @ FTlHR NA @ @ AMPS NA @ @ KLBS NA @ @ RPM NA @ @ PSI DEPTH 10082' 56 PV 13 YP 10 FL 3.4 Gels 2/4/7 CL- 29500 5.7 SD 0.10 OIL 2.0 MBL 6.3 pH 9.40 Ca+ 40 CCI EPOCH PERSONNEL ON BOARD 2 DAILY COST $2140 REPORT BY Brian O'Fallon HIGH LOW AVERAGE 220u@ 10u @ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ NA LlTHOLOGY/REMARKS TRIP GAS 75u@10082' WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENTBACKGROUND~VG GAS DESCRIPTION LITHOLOGY NA PRESENT LITHOLOGY 60% COAL, 10% SAND, 30% CLAYSTONE DAILY ACTIVITY Finish wireline and rig down Schlumberger. Run in hole to 6865' and circulate and condition through obstruction, SUMMARY maximum 220 units of gas. Trip in to bottom and cirulate and condition hole, maximum 75 units of gas. Trip out of hole and lay down BHA. Rig up Reeves to log on drill pipe and run in hole. UNOCAL . DAILY WELLSITE REPORT fJ EPOCH Happy Valley #11 REPORT FOR Shane Hauck I Monty DATE Nov 11,2004 TIME 23:59:59 DEPTH 10082.00 YESTERDAY 10082.00 24 HOUR FOOTAGE 0 CASING INFORMATION 7" @ 4506' DEPTH SURVEY DATA 10028' BIT INFORMATION NO. SIZE TYPE RR5 61/8" SEC FM 3641 . DRILLING PARAMETERS RATE OF PENETRATION SURFACE TORQUE WEIGHT ON BIT ROTARY RPM PUMP PRESSURE DRILLING MUD REPORT MW 9.35 VIS FC 1.010.0 SOL MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) DITCH GAS CUTTING GAS METHANE (C-1) ETHANE (C-2) PROPANE (C-3) BUTANE (C-4) PENTANE (C-5) HYDROCARBON SHOWS INTERVAL INCLINATION 1.50 INTERVAL SIN JETS IN OUT 10586123 3X16 9704' 10082' 55 5.7 PV SD HIGH LOW NA @ @ NA @ @ NA @ @ NA @ @ NA @ @ DEPTH 10082' 14 YP 9 0.10 OIL 2.0 PRESENT OPERATION Running 31/2" Casing AZIMUTH 327.63 VERTICAL DEPTH 9524.56' HIGH LOW AVERAGE 13 FOOTAGE 378' CONDITION T/B/C REASON PULLED TO 20 @ 9@ @ @ CHROMATOGRAPHY (ppm) @ @ @ @ @ @ @ @ @ @ NA LlTHOLOGY/REMARKS HOURS 17.3 AVERAGE CURRENT AVG FTIHR AMPS KLBS RPM PSI FL 3.6 MBL 6.3 Gels pH CCI 2/4/6 CL- 9.20 Ca+ 29000 20 TRIP GAS 162u@10082' WIPER GAS SURVEY CONNECTION GAS HIGH AVG CURRENT CURRENT BACKGROUND/AVG 8u/13u GAS DESCRIPTION LITHOLOGY NA PRESENT LITHOLOGY 60% COAL, 10% SAND, 30% CLAYSTONE DAILY ACTIVITY Trip in hole with drill pipe conveyed logging tool, and circulate bottoms up, 162 units of trip gas, and begin logging. SUMMARY Log from TD to casing shoe at 4506'. Pull out of hole and lay down logging tools. Rig up and test BOPE. Pick up cement head and rig up to run 3 1/2" liner. Running liner. . EPOCH PERSONNEL ON BOARD 2 DAILY COST $2140 REPORT BY Brian O'Fallon
