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Home My WebLink About204-226 · . Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~ Q LJ:- - ~ :) 0 Well History File Identifier Production Scanning Stage 1 Page Count from Scanned File: r9.57 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: VYES ~ Date: 3/14/°7 If NO in stage 1, page(s) discrepancies were found: Organizing (done) D Two-sided 1111111111' 11111111 ReyCAN '¢' Çolor Items: iz(GreYSCale Items: DIGITAL DATA D Diskettes, No. D Other, NolType: o Poor Quality Originals: o Other: NOTES: Dale 3} I Lf/O 7 Daleô/ 14/ D7 R X 30 =é1-¥J Daje3! / iflD 7 BY: ~ Project Proofing BY: ~ Scanning Preparation BY: ~ <.~vlamy BY: Stage 1 BY: Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: Comments about this file: o Rescan Needed 1/1111111/1/111111I OVERSIZED (Scannable) o Maps: D Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) D Logs of various kinds: o Other:: mp 11/11111111/11 "'II mp 151 151 + lb = TOTAL PAGES ÑS'b (Count does not include cover sheet) mp. Isl 11/11111111111 "'II YES NO 151 VVvf NO Isl 11111111/111111111I 11111111111111 "'II 151 Quality Checked 1/111111111/111111I 10/6/2005 Well History File Cover Page.doc • • :,;~:` _~.~:~. MICRQFILMED 03/01/2008 DO N4T PLACE ANY NEW MATERIAL UNDER THIS PAGE F:1LaserFicheiCvrPgs_InsertslMicrofilm Mazker.doc )..8 nl, DATA SUBMITTAL COMPLIANCE REPORT 1/30/2007 J¡l<.J ì k ,zù 0 't API No. 50-283-20109-00-00 Permit to Drill 2042260 MD 5122 / Well Name/No. N BELUGA 1 Operator PELICAN HILL OIL AND GAS INC. TVD 5122 /' Completion Date 1/28/2005 ./ Completion Status P&A Current Status P&A UIC N -----_...~"_.~.._-~,._------_.~ ---_.__..."...._-_._.~-- REQUIRED INFORMATION ------~-- Mud Log No Samples No Directional Survey No ~----~. ----~-------~-----,.-_..._--_.._.,--~--_.._- ~--_.._---_._--~------------ ----.-- -~~-------_._----~-------------------- ._-_._-_._~--------- ---------------- DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Log/ Data Digital Æ[~~!~~Frmt ~ tAog ~ ~ i ED C Las I ¡ ¡ ! (data taken from Logs Portion of Master Well Data Maint Electr Dataset Number Interval . Log Log Run OH/ Scale Media No Start Stop CH Received Comments 2 Col 1510 5120 Open 2/25/2005 2 Blu 3118 5122 Open 2/24/2005 5 Blu 3118 5122 Open 2/24/2005 25 Blu 1500 5030 Open 2/24/2005 GR, Sandstone Neutron Por, Compensated Density Name Mud Log I nd uction/Resistivity I nd uction/Resistivity Porosity Cement Evaluation 12967 Induction/Resistivity 25 Blu 1500 3089 5010 5122 Case 2/24/2005 Open 2/24/2005 LAS Porosity 1456-5041 , Graphics: Cement Bond, Resistivity, Porosity Well Cores/Samples Information: --------- ~-------------~.._--- Name Interval Start Stop Sample Set Number Comments Sent Received . ADDITIONAL INFORMATION Well Cored? Y ~ Chips Received? '""'H-M-' Analysis Received? -_._~---_._---,- Comments: ---,-~._- Daily History Received? 0N G/N Formation Tops ~ _._-~----------~--_...__.._------.. ~ - ----_.__._"-~--~- - ------------ Permit to Drill 2042260 MD 5122 TVD Compliance Reviewed By: 5122 DATA SUBMITTAL COMPLIANCE REPORT 1/30/2007 Well Name/No. N BELUGA 1 'f:/;;2D'te 1/2812005 Operator PELICAN HILL OIL AND GAS INC. API No. 50-283-20109-00-00 Completion Status P&A Current Status P&A ,1 UIC N Date: ______~]-t~~"") . . e e èÖ 3 173 ZQ~... Z.-Z:\'" North Beluga #1 - Lou Grimaldi did location clearance inspection (letter to P-H attached) Iliamna #1 - we witnessed the surface abandonment (inspection report, photos attached) ; there was no location clearance inspection done by AOGCC. Jim Stephen Davies wrote: Jim, I received a note from the bank of Oklahoma stating that Pelikan Hill's $200,000 letter of credit will expire on October 10, 2005. Have all of Pelican Hill's to drill sites been inspected and cleared so that AOGCC can release their letter of credit? Or will they need to renew it? Thanks, Steve Davies Jim Regg <:iim regg(á)admin.state.ak.us> Petroleum Engineer AOGCC Content-Type: application/msword NBelugal_location _clear _Itr _ 2005-0803.doc Content-Encoding: base64 Content-Type: application/msword Content-Encoding: base64 Content-Type: application/vnd.ms-excel Content-Encoding: base64 e e STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Suñace Abandonment 1 Location Clearance 1 Suspended Well (Title 20 AAC 25.170) FILE INFORMATION: Operator: Pelican Hill Oil and Gas, Inc. Address: 4141 B Street, Suite 205 Anchorage, AK.99503 Surface Location (From Sec. Line): North/South 1750 FSL EastlWest 2000 FEL Section: R Township: 13N Range: 10W Meridian: SW Well Name: N. Beluga No.1 PTD No.: 204-226 API No. 50- 283-20109-00 Unit or Lease Name: ADL 389933 Field and Pool: Beluga River Gas Field Downhole P&A Date: ïnsp. Date: I Post OD: (4" min) _" Length: _ ft. Height above final grade (4' min.): _ ft. Top of Marker Post Closed? 20 AAC 25.120 - ABANDONMENT MARKER: Surface Monument I Approval Date: Set on (Wellhead, Csg , In Cmt) Casing stub _ ft. below final grade All openings closed? Inspector: Insp. Date: I Marker Plate Diameter: Thickness: Marker Plate Attached To Conductor _ (Y/N) Subsurface Monument I Approval Date: Distance below final grade Level: Side Outlets removed or closed: Cement to surface (all strings)? Inspector: Exact Information Beadwelded Directly to Marker Post or Blind Marker Plate: I I Approval Date: Insp. Date: Insp. Date: 7/8/05 I Pit's filled in? Yes Inspector: 20 AAC 25.170 - LOCATION CLEANUP: Liners Removed or Buried? Yes I Approval Date: Debris Removed: Yes Notes: General condition of pad/location: Smooth, Contoured gravel pad. Notes: Burglin well post is on south end of pad. Type of area surrounding location: Wooded Debris on surrounding area: None ( Rough, Smooth, Contoured, Flat, Natural) ( Wooded, Tundra, Grass, Brush, Dirt, Gravel,Sand) Notes: Access road present? Yes Type road: Gravel ( Dirt, Gravel, Ice, Other) Condition: Good Condition of road: Good Notes: Some old scrap pipe on sides of road, Arlen Ehm reports it was there before they started new well. Cellar filled in? Yes Type of fill: Gravel Height above grade: level Notes: Type work needed at this location: None RECOMMENDED FOR APPROVAL OF ABANDONMEN Yes X Inspector: Louis R. Grimaldi No ( If "No" See Reason) Distribution: orig - Well file c - Operator c - Database c - Inspector Reason: Final Inspection performed? Yes X No .....-í.: '"":}. L/ Final Approval By: .......... tMlJ.& 1< . r::... €rf 1 . Title: Su.f).Ø-VlSlQr ~N r - I ' DATE: g- 3xh' Sheet by L.G. 8/5/00 Location Clearence N Beluga No1 07-08-05 LG.xls 7/13/2005 \ r r? ~ ~ ,I ~? a a iI...:':::;¡ . ml¡~ ¡au.\ ,;1 \.:::;..¡ LJ . n : i , , ! ! i..:=J (Q:J "\:"\ ~.,)~ \.::V FRANK H. MURKOWSKI, GOVERNOR A I"/ASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 August 3,2005 Mr. Arlen Ehm Vice President / Alaska Pelican Hill Oil and Gas Inc. 4141 B Street, Suite 205 Anchorage, AK 99503 Re: Location Clearance, North Beluga #1 (PTD 204-226) Dear Mr. Ehm: The Alaska Oil and Gas Conservation Commission completed a location clearance inspection of the North Beluga #1 well and associated gravel pad on July 8, 2005. The Commission previously witnessed plug and abandonment operations on the North Beluga #1 well, and verified compliance with the abandonment regulations and approved permit requirements. Copies of both inspection reports are attached for your reference. The Commission's inspection showed the location to be in compliance with 20 AAC 25.170, "Onshore Location Clearance". The Commission requires no further work on the subject well or location. However, Pelican Hill re . S liable if any problems were to occur in the future with the North Beluga #1 well. I -- Attachments y e MEMORANDUM e State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, J 913/()) DATE: July 08,2005 . P. I. Supervisor t\~1 I FROM: Lou Grimaldi, Petroleum Inspector SUBJECT: Location Clearance Pelican Hill Oil and Gas Inc. N. Beluga No.1 Beluga River Gas Field PTD #204-226 Friday. July 8. 2005; I made an Location Clearance inspection on Pelican Hill Oil and Gas Inc. exploratory well "N. Beluga NO.1 in the Beluga River Field. I met Arlen Ehm (Pelican Hills rep.) at Spernak Aviation and traveled to the wellsite across the Cook Inlet. The location is a large gravel pad, which appears to have a good amount of dirt mixed in with it. This may support future natural vegetation. The pad was leveled nicely with natural drainage. There were a few small pieces of trash on the pad, which we picked up and removed from location. The area surrounding the pad was heavily wooded and appeared untouched by the drilling activity. The surface monument from the Burglin well is on this pad off to one end and does not appear to impact this clearance. Attachments: North Beluga 1 Airshot a 07-08-05 North Beluga 1 Airshot b 07-08-05 North Beluga 1 Airshot c 07-08-05 North Beluga 1 Pad a 07 -08-05.JPG North Beluga 1 Pad b 07 -08-05.JPG North Beluga 1 Pad c 07 -08-05.JPG North Beluga 1 Pad d 07-08-05.JPG North Beluga 1 Pad e 07-08-05.JPG NON-CONFIDENTIAL 2005-0708_Location_ Clear _NBeluga1_lg.doc North Beluga #1 (Pelican Hill) Location Clearance Inspection Photos by AOGCC Lou Grimaldi July 8,2005 Aerial view - N. Beluga #1 pad Aerial view - N. Beluga #1 pad Aerial view - N. Beluga #1 pad 2005-0708_Location_ Clear _NBeil.lga1_lg.doc 2005-0108 _Location_Clear _NBeluga1_ig.doc N. Beluga #1 pad N. Beluga #1 pad N. Beluga #1 pad 2005-0108_location_ Clear _NBeluga1_lg.doc N. Beluga #1 pad N. Beluga # 1 pad L. . f Pelican Hill Oil & Gas. Inc. 4141 B Street. Suite 205 Anchorage. AK 99503 907-277-1401. Telephone 907-277-1402, Fax June 30,2005 Mr. Tom Maunder Petroleum Engineer AOGCC 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Re: N. Beluga NO.1 Well Final Well Pad Assessment Dear Tom: . ~ ~~-~ 'fl· PEUCAN HnL Oll & Gft$ INC The Department of Environmental Conservation has provided the attached letter regarding activities at the captioned well site. Sincerely, ~~ Arlen Ehm Vice President/Alaska Ene. C.c. AI Gross, Pelican Hill '- e e « Frank Murkowski, Governor DEPT. OF ENVIRONMENTAL CONSERVATION DIVISION OF SPILL PREVENTION AND RESPONSE CONTAMINATED SITES PROGRAM 43335 K-Beach Road, Suite II Soldotna, AK 99669 PHONE: (907) 262-5210 FAX: (907) 262-2294 http://www.state.ak.us/dec/ File: N/ A June 28, 2005 Jß ~-d-~ Arlen Ehm Pelican Hill Oil & Gas, Inc. Re: North Beluga No. 1 Pad Site Closure Dear Mr. Ehm: The Department has reviewed the N Beluga No. 1 Well Pad Assessment Beluga, Alaska dated November 2004. Based on the information provided in that and previous reports, there is no contamination at the site exceeding ADEC cleanup levels. No further remedial actions are required at this site. The Department considers this site closed. Thank you for your attention to assessing the contamination potential at this site. If you have any questions or need further assistance, please contact me at (907) 262-5210, Ext. 233. Sincerely, ~ S~- - ò Don Seagren Environmental Specialist N. Beluga No.1 Inspection e e Subject: N. Beluga No.1 Inspection dO ~ - d- d- Co From: Arlen Ehm <arlen.ehm@alaska.net> Date: Tue, 31 May 2005 13:05:30 -0800 To: Timothy.Gould@CH2M.com, Rich.Hom@CH2M.com, Bruce Webb <bruce_webb@dnr.state.ak.us>, 'Ben Greene' <bgreene@jpo.doi.gov>, 'Jim Rose' <jirnrose@ak.net>, 'John Norman' <john_norman@admin.state.ak.us>, 'Thomas Maunder' <tom_maunder@admin.state.ak.us>, "'Seagren, Don'" <Don_Seagren@dec.state.ak.us>, 'VirgIe Davis' <cubguy@alaska.net>, phoginc1@aol.com Interested Parties: Attached is the most recent report to CIRI involving Pelican Hill's continued closeout operations at the captioned drill site. I will keep everyone apprised of the results of these analyses as well as plans for the final inspection trip. Thanks. Arlen 1 of 1 6/3/2005 6:43 AM e e- Pelican Hill Oil & Gas, Inc. 4141 B Street, Suite 205 Anchorage, AK 99503 907 -277 -1401, Telephone 907-277-1402, Fax TO: FROM: SUBJECT: DATE: Kirk McGee Arlen Ehm Report No. 19 May 31, 2005 çX)~-dd-<O On Friday May 27, Rich Horn, CH2MHill and Arlen Ehm flew to Beluga to conduct the post project final surface sampling program and to examine the pad at the site of the N. Beluga No.1 well. Following is a report on that examination: · Although the snow is now completely gone from the entire pad area, parts of it are still very wet. · Cleanup of items used during the operations has been completed. · Samples were taken from the area occupied during drilling, logging and testing operations. · Detailed samples were taken from the area immediately around the wellbore and the area of the previous hot spot resulting from operations conducted in 1976-77. · Less closely spaced samples were taken from the remainder of the pad area. · These samples will be analyzed as previously. · Involved agencies will receive a report of the results. · If no new contaminants are found, the pad will be given a final grading. · This grading will provide better drainage of the pad area and improve the access road to the recreational properties. · An inspection trip will be scheduled to the area for interested CIRI personnel and permit personnel. · I will keep all interested parties apprised of our plans for this final inspection trip. RE: N. Beluga No.1 Inspection e e Subject: RE: N. Beluga No.1 Inspection From: Arlen Ehm <arlen.ehm@alaska.net> Date: Tue, 03 May 2005 16:34:05 -0800 To: 'Thomas Maunder' <tom_maunder@admin.state.ak.us> dO '-\ -)- d- Co Tom: A couple of roughnecks will spend a couple of hours looking for stray scraps of paper and other items that have not yet been picked up after the snow melted. We plan to take two joints of 9 5/8' casing over from Kenai to install another much needed culvert in the road to provide better access for the recreational users. After the ground settles we plan to grade the location where needed. If watching this activity turns the crank of your inspectors, you are welcome to go over and watch. The location already looks better than most at the time of final inspection. Arlen -----Original Message----- From: Thomas Maunder [mailto:tom_maunder@admin.state.ak.us] Sent: Tuesday, May 03, 2005 4:26 PM To: Arlen Ehm Subject: Re: N. Beluga No.1 Inspection Arlen, What are the work plans remalnlng for the "cleanup" of the location?? We would appreciate an opportunity to have an Inspector make a visit to the location in conjunction with the work. Please keep us advised. Tom Maunder, PE AOGCC Arlen Ehm wrote: > Attached please find an update for the activities at Pelican Hill's N. > Beluga No.1 well. > > Arlen Ehm > 1 of 1 6/3/2005 6:44 AM Pelican Hill Oil & Gas, Inc. 4141 B Street, Suite 205 Anchorage, AK 99503 907-277-1401, Telephone 907-277-1402, Fax TO: FROM: SUBJECT: DATE: Kirk McGee Arlen Ehm Report No. 18 May 3, 2005 e -e d 0 '-\ - d-(T Co On Friday April 29 we flew to Beluga and examined the pad at the site of the N. Beluga No.1 well. Following is a report on that examination: · All of the snow is now melted from the pad · Cleanup of items used during the operations is nearly complete · The pad was too wet then to accept heavy equipment · When the pad is sufficiently dry, the final phase of the environmental sampling will take place · After those results are available, the pad and road will be final graded · This will provide better drainage of the pad area and the access road to the recreational properties · An inspection trip will be made to the area for interested CIRI personnel and permit personnel · I will keep all interested parties apprised of our progress in this area 907-277-1401, Telephone 907-277-1402, Fax ~ . -fT- PmeAN HìJL OIL & ~ iNC 2CY-/ - 2.. 2~ Pelican Hill Oil & Gas, Inc.. 4141 B Street, Suite 205 Anchorage, AK 99503 March 8, 2005 Mr. John Norman Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 RECEI\/ED MAt< 1 0 2005 Alaska Oil & Gas Cons. Gurnmíssìon Anchorage Re: N. Beluga No.1 Exploratory Well- Update Dear Mr. Norman: Now that Pelican Hill's exodus from Alaska has been announced by the press, we have received inquiries from some agencies concerning the status of certain operations. The captioned well site is one of those areas where our operations are not yet complete. This well spud on November 29,2004 and was plugged and abandoned on January 28,2005 after the testing of three separate zones indicted that the well was dry. At that time Pelican Hill made the decision to move the rig off the pad and not drill more wells. Consequently, much of the rental equipment has been moved back to Anchorage, Kenai or elsewhere. The rig and its components have been moved to Veco's yard at Beluga River waiting for better barging conditions. At the present time the pad and the surrounding areas continue to be covered with snow. After breakup Pelican Hill will institute a several stage plan to achieve clearance for this site: · Visual inspection by Pelican Hill personnel to check for any items that might have been buried by snow at the time of equipment removal · CH2MHilI to perform stage 3 of the environmental assessment as outlined earlier . Copies of the final report will be provided to the involved agencies · After reviewing the final report, preparations will be made for onsite inspections by the following: AOGCC OPMP DEC Surface COO DOG It should be noted that the AOGCC may wish to make its own inspection trip. Sincerely, ~~ Arlen Ehm Vice President! Alaska Cc: Al Gross, President Jim Rose, Operations Superintendent .. STATE OF ALASKA . AlAWA Oil AND GAS CONSERVATION COM ""SION WELL COMPLETION OR RECOMPLETION REPORT AND (o<f 1 a. Well Status: OilD Gas U Plugged [2] Abandoned l::J Suspended U WAG U 1 b. Well Class: ZOAAC 25.105 20AAC 25.110 Development 0 Exploratory [2] No. of Completions Other Service 0 Stratigraphic Test 0 5. Date Comp.,. Susp., or " 12. Permit to Drill Nu~ber: ~ / Aband.: \!Z'8r/OS## 204-226 ~O.s-~~/? 6. Date Spudded: i.%.' 7.c4 h> ,13. API Number: .JI^"ifflkL. OC, Id~ð . ,(.'is'' d{ 50-283-20109-00 7. Date TD Reached: 14. Well Name and Number: January 7,2005 N. Beluga No1 8. KB Elevation (ft): 15. Field/Pool(s): 77.6 9. Plug Back Depth (MD+ TVD): NA 10. Total Depth (MD + TVD): 5122 MDITVD 11. Depth Where SSSV Set: N/A 19. Water Depth, if Offshore: N I A feet MSL '" GINJD WINJD WDSPLD 2. Operator Name: Pelican Hill Oil & Gas Inc. 3. Address: 4141 B Street, Suite 205, Anchorage AK 99503 4a. Location of Well (Governmental Section): Surface: 1974 FEL, 1726 FSL, See 12, TWP 13N, RNG 10W, SM Top of Productive Horizon: N/A Total Depth: 5122 4b. Location of Well (State Base Plane Coordinates): Surface: Y N 2642585.7 n PinE 326776.6 TPI: f. Same IY" l'E Total Depth: Same - 18. Directional urvey: Yes [2] 0 Zone- 4 Zone- Zone- o 21. Logs Run: NeutPoNRes/GRlCBL 16. Property Designation: ADL 389933 17. Land Use Permit: CIRI Private Land Use Permit 20. Thickness of Permafrost: N/A 22. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD CEMENTING RECORD AMOUNT CASING FT. GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE PULLED 133/8 54.4 R-3 Surface 76 Surface 76 143/4 Driven 95/8 32.3 H-40 Surface 1515 Surface 1515 12 1/4 130 bbls Primary, 37 bbls Top 51/2 15.5 K-55 Surface 5122 Surface 5122 77/8 136 bbls Id G, 85 bbls tail G 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): NONE I ABANDONED 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) SIZE 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 4'-186' 4.2 bbl, 14.5 ppg type 1 cement, bal pig 1365'-1625' 6.2 bb114.5 ppg Type 1 cement, bal pig 3450'-3464' perfs Sqzd w/4 bbls "G" 413'0-4429' perfs Sqzd w/11 bbls "G" see drwg for more PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): 26. Date First Production: Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: IGaS-Oil Ratio: Test Period ... Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): Press. 24-Hour Rate ..... 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". Water swabbed from perfs 3450-3464, 4130-4429,4692-4874, approximately 20000 ppm chlorides, mud 100000+ chlorides.. No cores taken. Ab~.n1~( ¡ 1.. 2..ß . DS-¡ . V2i\fïÊD~ \ ~, ':,~.:::-~~,_~::J- RBDMS BFL MAR 1 5 2005 Fnrm 10-407 RF>vic:.prt 1?"00::\ r.ONTINI IFn ON RFVFR~F 28. . ... #c~ . NAME GEOLOGIC MARKEa TVD 29. AFORMATION TESTS Include and briefly su-'rize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state 4247 "None". Well was perforated as indicated. Attempts to swab the well in were unsucessfull. Formation water and sand were recovered. The formation water tested 40,000 ppm chlorides Beluga 4247 30. Printed Name: List of Attachments: Copies of the pressure test records. Daily operations summary, Survey Plat. Csg Records. I hereby certify that the foregoing is true and correct to the best of my knowledge. ì L () ~Y'^ VJoç £. G N..---.. Contact: ·Z:-¡ 1 ' I£.( o¿r 31. Title: öf'LRAínð~) 'ZÎ 1 - \ '--\ O~ çJp¡ Date: Z- / '). - V S- Signature: Phone: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from rnore 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 P~LICAN HILL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: IlLY OPERATIONS REPORT Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Date: 11/29/04 Daily Cost: Rig # WR7 Rigging Up Bit if. Size Type 121/4 xs1c --1I o Operation: In 88 Out ftIdrilld 16 ftIhr Cum/Hr. 3 Jet Size in. 3-22 1-15 Cement Pump #1 Pump #2 Oilwell214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: Strg. Wt: RPM: Ibs. ¡WOB: BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 3.00 ~-"-- Tripping DH Tools Reaming Slip & Cut Line Safety -- 0.50 REMARKS: Pennit No: Safety Meeting on both crews Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: CL - (ppm) 20000 CA++ (ppm) 300 Prevo Cost: I Daily Cost 24 hrs. in this day Surveying Swabbing Circulating Cementing Clean to Btm Logging Condo Brine Casing Winterizing Rig 12.00 W.O.C. BHA IAnn. Vel: DC: IDCWt: Ftlmin 35 15 4 1 93 Day: 10 AFE# Cum Cost: Projected Depth: 6700' Condition SIN 10581286 Casing Depth Ibs I Density pH P.V. Gels Oil% Solids % MUD 8.6 8.6 5 1 o Viscosity Water Loss Y.P. Filter Cake Water % Sand % 6566 408 o 6158 Jet Vel: I Ftlsec DC Length: ft in. KCL EZ Mud Pac I Barazan D ADDITIVES (sks) 40 4 1 1 203-226 API No: Cumm. Cost: Testing NUlND BOP's Rig Up/Down 8.50 Test BOP'S Service BOP TOTAL: API NO. 50-283-20109-00 24.00 Continue fabrication on pits & plumbing PU BHA. Tag @ 72' Drill tj 104'. Had some fluid lost to the hole but is now stable. Had some problems with pumps, repaired # 1 fuel pump. Have starter ordered for #2. Also had problems with shakers, parts on the way for them. Pick up inside csg. Mix mud, continue with degasser plumbing, and plumbing in pits. No Accidents-No Spills. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 104 AM OPERATION: Cloudy TEMP: 32+ Jerry Sandidge 281-674-0940 welding and plumbing ROAD CONDo Rig Tool Pusher: FAX No: Rough LEASE COND: Jon West 281-674-0942 PELICAN HILL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: 'Midnight Depth: Bitt Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: Strg. Wt: RPM: Prevo Cost ~Iican Hill Oil & Gas, Inc 104 Progress: Size Type 121/4 xs1c In 88 Out ftIdrilld 16 IlLY OPERATIONS REPORT Date: 11/30/04 II Daily Cost: Rig # WR7 Rigging Up o Operation: ftIhr Cum/Hr. Jet Size in. 3-22 1-15 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Ibs. IWOB: BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination REMARKS: ~--- --~ 050 -- Permit No: IAnn. Vel: Ibs I Density pH P.V. Gels Oil% Solids % CL - (ppm) Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: DC: IDCwt: MUD 8.6 8.8 5 1 o Viscosity Water Loss Y.P. Filter Cake Water % Sand % 30000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Winterizing Rig 12.00 BHA 203-226 Swabbing Cementing Logging Casing W.O.C. API No: Ftlmin 32 15 6 1 93 300 Daily Cost: -- Day: 11 AFE# Cum Cost: Projected Depth: 6700' Condition SIN 10581286 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Casing Depth 6566 828 5738 Jet Vel: in. I Ftlsec DC Length: ft ADDITIVES (sks) Cumm. Cost: Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP 11.50 TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews Fab wall sections and roof sections for pump room. Plumb in pits and rig steam system. Receive and unload trailers of casing. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 104 AM OPERATION: cloudy w fog TEMP: 32 Jerry Sandidge 281-674-0940 Rigging Up / Winterzing ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 PELICAN HiLL UI1.. & lis INC. Well: N. B_eluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Bit # Size Type 121/4 xs1c Pump Type Liner/Stroke SPM Volume (gallmin) Pressure Pump Pressure: Strg. Wt: RPM: REMARKS: In 88 Out IlLY OPERATIONS REPORT Date: 12/1/04 II Daily Cost: _~ Rig # WR7 Operation: Rigging Up o ftIhr Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Cum/Hr. Jet Size in. 3-22 1-15 -- Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. DC OD: Viscosity Water Loss Y.P. Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: Ftlmin 32 15 6 1 93 300 Daily Cost: -- 2.00 Day: 12 AFE# Cum Cost: Projected Depth: 6700' Condition SIN 10581286 Casing Depth Ibs. IWOB: BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Filter Cake Water % Sand % 30000 CA++ (ppm) Prev. Cost: _~ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA ftIdrilld 16 IAnn. Vel: Ibs I Density pH P.V. Gels Oil% Solids % CL - (ppm) 0.50 Permit No: 203-226 DC: DCwt: MUD 8.6 8.8 5 1 o ~~- -"..- 14.00 5738 738 5000 Jet Vel: in. I Ftlsec DC Length: ft ADDITIVES (sks) Cumm. Cost: Testing NUlND BOP's Rig UplDown Test BOP'S Service BOP 7.50 TOTAL: API NO. 50-283-20109-00 24.00 Safety meeting on both crews. Continue fabing wall sections for pump room. Install tarps around water tank. Remove tempory service and wire shop for electrical. Continue wI degasser plumbing. Finish with steam plumbing, check for leaks. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 104 AM OPERATION: cloudy w fog TEMP: 32 Jerry Sandidge 281-674-0940 Rigging Up / Winterzing ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 PELICAN HILL OIL & JtS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # 1 Pump Type LinerlStroke SPM Volume (gallmin) Pressure Pump Pressure: Strg. Wt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Size Type 121/4 xs1c In 88 Out ftldrilld 16 o ftlhr Pump #1 Pump #2 Oilwell 214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14ìn 53 53 265 265 400 400 IAnn. Vel: DC: Ibs I DC Wt: I Ibs. IWOB: BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination REMARKS: ~----~-~- 0.50 Permit No: Density pH P.V. Gels Oil% Solids % CL - (ppm) MUD 8.6 8.8 5 1 o IlLY OPERATIONS REPORT Date: 12/2/04 ~ Daily Cost: Rig # WR7 Rigging Up Operation: Cum/Hr. Day: 13 AFE# Cum Cost: Projected Depth: 6700' Jet Size in. 3-22 1-15 SIN 10581286 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Cement Viscosity Water Loss Y.P. Filter Cake Water % Sand % 30000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Winterizing Rig BHA 203-226 ~- 14.00 Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: Condition Casing Depth RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 5000 496 Ftlmin 4504 Jet Vel: in. I ft Ftlsec DC Length: ADDITIVES (sks) 32 15 6 1 93 300 Daily Cost: Cumm. Cost: Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP 3.50 ~- 6.00 TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews Continue fabing wall sections for pump room. Continue to fab lines for degasser.lnstall hooks and hang tarps around sub.- Circ and condition mud in pits, run all solids equipment, check operation. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 104 AM OPERATION: cloudy w fog TEMP: 28 Jerry Sandidge 281-674-0940 Rigging Up / Winterzing ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 PJ£LICAN HILL UIL & (IS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Bitt Size Type 121/4 xs1c In 88 Out ftIdrilld 16 o Operation: ftIhr Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: Strg. Wt: RPM: Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 53 53 265 265 400 400 IAnn. Vel: DC: Ibs IDC Wt: I Ibs. ¡WOB: BHA: SURVEYS (Deg) Depth (Fl KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 0.50 REMARKS: Permit No: Density pH P.V. Gels Oil% Solids % CL - (ppm) 203-226 MUD 8.6 8.8 5 1 o IlLY OPERATIONS REPORT Date: 12/3/04 II Daily Cost: Rig # WR7 Rigging Up Cum/Hr. Jet Size in. 3-22 1-15 Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Viscosity Water Loss Y.P. Filter Cake Water % Sand % 30000 CA++ (ppm) Prevo Cost: I ---~- --- 23.50 Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: Ftlmin 32 15 6 1 93 300 Daily Cost: ------ Day: 14 AFE# Cum Cost: Projected Depth: 6700' Condition SIN 10581286 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA Casing Depth 4504 546 3958 Jet Vel: in. I Ftlsec DC Length: ft ADDITIVES (sks) Cumm. Cost: Testing NUlND BOP's Rig UplDown Test BOP'S Service BOP TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews Work on pump room winterizing, install wall section between pit and sub, Hang tarps around sub. Install wall section on air heater. Set out hot air duct. Fab stand for air duct. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 104 AM OPERATION: clear TEMP: 10 Jerry Sandidge 281-674-0940 Rigging Up / Winterzing ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 P.I£LICAN HILL UIL & ~S INC. Well: _N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Bitt Size Type 121/4 xs1c In 88 Out ftIdrilld 16 o ftIhr Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: Strg. wt: RPM: Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 53 53 265 265 400 400 IAnn. Vel: DC: Ibs I DC wt: I Ibs. WOB: BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety --- --~ -~ 0.50 ~- REMARKS: Permit No: Density pH P.V. Gels Oil% Solids % CL - (ppm) MUD 8.6 8.8 5 1 o IlLY OPERATIONS REPORT Date: 12/4/04 II Daily Cost: Rig # WR7 Rigging Up Operation: Cum/Hr. Jet Size in. 3-22 1-15 Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Viscosity Water Loss Y.P. Filter Cake Water % Sand % 30000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA 203-226 ------ 23.50 Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: Ftlmin 32 15 6 1 93 300 Daily Cost: -_._~ -~ Day: 15 AFE# Cum Cost: Projected Depth: 6700' Condition SIN 10581286 Casing Depth 3958 930 3028 Jet Vel: in. I Ftlsec DC Length: ft ADDITIVES (sks) Cumm. Cost: Testing NUIND BOP's Rig Up/Down Test BOP'S Service BOP TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews Work on pump room winterizing, Hang tarps around pump room. Drain boiler. Troubleshoot leak in boiler.Clean out cutings tank. Repair 5th wheel on truck #2. Fab stands for air duct. Enclose degasser pump. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 104 AM OPERATION: clear TEMP: 5 Jerry Sandidge 281-674-0940 Rigging Up / Winterzing ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 PKLJCANHJLL U1L & lIs INC. Well: N. Beluga NO.1 AFE Amount Contractor: Midnight Depth: Bit # Size 12 1/4 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Ibs. Ibs. Ibs. RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety -_._~ ~-- -- -_.~ REMARKS: Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Type In Out o ftIdrilld 16 II Operation: ftIhr Cum/Hr. Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in IlLY OPERATIONS REPORT 12/5/04 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Day: 16 AFE# WOB: SPR 1 SPR2 BHA Len: SURVEYS (Deg) Depth (Ft. KB) Inclination xs1c 88 Date: Daily Cost: Rig# __VVR7 Rigging Up Jet Size in. 3-22 11-15 Cement DC: DCWt: Ftlmin I TQ off btm (ftlbs): TQ on btm (ftlbs): MUD 8.6 8.8 5 1 o 32 15 6 1 93 300 Daily Cost: --~-~ --- Cum Cost: Projected Depth: 6700' Condition I SIN 10581286 Casing Depth IAnn. Vel: Ibs 22 22 Psi Psi Viscosity Water Loss Y.P. Filter Cake Water % Sand % 30000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Winterizing Rig 23.50 BHA 3028 4300 7348 Jet Vel: I Ftlsec DC Length: in. ft ADDITIVES (sks) Cumm. Cost: Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP TOTAL: API NO. 50-283-20109-00 24.00 104 AM OPERATION: clear TEMP: 0 Jerry Sandidge 281-674-0940 Rigging Up / VVinterzing ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: ------ Safety Meeting on both crews Work on pump room winterizing, Repair boom truck. Set end wall of pump room, Set roof panels. Replace gasket in boiler. Replace blower motor. Install new light in derrick. Start steam system, thaw frozen lines. Work on hot air duct. No Spills No Accidents Density pH P.V. Gels Oil% Solids % CL - (ppm) 0.50 Permit No: 203-226 A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: LEASE COND: Jon VVest 281-674-0942 PIi:LICANHJLL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Prevo Cost Pelican Hill Oil & Gas, Inc 104 Progress: Type In Out o ftIdrilld 16 12 1/4 xs1c 88 IlLY OPERATIONS REPORT Date: Daily Cost: Rig # WR7 Rigging Up II Operation: ftIhr Cum/Hr. 12/6/04 Day: 17 AFE# Cum Cost: Projected Depth: 6700' Jet Size in. 3-22 11-15 Cement Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: IAnn. Vel: 550 Ibs. WOB: Ibs. SPR 1 Ibs. SPR 2 80 BHA Len: SURVEYS (Deg) Depth (Ft. KB) Inclination Ibs 22 22 Psi Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: DC: DCWt: Condition I SIN 10581286 Casing Depth 6970 Ftlmin Jet Vel: I Ftlsec DC Length: in. ft I TQ off btm (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % 30000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig 10.00 BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud TQ on btm (ftlbs): MUD 8.6 8.8 5 1 o ---- -- 0.50 REMARKS: Permit No: 204-226 API No: ADDITIVES (sks) 32 15 6 1 93 300 Daily Cost: Cumm. Cost: Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP 13.50 -~ ----- TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews Work on Hot air duct-Thaw steam system. Inspect mud pumps- Thaw mud lines- Work on degasser pump enclosure. Repair mud hopper. Rig up cellar pump. Prep for drlg. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 125 AM OPERATION: clear TEMP: 20 Jerry Sandidge 281-674-0940 Drilling ROAD CONDo Rig Tool Pusher: FAX No: Rough & Slick LEASE COND: Jon West 281-674-0942 PELICAN HILL OIL & t!S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Prevo Cost Pelican Hill Oil & Gas, Inc 370 Progress: Type In Out 266 ftIdrilld 282 12 1/4 xs1c 88 IlLY OPERATIONS REPORT Date: Daily Cost: Rig # WR7 Drlg II Operation: ftIhr Cum/Hr. 12 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUwt: SOwt: RPM: Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 27 22 135 110 140 140 IAnn. Vel: DC: 5/10 Ibs DC Wt: 22 Psi 22 Psi 140 Ibs. WOB: Ibs. SPR 1 Ibs. SPR 2 100 BHA Len: SURVEYS (Deg) Depth (Ft. KB) Inclination Density pH P.V. Gels Oil% Solids % CL - (ppm) 25000 Prevo Cost: RIG TIME (24 hr tour report) Drill 19.00 Tripping DH Tools Reaming Slip & Cut Line Safety 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA -- 0.50 REMARKS: Permit No: 204-226 Safety Meeting on both crews. 4.50 ~._-- 12/7/04 Day: 18 AFE# Cum Cost: Projected Depth: 6700' Jet Size in. 3-22 11-15 Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: 24,568 Ibs. IDC OD: Drilling ROAD CONDo Rig Tool Pusher: FAX No: Condition I SIN 10581286 Casing Depth 6970 1253 Ftlmin 4917 Jet Vel: Ftlsec in. I DC Length: ft 6 I TQ off btm (ftlbs): ADDITIVES (sks) 45 7.4 18 1 95 300 Daily Cost: Cumm. Cost: TQ on btm (ftlbs): MUD 8.9 8.8 11 9 o Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: --- Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP -- -- TOTAL: API NO. 50-283-20109-00 24.00 Establish circ- Warm up mud- Wash fl 80 to 104'. Orlg fl 104 tl 116'. A slight amount of leakage around the conductor was seen and decreased from 5 gpm to 2 gpm as drilling continued. A cellar pump was installed to pump the fluids back to the pits. Orlg fl 116't/370'. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 491 AM OPERATION: clear TEMP: 28 Jerry Sandidge 281-674-0940 Rough & Slick LEASE COND: Jon West 281-674-0942 PELICAN HILL OIL & (IS INC'. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 12114 xs1c Prevo Cost Pelican Hill Oil & Gas, Inc 1,065 Progress: Type In Out 695 ftIdrilld 607 88 Date: II Operation: ftIhr Cum/Hr. 24.75 Rig # Drlg IlLY OPERATIONS REPORT 12/8/04 WR7 Jet Size in. 3-22 11-15 Cement Pump #1 Pump #2 Oilwell 214-P Oilwe1l214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 35 35 178 178 200 200 [Ann. Vel: DC: 5/10 Ibs DC wt: 22 Psi 22 Psi 398.27 TQ on btm (ftlbs): MUD 9.6 8 13 9 o Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: 140 ROT wt: 40k Ibs. WOB: PU Wt: 40k Ibs. SPR 1 SO wt: 40k Ibs. SPR 2 RPM: 120 BHA LI SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 Density pH P.V. Gels Oil% Solids % CL - (ppm) Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin 24,568 Ibs. [DC OD: 6 [ TQ off btm (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % 25000 CA++ (ppm) Prevo Cost: I RIG TIME (24 hr tour report) Drill 18.50 Tripping DH Tools Reaming Slip & Cut Line Safety 24 hrs. in this day Surveying 1.50 Circulating 3.00 Clean to Btm Cond.Brine Rig Repair BHA ---- 0.50 REMARKS: Permit No: 204-226 Safety Meeting on both crews. Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: 42 7.2 22 1 90 3.5 Day: 19 AFE# Projected Depth: 6700' Condition I SIN 10581286 Casing Depth 4917 1094 3823 Jet Vel: I Ftlsec DC Length: 340.98 ft in. ADDITIVES (sks) Testing NUIND BOP's Rig Up/Down Test BOP'S Service Rig 0.50 TOTAL: API NO. 50-283-20109-00 24.00 Orlg f/ 370' to 390. change shaker screens-circ. Orlg f/ 390 t/ 491. Safety meeting - Service top drive. Orlg f/491 t/ 556. Circ & recip f/ survey.RU slick line & survey @ 524' Orlg f/ 556 t/1029. Circ & recip. f/ survey. RU slickline & survey @ 997'. Orlg f/ 1029 t/1 065 No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,315 AM OPERATION: clear TEMP: 15 Jerry Sandidge 281-674-0940 Drilling ROAD CONDo Rig Tool Pusher: FAX No: Rough & Slick LEASE COND: Jon West 281-674-0942 IJ.J£LICAN HILL OIL & (IS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 12 1/4 Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out xs1c 88 1515 LinerlStroke 5.5 x 2.25 in x 14ín 5.5 x 2.25 in x 14ín Beginning Fuel in Storage I 3823 SPM 35 35 Daily Fuel Usage Volume (gallmin) 178 178 Fuel Delivered (gal) I 3680 I - Pressure 400 I 400 Total Fuel in Storage 6970 I Depth (Ft. KB) I Inclination Density 9.6 Viscosity 42 524.00 I 0.50 pH 8 Water Loss 7.2 997.00 1.00 P.V. 13 Y.P. 22 1,475.00 I 1.00 Gels 9 Filter Cake 1 I Pump Type Pump Pressure: 140 ROT wt: 46 Ibs. WOB: PU wt: 46 Ibs. SPR 1 SO Wt: 46 Ibs. SPR 2 RPM: 120 BHA Lf SURVEYS (Deg) Pump #1 Oilwell 214-P Ann. Vel: 10/15 22 22 398.27 Ibs Psi Psi TQ on btm (ftlbs): MUD IlLY OPERATIONS REPORT Date: 1219/04 Day: 20 AFE# ~ 450 ftIdrilld 1427 Rig # Drlg WR7 Projected Depth: 6700' Operation: ftIhr Cum/Hr. 37.75 Condition 2 2 SIN in 10581286 3-22 Pump #2 Oilwell 214-HP Cement Casing I3 3/81 Depth 80 DC: DCwt: ft Ftlmin 24,568 Ibs. DP: DCOD: Ftlmin 6 Ftlsec DC Length: 26001 TQ off btm (ftlbs): 2000 ADDITIVES (sks) o Water % Sand % 25000 CA++ (ppm) Prevo Cost: I ·lIm 90 3.5 RIG TIME (24 hr tour report) Drill 13.00 ~-- Tripping 4.00 DH Tools Reaming Slip & Cut Line Safety --- -- 0.50 ~- REMARKS: Permit No: Safety Meeting on both crews. Oil% Solids % CL - (ppm) 24 hIS. in this day Surveying 0.50 Circulating __~~ Clean to Btm Cond.Brine Rig Repair BHA 204-226 Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig 0.50 -- --- --- API No: TOTAL: API NO. 50-283-20109-00 24.00 Orlg f/1065 t/1150- Change outfuel filters on Tesco. Orlg f/1150 t/1441. CBU check cuttings. Orlg f/1441 t/1505.CBU check cuttings. Survey @ 1475. Orlg t/1515- Circ - pump sweep - Monitor well- Pump dry job. POOH laying down pipe. Work spot @ 785 clean. Lay down BHA. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: -~----~-~ clear TEMP: 18 -- Jerry Sandidge 281-674-0940 RU 1/ run csg. ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 Rough & Slick PELICAN lULL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: I Bit # Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out xs1c 88 1515 Size 12 1/4 I,LY OPERATIONS REPORT Date: 12/10/04 ~ 140 WOB: SPR1 SPR2 SHALl SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 REMARKS: Rig # WR7 Circ f/ Cmt Job fUdrilld 1427 Operation: fUhr Cum/Hr. 37.75 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 60 60 Ibs. Ibs. Ibs. Ann. Vel: Density pH P.V. Gels Oil% Solids % CL - (ppm) 204-226 Ibs Psi Psi DC: DCWt: 3-22 Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. DC OD: RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety ---- -- 0.50 ~- Permit No: 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA TQ on btm (ftlbs): MUD 9.7 F Viscosity 8.5 Water Loss 13 Y.P. 9 Filter Cake o Water % Sand % 25000 CA++ (ppm) Prevo Cost: 5.50 -- -- 3.00 API No: Ftlmin I TQ off btm (ftlbs): 42 7.2 22 1 90 3.5 Swabbing Cementing Logging Casing W.O.C. Cond.Mud -.- -- 8.50 -- Day: 21 AFE# Projected Depth: 6700' Condition SIN 2 2 in 10581286 Casing Depth 13 3/8 77 6970 95/8 1515 1915 5055 Jet Vel: in. Ftlsec I DC Length: ft ADDITIVES (sks) I L Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig 6.00 0.50 24.00 TOTAL: API NO. 50-283-20109-00 1,515 AM OPERATION: cloudy TEMP: 18 Jerry Sandidge 281-674-0940 ~ after cement surface casing. ROAD CONDo Rough & Slick Rig Tool Pusher: FAX No: Safety Meeting on both crews. Finish laying down BHA. RD pipe grabber! RU CRS. RU to run csg. Align topdrive track. Run 9 5/8 csg with Tesco CRS. Wash to btm. Circ- Haul off excess mud- RU BJ. No Spills No Accidents LEASE COND: Jon West 281-674-0942 A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: PKLICAN HILL O'L & (IS INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: . Midnight Depth: Bit., Size Pump Type Liner/Stroke SPM Volume (gallmin) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Date: 12/11/04 Day: 22 Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out ~ Rig # WR7 Circ f/ Cmt Job Jet Size in. 3-22 11-15 I Cement ~ Projected Depth: AFE# 6700' Operation: ftlhr Cum/Hr. 37.75 ftldrilld 1427 2 Condition 2 I 140 WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 12 1/4 xs1c 88 1515 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Casing 13 3/8 95/8 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. DC OD: 6970 1915 60 60 Ibs. Ibs. Ibs. 5055 Ftlmin I Jet Vel: in. Ann. Vel: DC: DCWt: Ftlsec DC length: Ibs Psi Psi TQ on btm (ftlbs): MUD I TQ off btm (ftlbs): ¡- ADDITIVES (sks) I Density 9.7 Viscosity I 42 pH 8.5 Water loss 7.2 P.V. 13 Y.P. 22 Gels 9 Filter Cake 1 in SIN 10581286 De~ 77 1515 ft Oil% 0 Water % 90 Solids % Sand % 3.5 t- Cl - (ppm) 25000 CA++ (ppm) Prevo Cost: 24 hrs. in this day Surveying Circulating 5.50 Clean to Btm Cond.Brine Rig Repair BHA 3.00 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut line Safety 'REMARKS: Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig Swabbing Cementing logging Casing W.O.C. Condo Mud -~. -- 8.50 --- -~- 0.50 -- Permit No: 204-226 TOTAL: API NO. 50-283-20109-00 24.00 API No: Safety Meeting on both crews. 6.00 0.50 Test lines 3000 psi- Mix & Pump cmt @ 14.5 ppg + additives- Shut down clean out knife valve on cmt unit- Continue wI cmt job. Pump 133 bbls cmt- pump plug and bump- check floats- OK-CIP@ 04:00-No cmt to surface- RO BJ - clean up and NO diverter stack- Make rough cut on 9 5/8- lay down stub- Cut 13 3/8 prep for top job. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: cloudy TEMP: 18 Jerry Sandidge 281-674-0940 --~-~ Rough & Slick lEASE COND: Jon West 281-674-0942 ROAD CONDo Rig Tool Pusher: FAX No: P.EIACANHILL UIL & (Is INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Date: 12/12/04 Day: 23 AFE# Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In I Out xs1c 88 1515 I 121/4 ftldrilld 1427 Operation: ftlhr Cum/Hr. 37.75 Rig # WR7 Circ f/ Cmt Job Jet Size in. Projected Depth: 6700' 3-22 2 Condition SIN 2 ;0 1'0581286 Casing Depth 133/8 77 95/8 1515 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in I Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage 5055 1366 Pump Pressure: 140 IAnn. Vel: DC: Ftlmin DP: FtI ROT Wt: Ibs. WOB: Ibs DCWt: Ibs. IDCOD: PUWt: 60 Ibs. SPR1 I Psi SOWt: 60 Ibs. SPR2 I I Psi RPM: SHALl TQ on btm (ftlbs): I TQ off btm (ftlbs): 3689 mi~Jet Vel: Ftlsec in. I DC Length: ft SURVEYS (Deg) MUD ADDITIVES (sks) Depth (Ft. KB) Inclination Density 9.7 Viscosity 42 I : - - -~ 524.00 0.50 pH 8.5 Water Loss 7.2 997.00 1.00 P.V. 13 Y.P. 22 I 1,475.00 1.00 Gels 9 Filter Cake 1 i I Oil% 0 Water % 90 - - lJ Solids % CL - (ppm) Sand % 25000 CA++ (ppm) Prevo Cost: I 3.5 -- RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 0.50 ~~ hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA -~-- 6.00 Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig 12.00 5.50 ~~- Swabbing Cementing Logging Casing W.O.C. Condo Mud ~~ ~- -- ~- --- REMARKS: Permit No: 204-226 API No: TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews. Mix & pump 9 bbls cmt @ 14.5 down 13318 x 9 5/8 annulus- shut dwn - blown on more cmt- Pump 22 bbls cmt- cmt returns @ surface- RD BJ- Clean up in cellar- Make final cut on 9 5/8- Install braden head- Change out bladder in koomey bottle - RD Tesco CRS - Install cold weather element anular BOP. Work on MP1 gear end. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: snow TEMP: 28 Jerry Sandid~_ 281-674-0940 _._-~~ ROAD CONDo Rig Tool Pusher: FAX No: snow drifts LEASE COND: Jon West 281-674-0942 -- PELJCAJ~HJLL OJL & (Is JNC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit fJ Size 1 121/4 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out xs1c 88 1515 ftldrilld 1427 Operation: ftlhr Cum/Hr. 37.75 Pump #1 Pump #2 Oilwel/ 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in. 5.5 x 2.25 in x 14in 140 WOB: SPR 1 SPR2 SHALl SURVEYS (Deg) Ann. Vel: DC: DCWt: 60 60 Ibs. Ibs. Ibs. Ibs Psi Psi TQ on btm (ftlbs): MUD Depth (Fl KB) Inclination Density 9.7 I 524.00 0.50 pH 8.5 997.00 1.00 P.V. 13 1,475.00 1.00 Gels 9 Oil% 0 Solids % CL - (ppm) 25000 , Prevo C RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety REMARKS: 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA ~- IllY OPERATIONS REPORT Date: 12/13/04 Day: 24 -- ~ -- Rig # WR7 Nipple up BOPE Jet Size in. 3-22 1-15 Projected Depth: AFE# 6700' Condition 2 2 --~ ~-- Cement Casing 13 3/8 95/8 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. DC OD: 3689 1019 4300 6970 Jet Vel: in. Ftlmin Ftlsec DC Length: 0.50 -~ I TQ off btm (ftlbs): Permit No: 204-226 ¡rIVES: (SU) Viscosity 42 Water Loss 7.2 Y.P. 22 Filter Cake 1 Water % 90 Sand % 3.5 CAH (ppm) ost: I Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig ---- API No: TOTAL: API NO. 50-283-20109-00 SIN 10581286 Depth 77 1515 ft ~~- I ~ 18.50 5.00 24.00 -~ Safety Meeting on both crews. Cool down braden head- Test 2200 psi- No test- grind out crack- pre heat- repair leak- wrap for post heat-let cool- re test 2200 psi- good test- Continue wI NU BOPE- Set Gas buster and hook up- Prep to change rams- No Spills No Accidents . A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: -------- clear TEMP: 25 Jerry Sandidge 281-674-0940 ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: Jon West 281-674-0942 clear/slick PELlt:AN HILL UIL & (IS INC. I,LY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 12 1/4 Date: 12/14/04 Day: 25 AFE# ß Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In lOut xs1c 88 1515 Rig # WR7 Nipple up BOPE Jet Size in. 3-22 1-15 Projected Depth: 6700' Operation: ftlhr Cum/Hr. 37.75 ftldrilld 1427 Condition 2 2 SIN 10581286 Pump #1 Pump #2 Oilwell214-P Oilwel/214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Cement Casing 13 3/8 95/8 Depth 77 1515 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage 5883 Ftlmin DP: Ftlmin I Jet Vel: Ftlsec I Ibs. 1 DC OD: in. I. DC Length: 6970 1087 IAnn. Vel: WOB: SPR1 SPR2 ,SHALl SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 --- 997.00 1.00 - 1,475.00 1.00 DC: DCWt: Ibs. Ibs. Ibs. Ibs ft Psi Psi I TQ on btm (ftlbs): MUD 9.6 8 13 4 o --1 I TQ off btm (ftlbs): ADDITIVES (sks) I Density pH P.V. Gels Oil% Solids % Viscosity Water Loss 40 7.2 14 1 90 0.1 Y.P. Filter Cake Water % Sand % 12000 CA++ (ppm) Prevo Cost: I __~ hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA CL - (ppm) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig Swabbing Cementing Logging Casing W.O.C. Condo Mud -- 6.00 10.50 5.00 -- ~- -~.. -~ 2.00 0.50 -- 24.00 TOTAL: API NO. 50-283-20109-00 Permit No: 204-226 API No: REMARKS: Safety Meeting on both crews. Break bolts on Ram doors- One bolt very tight- Repair hyd. Line on koomey unit. Repair agitator in pits- MU kelly hose-Clean pits- Haul off mud- RU tesco 5 1/2 COT. Change rams t/5 1/2 Function test BOPE. Set test plug- Test BOPE- 250/3000 psi. ok. No Spills No Accidents 1,515 AM OPERATION: --~~-- clear TEMP: 25 -~ Jerry Sandidge 281-674-0940 A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: clear/slick LEASE COND: Jon West / Gus Guszregan 281-674-0942 ROAD CONDo Rig Tool Pusher: FAX No: PELICAN HILL OIL & As INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Type In Out I ftldrilld ftlhr Cu 1 12 1/4 xs1c 88 1515 I 1427 37. 2 77/8 HTC 1515 I Prevo Cost --- Pelican Hill Oil & Gas, Inc 1,515 Progress: ~- Date: 12/15104 Day: 26 AFE# ß Rig # WR7 Projected Depth: 6700' Repair Pump No 2 Jet Size in. Condition SIN 3-22 1-15 2 2 in 10581286 4-14'$ 0325734 Operation: rnIHr. 75 ump ump ernen I Casing Depth Pump Type Oilwell 214-P ai/well 214-HP 13 3/8 77 Liner/Stroke 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Beginning Fuel in Storage I 5883 95/8 I 1515 SPM - Daily Fuel Usage 966 Volume (gal/min) Fuel Delivered (gal) Pressure I Total Fuel in Storage 4917 Pump Pressure: IAnn. Vel: DC: Ftlmin DP: Ftlmin Jet Vel: Ftlsec ROT wt: Ibs. WOB: Ibs DCwt: Ibs. ¡DCOD: in. I DC Length: ft PUwt: Ibs. SPR1 Psi I - SOwt: Ibs. SPR2 Psi I TQ off btm (ftlbs): - RPM: SHAll TQ on btm (ftlbs): P #1 P #2 c t SURVEYS (Deg) Depth (Ft. KB) I 524.00 997.00 1,475.00 nclination Density 9.2 Viscosity 38 I 0.50 pH 9.8 Water Loss 7.1 I 1.00 P.V. 8 Y.P. 14 - 1.00 Gels 3 Filter Cake 1 Oil% 0 Water % 93 I Solids % 3.3 Sand % 0 ~L - (ppm) 44000 CA++ (ppm) 200 I Prevo Cost: I I MUD ADDITIVES (sks) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 0.50 __~ hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA .--- -- -- Testing NU/ND BOP's Rig UplDown Test BOP'S Service Rig 5.50 4.50 Swabbing Cementing Logging Casing W.O.C. Condo Mud --- 4.00 6.50 -~- -~ 3.00 --- REMARKS: Permit No: 204-226 API No: TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews. Finish testing BOPE 250/3000. -Pull test plug- LD test joint- Test csg to 2000 for 30 min ok. PU BHA- Test logging tool- Layout and strap 5 1/2 csg- PU csg and RIH while drift same- Tag cmt at 1371 - Circ cmt contaminated mud.- SD to repair frozen clutch on NO.2 Pump- No Spills No Accidents A.M. DEPTH: 1,515 AM OPERATION: Repair #2 Pump WEATHER: clear TEMP: ROAD CONDo clear/slick LEASE COND: -~ . Drilling Supv: Jerry Sandidge Rig Tool Pusher: Gus Guszregan PHONE NO: 281-674-0940 FAX No: 281-674-0942 ~~ PELICAN HILL OIL & .~ INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Pump Pressure: ROT Wt: PUWt: SOWt: RPM: IAnn. Vel: I WOB: SPR 1 SPR2 BHALI SURVEYS (Deg) Ibs. Ibs. Ibs. ~--- CL - (ppm) IlLY OPERATIONS REPORT Date: 12/16/04 Day: 27 ~ Operation: Rig # WR7 Repair Pump Projected Depth: 6700' n ~ asing 33/8 95/8 DC: DCWt: Ftlmin I Jet Vel: in. I I I I Ftlsec I DC Length: BiU Size Type In Out ftIdrilld ftIhr I Cum/Hr. Jet Size in. Conditio 1 12 1/4 xs1c 88 1515 1427 37.75 3-22 I 1-15 2 2 2 77/8 , HTC 1515 ¡ 4-14'5 1 Pump #1 Pump #2 Cement C Pump Type Oilwell214-P Oilwell214-HP 1 LinerlStroke 5.5, 2.25 ,,' !~l5.5 >2.25",14', Beginning Fuel in Storage 4917 I ~ SPM Daily Fuel Usage 958 Volume (gal/min) Fuel Delivered (gal) Pressure Total Fuel in Storage I 3958 I Depth (Ft. KB) I Inclination Density 9.6 Viscosity 40 I 524.00 I 0.50 pH 8 Water Loss 7.2 !----- 997.00 1.00 P.V. 13 Y.P. 14 I 1,475.00 1.00 Gels 4 Filter Cake 1 I Oil% 0 Water % 90 - Solids % Sand % 0.1 Ftlmin DP: Ibs. DC OD: Ibs Psi Psi TQ on btm (ftlbs): MUD TQ off btm (ftlbs): ADDITIVES (sks) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 12000 CA++(ppm) Prevo Cost: _~_ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NU/ND BOP's Rig UplDown Test BOP'S Service Rig ~- -- -~- --~ 0.50 REMARKS: Permit No: 204-226 API No: TOTAL: API NO. 50-283-20109-00 24.00 ~- ~- 23.50 Safety Meeting on both crews. Repair # 2 pump- Clutch not disengaging-While working on pump adjust top drive track and recover hoses. Inspect gear end #1 Pump wI ServiceTech. Suspend operations on well. Continue to work on pumps and rig. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: clear TEMP: Jerry Sandidge 281-674-0940 LEASE COND: Gus Guszregan 281-674-0942 _ Repair #2 Pump ROAD CONDo Rig Tool Pusher: FAX No: AFE# SIN 10581286 0325734 Dep~ 77 1515 ft clear/slick !-)ELICAN HH..JL OIL & ~S INC:. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: I,LY OPERATIONS REPORT Date: 12/17/04 ~ Operation: Day: 28 AFE# Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin Ibs. DC 00: I TQ off boo (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: I 6700' - I Bit # Size Type In I I Out ftldrilld ftlhr Cum/Hr. Jet Size in. Condi 1 12 1/4 xs1c 88 1515 1427 37.75 3-22 I 1-15 2 2 77/8 HTC 1515 4-14's I Pump #1 Pump #2 Cement Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Ibs. Ibs. Ibs. IAnn. Vel: Density pH P.V. Gels Oil% Solids % CL - (ppm) REMARKS: ~- ~- 0.50 -~ Permit No: 204-226 Safety Meeting on both crews. tion 2 SIN 10581286 0325734 Depth 77 1515 4917 1109 4200 8008 Jet Vel: in. I I Casing 13 3/8 95/8 Ftlsec I DC Length: ft ADDITIVES (sks) Swabbing Cementing Logging Casing W.O.C. Cond.Mud -- WOB: SPR 1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: 24 hrs. in this day -- Surveying Circulating Clean to Boo Cond.Brine Rig Repair BHA DC: DCWt: Ibs Psi Psi TQ on boo (ftlbs): MUD 9.3 -- 23.50 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 24.00 API No: Repair #1 Pump ROAD CONDo Rig Tool Pusher: FAX No: clearlslick Shut well in by installing TIW and closing pipe rams. Blow down steam loop and water loop. Continue work on No 1. Order parts for NO.1 fluid end. Gear end not field repairable. Finished wiring in wash house. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: clear TEMP: Jerry Sandidge 281-674-0940 LEASE COND: Gus Guszreg~_ 281-674-0942 PI:£LICAN HiLL (JlL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit ft. Size 1 121/4 xs1c 2 7 7/8 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: IlLY OPERATIONS REPORT Date: 12/18/04 I Day: 29 Prevo Cost Pelican Hill ai/ & Gas, Inc 1,515 Progress: Type In Out HTC Ibs. Ibs. Ibs. WOB: SPR 1 SPR2 .BHALI SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming ..slip & Cut Line Safety REMARKS: -- ~--- ~- 0.50 -- Permit No: Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs 3-22 Jet S~~~ ;n. I 2 condi:ion I 4-14's Cement 1515 ftIdrilld 1427 Operation: ftIhr Cum/Hr. 37.75 I T IAnn. Vel: DC: DCWt: Casing 13 3/8 95/8 AFE# 6700' in SIN 10581286 0325734 Depth 77 1515 88 1515 Pump #1 Pump #2 Oilwell 214-P ai/well 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Ibs Psi Psi TQ on btm (ftlbs): MUD 9.3 Density pH P.V. Gels Oil% Solids % CL - (ppm) I 8008 I 381 o 7627 Jet Vel: I Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Ftlmin Ftlsec DC Length: ft T Rig Repair ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: Gus Guszregan 281-674-0942 in. I TQ off btm (ftlbs): ADDITIVES (sks) Viscosity Water Loss Y.P. 24.00 Filter Cake Water % Sand % I CA++ (ppm) Prevo Cost: I ~~ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA -.- --' ~-- 23.50 204-226 Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig Safety Meeting on both crews. Change over to No. 1 Generator. Service NO.2 Generator. Offload and inventory mud products. Organize materials and continue on winterizing projects. No Spills No Accidents A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: TEMP: 281-674-0940 -~ API No: TOTAL: API NO. 50-283-20109-00 -- PELJCA1~ HJLL OIL & &ts lNC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: I Bit # 1 2 Size Prevo Cost -~--- Pelican Hill Oil & Gas, Inc 1,515 Progress: , Type In Out xs1c 88 1515 HTC 1515 Pump #1 Pump #2 Oilwell214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in IlLY OPERATIONS REPORT Date: 12/19/04 I Day: 30 AFE# ftIdrilld 1427 Operation: ftIhr Cum/Hr. Rig # ~ WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. Condition 4~~:~S 11-15 2 2 I in Cement Casing 13 3/8 95/8 12 1/4 77/8 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUwt: SOwt: RPM: IAnn. Vel: DC: DCwt: -,-- WOB: SPR1 SPR2 BHAlf SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 Ibs. Ibs. Ibs. Ibs , Psi Psi 37.75 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 7627 392 o 7235 Jet Vel: I 6700' SIN 10581286 0325734 Depth 77 1515 Ftlmin Ftlsec DC Length: in. TQ on boo (ftlbs): MUD 9.3 Density pH P.V. Gels Oil% Solids % CL - (ppm) -- -- RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 0.50 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA -- --- --- -- -- 23.50 --- REMARKS: Penn it No: 204-226 Safety Meeting on both crews. I TQ off btm (ftlbs): ADDITIVES (sks) Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: I - ft Daily Cost: Cumm. Cost: Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig -- --- API No: TOTAL: API NO. 50-283-20109-00 Service rig engine and office generator. Resume work on No.1 pump fluid end. Order more parts. Continue to work on winterizing and organizing. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 AM OPERATION: TEMP: 281-674-0940 Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: --~- LEASE COND: Gus Guszregan 281-674-0942 -~._-~-~~~~ 24.00 PEL1CAN HILL OIL & ~S L~C:. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 2 121/4 77/8 IlLY OPERATIONS REPORT Date: 12/20104 Day: 31 AFE# ~~__~_JI Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out ftldrilld 1427 Operation: ftlhr Cum/Hr. 37.75 xs1c HTC 88 1515 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: REMARKS: 1515 I~ IAnn. Vel: DC: I DCWt: Ibs. Ibs. Ibs. Ibs Psi Psi TQ on btm (ftlbs): MUD 9.3 6700' Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. Condition 3-22 11-15 2 I 2 4-14's Cement WOB: SPR1 SPR2 BHAL. SURVE":S (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: I 7235 I 533 o 6702 Jet Vel: I Casing 13 3/8 95/8 Ftlmin Ftlsec I DC Length: in. RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Density ~H P.V. Gels Oil% Solids % CL - (ppm) -- 24 . hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA -- ---- 23.50 --- 0.50 -"-~ Permit No: 204-226 Safety Meeting on both crews. TQ off btm (ftlbs): ADDITIVES (sks) Viscosity Water Loss V.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: I Swabbing Cementing Logging Casing W.O.C. Cond.Mud Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig --- API No: TOTAL: API NO. 50-283-20109-00 24.00 SeNice all 4 mud pump engines. Continue to work on NO.1 pump fluid end. Prep for barge arrival. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 Flyable AM OPERATION: TEMP: 20 -- 281-674-0940 ~ Repairs ROAD CONDo Rig Tool Pusher: FAX No: SIN 10581286 0325734 Dep~ 77 1515 ft --~ LEASE COND: Gus Guszregan 281-674-0942 PELICAN HILL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 121/4 xs1c 2 7 7/8 I,LY OPERATIONS REPORT Date: 12/21/04 Day: 32 AFE# 6700' Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 ,Progress: Type In Out HTC Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: WOB: SPR1 SPR2 SHALl SURVEYS (Deg) Depth (Ft KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 Ibs. Ibs. Ibs. J Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. Condition ~~~~s I~'- 2 2 I in Cement Casing 13 3/8 95/8 1515 ftldrilld 1427 Operation: ftIhr Cum/Hr. 37.75 Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: ¡ Ann. Vel: DC: DCWt: 88 1515 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Ibs Psi Psi TQ on btm (ftlbs): MUD 9.3 I Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety ~~ 0.50 -- REMARKS: Pennit No: Safety Meeting 24 hIS. in this day --- Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA -- ---~ 23.50 ~- 204-226 SIN 10581286 0325734 Depth 77 1515 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. DC OD: 6702 o o 6702 Ftlmin I Jet Vel: in. I Ftlsec [)C Length: ft 'I TQ off btm (ftlbs): ADrnTIVEr~)_ . I Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig ~~ -- -- API No: TOTAL: API NO. 50-283-20109-00 24.00 Plumb in heater duct to cellar. Work on Pump No. 1 fluid end. Remove snow. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 snowing 281-674-0940 AM OPERATION: TEMP: ~-- Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: -- LEASE COND: Gus Guszregan 281-674-0942 ~---~-- -~- PELICAN HILL ()lJ-i &, (Is INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # I Size 1 12 1/4 2 77/8 Pump Type LinerlStroke Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out xs1c I 88 1515 HTC 1515 Pump #1 Pump #2 Oilwell 214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in I,LY OPERATIONS REPORT Date: 12/22/04 Day: 33 AFE# ~ Operation: ftldrilld I____~'!~---L 1427 ~ Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs 6700' Cum/Hr. Jet Size in. Condition SIN 37.75 3-22 I 1-15 2 I 2 I in 10581286 4-14's I I 0325734 Cement Casing Depth 13 3/8 77 Beginning Fuel in Storage 6702 95/8 1515 Dally Fuel Usage 271 WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Ibs. Ibs. Ibs. IAnn. Vel: Density pH P.V. Gels 011% Solids % Ibs Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. DC OD: ft DC: IDCWt: =:: ---+- TQOnb~ MUD 9.3 ~ Viscosity Water Loss Ftlmin Ftlsec DC Length: I TQ off btm (ftlbs): ADDITIVES (sks) Y.P. Filter Cake Water % Sand % L CA++ (ppm) Prevo Cost: I 24 hrs. in this day -~- Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety REMARKS: -~ --. 0.50 Permit No: CL - (ppm) 204-226 Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NU/ND BOP's Rig Up/Down Test BOP'S Service Rig -~- 23.50 -~ API No: TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting Plumb in heater duct to cellar. Work on Pump NO.1 fluid end (repair swab). Receive 2' of snow. Clear roads and location. Shovel out rig. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 snowing 281-674-0940 AM OPERATION: TEMP: Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: ~~~ LEASE COND: ~~- Gus Guszregan 281-674-0942 l'ELICA~~ HILL OIL & (IS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: IlLY OPERATIONS REPORT Date: 12/23/04 Day: 34 AFE# I Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: 6700' - BiU Size Type In Out ftIdrilld ftIhr Cum/Hr. Jet Size in. Condition SIN 1 12 1/4 xs1c 88 1515 1427 37.75 3-22 I 1-15 2 ~I in 10581286 I - 2 77/8 HTC 1515 4-14's 0325734 I , Pump #1 Pump #2 Cement Casing Depth Pump Type Liner/Stroke SPM Volume (gallmin) Pressure Pump Pressure: Operation: Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in ROT Wt: Ibs. WOB: Ibs DCWt: Ibs. IDCOD: in. PUWt: Ibs. SPR1 I I~Si SOWt: Ibs. SPR2 Psi I RPM: SHALf I TQ on bbn (ftlbs): I TQ off btm (ftlbs): SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety -- 0.50 -- REMARKS: Permit No: I IAnn. Vel: DC: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin , 13 3/8 6431 95/8 685 o 5746 Jet Vel: Ftlsec , IDC Length: ft 77 1515 Density pH P.V. Gels Oil% Solids % CL - (ppm) MUD 9.3 Viscosity Water Loss V.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: ADDITIVES (sks) , , __ 24 _ hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud -- Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig -- 23.50 204-226 TOTAL: API NO. 50-283-20109-00 24.00 API No: Safety Meeting Continue to plow snow. Continue to work on Pump No 1 fluid end. New fluid end parts not compatible with old parts. Will have to replace old valve seats. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 windy AM OPERATION: TEMP: 45 very icy Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: Gus Guszregan 281-674-0942 very icy 281-674-0940 ----~----~--- P.ELICAN HILL OIL & lis INC. IllY OPERATIONS REPORT Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: I I Type In Out xs1c 88 1515 HTC 1515 Pump #1 Pump #2 Oilwell214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit., I Size 1 12 1/4 2 7 7/8 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUWt: SOWt: RPM: Date: 12/24/04 Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. I Condition 3-22 11-15 I 2 21 in 4-14's ¡- Cement --~ ß ftIdrilld 1427 Operation: ftIhr Cum/Hr. 37.75 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin Ibs. I DC OD: I WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 Ibs. Ibs. Ibs. RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety -~- 0.50 REMARKS: Permit No: Safety Meeting IAnn. Vel: . DC: DCWt: Day: 35 AFE# 6700' SIN 10581286 0325734 Depth 77 1515 LEASE COND: Gus Guszregan 281-674-0942 ft 24.00 Work on cellar windwalls. Thaw blow down line. Fix hydraulic leak on BOP. Install isolation valve in air line. Finish No 1 pump fluid end repairs. Ibs Psi Psi ~I No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: I TQ off btm (ftlbs): TQ on btm (ftlbs): MUD 9.3 Density pH P.V. Gels Oil% Solids % CL - (ppm) Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: I ~--~- 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud --- -~ 23.50 5746 276 o 5470 Jet Vel: I ~asing 13 3/8 95/8 in. Ftlsec DC Length: ADDITIVES (sks) - Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 204-226 API No: 1,515 windy AM OPERATION: TEMP: 15 very icy Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: 281-674-0940 very icy J:'ELICAN HILl, OIL & tis INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit tI Size 1 12 1/4 xs1c 2 77/8 Date: 12/25/04 II Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: I Type In Out 88 1515 Pump #1 Pump #2 Oilwell214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in HTC Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: , WOB: SPR 1 SPR2 SHALf SURVEYS (Deg) J:!epth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 Ibs. Ibs. Ibs. RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety -- -- 0.50 REMARKS: Permit No: Safety Meeting Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. I Condition 3-22 1-15 f- 2 2 I in 4-14'5 I I Cement __ Casing 13 3/8 95/8 1515 ftldrilld 1427 Operation: ftlhr Cum/Hr. 37.75 Day: 36 AFE# IAnn. Vel: . Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 6700' 5470 415 o 5055 Jet Vel: I SIN 10581286 0325734 Depth 77 1515 Ibs DC: DCWt: Ftlsec DC Length: ft Ftlmin Psi Psi I I TQ off btm (ftlbs): in. I- I ADDITIVES (sks) Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig 24.00 -- TOTAL: API NO. 50-283-20109-00 1,515 clear AM OPERATION: TEMP: 15 Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: TQ on btm (ftlbs): MUD -- 9.3 Viscosity Water Loss Y.P. Filter Cake Water % Sand % Cleaning around location. Chipping ice. Finish installation of bathroom facility. Prepare for barge and then find out that barge is cancelled. Cancell BJ. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: Density pH P.V. Gels Oil% Solids % CL - (ppm) CA++ (ppm) 1- Prevo Cost: 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud --- ~- 23.50 -- 204-226 API No: very icy 281-674-0940 LEASE COND: _very ~ Gus Guszregan 281-674-0942 PELICAt\J HILI.- UIL & jis INC. IlLY OPERATIONS REPORT Well: N. Beluga NO.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 12 1/4 -~ 2 7 7/8 Date: 12/26/04 Day: 37 AFE# Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out xs1c 88 1515 HTC 1515 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in J ftIdrilld 1427 Operation: ftlhr Cum/Hr. Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. Condition 2~~n 6700' Pump Pressure: IAnn. Vel: DC: Ftlmin ROT Wt: Ibs. WOB: Ibs DCWt: PUWt: Ibs. SPR1 I Psi SOWt: Ibs. SPR2 Psi RPM: BHALI TQ on btm (ftlbs): Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage DP: ~OD: 5055 ~9 o 4376 Ftlmin Jet Vel: Casing 13 3/8 95/8 SIN 10581286 0325734 Depth 77 1515 37.75 3-22 1-15 4-14's Cement Pump Type LinerlStroke SPM Volume (gal/min) Pressure Ibs. in. Ftlsec DC Length: ft I TQ off btm (ftlbs): SURVEYS (Deg) MUD ADDITIVES (sks) Depth (Ft. KB) Inclination Density 9.3 L Viscosity I I I 524.00 0.50 pH Water Loss - ~ -~ 997.00 1.00 P.V. Y.P. ~ 1,475.00 1.00 Gels Filter Cake - I , Oil% Water % Solids % Sand % I CL - (ppm) CA++ (ppm) - I Prevo Cost: RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 0.50 ~~ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair 23.50 BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig REMARKS: Permit No: 204-226 API No: TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting Receive another 10" of snow. Remove snow and chip ice. Start warming up rig to resume operations. Not flyable conditions at present. Crew scheduled to start arriving as soon as weather permits. No Spills No Accidents. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,515 Snowing AM OPERATION: TEMP: 15 very icy LEASE COND: Gus Guszregan 281-674-0942 very icy Rig Repairs ROAD CONDo Rig Tool Pusher: FAX No: 281-674-0940 PELICAN HILL OIL & l.fS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 1 2 121/4 77/8 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: IlLY OPERATIONS REPORT Date: 12/27/04 --------¡¡ Day: 38 Prevo Cost Pelican Hill Oil & Gas, Inc 1,515 Progress: Type In Out xs1c 88 1515 HTC 1515 Pump #1 Pump #2 Oilwell 214-P Oilwe11214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Ibs. Ibs. Ibs. WOB: SPR1 SPR2 BHALt SURVEYS (Deg) Depth (Ft. KB) Inclination 524.00 0.50 997.00 1.00 1,475.00 1.00 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety REMARKS: Safety Meeting IAnn. Vel: Density pH P.V. Gels Oil% Solids % CL - (ppm) Rig # WR7 Projected Depth: Operations Suspended for Pump Repairs Jet Size in. Condition 4~~::S 11-15 2 2 I in Cement Casing 13 3/8 9 5/8 ftIdrilld 1427 Operation: ftIhr Cum/Hr. 204-226 37.75 Ibs DC: DCWt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: in. AFE# 6700' SIN 10581286 325734 Depth 77 1515 ft 24.00 Fix damaged shaker wiring and continue to clean rig and get ready to drill. Get boiler going and remove snow. Clean walkways. Get pumps going. Fire up koomey. Fill H20 tank. Fire #2 generator. Test #1 and #2 pumps OK. 3369 341 o 3028 Jet Vel: I Ftlmin Ftlsec DC Length: Psi Psi TQ on btm (ftlbs): MUD 9.3 I TQ off btm (ftlbs): ADDITIVES (sks) Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: I ~__ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA --- 0.50 ~- Permit No: No Spills No Accidents. -- Swabbing Cementing Logging Casing W.O.C. Condo Mud A.M. DEPTH: 1,515 AM OPERATION: Rig R~pairs WEATHER: clear TEMP: 22 ROAD CONDo very icy LEASE COND: very icy Drilling Supv: Dink Heim Rig Tool Pusher: Gus Guszregan -- PHONE NO: 281-674-0940 FAX No: 281-674-0942 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig -~ --- 23.50 API No: TOTAL: API NO. 50-283-20109-00 PJ£LICANHILL OIL & tis l>NC. Well: ~_. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 1,588 Progress: Bitt 2 Size Type In 77/8 HTC 1515 Out ~ 73 Operation: ftIdrilld ftIhr Pump #1 Pump #2 Oilwell214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type Liner/Stroke SPM Volume (gallmin) Pressure Pump Pressure: 200 Strg. Wt 35k Ibs. ¡WOB: RPM: 80 BHA: SURVE~S (Deg) Depth (Ft. KB) . Inclination IAnn. Vel: 2/5k Ibs I Density pH P.V. Gels Oil% -- Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill 11.50 Tripping DH Tools Reaming Slip & Cut Line Safety 50 250 200 128 IDCWt: 24 hIS. in this day Down Time 12.00 Circulating Clean to Btm Condo Brine Winterizing Rig BHA -- --- . REMARKS: Pennit No: 203-226 Safety Meeting on both crews. No Accidents No Spills. 'lLY OPERATIONS REPORT Date: 12/28/04 Rig # WR7 Drlg. @ 1588 Cum/Hr. Jet Size in. 4-14s Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: 128 Ftlmin n/a Ibs. I DC OD: MUD Swabbing Cementing Logging Casing W.O.C. API No: 38@65 7.4 10 1 94 0.25 420 Day: 39 Projected Depth: Condition 3028 492 8600 11136 Jet Vel: I I Casing 13 3/8 95/8 in. 133 Ftlsec DC Length: 9.1 Viscosity 9.8 Water Loss 7@65 Y.P. 2/3/0 Filter Cake -- o Water % 2.7 Sand % 40k CA++ (ppm) Prevo Cost: I ez-mud dp Barazan D Plus bicrb soda citric acid ADDITIVES (sks) 8 cans 2 sx 12 1 Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP TOTAL: API NO. 50-283-20109-00 0000-0130- Finish Repairs to Electrical on Shakers. 0130-0600 Tag @ 1394 & drill cement-plugs-FC & cement to 1501. 0600-0730-Diesel in oil pan on pump motors-Change oil in both pumps. 0730-1000-Drill cent-shoe & new formation to 1540. 1 000-21 OO-Blow down lines-Diesel mechanic came out & worked on pump motors & repaired same. New Fuel Pump on #2 Pump-Waiting on injecters for #1 pump. 21 00-2130=FIT test to 11.8. 2130-0000=Drlg. new hole from 1540 to 1588. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1,760 clear AM OPERATION: TEMP: 20 Dink Heim 281-674-0940 Drlg. 77/8" hole'w/5.5" 15.50# Buttress Csg. ROAD CONDo Fair LEASE COND: Rig Tool Pusher: Gus Guszregan FAX No: 281-674-0942 AFE# 6700' SIN 325734 Depth 77 1515 ft 0.50 24.00 -- Fair P.I£LICAN HILL OIL & G.S INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: SPM Volume (gal/min) Pressure Pump Pressure: 200 Strg. Wt 39k Ibs. I' WOB: RPM: 80 BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 23.50 Tripping DH Tools Reaming Slip & Cut Line Safety Bitt 2 Size 77/8 Pump Type Liner/Stroke REMARKS: ~mp #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Beginning Fuel in Storage 11136 55 Daily Fuel Usage 1853 275 Fuel Delivered (gal) 4300 200 Total Fuel in Storage 13583 IAnn. Vel: DC: 141 Ftlmin 141 Ftlmin Jet Vel: Ftlsee 147 2-6k Ibs _I DC wt: N/A Ib~ IDC OD: N/A in. I DC Length: N/A ft 50.82 I 7 7/8" Bit=NBS=5.5" Pup=String Stab=5.5" Pup=String Stab=XO=UBHO=XO=PRT Collar Spacer Sub=XO MUD ADDITIVES (sks) 9.2 Viscosity 43 KCL \' 56 9.6 Water Loss 6.3 Barazan D-Plus 5 9 Y.P. 16 Walnut 20 4-5 Filter Cake 1 EZ Mud DP 7 Cans o Water % 93 Barasdav-D 2 4 Sand % 1 Baracor 700 1 36k CA++ (ppm) 120 Bi Carb 3 Prev. Cost: I ~_ hIS. in this day Surveying Circulating Clean to Btm Cond.Brine Winterizing Rig BHA Prevo Cost Pelican Hill Oil & Gas, Inc 2,349 Progress: Type In H606 1515 Out ftIdrilld Date: 12/29/04 Day: 40 AFE# De~nsity pH P.V. Gels Oil% Solids % -n -- CL - (ppm) -- 0.50 Penn it No: 203-226 761 Rig # WR7 Projected Depth: Drlg. 7 7/8" hole w/5.5" 15.50# Csg. 6700' Operation: ftIhr Cum/Hr. 27 Jet Size in. Condition SIN 325734 4-145 Cement Casing Depth 95/8 13 3/8 1515 77 Swabbing Cementing Logging Casing W.O.C. Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP --- --- ~- --- ~- -- -- API No: TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews 00:00=24:00 Drlg. wI 5.5" 15.50# K-55 Csg. From 1588 to 2349. Work each jt. Full length while circ. To clean annulus & keep ECD down. Running 1300# Torque while on bottom. 80 RPM- 2-6K on bit. Still running 38 Mesh Screens on shaker-losing small amount of mud. Mud cleaner working good wI 250 Mesh Screens. 1 Spike of backround gas 11 units. 0 units @ present time. Up String Wt. 39k=Down String Wt. 39k. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 2,650 Cloudy AM OPERATION: TEMP: 0 -- Drilling ROAD CONDo Rig Tool Pusher: FAX No: Dink Heim 281-674-0940 Good LEASE COND: Gus Guszregan 281-674-0942 Good PELICAN HILl. UIL & (IS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 3,204 Progress: Bit # 2 Size 77/8 Type In H606 1515 855 Out ftldrilld IlLY OPERATIONS REPORT II Date: 12/30/04 AFE# Day: 41 Operation: Rig # WR7 Drlg. @ 3204 6700' ftlhr Cum/Hr. 48 4-14s Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 52 260 450 DC: 133 IN/A Pump Type Liner/Stroke SPM Volume (gallmin) Pressure Pump Pressure: 450 Strg. Wt 46k Ibs. IWOB: RPM: 80 BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 20.50 Tripping DH Tools Reaming Slip & Cut Line Safety 0.50 REMARKS: Permit No: IAnn. Vel: 2-6k Ibs I Projected Depth: Jet Size in. Condition SIN 325734 Cement Casing Depth Density pH P.V. Gels Oil% Solids % CL - (ppm) Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin Ibs. IDC OD: N/A MUD 9.4 9.4 14 5-6 o 4.8 40k Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Prevo Cost: 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA 13583 737 o 12846 Jet Vel: in. I 95/8 13 3/8 1515 77 139 Ftlsec DC Length: N/A ft 203-226 Swabbing Cementing Logging Casing W.O.C. API No: Same ADDITIVES (sks) 44 Sarazan-D 11 5.8 KCL 112 19 Pac-L 10 1 EZ Mud 6 92 Sarascav 3 1.5 Sara defoam 1 80 Walnut 5 ~- Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP 3.00 -- TOTAL: API NO. 50-283-20109-00 24.00 Safety Meeting on both crews 00:00 to 1800 Drlg. WI Csg. Assembly from 2349 to 3120. 1800 to 2100 Circ. Hole clean-rig up & run PRT to UBHO & Set same. Rig down Pollard wireline. 2100-2400 Drlg WI Csg. Assembly from 3120-to 3204. A.M. DEPTH: 3,278 AM OPERATION: ~Ig. -- WEATHER: Clear TEMP: 10 ROAD CONDo Good LEASE COND: Good Drilling Supv: Dink Heim Rig Tool Pusher: Gus Guszregan PHONE NO: 281-674-0940 FAX No: 281-674-0942 PJ:£LICAN HILL UIL & tis INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost ~.~ Pelican Hill Oil & Gas, Inc ___~,.?50 Progress: Bitt 2 Size Type In 7 7/8 H606 1515 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: 750 Strg. Wt 54k I~WOB: RPM: 80 I BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 23.50 -- Tripping DH Tools Reaming Slip & Cut Line Safety --~ 0.50 ~- REMARKS: Pennit No: 346 Out ftldrilld ftlhr Date: =~ Operation: Rig # Drlg. 'llY OPERATIONS REPORT 12/31/04 Day: 42 AFE# IAnn. Vel: 2-10 Ibs I Cum/Hr. WR7 Projected Depth: 6700' Jet Size in. 4-145 SIN 325734 Cement Condition Casing Depth Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin , Ibs. I DC OD: 12846 1980 o 10866 Jet Vel: 133 Ftlsec in. I DC Length: ft same ADDITIVES (sks) 44 5.8 18 1 91 1.5 80 ~ Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 55 275 750 DC: 128 IDCwt: MUD Density 9.5 Viscosity pH 9 Water Loss P.V. 13 Y.P. Gels 5-6 Filter Cake - Oil% 0 Water % Solids % 6 Sand % CL - (ppm) 38k CA++ (ppm) Prevo Cost: I ~~_ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA 203-226 Swabbing Cementing Logging Casing W.O.C. API No: Testing NUlND BOP's Rig Up/Down Test BOP'S Service BOP -- -- TOTAL: API NO. 50-283-20109-00 24.00 0000-0015- Pre job Safety meeting. 0015-0600-Drlg. From 3204 to 3277 .(Clay sections balling bit. Clean up same & continue drlg.) 0600-0615-Pre Job Safety Meeting. 0615-2400-Drlg. From 3277 to 3550. ( Drlg. Comglomerate formations. Difficult drilling cond.) A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 3,715 Cloudy AM OPERATION: Retri~ving PRT tool From UBHO W/ Wireline. TEMP: 25 ROAD CONDo Good LEASE COND: ___ Rig Tool Pusher: ___~~~s Guszregan FAX No: 281-674-0942 ~ink Heim 281-674-0940 Good PJ£LICAN HILL UIL & (IS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Prevo Cost Pelican Hill Oil & Gas, Inc 4,066 Progress: Bit # 2 Size Type In 77/8 H606 1515 Out ftIdrilld ftIhr 516 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 52 260 700 IAnn. Vel: DC: 128 2-8 Ibs I DC Wt: I Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: 700 Strg. Wt 59k Ibs. [WOB: RPM: 80 BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill 15.50 Tripping DH Tools Reaming Slip & Cut Line Safety --- 1.00 2.00 .IlLY OPERATIONS REPORT -u Date: 1/1/05 AFE# Day: 43 Operation: Rig # WR7 Drlg. @ 4066 6700' Cum/Hr. 87.5 4-145 Projected Depth: Jet Size in. Condition SIN 325734 Cement Casing Depth Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 10866 1373 o 9493 Jet Vel: in. I 133/8 95/8 77 1515 Swabbing Cementing Logging Casing W.O.C. Ftlmin 133 Ftlsec DC Length: ft MUD 9.5 Viscosity 8.9 Water Loss 12 Y.P. 3-4 Filter Cake o Water % 5.7 Sand % 35k CA++(ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Winterizing Rig BHA ADDITIVES (sks) 41 KCL 50 5.8 Barazan 5 14 Dextrid 14 1 Pac-I 4 91.5 Garyseal 10 0.5 Barafibre 12 60 Walnut 10 NUlND BOP's Rig Up/Down Test BOP'S Service BOP 5.50 --- 24.00 API No: TOTAL: API NO. 50-283-20109-00 (SPR #2 Pump 25 SPM @ 200#) Drlg. ROAD CONDo Rig Tool Pusher: FAX No: Permit No: 203-226 0000-0030=PJSM-Topic- Housekeeping & Floor drill. 0030-0500=Drlg. From 3550 to 3722. 0500-0600=Circ. Clean hole for wireline work. 0600-0630=PJSM Topic-Slick line Work. 0630-1000=Rig up pollard slick line & rih-retrieve PRT -poh-No resistivity reading-change tools -rih-set same poh-rig down. 1000-1700=Drlg. from 3722 to 3980. 1700-1800=Circ. Clean hole for wireline work. 1800-2000=Rig up pollard-retrieve tool-checks out OK-rih-set tool-poh& rig down. 2000-2400=Drlg. 77/8" hole wI 5.5" Csg. 15.50# K-55 Buttress.(ROP Varies from 10 to 100 FPH) (Note) Losing fluid to formation @ 1-2 BPH. Stringing in Fine Mica & fibertex fine.. . A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 4,190 AM OPERATION: Snowing TEMP: 30 Dink Heim 281-674-0940 Slick LEASE COND: Gus Guszregan 281-674-0942 Slick PELICAN HILL OIL & lis INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 Date: 1/2/05 Day: 44 AFE# AFE Amount Prevo Cost ~ Contractor: Pelican Hill Oil & Gas, Inc Rig # WR7 Projected Depth: 6700' Midnight Depth: 4,445 Progress: 379 Operation: Drlg. Bitt Size Type In Out ftldrilld ftlhr Cum/Hr. Jet Size in. Condition SIN 2 77/8 H606 1515 111 4-148 325734 Pump #1 Oilwell 214-P 5.5 x 2.25 in x 14in Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: 900 Strg. Wt 62 Ibs. IWOB: RPM: 80 BHA: SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 23.50 -~ Tripping DH Tools Reaming Slip & Cut Line Safety -- 0.50 Pump #2 Oilwell 214-HP 5.5 x 2.25 in x 14in 52 260 900 DC: 128 DCWt: IAnn. Vel: 2-10 Ibs I Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ftlmin Ibs. I DC OD: MUD 9.5 8.9 11 4/5 o 5.9 33k Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Density pH P.V. Gels Oil% Solids % CL - (ppm) Prevo Cost: 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Winterizing Rig BHA Swabbing Cementing Logging Casing W.O.C. REMARKS: Permit No: 204-226 API No: 0000-0030=PJSM on Slips & Falls. 0030-0600=Orlg. From 4066 to 4197. 0600-0630=PJSM & Fire drill in cellar. 0630-2400=Orlg. From 4197 to 4445. (Rap 3 to 5 fph when not in sands) Pump Pressure increased after drlg. Coal zone @ 4435. 700 to 900#. Up Wt 62k On Wt 61 k. Torque off bottom 1300. On Bottom 1500 to 1700. RPM 70-80. 42 6 14 1 91.5 0.5 80 barazan dextrid KCL Caustic Baracar 700 Casing Depth 9493 751 o 8742 Jet Vel: I 13 3/8 95/8 77 1515 133 Ftlsec DC Length: ft in. ADDITIVES (sks) 8 barofibre 14 mica 25 barascav 1 1 14 8 2 Testing NUlND BOP's Rig UplDown Test BOP'S Service BOP TOTAL: API NO. 50-283-20109-00 24.00 A.M. DEPTH: 4,490 AM OPERATION: Drilling. WEATHER: Raining TEMP: 35 ROAD CONDo Wet LEASE COND: Wet Drilling Supv: Dink Heim Rig Tool Pusher: Gus Guszregan PHONE NO: 281-674-0940 FAX No: 281-674-0942 PELICAN HILL OIL & &ts INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Date: -u Prevo Cost Pelican Hill Oil & Gas, Inc 4,613 Progress: Type In Out H606 1515 Rig # drlg. 2 77/8 168 ftIdrilld Operation: ftIhr Cum/Hr. 135 4-145 Pump #1 Pump #2 Oilwell 214-P Oílwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: 950 ROT Wt: 64k Ibs. WOB: PU Wt: 64k Ibs. SPR 1 SO Wt: 64k Ibs. SPR 2 RPM: 80 BHA Lt SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 23.00 ._---~ Tripping DH Tools Reaming Slip & Cut Line Safety ------ 1.00 Cement 'lLY OPERATIONS REPORT WR7 Jet Size in. I 113/05 Day: 45 AFE# Projected Depth: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. 1 DC OD: 52 260 950 IAnn. Vel: DC: 128 2-15 Ibs DC Wt: 25@300 Psi 25@300 Psi 50.53 TQ on btm (ftlbs): MUD 9.6 9.3 12 3/4 27001 TQ off btm (ftlbs): Density pH P.V. Gels Oil% Solids % Viscosity Water Loss Y.P. Filter Cake Water % 7 Sand % 31k CA++ (ppm) Prevo Cost: 1 CL - (ppm) 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud REMARKS: Permit No: 204-226 API No: 0000-0600=Drlg. 77/8" hole w/5.5" 15.50# K-55 Butt. Csg. From 4445 to 4492. 0600-0630=PJSM on Slips & Falls. Location very slick. 0630-1800=Drlg. From 4492 to 4561. 1800-1830=PJSM on Proper PPE. 1830-2400=Drlg. From 4561 to 4613. ( Slow drlg. In clay sections. No Accidents=No Spills. (Note) Function Tested BOP @ 0100. 41 5.4 12 1 90.5 0.5 80 Ftlmin 18001 KCL Dextrd Pac L Walnut M Barofbre Barascav Baracor -~- 6700' Condition 1 SIN 325734 8742 1375 o 7367 Jet Vel: I I Casing 13 3/8 95/8 Depth 77 1515 Ftlsec DC Length: 133 in. ft ADDITIVES (sks) 75 Barazan 12 Mica F 3 Caustic 12 8 2 1 4 4 1 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 24.00 A.M. DEPTH: 4,658 AM OPERATION: Drlg. WEATHER: Raining TEMP: 38 ROAD CONDo Slick LEASE COND: Slick Drilling Supv: Dink Heim Rig Tool Pusher: Gus Guszregan -- PHONE NO: 281-674-0940 FAX No: 281-674-0942 Pt~LJCANHILL OIL & (IS INC. Well: N. Beluga No. ~ AFE Amount Contractor: Midnigh~ Depth: Bit tI Size 2 7 7/8 Prevo Cost Pelican Hill Oil & Gas, Inc 4,787 Progress: Type In Out H606 1515 174 ftldrilld IlLY OPERATIONS REPORT Date: -~ Rig # Drlg. WR7 Operation: ftlhr Cum/Hr. 159 Pump #1 Pump #2 Oilwe11214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 45 225 850 DC: 128 DCWt: Pump Type LinerlStroke SPM Volume (géJl/min) Pressure Pump Pressure: 850 ROT Wt: 64k Ibs. WOB: PU Wt: 64k Ibs. SPR 1 SO Wt: 64k Ibs. SPR 2 RPM: 80 BHA Lt SURVEYS (Deg) Depth (Ft. KB) Inclination Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill 22.50 Tripping DH Tools Reaming Slip & Cut Line Safety 1.00 REMARKS: Permit No: 204-226 Jet Size in. I 4-145 Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. f DC OD: 22001 TQ off btm (ftlbs): Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: 1/4/05 Day: 46 Projected Depth: Ftlmin 18001 32 5.6 15 1 90 0.5 80 barazan pac I dextrid barofibre barascav baracor Condition I 7367 1073 o 6294 Jet Vel: I Casing 13 3/8 95/8 IAnn. Vel: 2-15 Ibs 25@320 Psi 25@320 Psi 50.32 TQ on btm (ftlbs): MUD 9.5 Viscosity 8.6 Water Loss 12 Y.P. 4/9 Filter Cake o Water % 7.5 Sand % 32000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA in. 133 Ftlsec DC Length: ADDITIVES (sks) I I 5 4 8 11 2 1 Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 Good 0000-0030=Function Test BOPE. 0030-0600=Drlg. 77/8" hole from 4613 to 4658. (Drlg. Slow thru clay sections. Aprox. 4 to 10 FPH.) 0600-0630=PJSM. 0630-1800=Drlg. From 4658 to 4745. 1800-1830=PJSM on SPCC. 1830-2400=Drlg. From 4745 to 4787. AM OPERATION: TEMP: 20 Dink Heim 281-674-0940 Drlg.,..__ ROAD CONDo Rig Tool Pusher: FAX No: ---- A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 4,825 Clear LEASE COND: John West 281-674-0942 AFE# 6700' SIN 325734 Depth 77 1515 ft 0.50 24.00 Good PELICAN HILL OIL & t.ts Il~C. Well: N. Beluga No.1 AFE Amount Prevo Cost Contractor: Pelican Hill Oil & Gas, Inc Midnight Depth: 4,902 Progress: 115 Bit # Size Type In Out ft/drilld 2 7 7/8 H606 1515 IlLY OPERATIONS REPORT Date: 1/5/05 II Rig # WR7 Drlg. Jet Size in. 6-165 I Cement Operation: ft/hr Cum/Hr. 182 Pump Type LinerlStroke Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in SPM Volume (gal/min) Pressure Pump Pressure: 700 ROT Wt: 68k Ibs. WOB: PU Wt: 68k Ibs. SPR 1 SO Wt: 68k Ibs. SPR 2 RPM: 80 BHA Lt SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill 22.00 -----,--- Tripping DH Tools Reaming Slip & Cut Line Safety Density pH P.V. Gels Oil% Solids % CL - (ppm) --- 1.00 REMARKS: Permit No: 204-226 0000-0600=Drlg. 7 7/8" hole from 4787 to 4825. 0600-0630=P JSM 0630-1200=Drlg. From 4825 to 4872. 1200-1300=Air dryer froze-thaw out same. 1300-1800=Drlg. From 4872 to 4902. 1800-1830=PJSM. 1830-2400=Drlg. From 4902 to 4935. Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: I TQ off btm (ftlbs): 42 5.6 13 1 92 0.25 80 Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: Day: 47 AFE# Projected Depth: 6700' Ftlmin KCL walnut f barazan pac I barofibre barascav dextrid I Condition I SIN 325734 45 225 700 IAnn. Vel: DC: 128 20k Ibs DC Wt: 40@300 Psi 40@300 Psi TQ on btm (ftlbs): MUD 9.5 Viscosity 9.3 Water Loss 12 Y.P. 4/8 Filter Cake o Water % 7 Sand % 29k CA++(ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA 6294 Casing 13 3/8 95/8 Depth 77 1515 o Jet Vel: 133 Ftlsec in. I DC Length: ft ADDITIVES (sks) 56 40 2 2 6 2 2 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 23.00 A.M. DEPTH: 4,960 AM OPERATION: Drlg. WEATHER: Clear TEMP: 5 ROAD CONDo Good LEASE COND: Good Drilling Supv: Dink Heim Rig Tool Pusher: Gus Guszregan~ PHONE NO: 281-674-0940 FAX No: 281-674-0942 PJiLICAN HILL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Prevo Cost Contractor: Pelican Hill Oil & Gas, Inc Midnight Depth: 5,085 Progress: 150 Bit # Size Type In Out ftIdrilld 2 77/8 H606 1515 Operation: ftIhr Cum/Hr. 205 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: 65k PU wt: 65k SO wt: 65k RPM: Pump #1 Pump #2 Oilwe11214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 45 225 700 DC: 128 DCwt: IAnn. Vel: 700 WOB: SPR 1 Ibs. Ibs. Ibs. 15-20 Ibs 40@300 Psi 40@300 Psi TQ on bbn (ftlbs): MUD 9.6 8..0 13 3/8 9 7.5 29k SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination Density pH P.V. Gels Oil% Solids % CL - (ppm) Prevo Cost: RIG TIME (24 hr tour report) Drill 23.00 ~- Tripping DH Tools Reaming Slip & Cut Line Safety 24 hrs. in this day Surveying Circulating Clean to Bbn Cond.Brine Rig Repair BHA -- -~ 1.00 REMARKS: Permit No: 204-226 0000-0600=Drlg. From 4935 to 4959. 0600-0630=PJSM 0630-1800=Drlg. From 4959 to 5050. 1800-1830=PJSM 1830-2400=Drlg. From 5050 to 5085. API No: No Accidents No Spills 1 Spill Drill A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: AM OPERATION: TEMP: Dink Heim 281-674-0940 ROAD CONDo Rig Tool Pusher: FAX No: IlLY OPERATIONS REPORT Date: 1/6/05 II Rig # WR7 Drlg. Jet Size in. 4-145 I Cement I TQ off btm (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Swabbing Cementing Logging Casing W.O.C. Condo Mud 42 5.7 12 1 91.5 0.25 120 Day: 48 AFE# Projected Depth: Ftlmin KCL pac I dextrid x-cide 207 brascav KOH 6700' Condition I SIN 325734 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 5332 1255 8600 12677 Jet Vel: I Casing 13 3/8 95/8 Depth 77 1515 133 Ftlsec DC Length: in. ft ADDITIVES (sks) 56 6 9 2 2 2 Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 24.00 LEASE COND: Gus Guszregan 281-674-0942 1'.EL1CAN HILL OIL & ~SINC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 77/8 37 ftIdrilld Date: II Operation: ftIhr Cum/Hr. 214 Rig # WOC 6-165 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: 700 ROT Wt: 71 k Ibs. WOB: PU Wt: 71 k Ibs. SPR 1 SO Wt: 70k Ibs. SPR 2 RPM: 80 BHA Lt SURVEYS (Deg) Depth (Ft. KB) Inclination [Ann. Vel: 15 Ibs 40@300 Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill 6.50 Tripping DH Tools Reaming Slip & Cut Line Safety 1 .00 Psi Cement IlLY OPERATIONS REPORT 1/7/05 WR7 Jet Size in. I 50 250 700 DC: 128 DCwt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Ftlmin I TQ off btm (ftlbs): 24 hrs. in this day Surveying Circulating 8.00 Clean to Btm Cond.Brine Rig Repair 1.00 BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud TQ on btm (ftlbs): MUD 9.6 Viscosity 8.6 Water Loss 13 Y.P. 3/9/0 Filter Cake o Water % 7.5 Sand % 29k CA++(ppm) Prevo Cost: I 42 6.2 14 1 91.5 0.25 140 citric acid Day: 49 Projected Depth: Condition I I 12677 1675 o 11002 Jet Vel: I Casing 13 3/8 95/8 AFE# 6700' SIN 325734 Depth 77 1515 133 ft 2.00 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000-0300=Drlg. From 5085 to 5100. 0300-0400=Repair pumps. 0400-0600=Drlg. From 5100 to 5110. 0600-0630=PJSM. 0630-0800=Drlg. From 5110 to 5122. 0800-0900=Circ. Hole clean. 0900-1030=Rig up wire line unit & retrieve PRT-rig down wireline. 1030-1800=Circ. while hauling excess mud-make room for cement displacement Replace BJ air compressor. 1800-2200=Safety meeting wI BJ crew & rig crew-Test lines to 3500#-Pump 30 bbls. Preflush & 221 BBLs. Cement as per program. Bump pug w/500# over @2130-Bleed back 4 bbls. Float not holding. Pressure to 1800& hold same. 4.00 --- 1.50 in. Ftlsec DC Length: A.M. DEPTH: 5,122 AM OPERATION: woe WEATHER: clear TEMP: 0 ROAD CONDo Good LEASE COND: Good Drilling Supv: Dink Heim Rig Tool Pusher: Jon West PHONE NO: 281-674-0940 FAX No: 281-674-0942 ADDITIVES (sks) 3 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig PELICAN HILL OIL & .S INt.:. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 2 77/8 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Ibs. Ibs. Ibs. o ftldrilld 3607 Nipple up bope. ftlhr Cum/Hr. 16 214 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in WOB: SPR1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety ~- -- IAnn. Vel: Ibs Psi Psi DC: DCWt: IlLY OPERATIONS REPORT Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: TQ on btm (ftlbs): MUD 9.6 8 13 3/4 o 7.6 28000 Density pH P.V. Gels Oil% Solids % CL - (ppm) 24 hrs. in this day --.---- Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA 1.00 -~ Prev. Cost: Date: 01/08/05 II Rig # WR7 Jet Size in. 6-165 I Cement I TQ off btm (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Swabbing Cementing Logging Casing W.O.C. Condo Mud 42 6.2 12 1 91.5 o 140 Day: 50 Projected Depth: UK Condition I , AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 17.00 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000-0600=WOC-Break bop bolts-rig up slings to pick up bope. 0600-0630=PJSM 0630-1800=Bleed off presure-pick up bope & cut 5.5" csg. Change spools-nipple up bope. 1800-1830=P JSM 1800-2400=Nipple up & cleaning pits prepare for brine. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 Cloudy AM OPERATION: TEMP: 20 Dink Heim 281-674-0940 Cleaning Pits ROAD CONDo Rig Tool Pusher: FAX No: Ftlmin 11002 1509 o 9493 Jet Vel: in. I Casing 13 3/8 95/8 51/2 Ftlsec DC Length: ADDITIVES (sks) Testing NU/ND BOP's Rig Up/Down --- Test BOP'S 6.00 Service Rig Good LEASE COND: Jon West 281-674-0942 Good PELICAJ~HILL UIL & ~S INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 2 77/8 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOwt: RPM: Ibs. Ibs. Ibs. Date: 01/09/05 Day: 50 ------" Rig # WR7 Projected Depth: o ftIdrilld 3607 Nipple up bope. ftIhr Cum/Hr. 16 214 Jet Size in. I UK Condition I 6-165 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in WOB: SPR 1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety -- Psi Psi TQ on btm (ftlbs): MUD 9.6 Viscosity 8 Water Loss 13 Y.P. 3/4 Filter Cake o Water % 7.6 Sand % 28000 CA++ (ppm) Prevo Cost: I IAnn. Vel: Ibs Density pH P.V. Gels Oil% Solids % CL - (ppm) Cement Casing 13 3/8 95/8 51/2 DC: DCwt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Ftlsec DC Length: 9493 3 o 9490 Jet Vel: in. I Ftlmin I TQ off btm (ftlbs): ADDITIVES (sks) 42 6.2 12 1 91.5 o 140 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 17.00 TOTAL: 24.00 REMARKS: Pennit No: 204-226 API No: API NO. 50-283-20109-00 0000-0600=Continue cleaning pits & change rams to 2 7/8". 0600-0630=PJSM 0630-1530=Cleaning koomey unit-flush & clean suction & discharge lines in pits-Strap 27/8" tbg. 1530-2400=PJSM prior to logging. Rig up wireline unit & logging tools & run MMS-MPD-MDN-& MCG. 1 st run sonic failed-run sonic over. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 1.00 Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig ----~ 6.00 Rigging do~n Top drive ROAD CONDo Rig Tool Pusher: FAX No: 5,122 Cloudy AM OPERATION: TEMP: 20 Dink Heim 281-674-0940 LEASE COND: Jon West 281-674-0942 Good Good P.I£LJCAN HILL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit" Size Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 2 77/8 o ftIdrilld 3607 IlLY OPERATIONS REPORT Date: 01/10/05 II Rig # WR7 Jet Size in. 6-16s I Cement Day: 51 Projected Depth: Nipple up bope. ftIhr Cum/Hr. 16 214 Condition UK I I Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUwt: SOwt: RPM: Ibs. Ibs. Ibs. WOB: SPR1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety TQ on bbn (ftlbs): MUD 9.6 Viscosity 8 Water Loss 13 Y.P. 3/4 Filter Cake o Water % 7.6 Sand % 28000 CA++(ppm) Prevo Cost: I IAnn. Vel: Ibs Psi Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) DC: DCwt: 24 hrs. in this day Surveying Circulating Clean to Bbn Cond.Brine Rig Repair BHA .-- 1.00 REMARKS: Permit No: 204-226 Casing 13 3/8 95/8 51/2 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 9493 3 o 9490 Jet Vel: in. I Ftlmin Ftlsec DC Length: I TQ off btm (ftlbs): ADDITIVES (sks) 42 6.2 12 1 91.5 o 140 Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NU/ND BOP's Rig UplDown Test BOP'S -- 6.00 Service Rig API No: TOTAL: API NO. 50-283-20109-00 0000-0230= Continue Logging 0230-0600= Rig down Logging equipment 0600-0630= Safety Meeting 0630-1700= Rig Down Top Drive- Clean Pits 1700-1800= RU to run Gyro 1800-2000= Rih wI gyro- log out- rig down 2000-2400= Cant tl clean pits- Rack 2 7/8 tbg drift and strap- ru floor to run 2 7/8 A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Cloudy TEMP: 20 Jerry Sandidge 281-674-0940 RU t/ test BOPE ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: Jon West 281-674-0942 AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 17.00 24.00 Good PKL1CAf~ HILL OIL & ~S INC. IlLY OPERATIONS REPORT Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 77/8 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 Ibs. Ibs. Ibs. o ftIdrilld 3607 Nipple up bope. ftIhr Cum/Hr. 16 214 Date: 01/11/05 II Rig # WR7 Jet Size in. 6-165 I Cement Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety ~-- TQ on btm (ftlbs): MUD 9.6 Viscosity 8 Water Loss 13 Y.P. 3/4 Filter Cake o Water % 76 Sand % 28000 CA++ (ppm) Prevo Cost: I IAnn. Vel: Density pH P.V. Gels Oil% Solids % CL - (ppm) Ibs Psi Psi DC: DCwt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: I TQ off btm (ftlbs): 42 6.2 12 1 91.5 o 140 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair 5.00 BHA 0.50 Swabbing Cementing Logging Casing W.O.C. Condo Mud Ftlmin Day: 51 11.00 1.00 Projected Depth: UK Condition I I Casing 13 3/8 95/8 51/2 8255 888 o 7367 Jet Vel: I Ftlsec DC Length: in. ADDITIVES (sks) Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 REMARKS: Permit No: 204-226 API No: 0000-0600 Continue tI strap & Drift 2 7/8 0600-0630 safety meeting 0630-13:00 Set Test plug- Test BOPE 1300-1800 thaw out kill line- Repair derrick board- rig up tong unit- 1800-1900 Measure BHA 1900-1930 Safety meeting 1930-2400 PU 2 7/8 tbg off rack RIH A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Cloudy TEMP: -20 Jerry Sandidge 281-674-0940 ROAD CONDo Rig Tool Pusher: FAX No: Good -~- LEASE COND: Jon West 281-674-0942 AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 6.50 24.00 Good PELICAN HILL OIL & {IS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 3 Pump Type Liner/Stroke SPM Volume (gallmin) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: 77/8 43/4 Ibs. Ibs. Ibs. WOB: SPR1 SPR2 SHALt SURVEYS (Deg) Depth (Ft. KB) Inclination REMARKS: IAnn. Vel: Density pH P.V. Gels Oil% Solids % CL - (ppm) IlLY OPERATIONS REPORT Date: 01/12/05 Projected Depth: 6700' ~ 204-226 Rig # WR7 RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Prevo Cost Pelican Hill Oil & Gas, Inc 5.122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in o Circ & Filter Brine ftIhr Cum/Hr. Jet Size in. 6-165 I open Cement ftIdrilld 3607 16 214 DC: DCWt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Ftlmin Ibs Psi Psi TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 102000 CA++ (ppm) Prevo Cost: I I TQ off btm (ftlbs): 28 6.2 o o 91.5 o o __~ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA --- 11.50 -- ~- 1.00 ~- Permit No: Swabbing Cementing Logging Casing W.O.C. Condo Mud 2.00 -- 7.00 1.50 --.- Day: 53 UK Condition I I 7367 664 o 6703 Jet Vel: I Casing 13 3/8 95/8 51/2 in. Ftlsec DC Length: ADDITIVES (sks) Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 API No: 0000-0600 PU 2 7/8 tbg fl walk and RIH 0600-0630 Safety Meeting 0630-1200 Continue to PU 2 7/8 tbg- Tag @ 5084 1200-1300 RU to Circ- 1300-1430 Make repairs in Pits- Start R&K vac truck 1430-1630 Displace mud w/9.5 brine 1630-2400 circ & filter brine-Safety Meeting- Start with 25 micron filters A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Cloudy TEMP: -20 Jerry Sandidge 281-674-0940 Filter Brine ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: Jon West 281-674-0942 AFE# SIN 325734 Depth 77 1515 5122 ft 1.00 24.00 Good ._~- PELICAN HILL OIL & lis INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 77/8 3 4 3/4 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: WOB: SPR 1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination Ibs. Ibs. Ibs. Ibs Density pH P.V. Gels Oil% Solids % CL - (ppm) IlLY OPERATIONS REPORT Date: 01/13/05 Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: ~ Rig # WR7 o Circ & Filter Brine ftIhr Cum/Hr. ftIdrilld 3607 16 Psi Psi TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 102000 CA++ (ppm) Prevo Cost: I DC: DCWt: RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety ~~ hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA -"""- 1.00 --- 23.00 214 Jet Size in. 6-165 I open Cement Day: 54 AFE# Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Ftlmin I TQ off btm (ftlbs): 28 6.2 o o 91.5 o o Swabbing Cementing Logging Casing W.O.C. Condo Mud -- -- Projected Depth: 6700' UK Condition I SIN 325734 6703 820 Casing 13 3/8 95/8 51/2 Depth 77 1515 5122 5883 Jet Vel: I Ftlsec DC Length: ft in. ADDITIVES (sks) Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: 24.00 REMARKS: Pennit No: 204-226 API No: API NO. 50-283-20109-00 0000- 2400 Safety Meeting- Filter Brine-Thaw test tank- RU Berm for test tank- MU flowline - Repair Derrick board. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Light Snow TEMP: 0 Jerry _Sandidge 281-674-0940 Filter Brine-Ru tlTest ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: Jon West 281-674-0942 Good PELICAN HILL OIl.. & as INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit ## Size 2 3 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUwt: SOWt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: 77/8 43/4 Ibs. Ibs. Ibs. WOB: SPR1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 102000 CA++ (ppm) Prevo Cost: I ftIdrilld 3607 Ibs Psi Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) IlLY OPERATIONS REPORT Date: 01/14/05 ] Day: 55 AFE# Rig # WR7 Projected Depth: 6700' o Circ & Filter Brine ftIhr Cum/Hr. SIN 325734 Jet Size in. 6-165 I open Cement Condition I 16 214 UK Casing 13 3/8 95/8 51/2 Depth 77 1515 5122 DC: DCwt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: ft 4495 1040 4300 7755 Jet Vel: I Ftlmin Ftlsec DC Length: in. I TQ off btm (ftlbs): ADDITIVES (sks) 28 6.2 o o 91.5 o o RIG TIME (24 hr tour report) 24 hrs. in this day Drill Surveying Swabbing Testing 0.50 Tripping Circulating Cementing NUlND BOP's -- 6.50 DH Tools Clean to Btm Logging Rig UplDown Reaming Condo Brine 10.00 Casing Test BOP'S --- -- Slip & Cut Line Rig Repair 5.00 W.O.C. Service Rig 1.00 --- Safety 1.00 BHA Condo Mud -- TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000- 2400 Safety Meeting- Filter Brine-Thaw test tank- Test Csg 3000 psi for 1/2 hr- Install line & valve to trip tank- Service Rig- Grease Crown- Vac out Test tank- Set tank - Build berm- Work on Valves in Pits. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: Repair Valves in Pits- Ru t/ perf & Test ROAD CONDo Good Rig Tool Pusher: FAX No: 5,122 AM OPERATION: ~--~~ Light Snow TEMP: 20 Jerry Sandidge 281-674-0940 LEASE COND: Jon West 281-674-0942 Good PKLICANHILL OIL & ~S INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size WOB: SPR 1 SPR2 SHALt SURVEYS (Deg) Depth (Ft. KB) Inclination 2 3 77/8 43/4 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: ftIdrilld 3607 Ibs. Ibs. Ibs. Ibs Psi Psi Jet Size in. 6-16s I open Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Date: ~ Rig # o ftIhr Cum/Hr. 214 IlLY OPERATIONS REPORT 01/15/05 Day: 56 AFE# Density pH P.V. Gels Oil% Solids % CL - (ppm) 16 DC: DCwt: WR7 Projected Depth: 6700' UK Condition SIN I 325734 Casing Depth 13 3/8 77 95/8 1515 51/2 5122 7755 652 Ftlmin 7103 Jet Vel: I ft Ftlsec DC Length: in. I TQ off btm (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Prevo Cost: ADDITIVES (sks) 28 6.2 o o 91.5 o o RIG TIME (24 hr tour report) 24 hrs. in this day Drill Surveying Swabbing Testing 0.50 -- -- Tripping Circulating Cementing NUlND BOP's DH Tools Clean to Btm Logging Rig Up/Down 6.50 Reaming Cond.Brine 10.00 Casing Test BOP'S ~- 1.00 Slip & Cut Line Rig Repair 5.00 W.O.C. Service Rig -- Safety 1.00 BHA Condo Mud TQ on btm (ftlbs): MUD 9.5 o o o o 3.2 102000 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000- 2400 Safety Meeting- Work on suction valves in pits- Thaw and haul off water from Storage tank- RU Flowline U Rig floor. Only had one plane because of weather. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear TEMP: 20 Jerry Sandidge 281-674-0940 Prep to Test ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: Jon West 281-674-0942 Good PELICAN HILL OiL & <Is INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 3 77/8 43/4 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUwt: SOwt: RPM: WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination Ibs. Ibs. Ibs. ftIdrilld 3607 Ibs Psi Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) Date: II Rig # o ftIhr 16 Cum/Hr. 214 IlLY OPERATIONS REPORT 01/16/05 WR7 Jet Size in. 6-165 I open Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: DC: DCwt: Ftlmin I TQ off btm (ftlbs): Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I Prevo Cost: RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: ---- 1.00 TQ on btm (ftlbs): MUD 9.5 o o o o 3.2 102000 28 6.2 o o 91.5 o o -- Day: 57 AFE# Projected Depth: 6700' UK Condition SIN I 325734 Casing Depth 13 3/8 77 95/8 1515 5 1/2 5122 7103 809 7103 Jet Vel: I Ftlsec DC Length: ft in. ADDITIVES (sks) Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig 9.00 14.00 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000- 2400 Safety Meeting- Continue w/rig repairs and maintenance- heat trace flowline & insulate- POOH- LD 13 jts- stand back rest- prep location for testing & rig move One plane with personell- A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear/windy TEMP: 16 Jerry Sandidge 281-674-0940 Prep to Test ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: Jon West 281-674-0942 Good PELICAN HILL OIL & JtS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bitt Size 2 3 Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: o ftIdrilld 3607 ftIhr 77/8 43/4 16 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: DC: Ibs DC Wt: WOB: SPR1 SPR2 BHALt SURVEYS (Deg) Depth (Ft. KB) Inclination Ibs. Ibs. Ibs. Psi Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety --~ 24 hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair 9.00 BHA 8.50 1.00 --- REMARKS: Permit No: 204-226 0000- 0900 Safety Meeting-Repair trucks- 0900-1200 Test Bop's - 250/3000psi 1200-1430 RD & Blow down choke manifold 1430-1500 Safety Meeting - Perf Guns 1500-1800 Pick up perf assy 1800-2400 Tih w/ perf. Assy- fill 2833' wI 9.5 brine A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear TEMP: 0 Jerry Sandidge 281-674-0940 Date: II Rig # Cum/Hr. 214 IlLY OPERATIONS REPORT 01/17/05 WR7 Jet Size in. 6-168 I open Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Ftlmin I TQ off btm (ftlbs): Swabbing Cementing Logging Casing W.O.C. Condo Mud API No: RD Pollard/ print log ROAD CONDo Rig Tool Pusher: FAX No: 28 6.2 o o 91.5 o o Daily Cost: -- -- Day: 58 TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 102000 CA++ (ppm) Prevo Cost: I $81,178 Projected Depth: UK 2 Condition I 6294 962 2 in Casing 13 3/8 95/8 5 1/2 5332 Jet Vel: I Ftlsec DC Length: in. ADDITIVES (sks) $685 Cumm. Cost: Testing NU/ND BOP's Rig UplDown Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 Good LEASE COND: S. Guszreagan 281-674-0942 AFE# 6700' SIN 325734 Depth 77 1515 5122 ft $81,863 3.00 2.50 24.00 Good P.ELICANHILL OIL & JtS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 77/8 3 4 3/4 WOB: SPR1 SPR2 SHALl SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO Wt: 27k RPM: REMARKS: TQ on bbn (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 102000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell214-P Oilwe1l214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in o ftIdrilld 3607 ftIhr IlLY OPERATIONS REPORT Date: 01/18/05 ~ Day: 26 130 200 IAnn. Vel: DC: DCWt: 59 AFE# Ibs. Ibs. Ibs. Ibs Psi Psi Rig # WR7 Projected Depth: 6700' Density pH P.V. Gels Oil% Solids % CL - (ppm) 6.50 1.00 -- Penn it No: 204-226 16 Cum/Hr. Jet Size in. 214 6-168 I UK open 2 Cement Depth 77 1515 5122 Condition I SIN 325734 2 in Casing 13 3/8 95/8 5 1/2 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 5332 829 4503 Jet Vel: I Ftlmin Ftlsec DC Length: in. ft I TQ off btm (ftlbs): ADDITIVES (sks) 28 6.2 o o 91.5 o o Swabbing Cementing Logging Casing W.O.C. Condo Mud Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig 2.50 3.00 2.50 5.50 3.00 --.- API No: TOTAL: API NO. 50-283-20109-00 24.00 0000- 0200 Finish RIH wi TBG 0200-0300 RU Pollard slick line & Scientific Drlg. 0300-0500 Run Corr.log- 4200 t/4600' 0500-0600 RD wireline 0600-0630 Safety Meeting 0630-1200 Print & read logs- Space out- Set packer @ 4581'. 1200-1530 NU Test tree- Test 3000psi- 1530-1830 Fire guns- Perforate 4692-4708, 4774-478 6SPF. Monitor well. No build up 1830-1930 Safety meeting(Swabbing)- RU tl Swab 1930-2400 Swab well. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear TEMP: 0 Jerry Sandidge 281-674-0940 Repair Sandline ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: S. Guszreagan 281-674-0942 Good Good IJELICAN HILL OIL & ~S INC. Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: Well: _N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 3 77/8 43/4 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO Wt: 27k RPM: Ibs. Ibs. Ibs. WOB: SPR1 SPR2 SHALl SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety TQ on btm (ftlbs): MUD 9,5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 102000 CA++ (ppm) Prevo Cost: I Ibs Psi Psi Density pH P.V. Gels Oil% Solids % CL - (ppm) o ftIdrilld 3607 ftIhr DC: DCWt: ____2~ hrs. in this day Surveying Circulating 2.00 Clean to Btm Cond.Brine Rig Repair 6.50 BHA 11.00 -,- -~ 1.00 REMARKS: Permit No: 204-226 IlLY OPERATIONS REPORT Date: 01/19/05 ~ Day: 60 AFE# Rig # WR7 Projected Depth: 6700' 16 Cum/Hr. 214 UK 2 2 in Casing 13 3/8 95/8 51/2 Jet Size in. 6-165 I open Cement Condition I SIN 325734 Depth 77 1515 5122 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 4503 1176 4300 7627 Jet Vel: I Ftlmin Ftlsec DC Length: in. ft I TQ off btm (ftlbs): ADDITIVES (sks) 28 6.2 o o 91.5 o o Swabbing 3.00 Testing Cementing NUlND BOP's Logging Rig Up/Down 0.50 Casing Test BOP'S W.O.C. Service Rig Condo Mud --- TOTAL: 24.00 API No: API NO. 50-283-20109-00 0000-0300 Continue wI swabbing. Rec 21 bbls. Clorides of fluid decrease from 108000 to 23000ppm. Fluid level @ 1400' +1- 0300-0400 RD Flow back equipment. 0400-0600 Strip off sandline & cut 0600-0630 Safety Meeting 0630-1100 Repair choke- Instal new rope socket on sandline 1100-1300 Release packer- Circ tbg volume 1300-1800 TOOH. 1800-1830 Safety Meeting. 1830-2000 LD Perf Assy. 2000-2400 PU 5 1/2 Bridge plug- TIH - Set @ 4660. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear TEMP: 0 Jerry Sandidge 281-674-0940 Repair Sandline ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: Good S. Guszreagan 281-674-0942 --~--"..- PELICAN HILL OIL & <.Is INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 3 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO wt: 27k RPM: 77/8 43/4 Ibs. Ibs. Ibs. WOB: SPR 1 SPR2 BHALf SURVEYS (Deg) Depth (Fl KB) Inclination Density pH P.V. Gels Oil% Solids % CL - (ppm) Date: II Rig # o ftIdrilld 3607 ftIhr Cum/Hr. 214 16 IlLY OPERATIONS REPORT 01/20/05 WR7 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: Jet Size in. 6-165 I open Cement DC: DCwt: Ibs Psi Psi TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 110000 CA++ (ppm) Prevo Cost: I Ftlmin I TQ off btm (ftlbs): 24 hrs. in this day ----~ Surveying Circulating 4.00 Clean to Btm Cond.Brine Rig Repair BHA 28 6.2 o o 91.5 o o Day: 61 AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 7.00 4.00 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000-0100 Clear rig floor- RU tl test csg 0100-0300 Attempt U test csg- no test 0300-0600 Circ 0600-1200 Attempt U test no test- PU turn tbg 25 turns sting in and PU 30'- Attempt U test- no test 1200-1300 circ 1300-1500 RD circ equip, Blow down mud line & choke line 1500-1530- Safety Meeting 1530-1800- TOH 1800-1830 Safety Meeting 1830-2100 Finish TOH - Redress Setting tool & PU EZSV 2100-2400 TIH RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: 8.00 -- -- 1.00 Swabbing Cementing Logging Casing W.O.C. Condo Mud -..-.-- 5,122 AM OPERATION: Clear TEMP: 28 Jerry Sandidge 281-674-0940 Circ & Filter Brine ROAD CONDo Rig Tool Pusher: FAX No: Good Projected Depth: UK 2 Condition I 7627 657 2 in Casing 13 3/8 95/8 5 1/2 6970 Jet Vel: I Ftlsec DC Length: in. ADDITIVES (sks) Testing NUIND BOP's Rig Up/Down Test BOP'S Service Rig LEASE COND: S. Guszreagan 281-674-0942 Good p.ELICAr~ HILL UIL & JtS INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 7 7/8 3 4 3/4 Date: II Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO Wt: 27k RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwe11214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: Cum/Hr. 214 Rig # o ftldrilld ftlhr IlLY OPERATIONS REPORT 01/21/05 Day: 62 AFE# WR7 Projected Depth: 6700' Jet Size in. 6-165 I open Cement Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 3607 16 Ibs DC: DCwt: Ibs. Ibs. Ibs. WOB: SPR 1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination Psi Psi TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 110000 CA++ (ppm) Prevo Cost: I UK 2 Condition I SIN 325734 2 in Casing 13 3/8 95/8 51/2 Depth 77 1515 5122 6970 949 Ftlmin 6021 Jet Vel: Ftlsec in. I DC Length: ft I TQ off btm (ftlbs): Density pH P.V. Gels Oil% Solids % CL - (ppm) RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Condo Mud 12.50 3.50 ~--- 4.00 1.00 REMARKS: Permit No: 204-226 API No: 0000-0130 TIH wI bridge plug - Set @ 4653 0130-0200 Safety Meeting 0200-0300 Ru & Test csg 2500 psi f/1/2 hr. 0300-0600 Blow down Choke- RU & Circ & Filter Brine 0600-0630 Safety Meeting 0630-0800 Circ & Filter 0800-1200 RD Circ eq. - blow down- TOH 1200-1800 PU Perf assy 1800-2300 TIH wI tbg- fill 2600' w/15 bbls 9.5ppg filtered brine 2300-2400- RU Pollard- RIH w/GR correlation log A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear TEMP: 28 Jerry Sandidge 281-674-0940 Circ & Filter Brine ROAD CONDo Rig Tool Pusher: FAX No: ADDITIVES (sks) 28 6.2 o o 91.5 o o Testing NU/ND BOP's -- 1.00 Rig Up/Down Test BOP'S Service Rig 1.50 0.50 -- TOTAL: API NO. 50-283-20109-00 24.00 Good LEASE COND: S. Guszreagan 281-674-0942 Good P.ELICANHILL OIL & Gts INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 77/8 3 4 3/4 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO Wt: 27k RPM: Ibs. Ibs. Ibs. Density pH P.V. Gels Oil% Solids % CL - (ppm) o ftIdrilld 3607 Ibs Psi Psi IlLY OPERATIONS REPORT Date: 01/22/05 Day: 63 WOB: SPR 1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwe11214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 110000 CA++ (ppm) Prevo Cost: I II Rig # WR7 Projected Depth: ftIhr Cum/Hr. 214 Jet Size in. 6-16s I open Cement Condition I 16 UK 2 2 in Casing 13 3/8 95/8 51/2 DC: DCWt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: in. 6021 413 5608 Jet Vel: I Ftlmin Ftlsec DC Length: I TQ off btm (ftlbs): ADDITIVES (sks) 28 6.2 o o 91.5 o o RIG TIME (24 hr tour report) 24 hrs. in this day Drill Surveying Swabbing 6.00 Testing Tripping 5.50 Circulating 1.50 Cementing NUlND BOP's DH Tools 2.00 Clean to Btm Logging 3.00 Rig UplDown Reaming Condo Brine Casing Test BOP'S -- Slip & Cut Line Rig Repair W.O.C. Service Rig -- Safety 1.00 BHA Perforating 1.00 --- AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 2.50 1.00 0.50 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000-0300 Run correlation log- Check log- space out- Top shot @ 4130-4138 Btm shot @4421-4429 4spf 0300-0400 Set packer @ 4015 w/15k dwn wt. 0400-0500 RU recorder- safety meeting- drop bar- fire guns- monitor tbg - @ 15 min 5 psi @ 30 min 8 psi 0500-0630 RU Swab assy- Safety Meeting 0630-1130 Swab- 9 runs- 17 bbls rec. Clorides @ 80k on run 8. Drop to 40k on run 9 - sand on swab cups. FL 1100-1500 1130-1400 Monitor well 1400-1700 ND Flow tree and flow line- Unseat paker- fill back side- CBU 1700-2200 TOH LD Perf assy 2200-2230 service rig 2230-2400 TIH wI mule shoe A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: Clear TEMP: 28 Jerry Sandidge 281-674-0940 Circ & Filter Brine ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: S. Guszreagan 281-674-0942 Good Good PkLICAN HILL OIL & <...ts INC. IlLY OPERATIONS REPORT Well: N. Beluga N~. 1 AFE Amount Contractor: Midnight Depth: Bit tJ Size 2 77/8 3 4 3/4 Date: 01/23/05 Day: 64 AFE# n Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: Rig # WR7 Projected Depth: 6700' o ftIdrilld 3607 ftIhr Cum/Hr. 214 Jet Size in. 6-16s I open Cement Condition I SIN 325734 16 UK 2 2 in Casing 13 3/8 95/8 5 1/2 Depth 77 1515 5122 Pump Type LinerlStroke SPM --Y0lume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO Wt: 27k RPM: Beginning Fuel in Storage Daily Fuel Usage Fuel [)elivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: 5608 553 5055 Jet Vel: I DC: DCWt: Ftlmin Ftlsec DC Length: Ibs. Ibs. Ibs. WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft KB) Inclination Ibs Psi Psi in. ft I TQ off btm (ftlbs): TQ on btm (ftlbs): MUD 9.5 o o o o 3.2 11 0000 ADDITIVES (sks) Density pH P.V. Gels Oil% Solids % CL - (ppm) Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) I 28 6.2 o o 91.5 o o Prevo Cost: 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA RIG TIME (24 hr tour report) Drill Tripping DH Tools Swabbing Cementing Logging Casing W.O.C. Perforating Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig 10.00 7.00 4.00 1.50 -- -- Reaming Slip & Cut Line Safety 0.50 1.00 ~- 24.00 TOTAL: API NO. 50-283-20109-00 204-226 Permit No: API No: REMARKS: 0000-0200 TIH wI mule shoe- Tag sand @ 4548' 0200-0600 Wash fl 4548 t/4653. 0600-0630 Safety Meeting 0630-1300 Circ- 1300-1430 RU BJ- PJSM- Mix and pump 4 bbls cmt @ 15.8 ppg + additives- Displace wI 9.5 ppg brine to balance 1430-1600 Pull 3 stands- reverse tbg clean @ 4467 1600-1900 toh wI tbg- PJSM- Lay dwn18 jts 1900- 2400 PU EZSV- RIH SLM A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: 5,122 AM OPERATION: ----- Clear TEMP: 30 Jerry Sandidge 281-674-0940 Circ & Filter Brine ROAD CONDo Rig Tool Pusher: FAX No: LEASE COND: S. Guszreagan 281-674-0942 Slick Good --"-.- .- P.ELICA~~ lULL OIL & l.-ts INC. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 7 7/8 3 4 3/4 _ Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PU Wt: 27k SO Wt: 27k RPM: Ibs. Ibs. Ibs. WOB: SPR1 SPR2 BHALt SURVEYS (Deg) Depth (Ft. KB) Inclination Ibs Psi Psi Density pH P.V. Gels Oil% Solids % CL· (ppm) Date: -u 'lLY OPERATIONS REPORT 01/24/05 Day: 65 Rig # Projected Depth: Jet Size in. 6-165 I open Cement o ftIdrilld 3607 ftIhr 16 Cum/Hr. 214 WR7 Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: UK 2 Condition I I AFE# 6700' SIN 325734 Depth 77 1515 5122 ft $88,129 1.50 1.00 2.50 1.00 TOTAL: 24.00 REMARKS: Permit No: 204-226 API No: API NO. 50-283-20109-00 0000-0100 Space out - Set EZSV @ 4070 0100-0230 Ru t/test- Troubleshoot test pump- RU BJ- Test Lines t/ 4500 & annulus t/2500 psi- good test 0230-0330 PJSM wI BJ- Estab, Injection rate 2 bpm/750- 3 bp/1450- Sting out close hydril- Mix & pump 11 bbls @ 15.8ppg+ additives-Displace cmt t/.5 bbl f/ EZSV- Sting in- Squeeze cmt(11 bbls) w/1422 psi @ 1 bpm. Shut down 870psL 0330-0600 Sting out rev. circ tbg vol. 0600-0700 Safety meeting- Blow down choke and kill lines 0700-1130 circ & filter brine 1130-1430 TOH w setting tool 1430-1700 Test BOPE t/250- 3000 Hydrill 250-1500 1700-1900 RD test equipment- blow down choke and killlines----1900-2330 PU Perf assy #3- TIH- fill w/11.5 bbls 9.5brine 2330-2400 Space out- RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 26 130 200 IAnn. Vel: TQ on boo (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 108000 CA++ (ppm) Prevo Cost: I $86,677 DC: DCWt: I TQ off btm (ftlbs): 24 hrs. in this day Surveying Circulating Clean to Btm Condo Brine 7.00 Rig Repair BHA 9.00 -- 1.00 ~--~ Swabbing Cementing Logging Casing W.O.C. Perforating 5,122 AM OPERATION: light snow TEMP: 30 Jerry Sandidge 281-674-0940 -"-- Run Correlation log ROAD CONDo Rig Tool Pusher: FAX No: Ftlmin Salt Citric acid 28 6.2 o o 98 o o Daily Cost: good 2 in Casing 13 3/8 95/8 5 1/2 5055 1100 4300 8255 Jet Vel: I Ftlsec DC Length: in. ADDITIVES (sks) 44 6 $1,452 Cumm. Cost: 1.00 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig LEASE COND: S. Guszreagan 281-674-0942 --_._~-----~.._._. Good l'KLICAN HILL UIL & t.ts INC'. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 77/8 3 4 3/4 Pump Type LinerlStroke SPM Volume (gal!min) Pressure Pump Pressure: ROT Wt: PU Wt: 20k SO Wt: 20k RPM: REMARKS: o ftldrilld 3607 ftlhr 16 IAnn. Vel: Ibs. Ibs. Ibs. -~ Ibs Psi Psi DC: DCWt: IlLY OPERATIONS REPORT Date: ~ 01/25105 Day: 66 Rig # Prevo Cost --- Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in Density pH P.V. Gels Oil% Solids % CL - (ppm) -- 8.00 -~ -- 1.00 ~~ Permit No: 204-226 Cum/Hr. 214 Jet Size in. 6-1~ open I Cement Projected Depth: 6700' WR7 Ftlmin 28 6.2 o o 98 o o Salt Citric acid WOB: SPR1 SPR2 BHALf SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 108000 CA++ (ppm) Prevo Cost: I 24 hrs. in this day --~ Surveying Circulating Clean to Btm Condo Brine Rig Repair BHA Beginning Fuel in Storage Daily Fuel.Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. l DC OD: I TQ off btm (ftlbs): Swabbing Cementing Logging Casing W.O.C. Peñorating API No: 15.00 -- UK 2 Condition 2- I in Casing 13 3/8 95/8 51/2 8255 627 o 7628 Jet Vel: I Ftlsec DC Length: in. ADDITIVES (sks) 44 6 Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 0000-0330=Wait on PWL unit. 0330-0600=Rig up wire line unit (PWL) & run Gamma Ray-Collar locator. 0600-0630=Safety meeting on crew change. 0630-0800=Rig down PWL & Check For RA Data. (No data on RA Contact) 0800-1100=Rig Up PWL & rerun CCL-rig down PWL. 11 00-1500=Fill Trip tank-POH to RA sub (SLM) No Correction. 1500-1800=Trip in hole wi tbg. water cushion fill to 32 stands-11.5 bbl. 1800-1830=PJSM. 1830-1930=Finish rih wI RA sub @ 3406. 1930-2400=Rig up PWL & run Gamma Ray-CCL.Rig down PWL. Read logs to verify Space Out. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: _~~, 122 ____ AM OPERATION: Clear TEMP: 30 Dink Heim 281-674-0940 Rigging down Swabbing Assembly. ROAD CONDo Good LEASE COND: -~-- _ Rig Tool Pusher: __~ Guszreagan FAX No: 281-674-0942 AFE# SIN 325734 Depth 77 1515 5122 ft 24.00 Good PELICAN HILL OIL & t.ts INC~. Well: N. Beluga No.1 AFE Amount Contractor: Midnight Depth: Bit # Size 2 3 77/8 43/4 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Oilwell 214-P 5.5 x 2.25 in x 14in 20k 20k Ibs. Ibs. Ibs. WOB: SPR1 SPR2 SHAll SURVEYS (Deg) Depth (Ft. KB) Inclination REMARKS: 9.00 -- 1.00 Penn it No: o ftIdrilld 3607 'lLY OPERATIONS REPORT ftIhr 16 Date: 01/26/05 II Rig # WR7 Cum/Hr. Jet Size in. 214 6-16s I open Cement Ibs Psi Psi Pump #2 Oilwell 214-HP 5.5 x 2.25 in x 14in Ftlmin Citric acid 4.00 2.50 -~ 2.00 Day: 67 Projected Depth: UK 2 Condition I AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 1.50 24.00 0000-0100=Rig up Test tree & hold PJSM on Perforating. 0100-0200=Drop Bar-fire guns & monitor pressure. 0200-0600=PJSM-Rig up lubricator & Swab well. Recovered 16 bbls. Chlorides decrease from 108000ppm to 25000ppm by 9th run. 0600-0630=PJSM. 0630-0730=Rig down test tree & equipment. 0730-1100=Open circ. valve-fill annulus & reverse eirc. 36 bbls.-eirc. long way 117 bbls.-Monitor well & blow down lines. 1100-1330=POH w/2 7/8" tbg.-Iay down Testin/Perf Assembly #3. 1330-1800=Make up EZ drill & rih wI tbg. to 3410. 1800-1830=PJSM. 1830-1900=Set EZ drill @ 3410 & test ann to 2000# for 10 mins. OK. 1900-1930=Unsting from ez drill & eirc. tbg. volume 1930-2030=Rig up BJ-PJSM-Test lines to 5k-establish injection rate @ 1bpm 1240#-2 bpm 2300# 3 bpm 3000# 1930-2100=Rig up BJ-PJSM-Test lines to 5k-establish inj. rate @ 1 bpm 1240#-2 bpm-2300#-3 bpm 3040# -Squeeze away 4 bbls G @ 2 bpm @ 2250# till cement hit perfs Final squeeze presure 3000# @ 1/2 bpm. Bled off 800# in 2 mins. 2100-2200= Sting out & reverse eirc. pipe clean. 2200-2400=POH & lay down tbg.. RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety TQ on btm (ftlbs): MUD 9.5 Viscosity o Water Loss o Y.P. o Filter Cake o Water % 3.2 Sand % 108000 CA++ (ppm) Prevo Cost: I IAnn. Vel: Density pH P.V. Gels Oil% Solids % CL - (ppm) DC: DCWt: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: I TQ off btm (ftlbs): 28 6.2 o o 98 o o 24 hrs. in this day Surveying Circulating 4.00 Clean to Btm Condo Brine Rig Repair BHA 2 in Casing 13 3/8 95/8 5 1/2 7628 792 o 6836 Jet Vel: I Ftlsec DC Length: in. ADDITIVES (sks) Testing NUlND BOP's Rig Up/Down Test BOP'S Service Rig TOTAL: API NO. 50-283-20109-00 A.M. DEPTH: 5,122 AM OPERATION: Rig to _<::ement. WEATHER: Clear TEMP: 20 ROAD CONDo Good LEASE COND: Good Drilling Supv: Dink Heim Rig Tool Pusher: S. Guszreagan PHONE NO: 281-674-0940 FAX No: 281-674-0942 204-226 Swabbing Cementing Logging Casing W.O.C. Perforating API No: PELICAJ~HILL OIL & t.ts INC. I,LY OPERATIONS REPORT Well: N. Beluga NO.1 AFE Amount Contractor: Midnight Depth: Bit # Size o Date: 01/27105 ~ Rig # WR7 Cum/Hr. Jet Size in. 214 6-168 open Cement UK 2 Day: 2 3 Prevo Cost --- Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell 214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in 6836 815 o 6021 Jet Vel: I Projected Depth: ftldrilld 3607 ftlhr 16 77/8 43/4 Pump Type LinerlStroke SPM Volume (gal/min) Pressure Pump Pressure: ROT Wt: PUWt: SOWt: RPM: Beginning Fuel in Storage Daily Fuel Usage __ Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: IAnn. Vel: DC: DCWt: Ftlmin Ibs. Ibs. Ibs. WOB: SPR1 SPR2 SHALf SURVEYS (Deg) Depth (Ft. KB) Inclination Ibs in. Psi Psi TQ on btm (ftlbs): MUD I TQ off btm (ftlbs): Density pH P.V. Gels Oil% Solids % CL - (ppm) Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prey. Cost: I RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety _~_ hrs. in this day Surveying Circulating Clean to Btm Cond.Brine Rig Repair BHA 1.00 1.50 Swabbing Cementing Logging Casing W.O.C. Perforating Testing NUlND BOP's Rig UplDown Test BOP'S Service Rig --- -- 9.00 1.00 -- -- TOTAL: API NO. 50-283-20109-00 -~ REMARKS: Pennit No: 204-226 API No: 0000-0130=Lay down2 7/8" tbg. 0130-0230=Redress setting tool. 0230-0400=RIH wI EZ drill bridge plug. 0400-0600=Set EZ drill @ 1625' -Test to 2500# for 30 mins. OK-rig down test equip. -install safety valve. 0600-0630=PJSM. 0630-0700=Rig up BJ-test lines to 2500# & pump 6.2 bbls. cement as per program. 0700-0900=Pull 5 stands & reverse eirc. tbg. volume-blow down kill line. 0900-1100=POH laying down tbg. 1100-1200=RIH wI mule shoe 186'. 1200-1300=Rig up & pump 4.2 bbl. cement-1300-1330=Lay down tbg. 1330-1800=Wash bop,s -change rams to 3.5" 1800-1830= PJSM. 1830-2400=Nipple down bop's & well head. A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: AM OPERATION: TEMP: -5 Dink Heim 281-674-0940 5,122 Clear Prepare~cut csg._____ ROAD CONDo Good LEASE COND: Rig Tool Pusher: ___ S. Guszreagan FAX No: 281-674-0942 68 AFE# Condition 6700' I 2/in ----Pasing 13 3/8 95/8 51/2 Ftlsec DC Length: ADDITIVES (sks) --- SIN 325734 Depth 77 1515 5122 ft 1- 2.00 9.50 24.00 Good P~LJCAN l:ULL OJL & (Is JNC. Well: N. Beluga No.1 AFE Amount Contractor: Midnigh~ Depth: Bit # Size 2 3 Pump Type Liner/Stroke SPM Volume (gal/min) Pressure Pump Pressure: ROT wt: PUwt: SOWt: RPM: 77/8 43/4 Ibs. Ibs. Ibs. WOB: SPR1 SPR2 SHALl SURVEYS (Deg) Depth (Ft. KB) Inclination RIG TIME (24 hr tour report) Drill Tripping DH Tools Reaming Slip & Cut Line Safety REMARKS: -- -~ ~- 1.00 Pennit No: ItL Y OPERATIONS REPORT Date: 01/28/05 Day: 69 Prevo Cost Pelican Hill Oil & Gas, Inc 5,122 Progress: Type In Out H606 1515 5122 5122 Pump #1 Pump #2 Oilwell214-P Oilwell 214-HP 5.5 x 2.25 in x 14in 5.5 x 2.25 in x 14in .~ Projected Depth: UK 2 Condition I Rig # 2 in Casing 13 3/8 95/8 51/2 6021 1379 o 4642 Jet Vel: I Ftlsec DC Length: WR7 o ftIdrilld 3607 ftIhr 16 Cum/Hr. 214 Jet Size in. 6-165 I open Cement in. ADDITIVES (sks) Testing NU/ND BOP's Rig UplDown Test BOP'S Service Rig -~ TOTAL: API NO. 50-283-20109-00 AOGCC Inspector Chuck Sheve to approve abandonment marker 1/29/05. 5,122 Clear IAnn. Vel: Beginning Fuel in Storage Daily Fuel Usage Fuel Delivered (gal) Total Fuel in Storage Ftlmin DP: Ibs. I DC OD: DC: DCwt: Ftlmin 0000-0600=Rig down gas buster-mud lines hoses-finish cleaning mud tanks-drain & wash out mud pumps 0600-0630=PJSM 0630-1800=Clean slop tank-Cut well head down 4' from GL-cement down 7-10'-put top job on well. 1800-1830=P JSM 1830-2400=Lay down well head-Finish cleaning all mud pits-release supersucker. Final Report A.M. DEPTH: WEATHER: Drilling Supv: PHONE NO: Ibs Psi Psi TQ on boo (ftlbs): MUD I TQ off btm (ftlbs): Density pH P.V. Gels Oil% Solids % CL - (ppm) Viscosity Water Loss Y.P. Filter Cake Water % Sand % CA++ (ppm) Prevo Cost: I 24 hrs. in this day Surveying Circulating Clean to Boo Condo Brine Rig Repair BHA Swabbing Cementing Logging Casing W.O.C. Perforating -.- 204-226 API No: AM OPERATION: TEMP: -10 Dink Heim 281-674-0940 ---Bigging down. ROAD CONDo Rig Tool Pusher: FAX No: Good LEASE COND: S. Guszreagan 281-674-0942 AFE# 6700' SIN 325734 Depth 77 1515 5122 ft 23.00 24.00 Good . . \. e e ~ Scientific Drilling "KEEPER" Gyroscopic Survey Report For PELICAN HILLS OIL AND GAS N. BELUGA NO.1 BELUGA RIVER GAS FIELD, ALASKA Survey from 0 to 4983' in 5 1/2" Casing 1/10/2005 ,., e e Pelican Hills Oil and Gas N. Beluga NO.1 Scientific Drilling Inti Keeper Gyro Survey Beluga Gas Field, Alaska 1/10/2005 -(0-4993') 5 1/2" Casing Depth Inclination Azimuth TVD North East DLS Closure@ Direction (feet) (deg) (deg) (feet) (feet) (feet) (deg/100) (feet) (deg) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 90.00 50.00 1.15 142.74 50.00 -0.40 0.30 2.30 0.50 142.74 100.00 0.91 145.27 99.99 -1.13 0.83 0.48 1.40 143.46 150.00 0.76 150.05 149.98 -1.74 1.23 0.34 2.13 144.82 200.00 0.76 151.33 199.98 -2.31 1.55 0.03 2.78 146.21 250.00 0.79 150.13 249.97 -2.90 1.88 0.07 3.46 147.09 300.00 0.82 150.89 299.97 -3.51 2.22 0.06 4.15 147.67 350.00 0.80 151.15 349.96 -4.13 2.56 0.03 4.86 148.15 400.00 0.86 146.54 399.96 -4.75 2.94 0.18 5.59 148.23 450.00 0.84 149.18 449.95 -5.38 3.34 0.09 6.33 148.19 500.00 0.83 151.19 499.95 -6.01 3.70 0.06 7.06 148.39 550.00 0.91 151.09 549.94 -6.68 4.07 0.17 7.82 148.66 600.00 1.02 153.65 599.94 -7.43 4.46 0.23 8.66 149.03 650.00 1.02 151.25 649.93 -8.22 4.87 0.09 9.55 149.35 700.00 0.96 154.63 699.92 -8.99 5.26 0.17 10.41 149.64 750.00 1.01 157.23 749.91 -9.77 5.61 0.14 11.27 150.12 800.00 0.99 164.05 799.91 -10.59 5.90 0.24 12.13 150.87 850.00 1.13 162.45 849.90 -11.48 6.17 0.29 13.03 151.74 900.00 1.15 164.79 899.89 -12.43 6.45 0.10 14.00 152.58 950.00 1.15 163.12 949.88 -13.40 6.73 0.07 14.99 153.33 1000.00 1.14 160.26 999.87 -14.34 7.04 0.12 15.98 153.85 1050.00 1.19 160.77 1049.86 -15.30 7.38 0.10 16.99 154.25 1100.00 1.16 160.79 1099.85 -16.27 7.72 0.05 18.01 154.62 1150.00 0.93 174.70 1149.84 -17.16 7.92 0.69 18.90 155.21 1200.00 1.00 170.00 1199.83 -17.99 8.04 0.21 19.70 155.93 1250.00 0.92 172.91 1249.82 -18.82 8.16 0.18 20.51 156.55 1300.00 0.91 172.86 1299.82 -19.61 8.26 0.03 21.28 157.16 1350.00 0.99 168.80 1349.81 -20.43 8.39 0.21 22.08 157.66 1400.00 0.93 171.96 1399.80 -21.25 8.53 0.16 22.90 158.12 1450.00 1.06 175.05 1449.80 -22.11 8.63 0.28 23.73 158.68 1500.00 1.14 179.82 1499.79 -23.06 8.67 0.24 24.64 159.40 1550.00 1.16 188.23 1549.78 -24.06 8.60 0.34 25.55 160.33 1600.00 1.23 187.94 1599.77 -25.09 8.45 0.16 26.48 161.38 1650.00 1.32 189.54 1649.75 -26.20 8.28 0.19 27.47 162.45 1700.00 1.38 189.28 1699.74 -27.36 8.09 0.11 28.53 163.53 1750.00 1.41 185.85 1749.72 -28.57 7.93 0.18 29.65 164.48 1800.00 1.44 185.46 1799.71 -29.81 7.81 0.05 30.81 165.32 1850.00 1.38 183.47 1849.69 -31.03 7.71 0.14 31.98 166.04 1900.00 1.34 186.83 1899.68 -32.22 7.61 0.18 33.10 166.72 · e e Pelican Hills Oil and Gas N. Beluga No.1 Scientific Drilling Inti Keeper Gyro Survey Beluga Gas Field, Alaska 1/10/2005 -(0-4993') 51/2" Casing Depth Inclination Azimuth TVD North East DLS Closure@ Direction (feet) (deg) (deg) (feet) (feet) (feet) (deg/100) (feet) (deg) 1950.00 1.32 186.98 1949.67 -33.37 7.47 0.04 34.20 167.39 2000.00 1.42 188.63 1999.65 -34.56 7.30 0.22 35.32 168.07 2050.00 1.38 195.36 2049.64 -35.76 7.05 0.34 36.44 168.85 2100.00 1.47 191.32 2099.62 -36.97 6.76 0.27 37.58 169.63 2150.00 1.41 189.36 2149.61 -38.20 6.54 0.16 38.76 170.29 2200.00 1.36 191.39 2199.59 -39.39 6.32 0.14 39.90 170.88 2250.00 1.32 198.05 2249.58 -40.52 6.03 0.32 40.97 171.54 2300.00 1.41 201.86 2299.56 -41.64 5.62 0.25 42.01 172.32 2350.00 1.36 198.11 2349.55 -42.77 5.20 0.20 43.09 173.06 2400.00 1.30 201.72 2399.53 -43.87 4.81 0.21 44.13 173.74 2450.00 1.21 209.03 2449.52 -44.85 4.34 0.37 45.06 174.47 2500.00 1.14 210.57 2499.51 -45.75 3.83 0.15 45.91 175.21 2550.00 1.03 211.91 2549.50 -46.56 3.34 0.23 46.68 175.90 2600.00 0.86 208.31 2599.50 -47.27 2.93 0.36 47.36 176.46 2650.00 1.01 203.26 2649.49 -48.00 2.57 0.33 48.07 176.93 2700.00 0.87 208.86 2699.48 -48.74 2.22 0.32 48.79 177.40 2750.00 0.82 216.87 2749.48 -49.36 1.82 0.26 49.40 177.89 2800.00 0.69 230.74 2799.47 -49.84 1.37 0.45 49.86 178.42 2850.00 0.57 232.71 2849.47 -50.18 0.94 0.24 50.19 178.92 2900.00 0.68 240.72 2899.47 -50.47 0.49 0.29 50.48 179.45 2950.00 0.82 243.87 2949.46 -50.78 -0.10 0.29 50.78 180.11 3000.00 0.99 250.29 2999.46 -51.08 -0.83 0.40 51.09 180.93 3050.00 0.82 260.41 3049.45 -51.29 -1.59 0.48 51.31 181.77 3100.00 1.11 271.39 3099.44 -51.33 -2.42 0.69 51.39 182.70 3150.00 1.08 271.03 3149.43 -51.31 -3.38 0.07 51.42 183.76 3200.00 1.12 273.17 3199.42 -51.28 -4.33 0.11 51.46 184.83 3250.00 1.02 277.67 3249.42 -51.19 -5.26 0.26 51 .46 185.87 3300.00 1.03 266.10 3299.41 -51.16 -6.15 0.41 51.53 186.85 3350.00 0.81 267.93 3349.40 -51.21 -6.95 0.44 51.68 187.73 3400.00 0.86 256.96 3399.40 -51.30 -7.67 0.33 51.87 188.50 3450.00 1.06 259.42 3449.39 -51.47 -8.49 0.40 52.17 189.37 3500.00 0.86 262.49 3499.38 -51.61 -9.32 0.40 52.44 190.23 3550.00 0.84 260.39 3549.38 -51.72 -10.05 0.08 52.69 191.00 3600.00 0.81 254.94 3599.37 -51.87 -10.76 0.17 52.98 191.72 3650.00 0.76 252.92 3649.37 -52.06 -11.41 0.12 53.30 192.36 3700.00 0.76 244.80 3699.36 -52.30 -12.03 0.21 53.66 192.95 3750.00 0.83 252.23 3749.36 -52.55 -12.67 0.26 54.06 193.56 3800.00 0.84 246.17 3799.35 -52.81 -13.35 0.18 54.47 194.19 Pelican Hills Oil and Gas e e Scientific Drilling Inti N. Beluga No. 1 Keeper Gyro Survey Beluga Gas Field, Alaska 1/10/2005 -(0-4993') 5 1/2" Casing Depth Inclination Azimuth TVD North East DLS Closure@ Direction (feet) (deg) (deg) (feet) (feet) (feet) (deg/100) (feet) (deg) 3850.00 0.81 234.50 3849.35 -53.16 -13.98 0.34 54.97 194.73 3900.00 0.81 240.47 3899.34 -53.54 -14.57 0.17 55.49 195.23 3950.00 0.70 228.62 3949.34 -53.92 -15.11 0.37 56.00 195.66 4000.00 0.73 239.64 3999.33 -54.28 -15.61 0.28 56.48 196.05 4050.00 0.58 233.46 4049.33 -54.59 -16.09 0.32 56.92 196.42 4100.00 0.76 242.67 4099.33 -54.90 -16.59 0.42 57.35 196.82 4150.00 0.64 225.13 4149.32 -55.25 -17.09 0.49 57.83 197.19 4200.00 0.61 217.45 4199.32 -55.66 -17.45 0.18 58.33 197.41 4250.00 0.83 185.43 4249.32 -56.23 -17.64 0.90 58.93 197.42 4300.00 0.81 175.08 4299.31 -56.94 -17.65 0.30 59.61 197.22 4350.00 1.37 174.71 4349.30 -57.89 -17.56 1.12 60.50 196.88 4400.00 1.46 178.93 4399.29 -59.13 -17.50 0.28 61.66 196.48 4450.00 1.42 170.93 4449.27 -60.37 -17.39 0.41 62.83 196.07 4500.00 1.46 169.50 4499.25 -61.61 -17.17 0.12 63.96 195.57 4550.00 1.70 164.57 4549.23 -62.95 -16.86 0.55 65.17 194.99 4600.00 1.86 163.86 4599.21 -64.45 -16.44 0.32 66.51 194.31 4650.00 2.02 162.18 4649.18 -66.06 -15.94 0.34 67. 96 193.57 4700.00 2.01 165.10 4699.15 -67.75 -15.45 0.21 69.49 192.84 4750.00 2.11 170.81 4749.12 -69.51 -15.07 0.45 71.12 192.24 4800.00 2.27 169.08 4799.08 -71.39 -14.74 0.35 72.90 191.66 4850.00 2.57 168.00 4849.04 -73.46 -14.32 0.60 74.84 191.03 4900.00 2.71 160.09 4898.98 -75.67 -13.68 0.79 76.89 190.25 4950.00 2.41 166.44 4948.93 -77.80 -13.03 0.83 78.89 189.51 4993.00 2.73 165.09 4991.89 -79.67 -12.56 0.75 80.65 188.96 .' e e N. Be~,uga No.1 Casing and Cementing Report Beluga River, Alaska J!.. 5.5" csg. 15.5# 'ff- FmCAN HiLL Oil &: Gft$ iNC. Rig Floor to GL 13.00 Casing Set Depth 5121.00 Rig Floor to GL Hole Depth MD 5122.00 BHA 50.53 Running Item Depth Set Depth No. Description Grade Conn Length (ft RF) RF (top) Notes Bit 1.01 1.01 5121.00 IBS Stab wi Float BTC 2.71 3.72 5118.29 5.5" Pup K-55 BTC 4.30 8.02 5113.99 IBS Stab BTC 2.70 10.72 5111.29 5.5" Pup K-55 BTC 9.33 20.05 5101.96 IBS Stab BTC 2.36 22.41 5099.60 UBHO Jt. K-55 BTC 28.13 50.54 5071.47 1 5.5" Csg. K-55 BTC 43.51 94.05 5027.96 2 5.5" Csg. K-55 BTC 43.33 137.38 4984.63 3 5.5'.' Csg. K~55 BTC 43.22 180.60 4941.41 4 5.5" Csg. K-55 BTC 43.35 223.95 4898.06 5 5.5" Csg. K-55 BTC 43.31 267.26 4854.75 6 5.5" Csg. K-55 BTC 43.38 310.64 4811.37 7 5.5" Csg. K-55 BTC 43.37 354.01 4768.00 8 5.5" Csg. K-55 BTC 38.88 392.89 4729.12 9 5.5" Csg. K~55 BTC 43.11 436.00 4686.01 10 5.5" Csg. K-55 BTC 43.25 479.25 4642.76 11 5.5" Csg. K-55 BTC 43.02 522.27 4599.74 12 5.5" Csg. K-55 BTC 43.43 565.70 4556.31 13 5.5" Csg. K-55 BTC 41.78 607.48 4514.53 14 5.5" Csg. K-55 BTC 43.09 650.57 4471.44 15 5.5" Csg. K-55 BTC 43.48 694.05 4427.96 16 5.5" Csg. K-55 BTC 41.20 735.25 4386.76 17 5.5" Csg. K-55 BTC 43.23 778.48 4343.53 18 5.5" Csg. K-55 BTC 43.31 821.79 4300.22 19 5.5" Csg. K-55 BTC 40.01 861.80 4260.21 20 5.5" Csg. K-55 BTC 43.40 905.20 4216.81 21 5.5" Csg. K~55 BTC 43.30 948.50 4173.51 22 5.5" Csg. K-55 BTC 43.33 991.83 4130.18 23 5.5" Csg. K-55 BTC 43.45 1035.28 4086.73 24 5.5" Csg. K-55 BTC 42.82 1078.1 4043.91 25 5.5" Csg. K-55 BTC 43.24 1121.34 4000.67 26 5.5" Csg. K-55 BTC 41.36 1162.70 3959.31 27 5.5" Csg. K-55 BTC 39.66 1202.36 3919.65 28 5.5" Csg. K-55 BTC 39.33 1241.69 3880.32 29 5.5" Csg. K-55 BTC 43.08 1284.77 3837.24 30 5.5" Csg. K-55 BTC 43.09 1327.86 3794.15 31 5.5" Csg. K-55 BTC 43.28 1371.14 3750.87 32 5.5" Csg. K-55 BTC 43.14 1414.28 3707.73 33 5.5" Csg. K-55 BTC 43.04 1457.32 3664.69 34 5.5" Csg. K-55 BTC 43.36 1500.68 3621.33 35 5.5" Csg. K-55 BTC 43.52 1544.20 3577.81 36 5.5" Csg. K-55 BTC 43.44 1587.64 3534.37 37 5.5" Csg. K-55 BTC 43.26 1630.90 3491.11 38 5.5" Csg. K-55 BTC 43.32 1674.22 3447.79 39 5.5" Csg. K-55 BTC 43.39 1717.61 3404.40 40 5.5" Csg. KI BTC 43.60 1761.21 10.80 41 5.5" Csg. K-55 BTC 43.54 1804.75 3317.26 42 5.5" Csg. K-55 BTC 43.10 1847.85 3274.16 43 5.5" Csg. K-55 BTC 43.40 1891.25 3230.76 44 5.5" Csg. K-55 BTC 43.22 1934.47 3187.54 45 5.5" Csg. K-55 BTC 39.61 1974.08 3147.93 46 5.5" Csg. K-55 BTC 43.21 2017.29 3104.72 47 5.5" Csg. K-55 BTC 43.34 2060.63 3061.38 48 5.5" Csg. K-55 BTC 43.30 2103.93 3018.08 49 5.5" Csg. K-55 BTC 38.64 2142.57 2979.44 50 5.5" Csg. K-55 BTC 38.70 2181.27 2940.74 51 5.5" Csg. K-55 BTC 43.43 2224.70 2897.31 52 5.5" Csg. K-55 BTC 39.14 2263.84 2858.17 53 5.5" Csg. K-55 BTC 40.89 2304.73 2817.28 54 5.5" Csg. K-55 BTC 43.37 2348.10 2773.91 55 5.5" Csg. K-55 BTC 43.27 2391.37 2730.64 56 5.5" Csg. K-55 BTC 43.44 2434.81 2687.20 57 5.5" Csg. K-55 BTC 43.16 2477.97 2644.04 58 5.5" Csg. K-55 BTC 43.38 2521.35 2600.66 59 5.5" Csg. K-55 BTC 41.67 2563.02 2558.99 60 5.5" Csg. K-55 BTC 43.41 2606.43 2515.58 61 5.5" Csg. K-55 BTC 43.20 2649.63 2472.38 62 5.5" Csg. K-55 BTC 43.40 2693.03 2428.98 63 5.5" Csg. K-55 BTC 43.33 2736.36 2385.65 64 5.5" Csg. K-55 BTC 43.14 2779.50 2342.51 65 5.5" Csg. K-55 BTC 43.36 2822.86 2299.15 66 5.5" Csg. K-55 BTC 43.57 2866.43 2255.58 67 5.5" Csg. K-55 BTC 43.02 2909.45 2212.56 68 5.5" Csg. K-55 BTC 43.39 2952.84 2169.17 69 5.5" Csg. K-55 BTC 43.36 2996.20 2125.81 70 5.5" Csg. K-55 BTC 39.12 3035.32 2086.69 71 5.5" Csg. K-55 BTC 43.23 3078.55 2043.46 72 5.5" Csg. K-55 BTC 43.53 3122.08 1999.93 73 5.5" Csg. K-55 BTC 38.2 3160.28 1961.73 74 5.5" Csg. K-55 BTC 43.4 3203.68 1918.33 75 5.5" Csg. K-55 BTC 43.11 3246.79 1875.22 76 5.5" Csg. K-55 BTC 43.05 3289.84 1832.17 77 5.5" Csg. K-55 BTC 43.65 3333.49 1788.52 78 5.5" Csg. K-55 BTC 43.29 3376.78 1745.23 79 5.5" Csg. K-55 BTC 43.54 3420.32 1701.69 80 5.5" Csg. K-55 BTC 43.16 3463.48 1658.53 18 5.5" Csg. K-55 BTC 43.65 3507.13 1614.88 82 5.5" Csg. K-55 BTC 42.58 3549.71 1572.30 83 5.5" Csg. K-55 BTC 41.30 3591.01 1531.00 84 5.5" Csg. K-55 BTC 43.23 3634.24 1487.77 85 5.5" Csg. K-55 BTC 43.13 3677.37 1444.64 86 5.5" Csg. K-55 BTC 43.37 3720.74 1401.27 87 5.5" Csg. K-55 BTC 43.36 3764.10 1357.91 88 5.5" Csg. K-55 BTC 42.78 3806.88 1315.13 89 5.5" Csg. K-55 BTC 42.47 3849.35 1272.66 90 5.5" Csg. K-55 BTC 42.66 3892.01 1230.00 91 5.5" Csg. K-55 BTC 43.44 3935.45 1186.56 92 5.5" Csg. K-55 BTC 43.38 3978.83 1143.18 93 5.5" Csg. K-55 BTC 43.38 4022.21 1099.80 94 5.5" Csg. K-55 BTC 43.11 4065.32 1056.69 95 5.5" Csg. K-55 BTC 43.26 4108.58 1013.43 96 5.5" Csg. K-55 BTC 43.39 4151.97 970.04 97 5.5" Csg. K-55 BTC 43.32 4195.29 926.72 · .. ... KI t7.99 98 5.5" Csg. BTC 38.73 4234.02 99 5.5" Csg. K-55 BTC 43.05 4277.07 844.94 100 5.5" Csg. K-55 BTC 41.83 4318.90 803.11 101 5.5" Csg. K-55 BTC 42.96 4361.86 760.15 102 5.5" Csg. K-55 BTC 43.40 4405.26 716.75 103 5.5" Csg. K-55 BTC 43.31 4448.57 673.44 104 5.5" Csg. K-55 BTC 43.12 4491.69 630.32 105 5.5" Csg. K-55 BTC 43.44 4535.13 586.88 105 5.5" Csg. K-55 BTC 43.52 4578.65 543.36 106 5.5" Csg. K-55 BTC 43.08 4621.73 500.28 107 5.5" Csg. K-55 BTC 43.57 4665.30 456.71 108 5.5" Csg. K-55 BTC 46.71 4712.01 410.00 109 5.5" Csg. K-55 BTC 45.26 4757.27 364.74 110 5.5" Csg. K-55 BTC 46.57 4803.84 318.17 111 5.5" Csg. K-55 BTC 44.91 4848.75 273.26 112 5.5" Csg. K-55 BTC 43.96 4892.71 229.30 113 5.5" Csg. K-55 BTC 46.17 4938.88 183.13 114 5.5" Csg. K-55 BTC 45.55 4984.43 137.58 115 5.5" Csg. K-55 BTC 46.96 5031.39 90.62 116 5.5" Csg. K-55 BTC 46.85 5078.24 43.77 117 5.5" Csg. K-55 BTC 45.14 5123.38 -1.37 118 5.5" Csg. K-55 BTC 5123.38 -1.37 119 5.5" Csg. K-55 BTC 5123.38 -1.37 120 5.5" Csg. K-55 BTC 5123.38 -1.37 Casing Information Finished Drlg w/117 jts. 5.5" 15.50 K-55 Butt csg. Layed one jt down due to bad box Cementing Information PJSM- Test lines to 3500 psi- Pump 30 bbls 10 ppg spacer- 136 bbls lead cement- 85 bbls tail cement. Lead cmt 13.5 ppg + additives Tail 15.8 ppg + additives. Follow wi 121 bbls mud. Bumped plug wi 1800 psi. Press was 1375 prior to bumping plug. Bleed back 4 bbls. 15 bbls cement circ to surface. Rebumped plug and held pressure for 8 hrs. Notes Kicked out plug wi 2 bbls water. Lost BJ air compressor prior to cementing. .) '~. e e I N. Beluga No. 1 Casing and Cementing Report Beluga River, Alaska ~ 9 5/8, 40 ppf, L-80, BTC Suñace Casing ·fT· PEUCAN Hrll OIL & G4J me. Rig Floor to GL 13.00 Casing Set Depth 1515.00 MD Hole Depth MD 1515.00 Item Running Depth Set Depth No. Description Grade Conn Length (ft RF) RF (top) Notes Float Shoe BTC 2.65 2.65 1512.35 1 9 5/8" Shoe Jt L-80 BTC 40.65 43.30 1471.70 Centralizer & stop ring 2 9 5/8" Shoe Jt L-80 BTC 39.12 82.42 1432.58 Centralizer & stop ring Float Collar BTC 1.41 83.83 1431.17 3 9 5/8" Casing L-80 BTC 38.37 122.20 1392.80 4 9 5/8" Casing L-80 BTC 40.20 162.40 1352.60 5 9 5/8" Casing L-80 BTC 40.35 202.75 1312.25 Centralizer 6 9 5/8" Casing l-80 BTC 41.64 244.39 1270.61 7 9 5/8" Casing L-80 BTC 40.93 285.32 1229.68 8 9 5/8" Casing L-80 BTC 41.28 326.60 1188.40 Centralìzer 9 9 5/8" Casing L-80 BTC 41.66 368.26 1146.74 10 9 5/8" Casing L-80 BTC 40.66 408.92 1106.08 11 9 5/8" Casing L-80 BTC 41.33 450.25 1064.75 Centralizer 12 9 5/8" Casing L-80 BTC 41.21 491.46 1023.54 13 9 5/8" Casing L-80 BTC 40.25 531.71 983.29 14 9 5/8" Casing L-80 BTC 40.96 572.67 942.33 Centralizer 15 9 5/8" Casing L-80 BTC 41.30 613.97 901.03 16 9 5/8" Casing L-80 BTC 39.98 653.95 861.05 17 9 5/8" Casing L-80 BTC 41.02 694.97 820.03 Centralizer 18 9 5/8" Casing L-80 BTC 41.60 736.57 778.43 19 9 5/8" Casing L-80 BTC 41.53 778.10 736.90 20 9 5/8" Casing L-80 BTC 41.28 819.38 695.62 Centralizer 21 9 5/8" Casing L-80 BTC 40.76 860.14 654.86 22 9 5/8" Casing l-80 BTC 41.13 901.27 613.73 23 9 5/8" Casing L-80 BTC 39.98 941.25 573.75 Centralizer 24 9 5/8" Casing L-80 BTC 41.38 982.63 532.37 25 9 5/8" Casing L-80 BTC 41.50 1024.13 490.87 26 9 5/8" Casing l-80 BTC 41.64 1065.77 449.23 Centralìzer 27 9 5/8" Casing L-80 BTC 41.23 1107.00 408.00 28 9 5/8" Casing L-80 BTC 41.64 1148.64 366.36 29 9 5/8" Casing L-80 BTC 41.66 1190.3 324.70 Centralizer 30 9 5/8" Casing L-80 BTC 41.44 1231.74 283.26 31 9 5/8" Casing L-80 BTC 41.29 1273.03 241.97 32 9 5/8" Casing L-80 BTC 40.94 1313.97 201.03 Centralìzer 33 9 5/8" Casing L-80 BTC 41.45 1355.42 159.58 34 9 5/8" Casing L-80 BTC 41.64 1397.06 117.94 35 9 5/8" Casing L-80 BTC 41.47 1438.53 76.47 36 9 5/8" Casing L-80 BTC 40.70 1479.23 35.77 Centralizer & stop ring 37 9 5/8" Casing L-80 BTC 41.18 1520.41 -5.41 38 39 Casing Information Casing running with Tesco CRS went well after the alìngment was corrected. No problems with any of the equipment, good PJSM and excellent performance by all involved. No problems with hole, smooth all the way to btm. · 4. e e Cementing Information PJSM RU test lines 3000 psí.Mix & pump 496 sxs ( 130bbls) 14.5 ppg cmt + additives. Displace w/108 bbls mud- Bump plug- Check floats- OK- Notes Defoamer was a problem- used rig defoamer and no roblem- after job clean out defoamer tank on cement unit. Centralizers and stop rings as noted above 13 Centralizers 3 stop rings e -:::: z o o z I e e 11 9 9 ø}.~~ "' ,,0 ----t----:--'-__ \ 'I i i-~-L-J ~- . I .. (¡¡- '--ru__< o 0,,., o >~g<~~ <;: o - - - I- :t. " Z , - -. -t_::-·~ -' /~ 8 - ~--- - -"- -~---- <; L 'Ad 9 I cl ! " ¡ I ¡ - ¡ - I ! ~' 'I' :.. 'f- ¡ I - ~ j I I - I : _' I " I ~-~ - ~- ' ~ -, '---- \ --.,--. --, \ -.t-~ < ,.-1:- , \ 1_'__'" _ \ ¡ '- ,,-·--t - \ \ \ \..--t~·\ .. -r--"~" -.\,_1" \ \ \ \ \ \----"'-_.\-' o .~ \ \ \~ 0'00000 b __.ÚJ ... 0 . 0 0 0 0 ,0 úJ-~ \Í);---:-úJ--~o . \J) 0 \I) \ ' <! <! 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"-.., ------- /".\. - ~' , ,,~/<,,--~ -----~__!?007_ "'-., ">< '---...<------_____. --fi!()Oº~- '"- / "- ----, ~__i.~" _ <'5. ''-______.,."'------------_____. _ / ') 0 0 g-~ .. .....". ~~.1....... , j()ç'º-~- ,#<:J'- ~. " ~/~>~ ~~//~// ~5-/~ ~~/ ~0~ 1',/"":000 . /)'(vrt:¿'~··· / ' ¿,..,6~ \ // .' //' \ /' /\;>~.' \. ' I <. {<~"\, "" .{?'-~: / ,,/. .:-'.)\ / '" /:'-'i". ,.~-..J " / .,~ //'/ / .'y( i Ii ~ , . / I p.. Ì' \ ----' .9 i / ~ '~--.-- r- '? .~'--' - -- 9·- ----------. " / . '- 'v-\¿ 9 3- \ .S' ----,.....-- -z þ £ 'I Son ;,\ .,jit"oÙ::lJ e 8 9 e -;, 1 10 ~ 4 ~ - - I -'- --l- i I ì -- 0, : ~oooç; looç;s I . I I -L--. ;/- -- 6 '8. N. Beluga No.1 P&A Sketch Beluga River, Alaska j GL ELEV \44.6' AMSL Sec 12. SM I Twp 13N I Rng 10W RT 13,0' 1974' FEL 1726' FSL ~ ~ I · I I I I I I ~ I ~ I ~ I 195 ppg Brine I I I I I ~ ~ ~ I ~ I I I ~ ~ ¡Note: All referenced depths MDITVD RT I þ< · -- I I ~ ,)t:i ;~~I :~·t :'r,J ;'~:m ~f:~ ;;ç~ ~':5,~ ;'j,J ,!,/, ~ ,.:.~ ~¿~J>< ;J11 ;~~·I ;',;:U ppg Brine I ,'or --- ~:1~ ;;:fi.j ;~$I "'·,·1 ~'1:¿1 '."....¡.ø:!.~ ":"'1 \~~.FÆ!.I! ......~ I~.t. .".~'i-- ---- ~,:~~ ~tfl 19.5 ppg Brine I :.. ~ . 'ff' FFl1\AN HiILOIL & 00 TIt Rig: Water Resurces No. 7 Spud: Nov 29. 2004 13 3/8. 54.4 ppf. R-3. Conductor Casing Driven to 76' 12 1/4" Hole Surface Casing 9-5f8", 40 ppf, L-80 BTC Casing @ 1515' 51/2" 15.5 ppf, K-55 BTC Casing Cmtd to Surf 19.5 ppg Brine I 19.5 ppg Brine I -- Abandoned 1128105 Balanced Surface Plug, 4.2 bbl, 14.5 ppg. Type 1, 186'-4' BGL 9 5/8" casing cmtd to surface 6.2 bbl. Type I, 14.5 ppg. Balanced Cmt Plug 1625-1365, CIBP @ 1625, Tested to 2000 psig 7 7 f8" Hole Top of Tail Cement @ 3,100' Cement Retainer @ 3410 Perfs Sqzd w/4 bbls, 15.8 ppg "G" 3450-3464, 6SPF Cement Retainer @ 4070 Perfs Sqzd wI 11 bbls 15.8 ppg "G" 4130-4138,4SPF 4421-4429,4SPF Balanced cement plug 4525-4653 15.8 ppg class G CIBP @ 4653, Tested to 2500 psig. Composite BP @ 4660, No Test Perfs 4692-4708,6 SPF 4774-4874, 6 SPF TO @ 5122' TVDfMD Bit Jim Rose '" e e PELICAN HILL OIL & GAS, INC. N. BELUGA NO.1 20 MC 25.071 GEOLOGIC DATA AND LOGS. (a) An operator shall log the portion of the well below the conductor pipe by either a complete electrical log or a complete radioactivity log unless the commission specifies which type of log is to be run. (b) Within 30 days after completion, suspension, or abandonment of a well, whichever occurs first, and within 30 days after completion or plugging of a well branch, if occurring at a different time, the operator shall file with the commission, unless previously filed, The following are being filed herewith (1) a sepia and a reproduced copy of a complete mud log or a lithology log consisting of a detailed record and description of the sequence of strata encountered, including the kind and character of the rock and all shows of hydrocarbons; an electronic image file in a format acceptable to the commission may be substituted for the sepia; The Operator obtained an exception to the requirement of utilizing a fully staffed mud logging unit and the compilation of a mud or lithology log. .However, the Operator elected to utilize a one-man logging unit to detect and monitor all gas sho'ws and to create a basic mud log therefrom. (2) a complete set of washed and dried, legibly identified samples of all drill cuttings, as caught by the operator in accordance with good geological practices, consisting of a minimum of one- quarter cup in volume or three ounces in weight of cuttings for each sample interval; An exception was granted to the requirement of collecting and retaining of cuttings samples. (3) a lithologic description and, if available, photographs of each conventional and sidewall core; conventional core descriptions must include apparent textural, fluid, and lithologic variations, including rock type, porosity, fractures, bedding plane attitudes, sedimentary structure, grain size, and presence of hydrocarbons; Neither conventional nor sidewall cores were taken. (4) chips from each foot of recovered conventional core, except that chips need not be submitted until 30 days after the conventional core is analyzed; the chips must be representative of the one- foot interval, and must be approximately either one cubic inch in volume, or two ounces in weight; Neither conventional nor sidewall cores were ta\<en (5) a list of the geologic markers encountered and the measured and true vertical depths of each marker; Beluga Formation 4,24ï MD & TVD, -4,189 SS e e (6) a sepia and a reproduced copy of all logs run, including common derivative formats such as !adpol.e plots of dipmeter data and borehole images produced from sonic or resistivity data, and including composite log formats; however, copies of velocity surveys and experimental logs need not be included; an electronic image file in a format acceptable to the commission may be substituted for the sepia; Paper prints are included herewith. (7) a tape, diskette, or other electronic medium acceptable to the commission and a verification listing of the digital data for all logs run, except velocity surveys and experimental logs; the verification listing must include a written description of the logical and physical format of the digital data; and CD's containing digitized data are included hereWith (8) the following items, or a written request proposing a date for submitting those items, subject to commission approval of that date for timeliness, if those items are unavailable within the 3D-day filing period set out in this subsection: (A) a copy of all drill stem test and production test data and charts; Included herewith. (B) a brief summary of production tests, drill stem tests, wireline formation tests, and other formation tests performed, including test date, time, depth, duration, method of operation, recovered fluid types, fluid amounts, gas-oil ratio, oil gravity, pressure, and choke size; Included herewith. (C) conventional and sidewall core analysis determinations, if any, of porosity, permeability, and fluid saturation; Neither conventional nor sidewall cores were taken. (D) geochemical and formation fluid analyses obtained, if any. Analyses made only of the chloride content of the formation water. (c) The commission will, in its discretion, waive or modify the requirements of this section for a well if those requirements would not significantly add to the geologic knowledge of the area in light of the information that is available from other wells in the area. (d) In this section (1) "experimental logs" means logs that are not commercially available from a well logging contractor; and (2) "velocity survey" means a survey, the primary purpose of which is to determine velocity of seismic waves through formations penetrated by a well by measuring travel times of seismic pulses from or near the surface to geophones placed at various depths in the well. r --------- e - ------ ----------- --- --- e --------;J ~ 12 7 1/4 ~~~~~~ I ~ I --- /v;:' - - _ ,<!Jt..0 TRACT B / Q- O¡I.~ ADL NO.49427 / kj r - - - -...... - "6"ft"< 4 9B ACRES ..::::;: SCALE: I" ~ 500' I N 4' , "w I ""I' I" ~ ~<ö / Ii? I I I" ___ \ / 1017. ',B' I '1 ^ ~ -:...~b____:-'" --__ --~39:s.~~ß.-'____h_h____h_h_______ ¡ t i--s{S-;~:-;;~~l~h±i974'FËl-------'-_h_------'-----; i : if ~ ADL N0.49426I "" I : I 0: I 5.00 ACRES / ",,_ I I : ff:I I , I : 1;;;/: / I :~'-' I \--'--t-- --:::;1- -_ \ i : ! SB4'2S'OO"E - I <r: ': I &5: S3.13' / (J 'J ; ig-... ,':'. I ::J ,\ I b:; :;! ":~~:-' 1-:-: r \. :. r-.... . I.-J....J : \ I ¡i!] "" ':', CD ¡;;i/ ';~!ù1 .~:.::., I "-: /I:'! ! ~ :(0 -----.J s¡ !~ ¡:;< I I I I I I I I I I ~ 1 /4 i i SECTION ! : '2 ! CORNE~ _ _ _ _ ---.L L _ _ _ _ _ _ CEN fER 1/4 SECTION CORNER ,',.\ ~....,~". I r' ,,' ("'. '00 . I(-.V 1'o,",Î '?- () A~~fP' .-1...,':1/'7" cjY' I (;:<:~;:, I, / / / ~\ ;' l...J ' / ~;¡ .'V '("1 b 0;;/ '<.J .,'" / '01 $;ì/ . I _OJ 0? / / / / .. - ,~ . i ,~- . . .)::>- ~:~,;:,::;:'~" ',;::" t-=::':, , , (' ~ r '" ,) I < . '" 0, ~ N84-2S'OO"W I 1474.66' --------- N84'2S'OO"W 74233' ,",-. , R I R 10 9 WIW I " , '" ').. / ',,- / \. "~ ----------............. / ì "v~_....../_; ,I ;JI... "ir=~"" f I / ,/ -t / / > ':\¡/ P'WGE OF PAD'" / ~~~' ®@-'-,'!I ... ... i / ; 'J. I IC!J .-- 'G' - 11 ! Z ............ '------ 7, ~" :_ ~ <r ~ ... ' , , 10:: '-',-, : ", < :t<t¡g;¡ I ,¡W,.,-;,.,-; \~ / I¡m~~ ,'J // I,&.&.. ", :fOb~lU '.. 110,og ,] I.... &t)Ît) ,,' ~----------- ':0!"!" ~",:"! . " Ie( 22 ~.. ------------../, í IX! z: z: ~, I! J ! ~-::~...~ 2 '-. : ---.). :SECTION ICORNER -2J 7 13 /18 13 BASIS OF BEARING IS NOO'35'OO"E BETWEEN FOUND 2" BRASS CAP AT CORNER 2 OF TRACT A AND FOUND 2" BRASS CAP AT CORNER 3 OF TRACT A OF ASlS 74-148. BASIS OF COORDINATES IS N2642246.05; E326837.8672 FOR CORNER 2 OF TRACT A OF ASlS 74-148. VERTICAL DATA WAS ESTABLISHED USING GPS EQUIPMENT TO PERFORM A STATIC GPS SURVEY. DATA FROM CORS STATIONS WERE USED FOR PROCESSING. ELEV 44.6 DETAIL SCALE: 1 '~200' LEGEND ~ (R) (M) ® @ GAS WELL FEL FROM EAST LINE FSL FROtvl SOUTH LINE UNITS: U.S. SURVEY FEET BEARINGS: TRUE MEAN HORIZONTAL DATUM:NAD 27, PER ASLS PLAT 74-148 COORDINA TE SYSTEM: ASP; ZONE 4, PER ASlS PLAT 74-148 VERTICAL DATUM: NA V088 (GEIOD99) SECTION LINES ARE DRAWN PER ASLS PLAT 74-148. WELL NAME N. BELUGA 1 NORTHING 2642585.7 EASTING 326776.6 r .... ¡, F. Robert Ìl~ ] -If'¡r) :1-1 I Ui'l! !~. -''--', \ 1 I 1>--01 "," ~] II 1r!~~1 ~ -~.~¡ ~ ru~~[]Jœo FOUND 2" BRASS CAP RECORD ASLS PLAT 74-1L8 MEASURED THIS SURVEY WA TER WELL AS-BUlL T WELL LOCATIONS N. BELUGA 1 & WATER WELL PELICAN HILL OIL & GAS INC. (WITHIN PROTRACTED SEC. 12, T13N, RlOW, S.M., AK) " DRAWN BY; JZW PREPARED FOR: PELICAN HILL OIL AND GAS INC. ENGINEERS AND LAND SURVEYORS JOB NUMBER: 801 'NEST FIREWEED l._r\NE SUI TE 201 ·\NCHORAGE. ALASKA 'i950J- ¡ 801 ,-PHONE (907)-2.'<-525í SCALE: CHECKED BY: CBS 2003-51001 1" = 500' DATE: 12/07/2004 ,j \ . . @l !¡\\ ~ if rñìr¡Jì ~ !¡\\ ~ I~ @. rù ~ @ ~ lru J J: LW J ¿r;j L:::i LÞ1J ® L\~ . / FRANK H. MURKOWSKI. GOVERNOR / I c:2-o t( - 2 z- ç:. A 1"/A.SIiA. OIL AlO) GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Jim Rose Pelican Hill Oil and Gas, Inc. 4141 B Street, Suite 205 Anchorage, AK 99503-5940 Re: N. Beluga #1 PTD 204-226 Sundry Number: 305-017 Dear Mr. Rose: Enclosed is the approved Application for Sundry Approval relating to plug and abandon 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 0 lÍo 'day or weekend. A person may not appeal a Commission decision to . r C unless rehearing has been requested. DATED this'µ' day of January, 2005 Encl. Abandon ~ Alter casing 0 Change approved program 0 2. Operator Name: Pelican Hill Oil and Gas, Inc 3. Address: < . 1. Type of Request: /JO'S> / J ¿b ( S )'~1 i L·.f 17,~ STATE OF ALASKA AtAA Oil AND GAS CONSERVATION COrASION APfI['"lCATION FOR SUNDRY APP"1fOVAL 20 AAC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Suspend U Repair well 0 Pull Tubing 0 Perforate U ~ir...e. r U t". . Stimulate 0 Time Extensio'1. p Re-enter Suspended Weli . 0 5. Permit to Drill Number: Pú1nu~~ Qjsp~~.,µ Other 0 Development Stratigraphic o o Service Exploratory B o 204-226 6. API Number: 50-283-20109-00 4141 B Street, Suite 205, Anchorage, Alaska 99503 7. KB Elevation (ft): RF = 57.6' AMSL, 13.0' AGL 8. Property Designation: ADL 389933 11. "12. Attachments: Description Summary of Proposal U Detailed Operations Program B BOP Sketch 0 14. Estimated Date for Commencing Operations: Total Depth MD (ft): 5122 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): See Sketch Packers and SSSV Type: 16. Verbal Approval: 9. Well Name and Number: N. Beluga No.1 10. Fìeld/Pools(s): Beluga River Gas Field PRESENT WELL CONDITION SUMMARY Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): IPlugs (measured): 5122 5069 5069 NA Size MD TVD Burst IJUnk (measured): NA Collapse Length 77 13 3/8'" 1515 90'RF 95/8 90'RF 1515 3090 5750 1540 3090 1515 5109 51/2" 5122 5122 4810 4040 Perforation Depth TVD (ft): See Sketch Tubing Size: Tubing Grade: 2 7/8" J-55 Packers and SSSV MD (ft): ITubing MD (ft): NA Date: 13. Well Class after proposed work: Exploratory 0 Development 0 15. Well Status after proposed work: 1/26/2005 Oil 0 Gas 0 Plugged 0 WAG 0 GINJ 0 WINJ 0 Abandoned WDSPL B o Service 0 Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jim Rose Printed Name Ji~OS~ Title Operations Supt Signature {..J.r.l ___ Phone '2-11'-' '\ ot Date II ~ G?' (J) COMMISSION USE ONLY SUndry Number: 3oS--0 /7 Conditions of approval: Notify Commission so that a representative may witness Plug Integrity ~ BOP Test 0 Mechanical Integrity Test 0 Location Clearance ~ Other: ("Ot'\.\Oc.\- ~,,~c\o\~~t'ro~ \ot ~~C)~c..'-o)\- ~~,. \...o~O\\Ot'-. ~,,(.~ -\0 'ö~ cn.,o.~~Ð ~Û~~, ~()(J~. RBDMS 8Ft ,IAN 2 2005 COMMISSIONER C) F~ \ G \{\LL\ L APPROVED BY THE COMMISSION Date: I. ~/ ~ ~;it Z D:Plir.ate P~ficQn Hill Oil & Gas, Inc.. 4141 B Street. Suite 205 Anchorage, AK 99503-5940 ~ 'f!' PIDCAN Hi[ OIL & ~ iNC . 907-277-1401, Telephone 907-277-1402. Fax January 26, 2004 Mr. John Norman Chairman AOGCC 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 JAN Re: Pelican Hill Oil and Gas, N. Beluga No.1, PTD 204-226, Plug and Abandonment Mr. Norman, Pelican Hill Oil and Gas Inc. requests Sundry Approval to plug and abandon the subject well. Pursuant to 20 AAC 25.105 (e), Pelican Hill Oil and Gas states the following: (1) The subject well is to be abandoned because commercial quantities of hydrocarbons were not discovered. (2) The Statement of Proposed Work is attached for your review. A. Abnormally pressured formations were not encountered in this well. B. The type and location of existing plugs is attached for your review. C. Plans for cementing, shooting, testing, etc. are attached for your review. D. NA E. NA Pelican Hill Oil and Gas, Inc would like to begin abandonment operations immediately and requests a rapid review and approval of this application. Please call if you have any questions. I can be reached at 907-277- 1408 or 907-223-1449 cell. Best Regards, G14 ~\'> ~~~Ct.' ~E:~ \'-'t-- ~Cy\,)'\~ ~(r "- \- ~ c..\- ~() ~f\C ~ S" \ \ \ d 1t9?rf? \ I "f)fo '0<; Jim Rose Attachments: Form 10-403 in Duplicate N. Beluga No.1 Proposed Abandonment Wellsketch N. Beluga No.1 Proposed Abandonment Procedure ,,\1 !'\L r'\ , ('" I. '\ I . O\~\. \ tJ \\ \J¡ .. . N. Beluga No. 1 Proposed P&A Sketch Beluga River, Alaska 1 GL ELEV 144.6' AMSL RT 13.0' ~ I ~ .. I I I I ~ I I ~ ~ ~ ~ I I _ 195 ppg Brine I I ~ ~ ~ ~ ~ ~ I I I ~ I · I I I I ___ --1 ¡Note: All referenced depths MDnvO RT I þ<- · ~ I ~ €£I I" ~ """I ;:.j L::'~I C'ij g-t 1~~ê:1 ;r.~1 :·~·I .:,~ j:;$~ ~~.. i",,'Þ :-("r. ~';:' ~ \.::~..i ~ mmIlllLOII.&G\)~ Rig: Water Resurces No. 7 Spud: Nov 29, 2004 6 13 3/8, 54.4 ppf, R-3, Conductor Casing Driven to 76' 12 1/4" Hole Surface Casing 9-5/8",40 ppf, L-80 BTC Casing @ 1515' . Twp 13N I Rng 10W I 5 1/2" 15.5 ppf, K-55 BTC Casing Cmtd to Surf Balanced Surface Plug, 4.2 bbl, 14.5 ppg, Type 1, 186'-4' BGL 9 5/8" casing cmtd to surface 6.2 bbl, Type I, 14.5 ppg. Balanced Cmt Plug 1625-1365, CIBP @ 1625, Tested to 2000 psig 77/8" Hole Top of Tail Cement @ 3,100' Cement Retainer @ 3410 Perfs Sqzd w/4 bbls, 15.8 ppg "G" 3450-3464, 6SPF 19'5ppg~I--L-.:~ Cement Retainer@4070 ~i:~r :I..~.: :~:;~~, ~~~~ bbls 15.8 ppg "G" ~. . 4421-4429,4SPF I:-~·~¡ 19.5 ppg Brine I i:.~~ . I.~.~ Balanced cement plug 4525-4653 I'·;f.~ 15.8 ppg class G · XJ~~....··..·.~.:.;.'!···:.t. CIBP@4653,Testedto2500psíg. . --- .~~ Composite BP @ 4660, No Test ~;}: Perfs 195ppgBrine ~ I~; :~~~~~~~: ~ ~~~ ". TO @ 5122' TVD/MD Bit Jim Rose Pelican Hill Oil and N. Beluga No. 1 N.. Beluga No.. 1 Plug and Abandonment Procedure Pelican Oil and Gas Inc. Winter Drilling Season 2004-2005 Rose Alaska I .. Pelican Hill Oil and Gas,_ N. Beluga No. 1 . Beluga River, Alaska , ' N. Beluga No. 1 Plug and Abandonment Procedure 1. At the completion of swabbing operations, RD the surface flow testing and swabbing equipment. 2. Release packer and circulate BU. 3. TOOH and LD perforating BHA. Make 24 hr. notice to the AOGCC concerning the upcoming well abandonment. -... \'-'~O \1 4. Start RU cementing equipment. ~<.. 5. TIH wI EZSV (dressed as a retainer) to 3410'. ~()\-'-\.()' a~O\,)(2 ~<?;rç,> 6. Set EZSV no shallower than 3410 and no deeper than 3420. Slack off 5000 Ibs wt to verify the set of the EZSV. 7. Finish RU cementing equipment. Test lines to 5000 psi. 8. Close Pipe Rams and test annulus to 2000 psi for 10 min. 9. Establish injection into perfs at 1, 2, and 3 BPM. Record injection pressures. 10. Mix and pump 4 bbls Class G tail cement mixed at 15.8 ppg. Pump a 2 bbl fresh water spacer ahead of and behind the cement. 11. Sting out of cement retainer and reverse clean. 12. TOOH. \ 13. MU CIBP on running tool. TIH to 1625. \5C 'Ð4.\o~ ,:>"O<ë: 14. Set CIBP at 1625. Pressure test the casing to 2500 psi for 30 min. Chart the test for submittal to the AOGCC. A \5"0' 0 \;)()\)~ c:.~'<. 15. Mix and spot a 6.2 bbl balanced cement plug from 1625-1365. Use the surface casing cement slurry, Type I, mixed at 14.5 ppg. Pump a 5.5 bbl fresh wtr spacer ahead of the cement and a 2 bbl fresh wtr spacer behind the cement. Displace the cement 0.5 bbl short of balance. TOOH standing back to 1300' and reverse clean. 16. TOOH laying down tubing. Lay down any tubing in the derrick other than what is needed for the surface plug (3 stands). 17. TIH with a mule shoe to 186'. Mix and spot a 4.2 bbl balanced cement plug from 186 to GL. Use the Type 1, surface casing cement mixed at 14.5 ppg. 18. Drain and wash out stack. 19. ND BOP's and tubing head. 20. Cut off well head and casing stumps 4' BGL. Verify that the casing stubs are completely full of cement. If they aren't....mix cement and fill them. 21. Make a round abandonment plate 13 1/8" in diameter and %" thick. The following is to be welded on the plate: Pelican Hill Oil and Gas PTD 204-226 N. Beluga No.1 API No: 50-283-20109-00 22. Seam weld the plate to the 133/8" casing with a fillet weld. 23. ROMO WR7 24. Remove Cellar Box by pulling on the padeyes located in the comers. 25. Police location. JtI~SIiA OIL AlÐ) GAS CONSERVATION COJDIISSION . I FRANK H. MURKOWSKJ, GOVERNOR / I bJ() '-/., 22~ . ~1~~t mrF !Æ~!Æ~A!Æ 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Jim Rose Operations Superintendent Pelican Hill Oil and Gas, Inc. 4141 B Street, Suite 205 Anchoragae, Alaska 99503 Re: N. Beluga #1 Sundry Number: 305-006 Dear Rose: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a . ay or weekend. A person may not appeal a Commission decision to Superior ourt less rehearing has been requested. DATED tfusl'/ðø.y of January, 2005 Enc!. 'Pelican Hill Oil and ~nc 4141 B. Street, Suite 205 Anchorage, AK 99503 907 -277 -1401, Telephone 907-277-1402, Fax ~ /~: ~,,"'7 ~/ ',~, '7 c·._ --~ ~-,...- -, ,-:: ,,' - "/ ~ I ~ PWV1N lWiW l: U' IlL~' u ~lï'~ ~1\ 'Iii _ __ __ __ _ lWJ.. \A \JLJl11L ~V't . January 14, 2004 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, AK. 99501 ) l\ NK RE: Sundry Approval for Perforating and Unloading, PTD 204-226, N. Beluga No.1 Dear Mr. Norman, Pelican Hill Oil and Gas Inc. seeks Sundry Approval of Perforating and Unloading Operations on the above captioned well. The following documents are attached for review: 1. Application for Sundry Approval, in duplicate 2. Proposed WeIlsketch 3. Detailed Down Hole Tool Diagram 4. Surface Test Tree diagram with BOP information. 5. Detailed Perforating and Unloading Procedure. Please call if there are any questions regarding this issue. I can be reached at 907-277-1408. ðQ \1\s. \û¿\t.> ~ (;¡~\-f;;.;"\~ù,,":::. ~ro~_(J~~ ö-\'Cè ~\G.~~'~ ~t\-A.\" '">""i f><è o~- \.<t~\\"~ . _ \> \-\ ~<:... \--.:J~\ \ì "u. So e;.d~ ~ u..ç( ~~ ~ \Z \,,~~ (ß'Y\) <:c.:;..~\)\ ,-\\-, \ ~"t)\:) $;.>!\ E~$) +\,Q\- ""'S"-\ "-cA b.:J'¥:oe.'d O~\-~">\S '>~"-~ o...~ -\\"'Q.S«......\.- t\è CO~~~,c) O~~~'~Q\ .- 'T""c;.~ ~,~") <ë: Q\~ ~C" \~ ~'\ \-'-f ·fö -.N~ N..S ~ ö.. ~lyç> '\- <è..~ ~ < "1:. \N' ~ \ ~ ¿'J ''''::''' ":,. (. "\,, \I" - Æ- ~~ \('4-()Ç Sincerely, Jim Rose Abandon U Alter casing 0 Change approved program 0 2. Operator Name: Pelican Hill Oil and Gas, Inc 3. Address: 4141 B Street, Suite 205, Anchorage, Alaska 99503 7. KB Elevation (ft): RF = 57.6' AMSL, 13.0' AGL 8. Property Designation: ADL 389933 11. Total Depth MD (ft): Total Depth TVD (ft): 5122 1. Type of Request: Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 4692-4708,4774-4784 Packers and SSSV Type: .6.. STATE OF ALASKA AJ.WA OIL AND GAS CONSERVATION CO.SION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: ~~~ ~ hi-{ Suspend U Repair well 0 Pull Tubing 0 Perforatel:d Waiver U Stimulate 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Annular Dispos. U Other 0 Development Stratigraphic o o 204-226 6. API Number: 5()..~ª,~~~Qj 9.~-;02", ~t""X,M '.~~."~" ..ó - '. ~ - Exploratory 0 Service 0 9. Well Name and Number: N. Beluga NO.1 10. Field/Pools(s): Beluga River Gas Field Length PRESENT WELL CONDITION SUMMARY Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): 5122 5069 5069 NA Size MD TVD JUnk (measured): NA Collapse Burst 77 13 3í8" 90'RF 3090 5750 1540 3090 90'RF 95/8 1515 1515 1515 5109 51/2" 5122 5122 4810 4040 Perforation Depth TVD (ft): Tubing Size: 4692-4708,4774-4784 27/8" Packer at 4580. ESD at 4573. Tubing Grade: J-55 Packers and SSSV MD (ft): Packer at 4580. ESD at 4573. Tubing MD (ft): 4651 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: 13. Well Class after proposed work: Exploratory 0 Development 0 15. Well Status after proposed work: 1/18/2005 Oil 0 Gas 0 Plugged 0 WAG 0 GINJ 0 WINJ 0 Abandoned WDSPL o o Service 0 Date: Commission Representative: Tom Maunder 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name ¿Vim Rose Title Operations Supt Signature Phone 1. 11 - c.( ,,~ Date COMMISSION USE ONLY Jim Rose If , ~ 117Ç" Conditions of approval: Notify Commßssion so that a representative may witness Sundry Number: 3 c 5-=- ¿70¿' Plug Integrity 0 BOP Test if Mechanical Integrity Test 0 Location Clearance 0 Othec "'....'1" '-" \-0 ":1":" '" "'" \..) """,,-,, "" >.:> '" \ \:.~ \¡<1 ~j(~S) '" ':> ~ <\,."''' ~ D t-.. ~ """" \O-4()~ <:¡~~~-~ò\ . u"'\ Ie; \ «~0 ~\. ~~. \ \ RBDMS BFl .IAN j S 20ns :::=':00 Dare i.i~ OR I G \ N A L . bro.; "".,,>fA COMMISSIONER $ænNHIIL(I&\Æ: Rig: Water Resurces No. 7 Spud: Nov 1, 2004 I:" I~ ~~~~~:O;~~~:-3. 11 Driven to 76' ~. 12 1/4" Hole Surface Casing 9-5/8", 40 ppf, L-80 BTC Casing @ 1515' !Note: All referenced depths MDITVD RT I 51/2" 15.5 ppf, K-55 BTC Casing Cmtd to Surf N. Beluga No.1 Proposed Well Sketch Beluga River, Alaska ! GL ELEV RT I ~ I I I ~ i I I I I I I I ~ I I ~ I ~ ~ I I I I I I I B I I I I ~ ,¿..! :~;::~ -:,1 :ti ;'¡?'~ '1~lm 3"~ ~~.,,~ ./;~~ ""~ ;~¿i .:;~ .,,~ '~:~I " . '.,.~.. " :~i~ ~-tl ',"'~ :'~~-'-~ ,......,;.... 44,6' AMSL I Sec 12, SM I 13.0' rI ' I I I I I B I ~ ~ I I I I I I I (j) Q) Q) ãl ~ s' ee (} Q. o ör ee ¡¡¡ 3 Q' o Q) i. ûf L--J . Twp 13N I Rng 10W I 9 5/8" casing cmtd to surface 7 7/8" Hole Top of Tail Cement @ 3,100' '¿.ft: Halliburton Champ Packer @ 4580' Proposed Perfs 4692-4708 4774-4874 TD @ 5122' TVD/MD Bit Jim Rose Ir--1 Company Icustomer Representative Well Pelican Hill Jim Rose North Beluga Phonelt Phone # BHP IBHT Well Type 94 Gas Ann. Ftuid Weight Top TVD @ TS 1-- 2 9.5 Ib/gal ft. Tbg. Fluid Weight Top Underbatance 9.5 Ib/gal Air Gun Size Liner 1-- 3 1-- 5 I 1--6 1-- 7 1-- 8 1-- 9 ..-- 10 ..-- 11 H LLII f'J . Mark Burmeister AccountRep.TTTCP 6900 Arctic Blvd. AnchoraQe. Alaska 99518 (907) 275-2604 ~ Field Date Rig 1/11/2001 Method Shoot & Flow Deviation 2.5 Degrees Tubing . 3-318" 6spf Millennium CAUTION: Lengths, IDs & Ods are estimated. Item # Description Casing 5-1/2", 15.5# 4 1 Tubing to Surface 2 RA Marker Pup Joint 27/8" Tubing Joint 3 RD Safety Circulating Valve 4 5-112" Champ Packer 5 27/8" Tubing Spacer 6 Bar Pressure Vent 2 7/8" Tubing Joint 7 Model liD Bar Drop Firing Head Safety Spacer 8 3-3/8" 6spf Millennium Guns 9 Spacer Gun 10 33/8" 6spf Millennium Guns 11 Bull Nose 1.0. 0.0. Length Depth 2.440 3.668 4538.30 0.00 2.440 3.668 4.00 4538.30 2.440 3.668 31.50 4542.30 1.800 3.875 6.80 4573.80 2.000 4.550 7.50 4580.60 2.440 3.668 63.00 4588.10 2.250 3.375 1.40 4651.10 2.440 3.668 31.50 4652.50 N/A 3.500 6.00 4684.00 N/A 3.380 2.00 4690.00 N/A 3.380 16.00 4692.00 N/A 3.380 66.00 4708.00 N/A 3.380 10.00 4774.00 N/A 3.380 0.65 4784.00 4784.65 \2 1/16" 3M Hydraulically I Operated Gate Valve ~ J:. · -rr· ærAN HIiL OIL & GA) mc . N. Beluga No. 1 Proposed Well Sketch Beluga River, Alaska GL ELEV 44.6' AMSL Sec 12, SM RT 13.0' Rig: Water Resurces No. 7 Spud: Nov 1, 2004 o / \ I I 1\ /1 ø 21/16" 5M Instrumentation Flange 29/16" 5M Swab Vatve c/w Tree Cap __ X c/w Methanollnjeclion and Gauge Ports I \ / Y/16" 5MWing Valve I I I I 5~~~~@~ I . ~~~@~ 2" Kill Line and 2 1116" 5M Wing Valve ~ I '.'~OM_"'''' ~ ~ \ I I I \ J I.......... X-Over Flange c/w BPV Profile U - 2 718" EUE 8 rd Mod PxP X-Over @ -- 27/8" TIW Valve g ~ ".. ,- ""'" I Bell Nipple I 'FlOW Line I I --- 111" 3M Shaffer Spherical BOP ~ " '>- / , I ( 11" 3M Shaffer LWS r- Double Gate BOP L- ~ C Blind Ram I 121/16" 3M Manually I Operated Gate > < ¡~ I, : I [l[@![[[[illlD~~ I~ ~ 127/8 Pipe Rams (Closed) \11" 3M Mud Cross cIw 2 1/16" 3M Outlets .... Twp13N I Rng 10W 2 1/16" 5M Adjustable Choke \ I I I 2" Flowtine to Tank Rig Floor _12 1/16" 3M Manually Operated Gate Valve Jim Rose Pelican Hill Oil and Gas, N. Beluga No. 1 Beluga River, Alaska Nfl Beluga No. 1 Pf.~rlorating and Unloading Procedure Pelican Oil and Gas Inc. Winter Drilling Season 2004-2005 Pelican Hill Oil and Gas . , N. Beluga NO.1 . Beluga River, Alaska N. Beluga No. 1 Flow Testing Procedure 1. A~er the mud is displaced with 9.5 ppg 3 %KCI/3%NaCI Brine, Test the 5 %" casing to 3000 psi for 30 min. Chart record the results for submittal to the AOGCC. 2. Filter the entire brine volume to 5 microns, if possible, by circulating on btm while filtering. It might be necessary to start out with 20-25 micron filter bags. 3. TOOH and LD the bit and casing scraper 4. Revie~ the attac~ed drawings for details on the completion string and surface testing equipment. The following compames are providing the following services: A Halliburton will be the primary contractor and will provide the perforating services, down hole testing tool string, RA tag, and possibly some gas measurement devices. B. Pollard Wireline will provide Slick Line services. C. Scientific Drilling is going to provide the Gamma Ray tool for correlation. D. Vetco Gray will provide well head installation and testing. 4. Test BOP's 250/3000 per AOGCC regulations. ../ 5. Pick up the perforating assembly as seen in the attached drawings. TIH. See following notes. Note 1: Make sure to collect and record an accurate measurement from the RA tag to the top shot. Note 2: The perforation intervals are: 4692-4708, 6SPF 4774-4784,6SPF Note 3: Strap the pipe in the hole if weather conditions permit. Note 4: Clear the rig floor of non-essential personnel while handling the perforating guns and RA tag. Note 5: The Bar Pressure Vent allows underbalanced perforating by not equalizing the tubing until the firing bar passes by. Therefore, it will be necessary to fill the tubing to adjust the desired amount of underbalance. Fill the tubing with 16.4 bbls of 9.5ppg brine. This can either be done while tripping in the hole or after you are at depth. In either case, the 16.4 bbls of brine are to be measured as accurately as possible. Make sure the fill up hose does not have any fittings in the end of it. Note 5: Use good pipe handling procedures on the trip. Use a hole cover when possible. The Bar Drop Firing Head can be set off by dropping a tool or other object down the tubing. Avoid work that would risk dropping a tool down the tubing. Note 6: The RD (Rupture Disc) Safety Circulating Valve is the ESD for the well test. It is activated by 1500 psi annulus pressure. Do not apply pressure to the casing unless you intend to shut the well in for emergency reasons. The valve cannot be re-opened. 6. Space out such that the 2 7/8" tubing stump is as close to the floor as is practical and the guns are on depth based on tubing measurement. 7. MIRU SLU. Install TIW valve in the tubing stump. RU lubricator. 8. Run Gamma Ray correlation log from 4620'-4300'. POOH and download log. Do not go below 4650'. Note 1: The Bar Drop Firing Head has a 1.560" No Go on top of it. Verify that the GR logging tool has a 1.625"-1.700" No Go on the bottom. Also note the 1.800" IDofthe RD safety circulating valve. Note 2: Make sure to have all necessary items to do a field print of the GR correlation log. 9. Provided that the log results satisfactory, RD SLU. Pelican Hill Oil and Gas, . N. Beluga NO.1 . Beluga River, Alaska 10. Adjust the perforating depth as necessary to get on depth. Space out so as to have the 27/8" tubing stump as close to the floor as practical (See step 11, Note 1). Mark the tubing appropriately. 11. Set the packer. Slack off and place 5000-7000 Ibs on the packer. Mark the tubing, pick up, and then set the hand slips wI 5000-7000 Ibs on the packer. Tie the slip handles together with sash cord. Note 1: When calculating the final space out, plan for about 5-6 inches of slack off to get the weight on the packer. Note 2: Review this operation with the packer operator before proceeding with setting the packer. Note 3: The packer setting depth should be very close to 4580.6'. If it isn't, investigate. There may be some very small variances in tool length that would change the intended set depth but a large difference may indicate a problem. 12. Install the rig floor testing tree as seen in the attached drawings. Make sure to set up one of the rig floor heaters to blow on the tree for the remainder of the test. ,/ 13. Install a BPV in the X-over flange at the base of the tree. Test the tree to 3000 psi. Remove the BPV. 14. Hook up the insulated flow line to the tree and power up the heat trace. 15. Gauge the flowback tank and record the information. 16. Install a % NPT needle valve and T in the 5 %" x 27/8" annulus valve blanking flange. Install a 0-3000. pressure gauge in one leg of the 1. Install a second valve so that annulus pressure can be bled off " without breaking any connections. N"G ~ '-\DR. \>'V £~S:'-J~ s.."':>. Ù\)·~\"..K.J ""\"É~-J-. 17. Run the ESD control line to an upwind (N) ESD station. Purge the contròìhne with mèlnanol. RU the \ nitrogen, gauge, and ESD valve assy. Test the line by installing a valve at the well end and pressuring it up to full N2 bottle pressure. Carefully bleed off the pressure into a bucket. Dispose of the methanol properly. Note 1: Be careful handling the methanol. It is flammable and toxic. Make sure to use splash goggles and rubber gloves. Methanol is also a hazardous waste and is to be handled as such. Take the necessary precautions so as not to spill any. Drip liners should be placed under potential spill sources. 18. Connect the control line to the other leg of the T that is installed in the 5 %" x 27/8" annulus valve blanking flange. 19. Open the 5 %" x 2 7/8" annulus valve and needle valve such that the ESD system is active. Make sure all employees and contractors are made aware of its location and purpose. Hang a sign at the ESD station identifying it as such. 20. Fill the annulus with brine. 21. Close the pipe rams. 22. Install 2ea, 0-3000 pressure gauges and needle valves in the ports provided on the instrumentation flange. Hook up the methanol pump to the 3rd port. The 4th port is spare and should have a needle valve and plug installed in it. Pelican Hill Oil and Gas,_ N. Beluga NO.1 . Beluga River, Alaska Pre-Peñorating Checks In addition to going back through the above procedure and checking that all items are done satisfactorily; perform the following checks in preparation for perforating. A Note the wind direction. Verify that the wind sock is installed. B. Assemble a chart to record the following data: a. FTP/SITp./ .J' b. Annulus Pressure / c. Choke Setting v d. Tank Gauge. ./'. C. Check that the cellar is adequately heated. D. Verify the electrical bonding between the tank and the tree. E. Make sure the flow back tank is on a liner and bermed in. Verify that the hatch nearest the rig is open. F. Post a sign that prohibits vehicle traffic or unnecessary personnel to be near the flow back tank. Peñorating and Unloading 1. Open the swab, master, and TIW valves. Verify that the 2 wing valves and choke are closed. Drop firing bar. 2. Close swab valve. 3. Record build up pressures (if any) for 30 min at 2 min intervals extending to 5 min intervals after 10 min. 4. Open choke and attempt to unload well to tank. 5. Subsequent operations will be determined by the unloading results. . . MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, 'D~.t C(Z~.-IÓC; DATE: P. I. Supervisor\( { ()/' January 29, 2005 FROM: Chuck Scheve, Petroleum Inspector PTD#204-226 SUBJECT: Surface Abandonment North Beluga #1 Saturday, January 29,2005: I traveled to the Pelican Hills North Beluga #1 exploratory location to inspect the casing cut off and abandonment of this well. All casing strings were cut off at approximately 4' below original ground level and all were found to be full of cement. A %" thick marker plate was welded to the conductor casing with the required information bead welded to it. SUMMARY: I inspected the casing cut off depth, and the P&A marker plate on the North Beluga #1 well and found all to be in order. Pelican Hill N. Beluga Update e e Subject: Pelican Hill N. Beluga Update From: Jim Rose <jimrose@ak.net> Date: Mon, 24 Jan 2005 11:08:15 -0900 To: 'Thomas Maunder' <tom_maunder@admin.state.ak.us> CC: 'Arlen Ehm' <arlen.ehm@alaska.net> ~O~-ddG Tom It is pretty much as I forwarded this am. The squeeze cement was in place early this am. All went as planned. We filtered brine for a couple hrs and are presently getting ready to TOOH for BOP test. They made the 24 hr notice yesterday at about 11 :00 am. I don't think anyone waslis available at this point. ... ..We are getting a little lonely and starting to think you guys don't like us. Any more questions, let me know. Jim 1 of 1 1/24/20053:41 PM Weekend cementing operations, Pelican Hill Oil and Gas, N. Belug... e e Subject: Weekend cementing operations, Pelican Hill Oil and Gas, N. Beluga No 1 From: Jim Rose <jimrose@ak.net> Date: Sat, 22 Jan 2005 14:00:11 -0900 To: 'Thomas Maunder' <tom _ maunder@admin.state.ak.us> dO ~ - ;} d-- G:, Tom, Here are the documents pertaining to abandoning perfs on the N Beluga 1 well. Also, we are due for a BOP test on the 24th. We would like to finish the cement work before testing BOP's and may need a 1 day extension to do so. Please advise. Thanks, Jim Perf Abndn 1 Schem.xIs Perforation Abandonment Procedure Content- Type: application/msword Content-Encoding: base64 1 of 1 1/24/2005 7:35 AM e Pelican Hill Oil and Gas, Inc N. Beluga NO.1 e Beluga River, Alaska N. Beluga No. 1 d 0'-\- ð -a- (, Perforation Abandonment Procedure 1 Pelican Hill Oil and Gas Inc. Winter Drilling Season 2004-2005 Jim Rose 1/22/05 e Pelican Hill Oil and Gas, Inc N. Beluga NO.1 e Beluga River, Alaska N. Beluga No. 1 Perforation Abandonment Procedure 1 1. At the completion of swabbing operations, RD the surface flow testing and swabbing equipment. 2. Release packer and circulate BU. 3. TOOH and LD perforating BHA. Redress tools for next perforating run. 4. Start RU cementing equipment. 5. TIH wI mule shoe to 4650. 6. Finish RU cementing equipment. Test lines to 5000 psi. è)ö \..-\ - ). ~ ~ 7. Mix and pump 3 bbls Class G tail cement mixed at 15.8 ppg. 8. Spot balance plug 4653-4525. Displace cement % bbl short of balance. 9. TOOH slowly and stand back 3 stands of tubing. 10. Reverse circulate clean. 11. TOOH. Consider laying down the excess tubing. 12. PU EZSV (set up as a cement retainer) and running tool. TIH 13. Set EZSV @ 4070. Set 5000 Ibs wt on RTNR to verify set. 14. Close pipe rams and test annulus to 2500 psi. 15. Establish injection into perfs @ 1, 2, and 3 bpm wI 9.5 ppg brine. 16. Mix and pump 11 bbls class G tail cement mixed at 15.8 ppg. Displace cement to retainer and sting out. 17. Reverse circ clean. 18. RD cementing equipment and clear rig floor. 19. TOOH. 20. Test BOP's 250/2500 per AOGCC regulations. Make sure to provide 24 hr notice of test. Move to Perforation and Test Procedure, Perf Run 3 e e 5 1/2" 15.5 ppf, K-55 BTC Casing Cmtd to Surf N. Beluga No.1 Proposed Well Sketch Beluga River, Alaska GL ELEV 144.6' AMSL I Sec 12, SM I RT 13.0' ~ Twp 13N I Rng 10W I Rig: Water Resurces NO.7 Spud: Nov 1, 2004 13 3/8, 54.4 ppf, R-3, Conductor Casing Driven to 76' dCL.\-Jd c.. 12 1/4" Hole Surface Casing 9-5/8",40 ppf, L-80 BTC Casing @ 1515' 9 5/8" casing cmtd to surface I Note: All referenced depths MDrrvD RT I 7 7/8" Hole Top of Tail Cement @ 3,100' Cement Retainer @ 4070 Perfs Sqzd wI 11 bbls 15.8 ppg "G" 4130-4138,4SPF 4421-4429,4SPF Balanced cement plug 4525-4653 15.8 ppg class G CIBP @ 4653, Tested to 2500 psi. Composite BP @ 4660, No Test Perfs - 4692-4708, 6 SPF 4774-4874,6 SPF TO @ 5122' TVD/MD Bit Jim Rose Pelican Hill Oil and Gas~nc , 4141 B. Street, Suite 205 Anchorage, AK 99503 e 907-277-1401, Telephone 907-277-1402, Fax ~ 'fT" FEilCAN HiiL OiL &: ~ iN(: December 31, 2004 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, AK. 99501 RE: Sundry Approval 304-487 for Operational Shutdown, PTD 204-226, N. Beluga No.1 RECEIVED JAN 0 4 2005 Alaska Oil & Gas Cons. CQrnmÎs!ìion Anchomge Dear Mr. Norman, Pelican Hill Oil and Gas Inc. resumed operations on the subject well on 12/27/04. The BOP test chart required on Sundry Approval 304-487, dated 12/21/04 is attached for submittal as requested. Please call if there are any questions regarding this issue. Jim Rose í ~\..,. 'So -..}~",,~\A\<>.. \ "6~\\<::.~\e.'S\-~~ R\~"\R~~f'\- ~ s...~~ s()~-~~\ jJtrrt\ ..ç" \-) .~\ ";,"'~. i.. , 1-cO~ I\) I ¡ ~ ¡ P- I / I / / I / , / / / / / / / ...... ~ '. " , ~\. . \ \ - [Fwd: BOP test, Pelican Hil Oil and Gas, WR-7, N. Beluga No.1, ... e e Subject: [Fwd: BOP test, Pelican Hil Oil and Gas, WR-7, N. Beluga No.1, PTD 204-226] From: James Regg <jimJegg@admin.state.ak.us> Date: Mon, 03 Jan 2005 15:58:17 -0900 To: Tom Maunder <tom _maunder@admin.state.ak.us>, Winton G Aubert dO~ - ð ~ G:, <winton _ aubert@admin.state.ak.us> Granted him an extension until Wednesday or trip, whichever occurs first; asked him to call Wednesday and we'll discuss options. As he notes, casing drilling does represent some unique issues regarding BOP testing; should we develop some type of policy? Jim -------- Original Message -------- Subject: BOP test, Pelican Hil Oil and Gas, WR-7, N. Beluga No.1, PTD 204-226 Date: Man, 03 Jan 2005 15:42:49 -0900 From: Jim Rose5.1~0rose@ak. ne,t::.? To: 'Jim Regg' <jim regg@admin.state.ak.us> CC: 'Thomas Maunder' <tom maunder@~~~jn.state.ak.us>, 'Pelican Rig' <pelican.rig@alaska.net> Mr. Regg, We are currently drilling ahead on the subject well at approximately 4530'. Our last BOP test was 12/27/04. We are requesting permission to extend the BOP test until we reach TD. This well is permitted to 6700' but we are not likely to go that deep. Please keep in mind that we are casing drilling and tripping for a BOP test is not really a practical option. We will cement the casing as soon as we reach TD. We will then install the tubing head and perform a full BOP test before resuming operations. I propose a function test in lieu of the required pressure test. Please feel free to call me if you would like to discuss this request. I can be reached at 277-1408. Jim Rose 1 of 1 1/24/2005 8: 11 AM ~I,.4.SIiA OILAlVD GAS CONSERVATION COMMISSION ;{¿¡ c¡~ ;(;ZÇ, . ~~~~E (illF ~~~~~~Yu FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE. SUITE 100 ANCHORAGE. ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Jim Rose Operations Supt Pelican Hill Oil & Gas, Inc. 4141 B Street, Suite 205 Anchorage, Alaska 99503 Re: N. Beluga #1 Sundry Number: 304-487 \{ Dear Mr. Rose: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superi~ urt unless rehearing has been requ£sred. uty( ~. Chairman DATED this ~hay of December, 2004 Encl. Abandon U Alter casing D Change approved program D 2. Operator Name: Pelican Hill Oil and Gas, Inc 3. Address: 1. Type of Request: . STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM.ION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 Operational shutdown ~ Plug Perforations D Perforate New Pool D 4. Current Well Class: RECEiVED ~ L .. /1;c. DEC 17 2004 ÞO Suspend U Repair well D Pull Tubing D " f'...... r.OßA. r..nrnmissiofl . Perforate U !';Wéiw~ 'JmrftJmi"Dispos. U Stimulate D Time ExtensicÍW'è!Prage Other D Re-enter Suspended Well D 5. Permit to Drill Number: Development Stratigraphic D D Exploratory 0 D 204-226 6. API Number: 50-283-20109-00 Service 4141 B Street, Suite 205, Anchorage, Alaska 99503 7. KB Elevation (ft): RF = 57.6' AMSL, 13.0' AGL 8. Property Designation: ADL 389933 11. 12. Attachments: Description Summary of Proposal ~ Detailed Operations Program D BOP Sketch D 14. Estimated Date for Commencing Operations: Total Depth MD (ft): 1515 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): NA Packers and SSSV Type: 16. Verbal Approval: 9. Well Name and Number: N. Beluga No.1 10. Field/Pools(s): Beluga River Gas Field PRESENT WELL CONDITION SUMMARY Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): 1515 1371 1371 NA Junk (measured): NA Length Size MD TVD Burst Collapse 77 133/8" 90' RF 1515 95/8 90' RF 1515 3090 5750 1540 3090 1515 Perforation Depth TVD (ft): NA NA ¡Tubing Size: NA ¡Tubing Grade: NA Packers and SSSV MD (ft): ¡Tubing MD (ft): NA NA Date: 13. Well Class after proposed work: Exploratory 0 Development D 15. Well Status after proposed work: 12/27/2004 Oil D Gas D Plugged D 1211712004 WAG D GINJ D WINJ D WDSPL Service D Abandoned D D Commission Representative: Tom Maunder 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jim Rose Printed Name Jim Rose Title Operations Supt Signature /~ Phone Q 01* '2..11 - lilt 0 f Date l L I n Iv<{ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: '3v i - 'f 8í Plug Integrity D BOP Test D Mechanical Integrity Test D Location Clearance D Qthec ~-'(;'1 Co""",,'\. <;<;\......... <B- ~<;"'. ""Ç\\ <>" &O~ro.>rtc> "- ..... ':::. \0.. ~ "" X'~'ò. <;~ ': . ~~.\- ~ 'Ðec.. <::.N:>..~~<;0\)~'\~~. ~~~ Cb",,-~~':.~·~e.\, ,~~\\W\~ \'> t'\.(tCSLÇ . ." ~f'o..'i-- \-Q:C"1..c;.O~ . RBDMS BFL DEC 2110U4 D~ ~iØ.t COMMISSIONER: APPROVED BY TtiE COMMISSION ! Pelican Hill Oil" Gas, Inc. . 4141 B Street, Suite 205 Anchorage, AK 99503-5940 ~ .~ 'PFllCAN HiiL OIL & ~ ]Nc, . 907-277-1401, Telephone 907-277-1402, Fax December 17, 2004 RECEIVED DEC 1 7 2004 Mr. Tom Maunder Petroleum Engineer AOGCC 333 W. 7tl1 Avenue, Suite 100 Anchorage, AK 99501 Alaska Oil & Gas Cons. Commission Anchorage Re: Pelican Hill Oil and Gas, N. Beluga No.1, PTD 204-226, Temporary Cessation of Operations Mr. Maunder, Pelican Hill Oil and Gas Inc. intends to temporarily shut down operations to repair the mud pum~s on the Water Resources No 7 rig. We intend to resume operations~on or about December 27,2004. r The current status ofthe well is that 95/8" surface casing is set and cemented at 1,515. II" 3M BOP's were installed and successfully tested to 250/3000 psi on December 15,2004. The casing was then successfully tested to 2000 psi. The subject well is to be drilled with casing. The casing BRA was run in the hole on 5 W' casing and cement was tagged at 1,371. The pump problems occurred at this time and the cement was not drilled out. r-----' ~ .' Pelican Hill Oil and Gas proposes to shut the well in by closing the pipe rams. A TIW valve will be installed in the 5 Yz" casing stump. The rig will be occupied for the entire shut down period by a small, 24 hr crew. Due to the casing drilling technique, it is complicated to trip out of the hole and lay down the casing to do a complete BOP test. At start-up, Pelican Hill Oil and Gas proposes to perform an integrity test to 1500 psi against the annular preventer. Pelican Hill Oil and Gas requests that the date ofthe 1500 psi integrity test be considered the effective date for the BOP test so that drilling operations can resume. / If you have any questions or concerns, please feel free to contact me. Best Regards, ~ .. Jim Rose Attachments: Form 10-403 in Duplicate · ~~~~~ (IDF ~~~~~~~ -- ~Otf..22& AI,ASIiA. OIL AlWD GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE. SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 December 16, 2004 Mr. Arlen Ehm Vice President / Alaska Pelican Hill Oil and Gas Inc. 4141 B Street, Suite 205 Pu1chorage,AJC 99503 Re: Waiver of20 AAC 25.035(c)(1)(A) and (B) Diverter line size and hole size Requirements N. Pretty Creek No.1 and No.2 NE. Beluga NO~ De~ On December 6, 2004, the Alaska Oil and Gas Conservation Commission ("Commission") received a request from Pelican Hill Oil and Gas Inc. ("Pelican Hill") asking the Commission to waive the requirements of 20 AAC 25.035 (c)(1)(A) and (B) regarding the diverter line size (10" ill versus 16" ill) and drilling an initial hole size larger than the diverter line size (12-114" hole with a 10" ill line) for the proposed N. Pretty Creek No.1 and No.2 wells in Section 22 of TI4N, R09W, Seward Meridian ("SM") and the NE. Beluga No.1 well in Section 7 ofT13N, R09W, SM. Regulation 20 AAC 25.035 (h)(2) allows the Commission discretion to waive the diverter system requirements 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. Such waivers were granted for the presently drilling N. Beluga No. lin Section 12 ofT13N, RlOW, SM. The proposed exploratory wells will lie between several existing wells where surface hole sections have been drilled to depths greater than proposed by Pelican Hill. Review of operational summaries and mud logs does not indicate that any gas "problems" were encountered in the surface hole sections and no well was diverted. Reported mud weights were, with the exception of 1 well, lower than Pelican Hill recently employed on the N. Beluga No.1 and Pelican Hill has stated that it is their intent to drill the surface hole sections of the planned wells with".. .higher mud weights than would chosen if the intervals were prospective." Pelican Hill did not experience any problems drilling the surface hole ofN. Beluga No.1. Employing higher mud weights is not expected to cause problems with lost circulation, which has not been historically reported while drilling surface hole in Cook Inlet. Pelican Hill-Diverter wa. December 16, 2004 Page 2 of 2 .. Based on review of the offset information and your stated plan to employ". . .higher mud weights.. ." in the planned wells' surface hole intervals, your request to employ a 10" diverter line and to drill an initial surface hole larger than the diverter line size is accepted. Please call Tom Maunder at (907) 793-1250 if Pelican Hill Oil & Gas, Inc. 4141 B Street, Suite 205 Anchorage, AK 99503-59410 e) ~ .ry 'PmCAN mOIL & Gf4J MC e 907-277-1401, Telephone 907-277-1402, Fax Mr. Tom Maunder Petroleum Engineer AOGCC 333 W. 7tb. Ave. Suite 100 Anchorage, AK 99501 Mr. Steve Davies Petroleum Geologist AOGCC 333 W. 7tb. Ave. Suite 100 Anchorage, AK 99501 R 1\/ED DEC () 9 2004 '. ... .·:ommis,¡oa Alaska Oa & ua~ \"(}¡;,,. '" Anchorage December 6, 2004 Re: Waiver of Diverter Line Sizing Requirement Gentlemen: Pelican Hill Oil and Gas Inc. was recently granted a drilling pennit for the N. Beluga No.1 (Alaska Pennit to Drill 204-226, drilling in progress). APD 204-226 includes a waiver of20 AAC 25.035(c) (lXA) and (B) that allows the use of a 10" ill diverter line while drilling a 12 'l'4" surface hole. The exceptionally small substructure of Water Resources No.7 (WR-7) was cited as the primary reason for needing to use 10" diverter line. Introduction: Pelican Hill Oil and Gas, Inc. is preparing to drill two gas wells in the onshore area between the Pretty Creek and Lewis River gas fields. A third well is planned as a direct offset to the above referenced N. Beluga No.1. Approval is requested to use a 10" ID diverter line for drilling the 12-1/4" surface hole on all three of these wells. The wells are as follows: N. Pretty Creek No.1 N. Pretty Creek No.2 NE. Beluga No. 1 Sec. 22-T14N-R09W (pennit application now in progress) Sec. 22-T14N-R09W (pennit application now in progress) Sec. 07-T13N-R09W (pennit application now in progress) All of three of the planned wells are within six miles of the above referenced N. Beluga No.1. Basis for Exception: Section 20 AAC 25.035(cXl)(A) and (B) of the regulations state: (1) the diverter system must consist of a remotely operated annular pack-off device, a full-opening vent line valve, and a diverter vent line with a diameter: (A) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraints; and (B) at least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; the commission will waive the requirement of this paragraph if the operator demonstrates, based on drilling experience in the near vicinity, that drilling a pilot hole would not be necessary for safety; - e Pelican Hill's Position: Prior to the permitting ofthe N. Beluga No.1 well, the following offset wells in this area were examined for data or records that would indicate the presence of, or potential for, shallow gas. Alaska Energy Development BW X33-12 Chevron Pretty Creek 224-28 Union Pretty Creek #2 Cities Service E. Lewis River #1 Cities Service Lewis R. B-1 Although the records in the shallow portions of some of these wells are admittedly sparse, nothing was found in any of the records to indicate the presence of shallow gas or the need to divert during drilling operations. In Pelican Hill's opinion, similar drilling conditions will be encountered in the three proposed wells. Additionally, Pelican Hill does not have economic interest in the gas bearing potential of the shallow formations above the surface casing shoe depth (approximately 1500' in all three proposed wells). Therefore, Pelican Hill can drill the shallow intervals with a higher mud weight than would be chosen if the shallow formations were prospective. This will provide an additional margin of safety. Section 20 AAC 25.035(h)(2) clearly allows for a waiver ofthe requirements of20 AAC 25.035(c)(I)(A) and (B) as follows: (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) N/A (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. Conclusion: Therefore, a waiver of section 20 AAC 25.035(c)(I)(A) and (B) is hereby requested as allowed in subsection 20 AAC 25.035(h)(2). The barge season in Northern Cook Inlet is nearing an end for 2004. If this waiver is not approved, there is little time to secure new equipment and barge it to Beluga. Lengthy review and rejection of this waiver request could, in turn, jeopardize Pelican Hill's entire 2004-2005 winter drilling program. An expeditious review and approval of this wavier request would be appreciated. We thank you for your consideration. Sincerely, / // ?þ.~~ Arlen Ehm Vice President! Alaska Cc: Jim Rose, Operations Superintendent Pelican Hill Oil & 60s, Inc. 4141 B Street, Suite 205 Anchorage, AK 99503-5940 -- ~ ti 'FmeAN HIll OIL & 00 JNe. " 907 -277 -1401, Telephone 907-277-1402, Fax December 6, 2004 Mr. Tom Maunder Petroleum Engineer AOGCC 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Mr. Steve Davies Petroleum Geologist AOGCC 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Re: Waiver of Diverter Line Sizing Requirement Gentlemen: Pelican Hill Oil and Gas Inc. was recently granted a drilling permit for the N. Beluga No. 1 (Alaska Permit to Drill 204-226, drilling in progress). APD 204-226 includes a waiver of20 AAC 25.035(c) (lXA) and (B) that allows the use of a 10" ID diverter line while drilling a 12 y,¡" surface hole. The exceptionally small substructure of Water Resources No.7 (WR-7) was cited as the primary reason for needing to use 10" diverter line. Introduction: Pelican Hill Oil and Gas, Inc. is preparing to drill two gas wells in the onshore area between the Pretty Creek and Lewis River gas fields. A third well is planned as a direct offset to the above referenced N. Beluga No.1. Approval is requested to use a 10" ID diverter line for drilling the 12-114" surface hole on all three of these wells. The wells are as follows: N. Pretty Creek No.1 N. Pretty Creek No.2 NE. Beluga No. 1 Sec. 22-T14N-R09W (permit application now in progress) Sec. 22-TI4N-R09W (permit application now in progress) Sec. 07- T13N-R09W (permit application now in progress) All of three of the planned wells are within six miles of the above referenced N. Beluga No.1. Basis for Exception: Section 20 AAC 25.035(cXl)(A) and (B) of the regulations state: (1) the diverter system must consist of a remotely operated annular pack-off device, a full-opening vent line valve, and a diverter vent line with a diameter: (A) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraints; and (8) at least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; the commission will waive the requirement of this paragraph if the operator demonstrates, based on drilling experience in the near vicinity, that drilling a pilot hole would not be necessary for safety; - . Pelican Bill's Position: Prior to the pennitting of the N. Beluga No.1 well, the following offset wells in this area were examined for data or records that would indicate the presence of, or potential for, shallow gas. Alaska Energy Development BW X33-12 Chevron Pretty Creek 224-28 Union Pretty Creek #2 Cities Service E. Lewis River # 1 Cities Service Lewis R. B-1 Although the records in the shallow portions of some of these wells are admittedly sparse, nothing was found in any of the records to indicate the presence of shallow gas or the need to divert during drilling operations. In Pelican Hill's opinion, similar drilling conditions will be encountered in the three proposed wells. Additionally, Pelican Hill does not have economic interest in the gas bearing potential of the shallow fonnations above the surface casing shoe depth (approximately 1500' in all three proposed wells). Therefore, Pelican Hill can drill the shallow intervals with a higher mud weight than would be chosen if the shallow fonnations were prospective. This will provide an additional margin of safety. Section 20 AAC 25.035(hX2) clearly allows for a waiver of the requirements of20 AAC 25.035(c)(I)(A) and (B) as follows: (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) N/A (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. Conclusion: Therefore, a waiver of section 20 AAC 25.035(cX1XA) and (B) is hereby requested as allowed in subsection 20 AAC 25.035(h)(2). The barge season in Northern Cook Inlet is nearing an end for 2004. If this waiver is not approved, there is little time to secure new equipment and barge it to Beluga. Lengthy review and rejection of this waiver request could, in turn, jeopardize Pelican Hill's entire 2004-2005 winter drilling program. An expeditious review and approval of this wavier request would be appreciated. We thank you for your consideration. Sincerely, ~~ Arlen Ehm Vice President/Alaska Cc: Jim Rose, Operations Superintendent .. " . ~~!Æ~E (ill} !Æ~!Æ~~ . AI1ASIiA ORAND GAS CONSERVATION COMMISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. ]TH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Mr. Jim Rose Pelican Hill Oil and Gas Inc. 4141 B Street, Suite 205 Anchorage, AK 99503 Re: N. Beluga No.1 Pelican Hill Oil and Gas Inc. Permit No: 204-226 Surface Location: 2000' FEL, 1750' FSL, Sec. 12, T13N, R10W, SM Bottomhole Location: same Dear Mr. Rose: Enclosed is the approved application for permit to drill the above referenced exploration well. 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. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. In your application, Pelican Hill requests waivers to five Commission requirements. Attached, please find a tabular listing of the requested waivers, a citation for the relevant regulation, and an analysis of each request. It has been determined to grant your requests. Please note these waiver approvals are specific to N. Beluga No. 1. If other wells are planned following the completion of the operations permitted here, waiver requests for those wells will be evaluated on a case-by-case basis. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659-2714 or 659-3607 (pager). C/J~ Daniel T. Seamount, Jr. Commissioner ,. . \ DATED this/~ay of November, 2004 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section . Waiver Requested 1--Diverter Line Size . 2--Use of X-overs on the "drill pipe" safety valve and IBOP . Pelican Hill Oil and Gas Regulatory Waiver Analysis N. Beluga No.1 Beluga Area, Cook Inlet Alaska Regulation 20.035( c)(1 )(B) 20.035(e)(4)(9)(B) 3-Not to employ a manned 25.071(b)(1) mud logging unit. 11/18/2004 Recommendation and Discussion Approval of this waiver is recommended, according to the discretion allowed at 20.035 (h)(2) Requirement is that line size must be equal to or larger than hole size being drilled. Planned hole size is 12-1/4" and diverter line is 10". Waivers have been given for a 12" line size with this hole size. Well records and mud logs have been examined for six offset wells. Based on this information, it is unlikely that the proposed N. Beluga 1 well will encounter gas in significant quantities from the surface to 1,500' MD / TVD, the proposed surface casing setting depth for the well. Mud weight used to drill the surface hole will be higher than normal as mitigation for using 10" diverter line with 12-1/4" hole. Approval of this waiver is recommended, according to the discretion allowed at 20.035(h)(1). The requirement is for an inside BOP and full- opening drilling assembly safety valve. The ultimate "drill string" being used by Pelican Hill is casing. Pelican successfully employed this technique last year on the lliamna #1 well. A similar waiver was granted for that operation. The purpose of the IBOP is to be able to stab a "check valve" like tool that can be run into the well and then pumped through. The full opening valve is specified so such that the valve would not present a size restriction simply by being installed on the "pipe". When "normal" casing is run, it is common practice to obtain a X-over to allow the existing rig safety valve to be employed while running the casing. In this case, casing is being run all the time and unless a trip is done, pipe should be on bottom at all times. Approval of this waiver is recommended. Two issues were considered: safety (crew and environment) and significant contribution to geologic knowledge. SAFETY - Pelican Hill will have methane and H2S detectors on the rig with audible and visible alarms. They will also have a geologist onsite during all drilling operations within potential gas-bearing zones. This year Page 1 of 3 Pelican Hill Oil and Gas Regulatory Waiver Analysis N. Beluga NO.1 Beluga Area, Cook Inlet Alaska . Pelican Hill will have a full-time technician at the well site to install, monitor and maintain the automated mud analysis equipment. This well will be located within 300 feet of the Burglin X33-12 well, which was drilled through the same geologic section during 1975. No over pressured zones or H2S were encountered in that well. Pelican Hill's mud system design engineer is aware of the offset well and its records. He feels 9.5 ppg mud will be sufficient to control any pressure encountered by the well. Pelican Hill will also have sufficient weighting material available to control any elevated pressures. As a last resort, Pelican Hill will be drilling with casing, so they can always cement it in place to control any severe problem. . GEOLOGIC KNOWLEDGE - An electronic well information system will be used during drilling that will provide much of the information normally provided by a mud logging unit with crew: depth, ROP, hookload, weight on bit, RPM, torque, stroke counters, pump pressure, mud volume, pit gain / loss, flow, trip tank data, total gas, and H2S. This information will be recorded from surface to TD, and will be provided to the Commission. Regulation 20 MC 25.071 (c) allows the Commission to waive collection of geologic data (samples) if they will not significantly add to the geologic knowledge of the area. Arguably, collection of samples will not add much to existing knowledge as the nearby Burglin X33-12 exploratory well has a mud log from 2,720' to the planned TD of N Beluga 1. This well also has a complete set of cuttings from 2722' to the planned TO of N Beluga 1. Collecting cuttings in N Beluga 1 will not substantially increase geologic knowledge of the area; so, collection of cuttings samples in this well is waived. 4-Eliminate open hole logs 25.071 (a) Approval of this waiver is recommended because there is no practical alternative. Drilling with casing does not permit tripping of pipe; so conventional open hole logging is not possible. As the well is drilled, Pelican Hill will obtain "modified" open hole gamma-ray and resistivity logs through a slotted liner attached to the casing near the bit. Following drilling, pulsed neutron log, gamma-ray and CCL logs will be recorded from TD to surface. Regulation 20 MC 25.071 (c) allows the 11/18/2004 Page 2 of 3 .. . . Pelican Hill Oil and Gas Regulatory Waiver Analysis N. Beluga No.1 Beluga Area, Cook Inlet Alaska Commission to waive collection of geologic data and logs if they will not significantly add to the geologic knowledge of the area. Arguably, open hole logs from this well will not substantially increase geologic knowledge as the nearby (-300 feet), existing Burglin X33-12 has a dual induction log from 324' to 6,730', neutron and density logs from 2,724' to 6,728', and a borehole sonic log from 2,722' to 6,730,' which is the planned TD of N Beluga 1. 5-Waive survey requirements 20.050(a)(2} Approval of this waiver is recommended, according to the discretion allowed at 20.050(h). For a well not intentionally deviated, surveys must start at 500' and be performed at a maximum of 500' intervals thereafter. Pelican Hill proposes to conduct a wellbore survey after the drilling operation is completed. Given that the well is relatively shallow and there are no spacing issues, their proposal is reasonable. 11/18/2004 Page 3 of 3 ." Pelican Hill Oil "'~. _\. 4141 B Street, Suite 205 ~ ::~:;:, ::ne 'f4í\', PmCAN m OIL &: CIA) INC 907-277-1402, Fax . November 3, 2004 Mr. John Norman, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, AK. 99501 RE: Application for Permit to Drill: N. Beluga No.1 Dear Mr. Norman, Pelican Hill Oil & Gas, Inc. hereby applies for a Permit to Drill a development well in the Beluga River Gas Field of the Cook Inlet Basin. ~ The anticipated spud date for the North Beluga No.1 is November 20, 2004. This well will be drilled as a straight hole using casing drilling techniques. The conductor casing will be driven to ±88', then a 12W' hole will be rotary drilled to ±1,500' where 9-5/8" casing will be set and cemented to surface. A 7-7/8 hole will then be casing-drilled with 5-112" casing to ±6,700' and the casing cemented from TD to surface. The well will be completed with 2-7/8" tubing. Please find the attached information as required by 20 ACC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill as per 20 AAC 25.005 (a). 2) Fee of $100.00 payable to the State of Alaska per 20 AAC 25.005 (c) (1). 3) A Location plat showing the well's proposed surface and bottomhole location as per 20 AAC 25.050 (c) (2). 4) Diagram and description of the BOP equipment (diverter, BOP and choke manifold) to be used are submitted as required by 20 AAC 25.035 (a) (1) and (b). 5) A complete proposed Casing Program is attached as per 20 ACC 25.030. 6) The Drilling Fluid Program as per 20 AAC 25.033. 7) Waiver requests are attached. 8) A Summary of Drilling Hazards is attached. GINAL ·' . If you have any questions or require additional information, please contact me at 277-1408. Sincerely, PELICAN HILL OIL & GAS, INC. j~~ (L--- James Rose Operations Superintendent Pelican Hill Oil and Gas, Inc. enclosures I STATE OF ALASKA ... ALAt<Ä OIL AND GAS CONSERVATION COrJlll'SSION PERMIT TO DRILL 20 MC 25.005 / 11 b. Current Well Class: Explorat0fYnN [!I Development Oil DJìÂultiple Zone D Stratigraphic Test D Service. J'1 :.... Development Gas D Single Zone G 5. Bond: Blanket 0 Single Well D 11. Well Name and Number: Bond No: Ltr of Credit #BOK035DP01265 N. Beluga No.1 6. Proposed Depth: I 12. Field/Pool(s): MD: 6700' / TVD: 6700' Beluga River Gas Field 7. Property Designation: ADL 389933 8. Land Use Permit: CIRI Private Land Use Permit 9. Acres in Property: 1 a. Type of Work: Drill G Redrill D Re-entry D 2. Operator Name: Pelican Hill Oil & Gas, Inc 3. Address: 4141 B Street, Suite 205, Anchorage, AK. 99503 4a. Location of Well (Governmental Se~tion): Surface: I 2000' FEL and 1750' FSL, S12 - T13N . R10W - SM Top of Productive Horizon: 2000' FEL and 1750' FSL, S12 - T13N . R10W - SM Total Depth: 2000' FEL and 1750' FSL, S12 - T13N - R10W - SM 4b. Location of Well (State Base Plane Coordinates): Surface:x- 326725 y- 2642670 Zone- AK-4 16. Deviated wells: Kickoff depth: feet Maximum Hole Angle: degrees 18. Casing Program: Size Casing 13 3/8 95/8 51/2 Specifications Weight Grade Coupling Length 54.4 R-3 88' 40 L-80 BTC 1500' 15.5 K-55 BTC 6700' Hole 12 1/4 77/8 o k,\~ NOV [¡ 320D4 Cement Volume 13. Approximate Spud Date: Nov. 20,2004 14. Distance to Nearest 960 Property: 1750' 10. KB Elevation 15. Distance to Nearest Well (Height above GL): 53 feet ASL Within Pool: 200' to BW X33-12 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) ..... .) Downhole: 3,414 psi / Surface: 686 psi / dJ<.c 5.su \>~Ar2."1 Setting Depth Quantity of Cement c.f.orsacks Filing Fee l::J BOP Sketch l::J Property Plat D Diverter Sketch G 21. Verbal Approval: Commission Representative: 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. / Top Bottom TVD 88' 1500' 6700' MD TVD surface surface surface surface surface surface MD 88' 1500' , 6700' / (including stage data) Driven Cmt to surface wI 127 bbls Cmt to surf wI 170 bbls lead ' and 121 bbls tail 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Structural Conductor Surface Intermediate Production Liner Length Size Perforation Depth MD (ft): 20. Attachments: Printed Name Jim Rose ~~~aL-- Signature Permit to Drill. _ d. . Number: 2.0'1 - 22,6 Conditions of approval: MD TVD Drilling Program l::J Seabed Report D Perforation Depth TVD (ft): Time v. Depth Plot U Shallow Hazard Analysis l::J Drilling Fluid Program G 20 AAC 25.050 requirements G Date Contact Title °t~o\oJ ) ç I1fý Phone Commission Use Only IAPI Number: ~'. IPermit Approval 50- zB3-2D/cfl-ðó Date: 277-1408 Date '''3t Ó\( ". )(1 á ¡\ I See cover letter for other ð l1 requirements. -/ Samples required Yes D No D Mud log required Hydrogen sulfide measures Yes D No D Directional survey required Other: ~OOO\>«>\\~\~\c.\ ~~Y\ct~\- ~S~'Ge\~'í"'G.Ç.~" ~O\,-\~<;..\\to..~\''JC\\ ~~~i~ · BY ORDER OF Approved by: Form 10-401 Revised 12/2003 THE COMMISSION OK'G1NAL Date: Yes D No D Yes D No D I \ Ii /0 Y Submit inDuplicate NORTH UGA NO. 1 NARRATIVE AND CALCULATIONS North Beluga No.1 1113/2004 Page 1 of7 . . ."-r -.; "..-,- .~ PLUGGING & LOCATION CLEARANCE REPORT State of Alaska . ALASXA OIL & GAS CONSBRVA:rJ:OH' COJOaSS:rON . . .P'l'D No. '1.r-061.f Lease AOI.- fß.e2~ Memorandum To File: API No. Well Name Operator Location 2.83- 2005"0 -oc f1ur'j/( Ì1 " ~ 3- I:il. At i'MJ..n ';-11.erCJ:/ (7e. lIor /nc Çec:.. L -2, r(~~ R to oJ J > ^ Spud: 2/'/17, 'I'D : 6 ..,. ~ f'") , Abnd Date Completed 11'2.31"17 Note casing size, wt, depth, cmt vol, .. procedure. Sfc csg:9~ q3....7" ¡J e '27'2.4 1d/90~ cs.... Long Csg:' Liner: Perf intervals - t:ops: Review the well file, and comment on plugging, well head status, and location clearance - provide loco clear. code. . , t ~ Plugs: .I(¿¡(~.. I(#€) P ., ~'Tr2- ?-"'2.? ·?7'2."2 . 2Ã'T'2 "4.,¡-M-n .If . I D J,./ J r;.... ì~ 5" J. (".f ""-IT Tf..f!! ~ . 6~ Q.... , ,",:- Well head cut off: ? . .. Marker post or plate: Location Clearance: J¿a" '(4Ç. ,"cÞ/l%/fFi /2,q- dQ.o.f Conclusions :f\J€.I2.A.. '^"fuac.h'n'1. Code ~ Signed Æ OA'''Jhfr~'2:'' j, Date 1~/2h/9r . . General: The North Beluga NO.1 will be a grass-root~ well drilled as a twi~ to the plugged and abandoned Burglin X33-12. The North Beluga NO.1 will be drilled using the Water Resources International, Rig #7 (WRI-7) on the reconstructed Alaska Energy Development Burglin X33-12 drillsite, the intent being to produce gas from the Beluga '" Fm. Drilling Program: 1. Prior to rig arrival, use crane and drive hammer to drive 13-3/8", 54.4 #1ft conductor to - 88 feet or refusal. Install 13-5/8", 5M x 13-3/8" VG Lok head. 2. MIRU WRI Rig #7. N/U and test diverter. Test and calibrate all PVT and gas· sensor equipment. 3. Prepare spud mud system, weight up to -8.6 ppg. 6% KCII PHPA. / 4. Drill 12-1/4" hole to -1,500' using 3-1/2" drill pipe. 5. Rig up casing drilling tools to run 9-5/8" casing to TD. 6. Cement 9-5/8",40 #/ft, L-80, BTC surface casing from 1,500' to surface. Cement will be a single stage 14.5 ppg gas-block type cement slurry. Cement volume will include 50% excess. 7. NID diverter and install 11", 3M x 9-5/8" SOW casing head. 8. N/U 11", 3M BOP stack and 2", 3M choke manifold. Install 5-112" pipe rams. Test stack and surface equipment to .?,§29. psi. Pressure test casing to 1500 psi. 9. P/U 7-7/8" bit on 5-1/2" casing drilling tools. Drill out cement and 20' of new hole. Pull back into shoe and perform a formation integrity test to 11.5ppg EMW, recording test on chart recorder. --."-... ,/ 10. Casing-drill 7-7/8" hole to 6,700' TD. Run memory resistivity logging tools as needed while drilling Beluga sands. 11. Cement 5-1/2" casing from TD to surface using a 13. 5ppg lead slurry followed by a 15.8 ppg tail slurry. ."~--- 12. Install 11", 3M X 7-1/16",3M tubing head, 7-1/16" X 11" DSA and mud cross and reinstall BOP stack. Install 2-7/8" rams and pressure test BOPE. RIH and clean out. Swap mud system over to clean, filtered KCI. POH. / 13. R/U slickline and run cased hole memory logs (propagation resistivity and pulsed neutron wi gamma ray). 14. M/U perforating guns on tubing. / North Beluga No. 1 11/3/2004 Page 2 of? . . Note: Depending on rat hole and other considerations, the completion may be changed to a more conventional TCP operation where the perforating guns are run in, the packer is set and the tree is installed before firing the guns. 15. TIH. 16. R/U slickline unit and RIH with GR to verify perforating depth. Adjust as necessary and close pipe rams. 17. Drop bar to perforate well. 18. Monitor well for pressure. Open pipe rams and CBU. TOOH. 19. RIH with packer and tubing. 20. Space out, circulate in packer fluid, set packer and tree up. 21. Swab in well to tanks and clean up. 22. Suspend well until spring by setting a plug in the profile nipple and installing a BPV in the tubing hanger. Pressure Considerations: The maximum mud weight used in the nearby Berglin X33- ,/ 12 well was 10.4 ppg. This mud weight was sufficient to not only maintain well control, but it kept trip gas suppressed to the point where, in Pelican Hill's evaluation, the indicated actual pore pressures were probably in the 9.0 - 9.8ppg EMW range. Pelican Hill is taking a conservative approach with the assumption that the maximum pore pressure to be encountered will be 9.8ppg EMW at 6,700' TD which equates to a ./ pressure gradient of 0.510 psi/ft. Maximum Anticipated Surface Pressure: The maximum anticipated surface pressure (MASP) for the 7-7/8" hole section in this well will be the lesser of the formation pore pressure (less a full gas column to the surface) at the 5-1/2" casing point (TD) or the formation fracture pressure at the 9-5/8" surface casing shoe (less a full gas column to the surface). Based on offset well data, the highest formation pressure expected in this 7-7/8" hole section is 3,414 psi at the section TD of 6,700' TVD (or 0.510 psi/ft). Documented fracture gradient data for this area indicates that the fracture gradient at 1,500'TVD (the 9-5/8" surface casing shoe) is 0.567 psi/ft. Complete evacuation of the ./ wellbore, except for a 0.11 psi/ft gas gradient, is assumed. 7 -7/8" hole section MASP (pore pressure) MASP (fm breakdown) = (6,700 ft)(O.51 0 - 0.11) = 2,680 psi (1,500 ft)(O.567 - 0.11) = 686 psi = Therefore, MASP in the 7-7/8" hole section is 686 psi and the 3,000 psi BOPE system to / be used will be adequate. Wellbore Surveys: The North Beluga NO.1 well will be casing-drilled as a vertical well. Pelican Hill Oil & Gas requests that wellbore surveys obtained at 500' intervals in accordance with rules laid out in 20 AAC 25.050 (a) (1) & (2) be waived. For rationale see attachment, IIAOGCC Waivers Requested in this Permit to Drill". North Beluga No. 1 11/3/2004 Page 3 of7 . . Mud Logging: Pelican Hill Oil & Gas requests that manned mud logging requirements laid out in 20 ACC 25.072 (c:) be waived. For rationale see attachment, "AOGCC Waivers Requested in this Permit to Drill". Drilling Fluids: The drilling fluids are being furnished by Baroid Drilling Fluids. There will be a mud engineer on site at all times during drilling operations. Mud properties will be maintained as follow: Hole Section from 0' to 1,200': Beluga Formation Base Fluid 6% KCL Density 8.6 - 8.9 ppg PV 6 - 16 YP 35 - 45 API Filtrate < 8 Total Solids 15 - 25 % or less Gel & Polymer mud system Hole Section from 1,200' to 1,500': Beluga and Tyonek Formation Base Fluid 6% KCL Density 9.0 - 9.5 ppg PV 6 - 15 YP 15 - 2e¡ AP I Filtrate < 8 Total Solids 15 - 25 % Polymer mud system Hole Section from 1,500' to 6,700': Beluga and Tyonek formation Base Fluid 6% KCL Density 9.2 - 9.5 PV 6-15 YP 15-25 API Filtrate <8 Total Solids 15 - 25 % Polymer mud system c'¡¿,y<{ br: ...t4'¡';~~ ,,~. ~ ~~ W'111 k- c¡g I~ ém4) al- ¿;70() TD. ..4» If·fI ,:4 Drilling Fluid Handling System: Shale Shaker, Desilter, PVT monitors Casing I Cementing Program: All casing is new. Analysis (below) indicates the casing program as designed provides adequate safety factors for this well. All casing strings with the exception of the driven 13-3/8" conductor will be cemented in place. North Beluga No. 1 11/3/2004 Page 4 of7 . . 13-3/8" Conductor Analysis and CementinQ ProQram The conductor for the North Beluga NO.1 will be driven to - 88' or refusal. Joints will be welded and a drive shoe will be welded to the bottom joint. No cementing is required. 9-5/8" Surface CasinQ Analysis and CementinQ ProQram The 9 5/8" surface casing will be cemented in fully from the proposed set depth of 1,500' to surface with a 14.5 ppg Gas-Block type cement system. Cement System Primary Type Cement WeiÇ1ht (ppq) Gas-Block enhanced 14.5 Volume @ % Excess 127 bbls @ 50% Where: 13-13/8" x 9-518" Capacity = .0646 bbllft 9-5/8': 40# Csg x 12-114" OH capacity = .0558 bbllft 9-518': 40# Csg capacity = .0787 bbllft » 13-1318" x 9-518": 88 ft x .0646 bbl I ft = 5.7 bbls » OH x 9-518'~' 1,412 ft x .0558 bbl 1ft x 50 % excess = 118.2 bbls » Shoe Jt: 35ft x .0787 bbllft = 2.8 bbls Total Volume Cmt @ surface = 127 bbls Actual volumes to be re-calculated at time of running casing due to potential variation in actual depth from planned. The surface cement system will utilize a Gas-Block type additive to minimize potential for gas entrainment and or channeling. 5-1/2" Production CasinQ Analysis and CementinQ ProQram The 5-1/2" production casing will be cemented in fully from proposed set depth of 6,700' to surface. A 13.5 ppg lead "G" cement followed with a 15.8 ppg "G" tail cement system will be used. This program is designed to ensure the intended perforating / production intervals up to 3,800' are isolated with 15.8 ppg "G" cement. Cement System Lead Tail Type Cement Weiqht (ppq) "GH 13.5 "G" 15.8 Volume @ % Excess 170 bbls @ 35% OH 121 bbls @ 35% OH Where: 5- ~': 15.5# csg X 7-7/8" OH capacity = .0309 bbllft 5- ~", 15.5# csg X 9-518': 40# annular capacity = .0493 bbllft Lead System: North Beluga No. 1 11/3/2004 Page 5 of7 . . 5- ý2" X 9-5/8": 1,500 ft x .0493 bbl / ft = 74.0 bbls OH x 5-ý2':' 2, 300ft x .0309 bbls/ft x 35% excess = 95.9 bbls Total Lead Cmt Volume = 169.9 bbls Tail System: OH x 5 ý2": 2, 900ft x .0309bbl/ft x 35% excess = 121.0 bbls Total Tail Cmt Volume = 121.0 bbls Actual volumes to be re-calculated at time of running casing due to potential variation in actual depth from planned. North Beluga No. 1 1113/2004 Page 6 of7 . . North Beluga No.1 Summary of Drilling Hazards THIS NOTICE TO BE POSTED IN DOGHOUSE -v There is potential for abnormally pressured gas deeper in the well. . -v There is potential for stuck pipe in coals encountered while drilling from surface to TO. Be extra vigilant, keep pipe moving and maintain mud properties as specified. -v There is no H2S risk anticipated for this well. -V Due to potential for an unexpected gas kick, PVT and gas detection systems must be fully operational and functioning at all times, visual flow checks and pit level monitoring are critical. CONSULT THE "North Beluga No.1" Drilling PROGRAM FOR ADDITIONAL INFORMATION. North Beluga No. 1 11/3/2004 Page 70f7 . . AOGCC WAIVERS REQUESTED IN THIS PERMIT TO DRILL 1. Approval is requested to use a diverter with a 10" outlet and diverter line for drilling the 12-114" surface hole. Since the need to use the 10" diverter line will be present in all of Pelican Hill's planned wells in this area, we looked at all the offset wells in the area for any indications of conditions or gas that could give a reasonable indication of the need for a full 12" or 13" diverter line. The wells examined are: AlaskaEnergyDevelopmentBWX33-l2 n5"-Dft,t .. K'c. Sà~-\~~W Chevron Pretty Creek 224-28 \ ~Co- C) ~ <0 ""eo c") ~ ()O~ i) ~ \ ì Union Pretty Creek #2 \. ~ -00 ~ \ SS 0 ~ ðli CJ \N \J<è ~ -\ l.t -<;\10 Cities Service E. Lewis River #1 \~S -OÖ Co . ,'- .0·' ç\!'J\- \h~\l\ -<ß~ Cities Service Lewis R. B-1 \ ~. a""S \'\'6"G '"' ~ '-\ '\<?; _. .' l\o-- \ -:soa \'\JL CSCú:t:e. L.. \4.0--\ '-t-s'vJ While the records in the shallow portions of some of these wells is sparse, nothing was found in any of them to indicate the presence of gas in significant quantities and none of the well operators had the need or opportunity to use their diverters. Pelican Hill is of the opinion that it will experience similar conditions. As a further precaution, since Pelican Hill has no economic interest in the contents of the formations above the planned surface casing setting depth of 1500', the Operator is willing to carry a significantly higher mud weight while drilling this interval than is strictly required for well control, thus giving an additional margin of safety. 2. The use of crossovers on the TIW and mop in lieu of full opening valves is requested. The planned casing drilling operation is not conducive to utilizing a 5- 112" TIW or mop. Approval of the use of drill pipe size equipment is requested. 3. A waiver from manned mud logging and from sample catching is requested. Section 20AAC 25.071 (b)(2) of the regulations requires that a complete set of washed and dried, legibly identified samples of all drill cuttings. This requirement is designed to provide a library of cutting samples in all province areas where oil and gas drilling occurs. However, there are numerous wells that have been drilled near this particular well, including the Alaska Energy Development Burglin X33-l2 well, which is essentially a twin to this well. From a geologic standpoint, there is no reason to believe that collecting another set of samples in this area will provide any new or different data to the already large sample collection for the area. Although a waiver of this section is being requested, a complete mud analysis system will be in place to analyze any gas that is encountered. This system will combine reliable computers, advanced wireless networking and a state-of-the-art display that will provide the driller and other key personnel around the rig site with instant access to critical drilling data. It can also be sent to any other remote . . site such as an office in Anchorage. This system will provide all ofthe needed drilling infonnation in real time and the data will also be stored for retrieval at the end of the well. Subsection 20 AAC 25.071 (b)(2) states, "The commission will, in its discretion, waive or modify the requirements of this section for a well if those requirements would not significantly add to the geologic knowledge of the area in light ofthe infonnation that is available from other wells in the area". This well is located very close to previous wells where samples have already been collected. Therefore, a waiver of section 20 AAC 25.071 (b )(2) is hereby requested as allowed in subsection 20 AAC 25.071 (h). 4. A waiver from open-hole logging requirements is requested. The casing drilling techniques planned for use on this well do not nonnally provide for tripping the pipe during or after drilling which leaves no opportunity to run open-hole logs. In lieu of open-hole logs, Pelican proposes to run cased-hole logs with which to identify gas-bearing intervals. 5. An exception from taking directional surveys during the nonnal course of drilling is requested. Section 20 AAA 25.050 (a)(2) of the regulations requires inclination surveys beginning at 500 feet and then every 500 feet thereafter until total depth has been reached. This survey is designed to detect and monitor deviation of the wellbore that occurs when a standard drilling assembly is used. This well will be drilled by the casing drilling method instead ofthe standard drilling assembly. Where this method has been in use in other areas, it has been evidenced that little deviation from the vertical occurs and that a much straighter hole is drilled. One bit will be used to drill from the surface casing shoe, set at an approximate depth of 1,500 feet, to total depth at approximately 6,700 feet. Since there are no trips for new bits planned, the nonnal practice of dropping a survey tool for retrieval when the drilling assembly is brought to the surface is precluded. Because of the large ill of the casing used in the casing drilling method, the wire line method of conducting this survey is also precluded. Casing drilling produced a very straight hole at the Pelican Hill's Iliamna No.1 well that was drilled to a depth of 3,531 feet with a deviation of only 2 ~ degrees. A complete continuous directional survey will be run after total depth of the well has been reached. This will be filed with the final reports and logs for the well. Therefore, a waiver of section 20 AAC 25.050 (a)(2) is hereby requested conditional upon a complete continuous directional survey being run at the end of the well. . . AOGCC WAIVERS REQUESTED IN THIS PERMIT TO DRILL 1. Approval is requested to use a diverter with a 10" outlet and diverter line for drilling the 12-114" surface hole. Since the need to use the 10" diverter line will be present in all of Pelican Hill's planned wells in this area, we looked at all the offset wells in the area for any indications of conditions or gas that could give a reasonable indication of the need for a full 12" or 13" diverter line. The wells examined are: Alaska Energy Development BW X33-12 Chevron Pretty Creek 224-28 Union Pretty Creek #2 Cities Service E. Lewis River #1 Cities Service Lewis R. B-1 While the records in the shallow portions of some of these wells is sparse, nothing was found in any of them to indicate the presence of gas in significant quantities and none of the well operators had the need or opportunity to use their diverters. Pelican Hill is of the opinion that it will experience similar conditions. As a further precaution, since Pelican Hill has no economic interest in the contents of the formations above the planned surface casing setting depth of 1500', the Operator is willing to carry a significantly higher mud weight while drilling this interval than is strictly required for well control, thus giving an additional margin of safety. 2. The use of crossovers on the TIW and IBOP in lieu of full opening valves is requested. The planned casing drilling operation is not conducive to utilizing a 5- 1/2" TIW or IBOP. Approval of the use of drill pipe size equipment is requested. 3. A waiver from manned mud logging and from sample catching is requested. Section 20AAC 25.071 (b)(2) of the regulations requires that a complete set of washed and dried, legibly identified samples of all drill cuttings. This requirement is designed to provide a library of cutting samples in all province areas where oil and gas drilling occurs. However, there are numerous wells that have been drilled near this particular well, including the Alaska Energy Development Burglin X33-12 well, which is essentially a twin to this well. From a geologic standpoint, there is no reason to believe that collecting another set of samples in this area will provide any new or different data to the already large sample collection for the area. Although a waiver of this section is being requested, a complete mud analysis system will be in place to analyze any gas that is encountered. This system will combine reliable computers, advanced wireless networking and a state-of-the-art display that will provide the driller and other key personnel around the rig site with instant access to critical drilling data. It can also be sent to any other remote . . site such as an office in Anchorage. This system will provide all of the needed drilling information in real time and the data will also be stored for retrieval at the end of the well. ~/e...L/A../.;..,~~: wl...D.P tò/~? ,~Æ'¡~k'l,. 'tr. -:1/ ~~é'"l1.;u../·'> p~ - ""'í ¡k"""'-- tÅ- L¿."'¿A-1.:I'- ;f IL,ku-<. ,7 J 0 I . Subsection 20 AAC 25.071 (b)(2) states, "The commission will, in its discretion, waive or modify the requirements of this section for a well if those requirements would not significantly add to the geologic knowledge of the area in light of the information that is available from other wells in the area". This well is located very close to previous wells where samples have already been collected. Therefore, a waiver of section 20 AAC 25.071 (b )(2) is hereby requested as allowed in subsection 20 AAC 25.071 (h). 4. A waiver from open-hole logging requirements is requested. The casing drilling techniques planned for use on this well do not normally provide for tripping the pipe during or after drilling which leaves no opportunity to run open-hole logs. In lieu of open-hole logs, Pelican proposes to run cased-hole logs with which to identify gas-bearing intervals. 5. An exception from taking directional surveys during the normal course of drilling is requested. Section 20 AAA 25.050 (a)(2) of the regulations requires inclination surveys beginning at 500 feet and then every 500 feet thereafter until total depth has been reached. This survey is designed to detect and monitor deviation of the wellbore that occurs when a standard drilling assembly is used. This well will be drilled by the casing drilling method instead of the standard drilling assembly. Where this method has been in use in other areas, it has been evidenced that little deviation from the vertical occurs and that a much straighter hole is drilled. One bit will be used to drill from the surface casing shoe, set at an approximate depth of 1,500 feet, to total depth at approximately 6,700 feet. Since there are no trips for new bits planned, the normal practice of dropping a survey tool for retrieval when the drilling assembly is brought to the surface is precluded. Because of the large ID of the casing used in the casing drilling method, the wireline method of conducting this survey is also precluded. Casing drilling produced a very straight hole at the Pelican Hill's Iliamna No.1 well that was drilled to a depth of 3,531 feet with a deviation of only 2 'li degrees. A complete continuous directional survey will be run after total depth of the well has been reached. This will be filed with the final reports and logs for the well. Therefore, a waiver of section 20 AAC 25.050 (a)(2) is hereby requested conditional upon a complete continuous directional survey being run at the end of the well. North Beluga #1 Casin2; Properties and Desi2;n Verification Casing Performance Properties Internal Collapse Tensile Strength . Size Weight Yield Resistance Joint Body TVD MD Design Safety Factor* (in.) (lb/ft) Grade Cnxn illill illill (1,000 lbs) (ft RKB) (ft RKB) T B C 9-5/8 40 L-80 BTC 5,750 3,090 916 979 1,500 1,500 18.09 8.38 5.15 5-112 15.5 K-55 BTC 4,810 4,040 248 366 6,700 6,700 2.50 7.01 1.51 * Tensile design safety factors are calculated using pipe weight less buoyancy. Burst design safety factors are calculated using MASP. Collapse design safety factors use formation pressure at the shoe on the outside and full evacuation (except for a gas gradient) inside. e Casing Setting Depth Rationale 9-5/8" 1,500' MD, TVD Surface casing to provide an anchor for BOPE, sufficient formation strength at the shoe for containing deeper fonnation pressures and to cover shallow fonnations, allowing deeper drilling to the producing interval. 5-112" 6,700' MD, TVD Production casing to provide hole stability for production operations. N. Beluga No.1 Well Planning Sketch Beluga River, Alaska I E~~V I 12.5' I Sec 12, SM I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ m ~ m ~ m ~ m ~ m ~ m ~ m ~ m ~ m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I ~ ~ ~ m ~ m m m ~ m m m m ~ m ~ m ~ ~ m ~ ~ ~ ~ ~ I ~ ~ ~ ~ ~ ~ ~ ~ . ~ 'ff" æuO\N m OIL & GA) ll~C 133/8,54.4 ppf, R-3, Conductor Casing Driven to 82' 121/4" Hole Surface Casing 9-5/8",40 ppf, L-80 BTC Casing @ 1500' Note: All referenced depths MDITVD RT 5 1/2" 15.5 ppf, K-55 BTC Casing Cmtd to Surf . Twp 13N I Rng 10W I 9 5/8" casing cmtd to surface 77/8" Hole Top of Tail Cement @ 3,800' ~~ ~., r", ~.~.~: ~'::~.. 1"1; ~'.~, ~...ao.l' TD @ 6,700 TVD/MD Bit Jim Rose . ~ ·ff· PEilV1N Hfil OIL & GA) n~G Rig: Water Resurces No.7 Spud: Nov 20,2004 ... Gen House Boiler Boiler House 2 House 1 1230' 1 oil y ~ N. Beluga No.1 Pad Layout Beluga River, Alaska ELEV ? RT 12.5' ¡,. N 110,000 gal Fuel Tank rparts House ¡MUd Pump 2 ¡MUd Pump 1 Ideco Rambler Rig Dog House Water Tank .1 ... oil ~ y . Sec12,SM I Twp13N ? I Mud Pit 2 ¡- Mud Pit 1 Degasser pn L- ~ Rng 10W ? Access Road .. .. Jim Rose . ~ m~IIIIL(]L&~INC Rig: Water Resurces NO.7 Spud: Nov 20, 2004 I Bell Nipple I . N. Beluga No.1 Diverter Detail Beluga River, Alaska 1 E~~V I 12.5' I Sec 12, SM I Twp13N I Rng 10W RT I Flow Line . 113 5/8 5M Shaffer NL Annular I .. BOP EJ ~ /- 110" Full-Opening Knife / " Valve I I I" I / / --.../ "'- EJ 190' of 10" Dia I Diverter Line / \ ~--_./ "~1135/85MX135/85M x 10" ANSI +-- Series 150 Diverter Spool 1135/8 5M x 13 3/8 Vetco VG I LOC Casing Head Jim Rose !~ rn~[[J~ 111" 3M Mud Cross cIw 1--------1./ 2 1/16 3M Outlets / ! 111" 3M , 7 1116" 3M DSA I ( . ~ 'f' PEUCl\N m OIL & 00 ll~C Rig: Water Resurees No.7 Spud: Nav 20, 2004 RT ¡Bell Nipple 1---- 111" 3M Shaffer Spherical I BOP 111" 3M Shaffer LWS Double Gate BOP IC ---- IC 12 1/16" 3M Manually Operated Gate Valves . N. Beluga No.1 BOPE Detail Beluga River, Alaska I E~~V 12~51 I See 12,;M I Twp13N I Rng 10W ? .. .. ¡FlOW Une ~ / / "- 1 I I I "- < / IPiPe Ram ~ I Blind Ram ~ .. "- / 1 I" I '\ Imrnmw0JJ ~ "121/16" 3M Manually I Operated Gate Valve < 1 I (' 12 1/16" 3M Hydraulically Operated Gate Valve I Choke "- 1 I ø Lock Down Pins Jim Rose -- Rig: Water Resurees No.7 Spud: Nov 20, 2004 N. Beluga No.1 Choke Manifold Detail Beluga River, Alaska ELEV ? See 12, SM RT ? Rng 10W ? [TO Shaker ] ~anic Line J ~o Gas Buster ] m ~ rn ~ 0 [2" 3M Valves ] ~~ i m m m rn J IITII@[ 0 [[I@[I] 3 1/8" 3M Manually Adjustable Choke ì 3 1/8" 3M Manually Adjustable Choke ~ Jim Rose . . 70-112' C12 C9 C5 C7 C1 B8 24.00' BI0 17.00' c= A 2----- Al~- 2-7/8' OD TBG ------------ ~ ~-5/8' DD CSG 5-112' OD CSG ALL DIMENSIONS ARE APPROX. j' .... ,.,.,., Nlll!AIIAOWN BCMIII ASS VeIcO Gray DRA\\tI BY: C. RICE ENG. APPR.: SWE & FCE ENGINEERING ACAD 9-5/8 X 5-1/2 X 2-7/8 OD, 5M MSP ASSY ¡DATE: 05 SEP 2003 µ&LJREFERENCE: DATE: I XIV-G I SCALE: NA 1/ DRAWING NO. SP-5265-1 1\3090138. PELICAN HILLS I\LASKA PRDJ. IPROJECT NO.: . . Notes to Well File 204-226, N. Beluga 1 Gas Exploration Well November 18, 2004 Subject: Pelican Hill Oil and Gas Inc.'s request for exemption from diverter requirements for the North Beluga No.1 exploratory natural gas well, western Cook Inlet Basin, Alaska. In order to evaluate Pelican Hill Oil and Gas, Inco's ("PHOG") request for a diverter waiver, I have reviewed all of the information submitted by PHOG and the Commission's well files, log files, and records associated with nearby wells Burglin X33-12, Pretty Creek Unit 1, Beluga River Unit ("BRU") 212-18, and BRU 224-13. Determination Based on examination of mud log and well log information from offset wells, it is unlikely that the proposed N. Beluga 1 well will encounter gas in significant quantities from the surface to 1,500' MD / TVD, the proposed surface casing setting depth for the well. A detailed discussion is presented below. All depths presented are measured depths ("MD"), unless otherwise noted. Discussion The N. Beluga 1 gas well will be located onshore on the southern Kenai Peninsula, near the center of Section 12, T13N, R10W, Seward Meridian. PHOG's proposed well is within two miles of six existing wells: Alaska Energy Development's Burglin X33-12 well, located approximately 300 feet to the south, ConocoPhillips' BRU 221-13, about 1-3/4 miles to the southwest, ConocoPhillips' BRU 224-13, about 1-1/4 miles to the south, ConocoPhillips Alaska Inco's ("ConocoPhillips") BRU 212-18, located 0.8 miles to the southeast, Union Oil Company of California's Pretty Creek Unit 1, about 2 miles to the east, and Halbouty Alaska Oil Company's Theodore River 1, located about 3 miles to the northeast. N Beluga 1 Diver Waiver Determination November 18, 2004 Page 20f4 N ~ U 1 F~t 2¡OOO 4,000 Location Map - N.Beluga. 1 Burglin 12 X33-12 is a well to a (6,694' TVD), then plugged abandoned during January 1977. chromatograph records do not and they do not show gas in the mud or 3,575.' Mud to of the well was ·1 ppg. No gas-related problems were reported in the brief operations report from the well from the surface to 2,722.' BRU 212-18, Pretty Creek Unit 1, River 1 BRU 221-13 is a vertical well drilled to a total depth 1976. The well was subsequently completed as 1977. The was mud to occurrence of is 2,850.' from surface to ppg, to 1 1275 to 2172' and from 2172 to 2549' was 9.8 . . N Beluga 1 Divera,aiver Determination November 18, 2004 Page 30f4 . related problems were reported in the drilling operations log from the well for the interval from the surface to 2,549.' BRU 224-13 is a vertical well drilled to a total depth of 10,000,' then tested and completed during September through December of 1974. A mud log was not required or recorded for this well. Mud used to drill this section of the well was 9.4 to 9.9 ppg (70 to 74 ppcf). No problems were reported in the brief drilling operations summary for the well from surface to 2,725.' BRU 212-18 is a vertical well drilled to a total depth of 7,000' during September of 1975. Mud log chromatograph records begin at 430', and they do not show any significant gas in the mud or cuttings above 2,720.' Mud used to drill this section of the well was 9.4 to 9.9 ppg (70 to 74 ppcf). No problems were reported in the drilling operations summary from the well for the interval from the surface to 2,720.' Pretty Creek Unit 1 was drilled during September and October of 1977, reaching a total depth of 8,506' MD and 6,450' TVD. The well was subsequently plugged and abandoned on October 14, 1977. A copy of the mud log is not in the Commission's well files. The neutron-density log begins at 2,356,' but does not display any crossover to the total depth of the well. No problems were reported in the drilling operations summary from the well for the interval to from the surface to 2,371.' Theodore River 1 was drilled to 12,025', then plugged and abandoned during 1969. The well was mud logged from 350' to TD, and gas chromatograph data are available from 650' to TD. Small amounts (less than 10 units) of methane gas were present in the mud from 650' to TD, with first significant gas occurring at 2100.' Gas does not occur in cuttings until 1700.' Mud weight used to drill from surface to 2,400' was 9.6 to 9.8 ppg. No problems were reported in the drilling operations summary from the well for the interval to from the surface to 2,520.' Mud log and well log information from these five wells show clearly that dry gas was not encountered in significant amounts above 1,500.' Structure During a conversation on July 19, 2004, PHOG's project geologist indicated that North Beluga 1 will be a twin to the Burglin X33-12 well, which lies about 300 feet to the south. There are no faults between N. . . N Beluga 1 Diver.waiver Determination November 18,2004 Page 40f4 . Beluga 1 and the Burglin X33-12 well, and there are no major faults or structural complications between N. Beluga 1 and the Beluga River Field. Summary Based on mud log and well log information in Commission records, the proposed N. Beluga 1 well is unlikely to encounter gas in significant quantities between the surface and the 1,500' ,/ TVD, the proposed surface casing setting depth. -.,., Steve Davies Petroleum Geologist . . BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & HEAPHEY A PROFESSIONAL CORPORATION ATIORNEYS AT LAw 601 W. 5TH AVENUE, SmTE 900 ANCHORAGE, ALAsKA 99501 (907) 276-1711 FACSIMILE (907) 279-5358 WWW.BANKSTON.TO WILLIAM M. BANKSTON LEAE. FIUPPI JON T. GIVENS CHRIS D. GRONNING CHRISTOPHER J. HEAPHEY PAMELA J. KEELER MICHAEL R. MILLS BARBRA Z. NAULT STEVEN T. O'HARA JOHN M. SEDOR BRIAN J. STffiITZ THOMAS v. WANG, JR. November 17, 2004 Mr. John Norman, Chairman Alaska Oil and Gas Commission 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 IVED NOV 1 7 2004 Re: Spacing Exception N. Beluga No.1 Gas Well Dear Mr. Norman: This law finn represents Trading Bay Oil & Gas, LLC and Paul L. Craig. The proposed N. Beluga Gas Well No.1 is to be located on ADL 389933 (owned by Trading Bay Oil & Gas, LLC) about 400 feet fÌ"om the boundary of US 3901 (owned by Paul L. Craig, an individual). Pursuant to Alaska Statutes and Regulations, Pelican Hill Oil & Gas, Inc. - the operator of the N. Beluga Gas Well No.1, has applied for a Spacing Exception (see Pelican Hill's letter to you dated September 10,2004). Please be advised that Pelican Hill Oil & Gas, Inc, Trading Bay Oil and Gas, LLC, and Paul L. Craig - an individual, have reached an agreement resulting in no further need for a spacing excepti on. Specifically, Paul L. Craig has agreed to immediately transfer the hydrocarbon rights associated with US 3901 to Trading Bay Oil & Gas, LLC which will result in the owners of the hydrocarbon rights on each side of the property line to be the same party. Trading Bay Oil & Gas shall immediately farm-in the hydrocarbon rights associated with US 3901 on similar tenns as the fann-in of ADL 389933 to Pelican Hill Oil & Gas, LLC and welcomes Pelican Hill's exploitation of these hydrocarbon rights. . . Mr. John Nonnan, Chainnan Alaska Oil and Gas Commission November 17,2004 Page 2 In summary, the spacing exception is no longer necessary with regard to the N. Beluga No.1 Gas Well for the reasons stated above. Very truly yours, BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & REAPREY, P.C. r)z¡l¡ii~ --- William M. Bankston WMB:cfv cc: Trading Bay Oil & Gas, LLC Pelican HilI Oil & Gas, Inc. Carl J.D. Bauman, Esq. Paul L. Craig T33 03\06\1 TRnonnan WMBI RECEIVED NOV 1 7 2004 & . Pelican Hill Oil & Gas. Inc. 4141 B Street, Suite 205 Anchorage. AK 99503 . 907-277-1401, Telephone 907-277-1402, Fax ~ 'fT' PEUCAN HfiL OIL & GAB iNC. November 17,2004 Mr. John Norman Chairman Alaska Oil and Gas Commission 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Re: Spacing Exception N. Beluga No.1 Gas Well Dear Mr. Norman: On November 10, 2004 Pelican Hill Oil & Gas, Inc. filed a spacing exemption for its N. Beluga No.1 gas well. That well will be located on a lease that is being earned by a fannout uom the present lease holder, Trading Bay Oil and Gas, LLC, for which Paul L. Craig is both a principal and a signatory. At the time of filing of the exception, Paul L. Craig, as an individual, owned the mineral rights to a five-acre federal tract, US 3901, located in Sec. 12-TI3N-RlOW. This tract is approximately 400 feet uom tbe proposed well site and is entirely surrounded by ADL 389933. As per the letter uom William M. Bankston, attorney for Paul L. Craig, dated November 17,2004 to the AOGCC, ownership in US 3901 has been transferred to Trading Bay Oil and Gas, LLC. The hydrocarbon rights associated with US 3901 have now been farmed out to Pelican Hill Oil and Gas, Inc. According to Alaska Statute 20 AAC 25.055(aX2), a spacing exception is not necessary. Please withdraw Pelican Hill's application for same. Sincerely, ~~ Arlen Ehm Vice President! Alaska Pelican Hill Cc: Mr. Al Gross, Pelican Hill Mr. Carl Bauman, Hughes Thorsness Mr. Paul L. Craig RECEIVED NOV 1 7 2004 & Ga:! Cons vlllllllg, Wa:sll,; N. Beluga N. 1 . . Subject: Drilling Waste N. Beluga N. I From: Arlen Ehm <arlen.ehm@alaska.net> Date: Thu, II Nov 2004 08:33:45 -0900 To: 'Thomas Maunder' <tom _maunder@admin.state.ak.us> CC: 'Stephen Davies' <steve_davies@admin.state.ak.us>, 'Jim Rose' <jimrose@ak.net> Tom: Our application for a Solid Waste Permit from the DEC called for the washing of the None of the above now applies, as we have contracted with Envirotech to handle both Arlen Jim and Arlen, In you application, I have not found any statement as to how you plan to handle the Thank you, Tom Maunder, PE AOGCC 1 of 1 11/1212004 8:23 AM IN \ ~ - - T1 , R10W, 8M - ~ BR'U 221-2.:5 BR'U ~-2.:5 \ 1 12 N. BELUGA 1 BUR'GU~-12 Beluga ¡River Unit BR'U ~ BR'U 224-1.:5 I 1'-" I -¢- IR'U 14-19 N Beluga 1 Proposed 1-0il 2042260 SFD 111812004 Pretty Creek I!nit , o . e ----- Feet 2,000 , 4,000 ,/ ·1 \ '\ S -OJ:> L-\ \ «Jo --GaS d\)# ~\~f ,:)D \~ ~~ \ J()'~~« ~ .)('--\~ ~~)Ço -~ 9 '>(15· QJ:oê) 'S'J..:ÿA. . t()Y~\( kkfo\, AOGCC WAIVERS REQUESTED IN THIS PERMIT TO DRILL 1. Approval is requested to use a diverter with a 10" outlet and diverter line for drilling the 12-1/4" surface hole. Since the need to use the 10" diverter line will be present in all of Pelican Hill's planned wells in this area, we looked at all the offset wells in the area for any indications of conditions or gas that could give a reasonable indication ofthe need for a full 12" or 13" diverter line. The wells examined are: C, ..'\ "'Alaska Energy Development BW. .X3 3- ¡ 2 \ '1 ": 0(, ~ QSi.'<$-. q ~:}'\ .\ »\{ 'j(3 : ~-,.{ t kù \- ~ Ch~vronPrettyCreek224-28 \<i5~-C)"<.o ",~,"O(\Q.\4,,\ ~~?(:<:;\c;;)C (M ~\\o-\-~ 'c..o.."\ -,,,-~v U~~on Pret~y Creek #~ ~\,\c:,,-OG ~ ~ ~ ~ :>t;.~. ,. \ -S .. ~ ~ ~~_; ':) CItIesServlceE.LewlsRlver#l \~S-06iÓ '~'>¡Ç¡.Q .,)~'LÙ ~~ ~'1o Cities Service Lewis R. B-1 \'ì~--O-'S \ \":»(~~ ~:3<\~ \}O\\~ 'S"'t ~ While the records in the shallow portions of some of these wells is sparse, nothing was found in any of them to indicate the presence of gas in significant quantities and none ofthe well operators had the need or opportunity to use their diverters. Pelican Hill is of the opinion that it will experience similar conditions. As a further precaution, since Pelican Hill has no economic interest in the contents of the formations above the planned surface casing setting depth of 1500', the Operator is willing to carry a significantly higher mud weight while drilling this interval than is strictly required for well control, thus giving an additional margin of safety. 2. The use of crossovers on the TIW and mop in lieu of full opening valves is requested. The planned casing drilling operation is not conducive to iltilizing a 5- 1/2" TIW or mop. Approval of the use of drill pipe size equipment is requested. 3. A waiver from manned mud logging and from sample catching is requested. Section 20AAC 25.071 (b)(2) of the regulations requires that a complete set of washed and dried, legibly identified samples of all drill cuttings. This requirement is designed to provide a library of cutting samples in all province areas where oil and gas drilling occurs. However, there are numerous wells that have been drilled near this particular well, including the Alaska Energy Development Burglin X33-12 well, which is essentially a twin to this well. From a geologic standpoint, there is no reason to believe that collecting another set of samples in this area will provide any new or different data to the already large ,/ sample collection for the area. Although a waiver of this section is being requested, a complete mud analysis system will be in place to analyze any gas that is encountered. This system will combine reliable computers, advanced wireless networking and a state-of-the-art display that will provide the driller and other key personnel around the rig site with instant access to critical drilling data. It can also be sent to any other remote / e MEMORANDUM TO: Jim Regg P.I. Supervisor e ;;:£" :; 17.3 ~....~~ State of Alaska Alaska Oil and Gas Conservation Commission FROM: Jeff Jones Petroleum Inspector Section: 31 Lease No.: Operator Rep.: Jerry Sandidge Township: 9N Drilling Rig: Water Res. #7 Casina/Tubina Data: Conductor: 133/8" O.D. Shoe@ 88' MD Surface: 95/8" O.D. Shoe@ 560' MD Intermediate: 51/2" O.D. Shoe@ 3,528' MD Production: O.D. Shoe@ liner: O.D. Shoe@ Tubing: O.D. Shoe@ Type Plua (bottom up) Casing Stub Casing Stub Perforation Founded on Balanced Balanced Bridge plug Type Plua Open Hole Perforation Annulus Casing Stub Surface Founded on: Bottom Bridge plug Balanced Retainer DATE: October 13, 2004 SUBJECT: Plug & Abandonment IIliamna #1 Pelican Hill Oil & Gas Inc. PTD - 203-172 Exploration CONFIDENTIAL Range: 14W Rig Elevation: 12.5' Meridian: Seward Total Depth: 3,530' MD/TVD Casina Removal: Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing Cut@ Feet Casing cut@ Feet Bottom of Cement 153' MD 660' MD 3,260' MD Pluaaina Data: Top of Cement Depth Verified? Surface Yes 398' MD No 3,020' MD No Mud Weight above plug Steel Cap 9.5 PPG 9.5 PPG Pressure Test Applied ££. Jim Rose (Pelican Hill Oil & Gas Inc.) Distribution: orig - Well File c - Operator c - DNRIDOG c - Database c - Rpt File c - Inspector Verified? Drillpipe tag Wireline tag C.T. Tag No October 13, 2004: I traveled to Trading Bay to witness the surface abandonment of Pelican Hill Oil & gas Inc.'s IlIiamna #1 exploratory well. Jerry Sandidge (Pelican Hill Oil & Gas Inc.) was the representative for the abandonment work. On my arrival, the well had been excavated and the casing strings cut to a depth of 3 +1- feet below original grade. Cement was visible to surface in the top of the casing strings and a steel cap I marker plate displaying the required well information was seal welded to the top of the outer 13 3/8" conductor casing. A P&A well bore schematic provided by Mr. Sandidge and location photos are attached for reference. Summary: I witnessed the surface abandonment of the llliamna #1 exploratory well near Trading Bay, Alaska. Attachments: Well bore P&A Schematic (1) Location photos (2) lliamna.xls 9/1/2005 Rev.:5/28/00 by L.R.G. lliamna #1 (Pelican Hill) Surface Abandonment Inspection Photos from AOGCC Inspector Jeff Jones October 13, 2004 Casing Stub Marker Plate > > 30" 1Q' /" 12V Mud Pits '\ )' Mud Pits Q' i 8' 1 " " T 8' J C'OOke H_ 24' / , l' - '. / 9' 16' , / 44' ~o < T 8"6-' J , / 3.4' fuel 23' T:ank I,,,, " " J D;:¡g Hoose I I 4(}' 31' <>3' 14' 1 ~ / .. ¡~~' Wale;- I ~ 7' L-*. 1;' 1 v / , ",-./ / 27' ".J/ 8' 21' Geí1-eraioc Rooo1 4(}' 'II"" 10/04/2004 15:07 FAX . . 141 001 STATE OF ALASKA AlASKA OIL AND GAS CONSERVATION COMMISSION DESIGNATION OF OPERATOR 20 MC 25.020 --.-. '<MI.... .. -.- - ,. ,. . 1. Name ¡¡tnd Addre5$ of Owner: Trading Bay Oil & Gas, LLC 5432 E. NQrtIlem l;g1rt5 Blvd.. Suite 610 Anchorage. AI< 99506 _ .. 2. Notiœ is hereby given of a designation of oøeratorshlø fet the oil and gas property descnbed below: Legal de$c:rìption of property: TRACT C12001-0553 T.13·N., R. 10W.. TRACTC, SEWARD MERIDIAN, ALASKA OCT 03 2OO1t SECTION 1, UNSURVEYED, NE4NW4 AND THE SeD OF THE BELUGA RIVER SECTION 2, UNSURVEYED, THE BED OF THe BEL.UGA RIVER S¡;CTION 11. UNSURVEYED. E2 SECTION 12. UNSURVEYED, ALL, EXCLUDING US SURVEY 3901 AND INCLUDING 1).E aeo OF THE BELUGA RIVER 114.48 ACRES 8722 ACRE5 320.00 ACRES 635.00 ACRES RECEIVED SEP 2 3 2004 THIS TRACT CONTAINS 1,156.70 ACRES MORE OR LESS Alaska Oil & Gas G(ms. Commission Anchorage Property Plat Attached: 0 3. Name and Address of Designated Operator: ;eë'.i.~R·:H¡II;Öif&'~äs;!lhc. '> 1401 N. EI Camino Real, Suite 207 San Clemente, CA 92672 4. Effective Date of Designation: 2/9/2004 -.- ..- .u. ..'-1-'.....·_ .I"\y~-.......¡,~ 5. Acceptance of operatorship for the aböV8 dê$ëribed ~ within ell attendant responsibilities and obligations is hereby acknowledged: $'9""''' 0 ..fl.fl-v- p.ß ~ 0... 2- - I .B:: O.C(. Printed Name AllP.n LGfOSJ -,-;' :,,:~:-;¡7~_'M~ Printed Name ..F' .' I. . 7. Title __....J... Pm~idênt _ __ _ _." ... .... n Date 2 ~¿L( - ¿'-Y- Apptov Tille President CommiSsioner r!;~~ /tý/ 5Z. (Jete ApptOlled: Commissioner Date (RequireS afll')roval bY IWO COrnn'liSSlonel"S) .... -II. "_ _., A. " . _" _ .__ Form 10-411 Rev.1012003 Submit in duplicate 04 12:04PM "&0 tþ BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & HEAP HEY A P;¡¡'OFESSIONAL CoRPORATION A'ITORNE"lS AT LAw 601 W. 51'J1 AVENU!. SUITE 900 ANCRORAGE, ALAS!(A 99501 (907) 276·1711 FAOOMIU!: (907) 279-6358 WWW.BAN1tsTON.TO NO. 4855 P. 2/2 WIUJAMM, BANKSTON UA E. FILII'1'1 JON T. GIVENS CHlus D. GnONNtNCJ CHRJSTOP1!ER J. HEAP HEY P AMELI. J. I~ELER MICHAEL R. MILLS BABBRJ. Z. NAULT STEVì!NT. O'HARA JOaN M. SEDOR BRIAN J. STJEITZ THOMAS V. WANG, JR. July 6, 2004 via FAX Steve Davies, Sr. Petroleum Geologist Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Trading Bay Oil & Gas, LLC / Pelican Hill Oil & Gas, Inc. North Beluga Prospect - ADL 389933 Our File No. T-3303-06 Dear Mr. Davies: This law firm represents Trading Bay Oil & Gas, LLC (TBOG). This letter will advise you that Pelican Hill Oil & Gas, Inc. (PROG) and TBOG have reached a new farm out agreement concerning State oil and gas lease ADL 389933 for the North Beluga Prospect. Upon your receipt of this letter, please resume the evaluation of PROG's C-Plan Exemption. PHOG is the operator oflease ADL 389933. Very truly yoms, BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & HEAPHEY, P.C. ?ytI(J/I~. WMB:cfv William M. Bankston cc: Trading Bay Oil & Gas, LLC Carl J.D. Bauman, Attorney for PHOG Lydia Miner, Section Manager, ADEC-Anchorage Daniel Seamount, Jr., AOGCC Matt Rader, Alaska Division of Oil a.nd Gas Kay Laughlin, DNR-OPMP Chris Pace, ADEC-Juneau Dan Bevington, Kenai Peninsula Borough Mike Munger, crRCAC T3303\06\L TRaosccWMB2 {' JUN, 24, 2004 4:54PM TO: FAX: FIRM: PHONE: TO: FAX: PHONE: FROM: tÞ&O tt FAX TRANSMITrAL COVER SHEET NO. 4773 p, 1/3 DATE: TIME: FILE NO.: SENDER: 6/24/2004 T-.3303-06 Charlene Matt Rader b~ 269-JA8( f?CI3$' 'T'C~I Alaska Division of Oil & Gas J. " II~D 269-8776 Ai-. u,1ý ¿ /i ~CW&'" tOO,! Alaska Oil & Gas Conservation CommiSSiO~~,_ . 276-7542 -..,~ 279-1433 William M. Bankston DOCUMENTS SENT: 6/24/041etter from W.Bankston to Alaska Oil & Gas Conservation Commission and Alaska Division of Oil & Gas REMARKS: * NUMBER OF PAGES SENT (including cover sheet): 1- COpy TO FOLLOW VIA MAIL: VL/j IF YOU DO NOT RECEIVE ALL PAGES INDICATED, PLEASE CALL OUR OFFICE AT (907) 276-1711 AND ASK FOR THE RECEPTIONIST. BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & HEAPHEY, P.C. 601 W. 5th Avenue, Suite 900 Anchorage, Alaska 99501 Tel (907) 276~1711 Fax (907) 279-5358 RECEIVED JUN 2 5 2004 ....OiI&GalQø.~1IJ] '111M ArñOllgl NOTICE OP CONFIDENTIALITY: THIS TRANSMISSION IS INTENDED ONLY FOR THE USE OF THE INDNIDUAL OR ENTITY TO WHICH IT IS ADDRESSED AND MAY CONTAIN INFORMA TJON THAT IS PJUVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, YOU AR.S HEREBY NOTIFIED THAT ANY DISCLOSURE, DISTRlBlITION, OR. COPYING OF THIS INFORMATION IS STRJCTLY PROHIBITED. IF YOU HAVE RECEIVED TIllS TRANSMISSION IN ERROR, PLEASE NOTIFY us IMMEDIATELY BY TELEPHONE, AND THEREAFTER DESTROY TIlE TRANSMITTED COPY. THANK YOU. .. JUN. 24. 2004 4:54PM .&0 . NO.4773 P. 2/3 BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & HEAPHEY A PaOFESSIONAL CORPORATION A'ITOl!NEYSAT LAw 601 W. 5TH AVENUE, StJr.rE 900 ANCHORAGE, ÅLA$KA 99501 (907) 276·1711 FACSOOLl¡: (907) 279-lIS58 WWW.BANKS.l.ON.TO W)l,u,w M. BANKSTON LEA E. Flup.I'l JON T. GIVENS CHRIS D. GRONNING CHiIIS'I'OPHER J. HE.\PHEY PAMELA J.KEEUR MICHAEL R. MIW¡ BAlU!M :í;, NAULT STEVEN T. O'HARA JOHN M. SEDOR BRlAN J. STIBITZ THOMASV. WANG. JR. June 24, 2004 via FAX & MAIL Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Matt Rader, Natural Resource Specialist IV Alaska Division of Oil and Gas 550 W. 7th Avenue, Suite 800 Anchorage, Alaska 99501-3560 Re: Trading Bay 011 & Gas, LLC Notification that Designation afOperator has Lapsed Our File No. T-3303-06 Gentlemen: This law firm represents Trading Bay Oil & Gas, LLC. During 2003 and 2004, Pelican Hill Oil & Gas (pROG) and Trading Bay Oil & Gas, LLC (TBOG) entered into farm-in agreements regarding State of Alaska Oil and Gas Leases ADL 389933, ADL 389934~ ADL 39010L ADL 390102, ADL 390103, and ADL 390104 - also known as the North Beluga Prospect (ADL 389933) and the North Pretty Creek Prospect (ADL 389934, ADL 390101, ADL 390102~ ADL 390103, and ADL 390104). The contractual fights and/or responsibilities contained within the fann-in agreements between PHOG and TBOG regarding these six State of Alaska Oil and Gas Leases have lapsed. Effective immediately, any and all permission granted by TBOG to PHOG to be the operator on one more of these leases as written in any and all cOII'espondence and/or documents signed by Paul L. Craig before today on behalf of TBOG (owner of leases) has also lapsed as a result of the lapsing of the farm-in agreements. These documents and/or correspondence granting pennission to operate may be titled, ~~DESIGNA nON OF OPERATOR" and/or ~~Authorization to Operate." In short, PHOG's authority to be the operator on TBOG's leases listed above has lapsed. ~ I I ! I JUN. 24. 2004 4:54PM .&0 . NO. 4773 P. 3/3 June 24, 2004 Page 2 For your information and convenience, the properties in question may also be referred to in your records as: Tracts CI2001-0553, CI2001-0603, CI2002-600, CI2002- 602, CI2002~603, and CI2002-605. This notification pertains to all six oil and gas leases listed above. Thank you for your attention to this matter. If you have any questions, please do not hesitate to contact me. Very truly yours, BANKSTON, GRONNING, O'HARA, SEDOR, MILLS, GIVENS & HEAPHEY, P.C. ?S::~. ---. WMB:cfv cc: Trading Bay Oil & Gas, LLC Carl J.D. Bauman, Attorney for PHOG T3303\06\L TRaogccWMBl I . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certification #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm(â¿gci.net . 'I'i\' ~h.!,' nU4 June 4, 2004 Mr. Steve Davies Petroleum Geologist AOGCC 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Mr. Tom Maunder Petroleum Engineer AOGCC 333 W. 7th Ave. Suite 100 Anchorage, AK 99501 Re: C-Plan Exception Gentlemen: Pelican Hill Oil and Gas Inc. is preparing to drill one gas well in the onshore area at the north end of the Beluga River Gas Field. This is a gas well that will be drilled to explore for and test the dry gas zones of the Kenai Group of sediments and will not be drilled to a depth that will encounter any liquìd hydrocarbons. Attached is our request for exception to a C-plan permit including figures.. Should you need additional information, please advise. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. Sincerely, ~~ Arlen Ehm Vice President/Alaska Pelican Hill Oil & Gas, Inc. Cc: Ms. Lydia Miner, DEC Mr. Al Gross, Pelican Hill I . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certification #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm(â>.gci.net June 4, 2004 Ms. Lydia Miner C-Plan Specialist Alaska Dept. of Envir. Conservation Division of Air & Water Quality 555 Cordova Street Anchorage, AK 99501-26 I 7 Re: N. Beluga Gas Well Project Beluga River Area, Cook Inlet Dear Ms. Miner: Pelican Hill Oil and Gas, Inc. is preparing to drill a shallow gas wells in the onshore Beluga River area of the Cook Inlet Basin. Weare in the final stages of obtaining the necessary pennits for this activity. You have already received an application for exception to the C-Plan for our well. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, additional state permits and a letter to the COE substantiating that the well is not located in a wetlands area. Details of our operations are given in the Lease Plan of Operations. However, if you have any additional questions, please call on me as soon as possible. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. - Thank you for your assistance. Sincerely, ~~ Arlen Ehm Vice President! Alaska Pelican HilI Oil & Gas, Inc. Enc. Cc: Al Gross, Pelican HilI Oil & Gas .. J . . PELICAN HILL OIL AND GAS, INC. C-PLAN EXCEPTION N. BELUGA NO.1 GAS WELL MARCH 31, 2004 . . REQUEST FOR C-PLAN EXCEPTION N. BELUGA PROSPECT BELUGA RIVER AREA Intl"Oduction Pelican Hill Oil and Gas Inc., is preparing to drill an onshore gas well near the Beluga River Gas Field (Figure I). The well is designed to explore for and test the dry gas zones of the upper part of the Kenai Group of sediments that are productive elsewhere in the Cook Inlet Basin. These dry gas zones are stratigraphically above the liquid-bearing zones. In areas where the liquid- bearing zones are productive, these dry gas zones are also structurally above the liquid-bearing zones. The reservoirs of all dry gas accumulations in the Cook Inlet Basin are in the Sterling and Beluga formations and the upper part of the Tyonek Formation. The reservoirs of all liquid hydrocarbons are the lower Tyonek "G" sands, the Hemlock Conglomerate, the West Foreland Formation and, in a few select areas, the underlying Jurassic strata. To date commercial production of liquid hydrocarbons has not been established in the prospect area or in the entire west side onshore area of Cook Inlet. Additionally, there has not been any significant showing ofliquid hydrocarbons in test wells drilled within this entire area. Well Plans This well will be drilled to a maximum depth of 6,700 feet and may be terminated at a shallower depth if such a shallower total depth is determined to be desirable while drilling. An earlier termination to the drilling could be due to the lack of significant gas shows detected by the logging equipment or by other factors leading to a decision by the operator to terminate drilling. If any liquid hydrocarbons were to be encountered through some unforeseen geological circumstance, drilling would be terminated immediately. A geologist wí\l be on location at all times and will be monitoring all hydrocarbon shows. The logging unit will be in use from below the surface casing which will be drilled and cemented in at approximately 80 feet. Nearby Wells ~ \~b-CJCo~ This well is essentially a twin to the Alaska Energy Development ~urglin X3J.:12 dry hole that was drilled, and not tested, in 1977. I f productive, this well will prove an extension of the Beluga River Gas Field where dry gas has been produced since 1962. The Burglin X33,,12 well contained no liquid hydrocarbons down to 6,700 feet, the proposed depth of [his stepout well. There is no reason to think that this well will contain any liquid hydrocarbons. The closest gas wells are the BRU 212-18, approximately three-fourths of a mile to the southeast, and the BRU224-13,just over a mile to the south. Neither of these two wells contained liquid hydrocarbons down to 6,700 feet, the proposed depth of this step out well. 2 . . . Conclusions This proposed well will be essentially a stepout for the Beluga River Gas Field, which has produced dry gas for f0l1y-two years. There are no unusual structural conditions between this well and the Beluga River Gas Field. Therefore, Pelican Hill is requesting an exception to the C-Plan requirement for this proposed well. ~L-d~-- (NAME) 2 - 3 / -~ <1 (DATE) Arlen Ehm Vice President Pelican Hill Oil & Gas, Inc. 3 . . /Æ/ ARLEN EHM Geological Consultant AAPG Certifier/Petrolellm Geologist Certificatioll #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 "FlU: 907-333-3454 E-mail: arlenehmcmgcí.net June 4, 2004 Mr. Mark Myers, Director Alaska Depal1ment of Natural Resources Division of Oil & Gas 550 West ih Avenue, Suite 800 Anchorage, AK 99501 Re: Pelican Hi II's First Plan of Operations N. Beluga Prospect Dear Mr. Myers: Enclosed is Pelican Hill's first plan of operations for its farm-in acreage onshore in the Beluga River area ofthe Cook Inlet Basin. These dri\ling plans have been designed to simplify the operational and permitting procedures for shallow dry gas well in the basin. Several innovative measures are being employed here that were used for the first time in the basin at the Pelican Hill Iliamna No. I well near Trading Bay. . Should you or your staff have any questions, please contact me at once. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently sti\l underway with Cook Inlet Region, Inc. Sincerely, ~~ Arlen Ehm Pelican Hill Oil & Gas, Inc. Vice President/Alaska Enc. Cc: Pat Galvin, DOG Matt Rader, DOG Al Gross, Pelican Hill Oil and Gas, Inc. --n-------::=.J Pelican Hill Oil & Gas, Inc. Proposed location N. No.1 512 3N R10W ,2004 Beluga River Tracts 1 ~ ADL 221919 Unit 1 2 ~ ASLS 8 "B" J ~ ASLS 14018 "A" Lots1,2,3 4 ~ U.s. Survey 3901 5 ~ ADL 40362 Lot13 I) ~ ADL 40361 Lot12 Vegetation Codes U ~ p ~ Palustrine mixture of broad=leaved deciduous & emergent narrow~leaved Vegetation patterns taken from National Wetlands Inventory, Tyonek Aa3, Alaska Quadrangle, U.S. & Wildlife 1978. . . /Æ/ ARLEN EHM Geological Consultant AAPG Cettified Petroleum Geologist Certificatioll #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm(@.gcí.net June 4, 2004 Ms. Julie Raymond- Yakoubian State Historic Preservation Officer Department of Natural Resources Office of History and Archaeology 550 West ih Avenue, Suite 1310 Anchorage, AK 99501-3565 Re: N. Beluga Gas Well Project Beluga River Area, Cook Inlet Dear Ms. Raymond-Yakoubian: Pelican Hill Oil and Gas, Inc. is preparing to drill a shallow gas well in the onshore Beluga River area of the Cook Inlet Basin. We are in the final stages of obtaining the necessary permits for this activity. Attached please find a completed Archaeological Report for the area of this proposed well. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, additional state permits and a letter to the COE substantiating that the well is not located in a wetlands area. This well is located on the attached topographic map and aerial photo. Detai Is of our operations are given in the Lease Plan of Operations. However, if you have any additional questions, please call on me as soon as possible. Although all of the permit applications with the various agencies were completed on March 31, 2004, the pe:rmits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. Thank you for your assistance. Sincerely, ~~~ Arlen Ehm Vice President! Alaska Pelican Hill Oil & Gas, Inc. Ene. Cc: AI Gross, Pelican Hill Oil & Gas . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certificatioll #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arJenehm@gci.net June 4, 2004 Ms. Cynthia Espinoza Supervisor, Air Program Alaska Dept. of Envir. Conservation Division of Air & Water Quality 555 Cordova Street Anchorage, AK 99501-2617 , Re: N. Beluga Gas Well Project Beluga River Area, Cook Inlet Dear Ms. Espinosa: Pelican Hill Oil and Gas, Inc. is preparing to drill a shallow gas well in the onshore Beluga River area of the Cook Inlet Basin. We are in the final stages of obtaining the necessary permits for this activity. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, additional state permits and a letter to the CaE substantiating that the well is not located in a wetlands area. As per 18 AAC 50.390 Permit-by-Rule for Drilling Rigs and Associated Equipment, it is our understanding that our operations will be within the guidelines of what is required for an exception to a Clean Air Permit. Enclosed are our responses to that regulation. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. Thank you for your assistance. Sincerely, ~~ Arlen Ehm Vice President/Alaska Pelican Hill Oil & Gas Ene. Cc: AI Gross, President Pelican Hill Oil & Gas ¿.-. , . . PELICAN HILL OIL AND GAS, INC. RESPONSE TO PERMIT-BY-RULE PROVISIONS FOR DRILLING RIGS N BELUGA GAS WELL OPERATIONS March 31,2004 .~ . . 18 AAC 50.390 (a)(I) through (5) In compliance (6)(a) NI A (6)(b) In compliance (7) A daily log will be maintained during operations and for 60 months thereafter. This will be in the form of daily notations on the daily drilling log which will be in effect at aU times. (8) In compliance (b)(I)(A)(ß) In compliance (1)(C) NI A (2)(A) N/A (2)(B) In compliance (2)(C) N/A (c)(l )(2) In compliance (3) A surveillance log will be kept (d) In compliance (e)(l) Pelican Hill Oil & Gas, Inc. 1401 N. EI Camino Real, Suite 207 San Clemente, CA 92672 (2) Arlen Ehm 907-333-8880 T 907-333-3454 F 907-230-8144 C (3) Well location: N. Beluga No.1 Sec. 13-TION-RI2W See attached map and aerial photo showing roads, buildings, water bodies, topography and adjacent activities as requested. The aerial photo also shows pipelines, power lines, gas wells, dry hole locations and surface ownership. (4) Expected dates of operation: June 2004-January 2005 2 .. ; . (5) Payment of fees (A) N/A (B) $738 for this location I (6) In comPliarce (7) In compliahce (t)N/A (g) So noted ~~ (NAME) Arlen Ehm V ic:~ President! Alaska Pelican Hill Oil & Gas, Inc. . 3-3/-04 (DATE) 3 . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certificatioll #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm(ã)gci.net June 4, 2004 Mr. Robert J. Blankenburg Industrial Waste Specialist Solid Waste Program Alaska Dept. of Envir. Conservation 555 Cordova Street Anchorage, AK 99501-2617 Re: N. Beluga Gas Well Project Beluga River Area, Cook Inlet Dear Mr. Blankenburg: Pelican Hill Oil and Gas, Inc. is preparing to drill a shallow gas well in the onshore Beluga River area of the Cook Inlet Basin. We are in the final stages of obtaining the necessary permits for this activity. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, additional state permits and a letter to the CaE substantiating that the well is not located in a wetlands area. Details of our operations are given in the Lease Plan of Operations. However, if you have any additional questions, please call on me as soon as possible. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. Thank you for your assistance. Sincerely, ~~ Arlen Ehm Vice President/Alaska Pelican Hill Oil & Gas Enc. Cc: AI Gross, President Pelican Hill Oil & Gas " . . PELICAN HILL OIL AND GAS, INC. TEMPORARY WASTE STORAGE PLAN N. BELUGA NO. I GAS WELL APRIL 14,2004 , . . I. Introduction Pelican Hill Oil and Gas Inc., plans to drill a natural gas well in the Beluga River onshore area during the summer of2004. The locations of the proposed well, existing maintained roads, existing non maintained roads, existing pad and all pertinent elements of present infrastructure are shown on Figures I and 2. Access to the proposed well will be by these existing permanent roads Operations are expected to begin in early June after the rig has completed the IIiamna No. 1 well near the Trading Bay Production Facility. This well will be drilled to a depth of 6,700 feet or less. It is anticipated that operations will cease on this well by mid July and that the rig will be moved to other locations. II. J..,ocation of Proiect Area This project well will be drilled on the following DOG lease in the Beluga River onshore area: ADL 3889933 III. Well Site Location and Access This well site is staked, although not presently surveyed. The location is as follows: N. Beluga No. I Sec. 12-RI3N-TIOW 2,000' FEL & 1,750' FSL aspx = 326,725 aspy = 2,642,670 Lat. 6)013' 53.22" Long. 150059' 9.46" IV. Solid Waste Disposal Cuttings from this well will be washed as the drilling progresses. The washed cuttings will likely be of sand and gravel size and will be collected and stored temporarily in steel tanks for ultimate disposition by one of three methods. If production is established for this well, permits will be obtained to utilize the washed gravel to construct a concrete pad for the needed production facilities. In the event that production is not established, the cuttings will be permanently removed from the well site and placed on nearby surface property with the consent of the landowners. It is also possible that the cuttings will be ground and injected into a well bore under acceptable conditions for such disposal. Trash will be collected and disposed of at an approved facility or taken by barge to an approved facility. All solid waste disposal will be in accordance with methods approved by the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. 2 . . V. Liquid Waste Disposal Drilling fluid will consist of fresh-water mud that contains fewer additives than other muds and is more compatible with mud recycling programs. The mud quality will be constantly maintained such that it can be used at the next well site. At the end of the well plans call for the cleaned mud to be taken to the next well site for use again as drilling mud. Mud that is spent will be removed from the project site and disposed of in an approved manner. This would likely be by the grind and inject method in an approved well. All spent mud will be retained in metal containers while at the project site It is possible that application might be made for annular injection in the upper part of this well. It is also possible that application might later be made to convert the Alaska Energy Development Burglin X33-12 well to an il~jection well. All liquid waste disposal will be in accordance with methods approved by the Alaska Depat1ment of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. VI. .other Waste Disposal Most of the human wastes will be processed at the living quarters of the camp. Portable "Rent-A-Can" type of facility will be in place and maintained at the rig site. Alternately, a p0l1able office structure with toilet facilities may be placed on the location. If that is done, wastewater from this facility will be held in a holding tank and then taken to a proper disposal facility. VII. Responsible Parties The names and telephone numbers of the supervisory personnel throughout the drilling operations are as follows: Mr. Arlen Ehm Vice President Pelican Hill Oil and Gas 230-8144 C Mr. Jim Rose Operations Superintendent Pelican Hill Oil and Gas 223- J 449 C Mr. Al Gross President Pelican Hill Oil and Gas 949-632-5789 C When a site specific telephone connection or other communication method is installed, that information will be provided to the DEC office. 3 . . ~~ (NAME) -s-3/-o4 (DATE) Arlen Ehm Vice President Pelican Hill Oil & Gas, Inc. 4 4-' . . /Æ/ ARLEN EHM Geological Consultant AAPG Certíjìed Petroleum Geologist Certíjìcatiolf #2503 2420 Foxhall Drive Allchomge, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm(£V.gcì.net June 4, 2004 Mr. Ryan Wynn, Project Manager U.S. Army Corps of Engineers Alaska District Attn: CEPOA-CO-R . P.O. Box 6898 Elmendorf, AK 99506-6898 Re: N. Beluga Gas Well Project Beluga River Area, Cook Inlet Dear Mr. Wynn: Pelican Hill Oil and Gas, Inc. is preparing to drill a shallow gas well in the onshore Beluga River area of the Cook Inlet Basin. We are in the final stages of obtaining the necessary permits for this activity. This proposed well will be located on an existing gravel pad and accessed by an existing gravel road. The gravel pad was constructed in 1976 and the road predates it by a number of years. The proposed well is essentially a twin to the Alaska Energy Development Burglin X33-12 well drilled in 1977 and located on that pad. We have collected wetlands information for the area from the U.S, Fish and V'ildlife Service and have transferred it onto the digitized aerial photos for the area. Those data ,..,f,:;arly show the area of operations to be on uplands where previous activities have occurred on gravel construction. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, and additional state permits. Details of our operations are given in the Lease Plan of Operations. However, if you have any additional questions, please call on me as soon as possible. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. ..,.. . . . Mr. Ryan Wynn June 4,2004 Page Two Sincerely, ~~ Arlen Ehm Vice President/Alaska Pelican Hill Oil & Gas Ene. Cc: AI Gross, President Pelican Hill Oil & Gas . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologi.ft Certificat;o1t #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 * Fax: 907-333-3454 E-mail: arlenehm(â)gcLnet June 4, 2004 Mr. Matt Rader Natura] Resource Manager Alaska Department of Natural Resources Division of Oi] & Gas 550 West i" Avenue, Suite 800 Anchorage, AK 99501 Re: Pelican Hill's First Plan of Operations N. Beluga No.1 Gas Well Dear Mr. Rader: Enclosed is Pelican Hill's first plan of operations for its farm-in acreage onshore in the Beluga River area of the Cook Inlet Basin. Also included are the following permitting applications: Agency Permit Application All DMLW DEC - Air DEC - Solid Wastes DEC - C-Plan AOGCC COE Histor. Preseerv. Kenai Penn. Bor. Coastal Project Questionnaire Temporary Water Use Permit Clean Air Exception by Rule Permit for Temporary Storage of Solid Wastes C-Plan Exception C-Plan Exception Statement of Facts Statement of Fects Permit Package Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface I~ndowner. Negotiations are present]y still underway with Cook Inlet Region, Inc. Should you or your staff have any questions, please contact me at once. . . Mr. Matt Rader June 4, 2004 Page Two Sincerely, ~~ Arlen Ehm Pelican Hill Oil & Gas, Inc. Vice President! Alaska Enc. Cc: Mark Myers, DOG Patrick Galvin, DOG Al Gross, Pelican Hill Oil and Gas, Inc. . . 3601 C Street Suite 822 Anchorage, AK 99503 www.petroak.com info@petroak.com 907 272-1232 telephone 907272-1344 fax pa,.Hu,~¡(t ~~ Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 W. ih Ave. Suite 100 Anchorage, AK. 9950 I April 26, 2004 RE: Pelican Hill Oil and Gas Inc., North Beluga Prospect Dear Mr. Davies: I have interpreted two seismic lines (one dip line and one strike line) across the North Beluga Prospect area on behalf of Pelican Hill Oil and Gas Inc. The data quality is generally good in the area of the prospect. I saw no indication of shallow gas accumulation in the vicinity of the prospect. I observed no amplitude anomalies, no phase reversals, and no gas chimneys at depths ofless than 2000 feet in the prospect area. The N. Beluga No. 1 location is within 350 feet of the nearest seismic line. Due to confidentiality restrictions I cannot attach copies of the data to this letter. The data are proprietary and Pelican Hill Oil and Gas Inc. do not have rights to show the data. Please contact me if I may be of further assistance. ~in erely, /¿ C;. ~~ homas L. Plawman Consulting Geophysicist AAPG Certified Petroleum Geophysicist No. 80 'reDINC BAY OIL & CAS, Ja 5'1J2 F No/!!rcl/I Ugh!,ç ¡¡!I,d, Sui!c 6/0 !llIc¡'omgc, AT< 99508 PliO/Ie (907) 278-7489 Fax (907) 274-8211 ~--'-""_.__.-...- ---..--.-,...--.--..- ,.-----.... -'-" ---.-~~.._..- --. ---'.. ----._-.--._-------'"._------~-----~-- February 9, 2004 rvlr. Malt Rader N"tur,d Resource M"n"gcr !\hlska I)cP;IIII11l'nl or N;IIIII;lIl~l'soIlICl'S Division or Oil & Cas 550 West 7111 A venue, Suite ROO Anchor"ge, AI<. 9950 I Rc: AII(horizaliol110 Operale N. Beluga No. I Dear Mr. Rader: Pelican Hi I! Oil and Gas, Inc., has fanned in the lease upon which tbis proposed well will be located. The assignment of ownership for the lease will not be made 1.1IliÍI Pelican Hill has complied with certain conditions of the farmout, including the drilling of a well to a prescribed depth. Details orlhis proposed well are "s follows: Operator: Well name Location: LC;lse: Le"se owner Pelican I lill Oil and Gas, Inc. N. Beluga No. I See. 12-TI3N-RIOW ADL 389933 Trading B"y Oil & G"s, ILC: Please be advisecllhat 'rrading Bay Oil & Gas, LLC, hereby authorizes Pelican Hill Oil and Gas, Inc., to operate on [his lease for Ihe purpose of drilling gas wells in compliflt1ce with the aroreJl)~,!Jj(¡íred f'mlll in agrecll1cl1t. . //' Sill';ÿ~~~'~ ~ .( ~á'( ./,./;/P7£ß(/ /:.fA. /' / P<1\.I.1 L. Craig, Ph.D.. . , Presidenl ' Cc: Adell Ehlll; (J¿:(1Iogic;l1 COt1S\llt,lt1( AI Gross, PcliC;lIl Ilil) Oil ,11)(1 (Î;JS, Il1c. "'..- N8~~nd Acfdres;- 0; Owner: ¡\Lnc)I\/\ Ult I\Nï) (~^S CONSERVATION COMMJSSION .I2. ESIGNATION OF OPERAT<& . 20 ^^C 25.020 - '<:. . "-----~-- Tlading Bay Oil 8. Gas, LLC 5~32 E. Northern Ughts Glvel. SlIit!') 610 Anchora9.~. AI< 99508 :>. Nolice is hereby given or fI clesignollon or operalorsh1r ror (he oil And gAS rroperly described below: LegAl descriplion or properly: TRACT C 1200 '·0553 T. 13 N, 11 10 W., n~ACT C. SEWARD MERIDIAN, ALASJ<A SECTION I, UNSURVEYED, NEifNWif AND THE BED or THE BELUGA RIVER SECTION 2. UNSURVEYED, THE BED 01'1' IE BELUGA RIV!:n SECTION 11. UNSURVEYED, E2 SECTION 12. UNSUrWEYED, ALL, EXCLUDING US SURVEY 3901 AND INCUJDfNG THE BED or: nlE BELUGA RIVEn 11<1.48 ACRES 87.22 ACnES 320.00 ACRES 635.00 ACRES TI liS TnACT CON TAINS 1,156 70 ACRES MOnE OR lESS ~------~--~---- Property PIal AlIached: 121 3. Name and Address or D0sipnRlpd Opel::Jtor' Pelican I iiI! Oil & G::Js. '"C ! -10 N. EI C::JIl1ino r~ea', SlIile 207 San Clemente, CA 9:>672 ';;--,[iiec\ivè Dai'ëõf Õesignaiio'~' 2/9/200~ -~~-._--~-- 5. Acceptance oi operalörship for tile above descr¡¡;;;:¡ñroperty ;¡¡¡;¡;;- ail 311ei;dani respöilsibiiitles and obilgatlonš is hereby ãCknowtedged: SI9""'" ~--~~-f2._~~-_. ~~.- 0", 2 I 8- 0 l( ------- Prinled Name Allen .I. Gross ... TIlle , j'''OW''''í''''hYœ'~~'',. ~",,,í ::~"~,,~-y.::,,~~=: ~7<-~: ~ ~... ':,:,~ 7 President -ð-2Z--Ôr President ^pJloved' . -,-,_.._-~._"--~.__."_.._.._-..._---._----._-,._-----------~-_.-.---~--_...~-- ~.._."-----.--~._------ Commissioner Dale ^JlP,olfed' -----_.__..._~ -.---.--_.~"--~.~ --_._-_._-_._--~.---~-~-_._-----~----~_. Cornmissiorler Dale ^ppfoved: _.~_._-.._~---.-'-------~-.._-'---~----- ---------~----------~---- CorlHnlssioner Dale (Requires approval by Iwo Commissioners) Form O·-111 Rev.10/2003 Submilln cÎupllcale LEGEND BASI:. 1NfQIUM1l0!< ,--..::;;:::::;----'" J""""""'" .svRVII'Y UN! SURVev wr UN& ~11OH OIUD '" """'"' IJNE HK3i1W"Y ""'" !1WI. MIUOo'" a~ f'OWPJt 1.001 11OJ!ftI<O¡1JN!! .....".. 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IJ$G$ "Ofia ......1 tM~ 1M, IJt(D eM, 1tF.V1jFJ) M IlM FIfOM ¡þ1AL 1/113II .u;nnD!' I'I#UJfTAAI'Hr IIJTrA../'iiø CJ£WI¡W SQ..J; ..,,.R04TD I'P/'JI/'}t¡ð.'.. .t:9J;MJI ~A"YO~m .. .'iCU1;.M:r:D't'DJ Urnr/i'lb': NOT DÐ"Ia11Þ TRN:1' c~ 'IJU46 ACIlti:S. ,iftIU M:JlD; MXE/"f'Ð) 1I/Z1IIPflI AND "" '<ø tq:s.HGZ: ACt:tnm JJIJfJtJW ()S$ JH1; NXmm Ø8NYrNl ,uu 1¥J/4, ft/LD 4)Ji81rtm 0-, 4!Ø»2. I'1UD CftW1:ít6 (JfHFI.M.'DI:1W~DØt'QS.ttOlttJJi.(}"srM£L."WJ.f.- sø 7J«!AS CA.Œl'1U air t1ItGIrI.M. SOf$CE ~ FfØ ,I/JOf71DItIALJN1'OIINlfTJ()N.· ~It"lftUli.AJ~/JOtlt)(JGH Øl'I'ØHIINDGUII' Q4MI! M7UGl. JJ.wMSVtENr F'I.AH ,tfft 9, IWl!1tT 1I1-d6-1ßU: ~ fl"tIlM AC/lIiJ WU1(tJ> ru 'LAT (JI .sr.wt'Ð' ..t.ea:7n'D IJfUt1f¡1I ,1fflJO CUFlaitJ.l:r FrUD /1rdtf'tl'l1 MTENrION. NlM'N. /¡TAJ3l tNÐ /IlIItJCUM1ON JJU.oæ ~ fSZZ uœND JAM Jœn'AL H£fU1I nœr UN!). CONSULT T1Œ tlwr IAtiO 0111t:% 1'ØIt ~ AVFOftIIA7rON. E~~~~NOr~=A( PU1t:SWAT1t1~tfANDT,CJIH'Œ1lf..mt.AJ<J'N. . . .~:-;::,::~- .-.--:::;::,: I ~ JfÁ1E(1f~ . DeP.-.rnœRT ør NA1'UL\L UIKKIRQII I..-\N) RØX3IWS ~'ßJW ss..-mN ME TWP 13N RNG IIIW SM . ---- >----._--. fVo.T {'t~ 10 oo.'OGQL IW'8l TO'" INl !T4n1!l fUT~ n"I'1b ~... ontNtf'fP'C[JlHn~orc1M,~A'r aI.BL1ŒO BY 11:1LI. .r.wcIn' -'t,J{f'~ ;. . . Form DOGIPCU-03 October 1999 RETURN TO: Division of on and Gas 550 W, 7to Ave., suite BOO Anchorage, AK 99501-3560 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS LEASE I UNIT* PLAN OF OPERATIONS APPLICATION Applicant: PEL J CA)./ H l/-L (9/ L I C;A-5 I ï:.A/G. Date:? -31 ·04 Contact Person: fiR., L..£ N /:!£"HM Telephone #: 3 3 ~-KK30 Fax # "3 ~?, - 34S-4- Mailing Address: 2-42..0 rO)( Hltl-L- DR. E-mail Address: ôrle.H~<hhl(/fJ fj a.Hei- Is this activity within a Unit? Æ/ 0 Which Unit? Operator: Is any part of the proposed project or activity discussed in the approved Unit Plan of Exploration or Development filed with the Division of Oil and Gas? If no, attach a detailed explanation. The Applicant is: 0 Unit Operator 0 Lessee* Dl Tract Operator DOtha*: Project Description: DJ2.1 L..¿,INCÞ to F /1/. BE'Lt.Jtõ,A- iVl1· J W 6LL Project Location/FacilityName: Be-I- l./~A R.I1I61!:.. ¡:::'/~L-J) A-~GA ADL # (mandatory): Z 899:33 Oil and Gas Bond #: ~R./lF vtK.AJLe L Æ/TEJ e>P C/2. l:f);{T Aft 8()Ko:5 5(;) POI 2..' , Plan of Operations require a $250.00 pemlÌt fee; payable to the State of Alaska, Department of Revenue; and should accompany this applícatíon.~, ;:t{ , I, Plan of Operations: S E G"" t4 rr/fC,/I /J1 ß"A/r (Attach extra sheets ifnecessary, include applicable diagrams) 2. Surface Property Owner: 6Ð()}L ]::"AJI-5'r- g¡¡;rç,/oA.t; r.AlCr 3, Legal Description: Section / íJ.,. , Township ~ Ai , Range J 0 u. J, Meridian ç (Include allnecessaI]1 maps) 4. Site Access: S-XI.5TI/1/(¿;; ç/2/t-YéT'-- ¡¿OA-D 5. Proposed Start-up Date: to - I - 0 4 6. Expected Completion Date: I ¿- 3/ -04 7. Project Material: ÆI PAl lP 8. Material Source: --- a) Amount: (pad) b) Acreage Covered: (pad) 9. Snow Removal Plan: G 12-~¡;;-þ. cy (road) (road) 1 r= £,o/1/T' cy (other) (other) e.A/.:Þ l-ø~·;1)~ cy wI J5 l/CJc¡,-r * Unit Plan of Operations approvals are not considered complete until the consent of the Unit Operator has been obtaIned by the applicant. ". . . 1 O. Will Any Off-road (tundra or ice) Travel be Required? 11/ 0 a) Period of Off-road Travel: b) Equipment to be Utilized: _ II. Will a Temporary Water Use Pennit be Required? Y € f a) Purpose: I?./ ~ uJ IrTt:::TL b) Sources: W 6 t-L 4, 1<../" S I r~ c) Access: 12.. ÐA- D d) Max. Anticipated Withdrawal: ;f,O{fJ1'J d f1 12. Will Fuel or Any Other Hazardous Substances be Stored on Site? V ¡;.J a) Type: DleJ&L. b) Volume: / f)/PfJ 0 ~ h- L ,l¡..ßDII6 c.. ¡¿Oll AID J)ð(j'(l.U' W/tl.¿,I5,/) T.A--.fi/t c) Handling Technique: FLo /J.) µ (N I r¡¿VaC Ti.A.,vsFlFn.. ro 51 ri:! d) Access: 6'/.151'1#(:. 1>.1Z¡u...-lvc, fit-V e) Duration of Storage: -¿. 0 D ð-YJ 13. If a Pipeline is Being Constructed, will the line be a: o Common Carrier Pipeline 0 Field Gathering Line o Other: a) Location / Route: b) Number, Diameter and Length: c) Type and Use: d) Construction Access: 14. Plan for Rehabilitation: 0 Upon Abandonment 15. Is Any Part of this Application Confidential? ¡fj 0 16. How will Solid Waste be Disposed of? 'JE ¡Y/POO~./f'-'Y S1l)PMtJØ"" f £P#ff))/J-V 17. What Infrastructure wjJ be Used to Support the Project? J1,E:J-U ~ A ~ J ~ 'Z.AlDt.JJ'JBIÂ'V ÚMPt.£"1 o Specific: see attached plan lVIA- S ~G ¡J¿.+AJ C P DP6J2~íl()Ø 18. Additional Comments: The undersigned hereby requests that each page of this application marked confidential be held confidential under AS 38.05.035(a)(9). ~~J.~ Signature IJlfr¡JJí'~/PðMj,/1.AffJ- :-5 -'] / -04 Title Date . . PELICAN HILL OIL AND GAS PLAN OF OPERATIONS N. BELUGA NO.1 GAS WELL MARCH 31, 2004 . . 1. Introduction Pelican Hill Oil and Gas Inc., plans to drill a natural gas weJl in the Beluga River onshore area during the slimmer of 2004. The location of the proposed well, existing roads, existing pad and other pertinent elements of present infrastructure are shown on Figures I and 2. 2. Schedule of Events Operations are expected to begin in early summer after negotiations with Cook Inlet Region, Inc. are completed for the use of their surface. The rig will also be used for other wells that are being proposed in the area during the summer and winter months ahead. The proposed depth of the well is 6,730 feet and it will be a straight hole. The well is expected to take from 15 to 20 days. 3. Location of Proiect Area The project well will be located at the north end of the Beluga River Field in the onshore area on a leased fanned in from Trading Bay Oil and Gas. The subject lease is: ADL 389933 4. Proposed Well Site Location and Access The potential well site has been determined, although not presently surveyed. The location is as follows: Pelican Hill N. Beluga No. I Sec.12-Tl3N-RIOW 2,000' FEL & 1,750' FSL Alaska Energy Development Burglin X33- I 2 Sec. 12-TI3N-RIOW 1,500' FSL & 2,050' FEL w 5. Previous Well Sites This well is immediately adjacent to the Alaska Energy Developme t exploratory well drilled in 1976-77. ~ This proposed well is also located approximately 4,000 feet north-northwest of a Beluga River Unit development well drilled in 1975. This well produced gas until it was abandoned in 1985. Chevron BRU 212-18 Sec. 18-T13N-R9W 1,799' FNL & 100' FWL 2 . . 6. Surface Ownership Af!reement The Alaska Department of Natural Resources owns the subsurface of the subject lease, ADL 389933, while Cook Inlet Region, Incorporated (CIRI) owns the surface. Negotiations are presently underway with Cook Inlet Region, Incorporated to allow Pelican HilI to access the surface as necessary in order to drill this well. 7. Mobilization The existing barge landing associated with the Beluga River Gas Field will be the primary terminus for freight transportation. Alternately, a newly constructed barge landing may be used depending on the time of its completion. Freight will be received and immediately moved away from the landing area. Preparation of the landing site will be required before the barges arrive and the return to normal conditions will be made after departure of the barges. Rig components and supplies will be brought to the rig site along existing permanent roads. 8. Airstrip The existing Beluga River airstrip associated with the Beluga River Gas Field will be used for all air traffic except, possibly, occasional helicopter traffic, as necessary. 9. Transportation Barge shipments departing from Anchorage will be the primary method of mobilization while a lesser amount freight and supplies will depart from Kenai. After mobilization, barge shipments from Kenai will be the primary method of transportation. The materials will be offloaded at the barge landing site. Efforts will be made to coordinate these barge shipments with other users in the Beluga River area. Fuel supply will be from Kenai or Anchorage and will be primarily by air. Other critical items of freight will be either from Kenai or Anchorage. The Beluga airstrip will be the destination of these flights. Transportation for the rig crews and Pelican Hill supervisory personnel wiII be primarily from Anchorage. Transportation for support personnel will be both from Kenai and from Anchorage. The Beluga airstrip will be the destination of these flights. 10. .Existin~ Permanent Roads Existing permanent roads leading from the airstrip to the producing gas wells and gas fields will be the primary method of transportation within the project area. These roads have been in place for as long as thirty-five or more years. In addition to usage for gas drilling and production operations by Unocal, other companies using the roads are Chugach Electric Association, Enstar and others. A short access road to the recreational lots along the Beluga River has been in place for many years. This was upgraded with the drilling of the Burglin X33-12 exploratory well by Alaska Energy Development in 1976. This road still exists but vegetation has encroached onto it from both sides. When operations are scheduled to begin, recreational lot owners will be notified. 3 . . 11. Abandoned Gravel Structures Alaska Energy Development built a gravel pad for the Burglin X33-12 well in 1976 and that pad is still in place today. This gravel pad will be used for the drilling of the proposed N. Beluga No. I well. Although this pad still exists, vegetation has encroached onto it from both sides and the entire pad has some growth on it. Additionally, Cook Inlet Region, Inc. has taken gravel from portions of the pad, which will require some surface work on the pad to make it useable. According to paragraph 10 of the Mitigation Measures, "Use of abandoned gravel structures may be permitted on an individual basis". However, an exception must be granted by the DO&G and the ADF&G. Pelican Hill is requesting that a waiver of this provision be granted. 12. Proximity to the Belu2:a River Paragraph 6a and 6b of the Mitigation Measures address sight and sound impacts for new facilities sited less than one-half mile from the banks of rivers and in areas of high recreational use. The Mitigation Measures site the Beluga River in this context. Suggested remedies are natural buffers and screening, conducting operations between October 1 and April 30 or using alternative techniques to minimize impacts. This well is located approximately 725 feet from the Beluga River. · The well will be located on the site of an existing gravel pad reached by an existing road where a well was drilled to a depth of 6,694 feet in 1977. · This specific site is not an area of high recreational use. Therefore there is no need to delay activities until after any possible recreational use ceases. · Although some summer cabins exist in the area immediately adjacent to the Beluga River, these operations will not preclude th\~ use of their cabins. · Pelican Hill's drilling operations utilize a small drilling rig with limited ancillary equipment. Therefore there is no need to construct buffers or screening. · The proposed location and access road are immediately adjacent to a road network that is used daily. The amount of increased vehicular traffic will not be significant. A waiver ofthis provision is requested from the DO&G and the ADF&G based on the above factors. 13. Temporary Road Locations and Access There will be no temporary roads constructed in this operation. Should production be established, the existing road would continue to be used as a permanent road. 14. Wetlands Determinations Access to this existing gravel drill pad where the ¡proposed well site will be located will be by way of an existing gravel road, which has been in use for many years. Therefore, there will be no encroachment onto or disturbance of any potential wetland areas. Figure 1 confirms 4 . . that the area of the existing road, the existing drilling pad and the surrounding area are classified as "primarily upland". 15. Material Sites The use of the existing gravel road and the existing gravel pad should preclude the need for material sites. Should it be necessary to expand the drilling pad to the northwest in order to allow for proper positioning of the drilling rig, it might be necessary to move some gravel. If that becomes necessary, gravel would be moved as necessary to prepare the existing pad. It is probable that the existing gravel pad can be leveled sufficiently to accommodate the drilling operations. A gravel pit exists in Sec. 6- T 13N-R9W SM on the east side of the Beluga River. Should it be necessary to bring in gravel, it would be hauled some 2.5 miles to the location. In that case, an application for a permit for gravel use would be filed. 16. Well Site The well site will be located in the existing clearing where wood/steel matting boards can be laid to support the rig and the heavy portions of its ancillary equipment. The well pad will be approximately 200' X 200' or a different shape of the same area as determined by the existing pad. Where possible, supplies will be staged off the well site in nearby staging areas to avoid congestion at the rig site. 17. Drillille: Rie: The drilling rig that will be used on this project is a small self-propelled carrier-mounted rig that was used to drill the IIiamna No.1 well near Trading Bay. The rig is capable of drilling to a depth of approximately 7,000 feet when drilling with casing. This well will be drilled to a maximum depth of 6,730 feet. Because of the small size, this rig will require much less supporting equipment than is normally used for the drilling of wells to comparable depths. Since it is mobile, moving the draw works and derrick as one unit is much simpler than by moving them in pieces on trucks and reassembling. This rig has been configured to be an ideal rig for drilling the shallow gas prospects in the Cook Inlet Basin. 18. Fuel Storae:e Diesel fuel storage will be in a 10,000-gallon double walled tank that will be on location. It will be refilled from the airstrip by a tank mounted on a bed truck. A 500-gallon diesel tank will be used as a day tank to refuel the smaller pieces of equipment. Gasoline will be stored in barrels off the immediate location throughout operations. An impermeable lining will be placed on areas of the drilling pad and nearby storage areas where oily substances might be located. 5 . 19. Drilline Mud . The drílling mud to be used in these wells is a low solids gel/gelex fluid throughout the duration of drilling operations. The drilling muds often contain additives for various control reasons. These additives, listed in part by their trade names, and their functions are included on the EPA-approved list for OCS drilling. Additive M-I Bar (barite) M-I Gel Gelex Flovis Dual-flo Polypac HEC Biozan Guar gum Safe-carb F,M,C Lo wate Nut plug M-I Seal, F,M,C Mix II F,M,C Resinex Soltex Asphasol D Desco CF Ventrol 40 I G-seal Caustic soda Caustic potash Borax SAPP Soda ash Sodium Bicarbonate Citric acid Myacide Green Cide 25G Defoam X Bubble buster Kla-gard Lube Tex D-D CWT Concor 303 Safekleen Safe solv Safescav NA Safe surf 0 Sodium chloride Potassium chloride Application Weighting agent Viscosity control Bentonite Extender Viscosifier Modified starch Fluid loss reducer Loss circulation material Viscosifier Viscosifier Bridging and weighting agent Weighting agent Loss circulation material Loss circulation material Loss circulation material Drilling fluid additive Bore stabilizer Hole stabilizer Dispersant Surfactant Drilling fluid additive Alkalinity control pH modifier Inorganic borate Sodium Pyrophosphate Alkalinity control Alkalinity control pH adjuster Biocide Biocide Defoamer Defoamer Shale control agent Lubricant Detergent Corrosion inhibitor Drilling fluid additive Completion fluid additive Oxygen scavenger Completion fluid additive Completion fluid additive shale inhibitor 6 . . 20. Rie: Water The first choice as a source of water for rig use is the water well that was drilled for the Burglin X33-12 well. If that well can not be reentered and completed, a new well will be drilled. A water line will deliver water to the rig as necessary for rig use and it will be stored in an insulated water tank at the rig site. 21. Safety Procedures Safety will be the major priority during the conducting of these operations. Safety meetings will be held regularly and all personnel will be made familiar with all of the aspects of the operations, especially where caution should be exercised or possible danger might be encountered. Safety and medical emergencies will be by helicopter or fixed wing aircraft to Anchorage. . 22. Spill Prevention Control and Counter Measure Plan An SPCC spill plan will be maintained at the site and all rig personnel will be made familiar with it. While Pelican Hill will make every effort to prevent spills of any type, small spills might occur. Pelican Hill is prepared to not only reduce the risk of a spill to a very low possibility but also to work diligently to make any remedial measures necessary. Any spill will be reported at once through the proper channels. The likelihood of a crude oil spill is almost nonexistent since this well is being drilled for åry gas where associated oil has never been found in the Cook Inlet Basin. Therefore, there will be no Oil Discharge Prevention and Contingency Plan (C-plan) in place. An application for an exception to a C-Plan requirement is being made to the AOGCC and the DEC concurrently with the filing of this document. When the AOGCC has made a determination, that document will be added to and incorporated with this Response to Mitigation Measurês. Containment material will be in place under the rig components should any inadvertent spill occur on the well site. Gas detection instrumentation will be in place and operating at all times with monitors on the rig floor and the geologist's office area. All operations will be in accordance with the regulations and advisories of the Alaska Oil and Gas Conservation Commission. 23. Well Control Blow Out Prevention Equipment (BOPE) will be in place throughout the drilling of the wells and as long as the hole is open. This will consist of an annular preventer on the top and a double gate ram system below. The BOPE will be tested on all new casing strings and at regular intervals as per the requirements of the AOGCC. All supervisory personnel will have current BOPE certification while on the project. Gas detection instrumentation will be in place as long as the drill hole is open. Sufficient barite, a heavy mud additive, will be maintained on location at all times to counteract any uqforeseen gas kicks. Sufficient loss circulation material will also be on location to counteract fluid 7 . . losses. Other standard industry monitoring and control measures will be maintained at all times. 24. Top Drive Mechanism During recent years the industry has generally converted to a top drive method of rotating the drill string as opposed to the rotary table method. Where the rotary table method is used, the drill string must be hoisted sufficiently to add additional joints of drill pipe every thirty or so feet. In doing so, the hole often caves in below the raised drill bit. To prevent this from happening, top dives have come into common use. Utilization of the top drive avoids hoisting the drill string and leaving the bottom thirty plus feet of the hole open. This not only enhances the progress of the drilling operations but also reduces the opportunities for the drill bit and drill string to become stuck. Under certain conditions, becoming stuck can lead to other problems such as blowouts. The depth to the surface casing at 600 feet will be drilled with a conventional bottom hole assembly. At that point, the top drive equipment will be rigged up and the casing drilling program will commence. "-- ......----.~~~ A top drive mechanism was used successfully by Pelican Hill at its Iliamna No. I well near Trading Bay during the winter of2003-2004. 25. Casine Drilline Method Drilling with casing instead of the normal drilling assembly also reduces the risk of the drilling assembly becoming stuck and the possible risk of ensuing blowouts. Drilling with casing allows for the operator to cement the casing string in place at the end of the well when drilling operations are complete and testing is to begin. This is beneficial to the operator in a number of ways. In this method the drilling assembly is primarily the same diameter from the top of the string to the bottom. This creates better borehole conditions during and after drilling. During drilling, the drilling mud return flow is essentially at the same rate from the bottom of the hole to the top. This makes for a clean hole as the cuttings are brought up sooner and continuously without tumbling while in the low velocity zones. Keeping the hole clean also reduces the risk of becoming stuck. The casing method also has what is called a "smearing" effect on the wall Jfthe hole. This leaves less possible borehole damage for subsequent testing and production operations. Drilling the Iliamna No.1 well revealed that the combination of the casing drilling method in conjunction with a PDC bit produced a hole that was more in gauge than wells drilled by conventional methods. Having the casing always in place during the drilling of a well provides an excellent safety net for any possible blowout. Should the decision be made to cement the well in to control a blowout, the casing is already in place. The top drive sing drilling method was used successfully at Pelican Hill's Iliamna No.1 well near Trading Bay during the winter of2003-2004. 8 . . . ( r 'ðc>~"'t.'( O~" \ ~ · 26. Class II Disposal Well Application may be made to the AOGCC to convert the Alaska Energy Development BurgHn X33-12 dry hole to a disposal well for both liquids and solid wastes from this well. This proposed disposal well might also be used for solid and liquid wastes from other Pelican Hilt wells in the area. 27. Solid Waste Disposal Solid wastes will be collected at the rig site for approved disposal. Drill cuttings will be washed, collected in metal tanks and stored until the method of disposition has been determined. The washed cuttings will be collected in mud hoppers and transferred immediately to the steel tanks. They will never be in contact with the ground surface. If production is established, application will be made to utilize the cuttings to construct a concrete pad for the production facilities. In the event that production is not established, the washed cuttings will be analyzed and then placed on nearby surface property where approval from the surface owner will already have been received. Alternately, they will be ground and injected into the disposal well. Trash will be collected and disposed of in an approved manner or taken to an approved facility. All solid waste disposal will be in accordance with methods approvM by the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. 28. Liquid Waste Disposal Drilling fluid will be a fresh-water mud that has fewer additives and is more compatible with recycling procedures. The mud will be constantly maintained such that it might be used at the next well site. Mud that is spent will be stored at the project site and disposed of by injection. Any fresh water within the rig area will be collected and reused or disposed of in a prop~r manner. All liquid waste disposal will be in accordance with methods approved by the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. ¡:to 29. Other Waste Disposal Human wastes will be primarily collected at the campsite. Portable "Rent-A-Can" type of facilities will be in place at the rig site. 30. Testiue Testing will be accomplished in a safe and environmentally sound manner. Any produced gas will be vented into the atmosphere. There will be no flaring. 9 . . 31. Responsible Parties The names and telephone numbers of the Pelican Hill supervisory personnel that will be present throughout the drilling operations are as follows: Mr. Arlen Ehm Mr. James A. Rose Mr. AI Gross Vice President/Alaska Operations Superintendent President 907-230-8144 907-223-1449 949-632-5789 When office telephones and a site-specific field telephone system are acquired, that information will be provided. 32. List of Illustrations Figure I Topographic Map Showing Wells, Subsurface Ownership Leases, Enstar Gas Pipeline and CEA Power Line and Topography Figure 2 Aerial Photo Showing Wells, Surface Ownership, Subsurface Ownership Leases, Enstar Gas Pipeline, CEA Power Line and Vegetation ~~ (NAME) J-3/-04- (DA IE) Arlen Ehm Vice President/Alaska Pelican Hill Oil & Gas, Inc. 10 " I' . . PELICAN HILL OIL AND GAS, INC. ARCHAEOLOGICAL COMPLIANCE REPORT N. BELUGA NO.1 GAS WELL PREP ARED BY PELICAN HILL OIL AND GAS, INC. APRIL 14, 2004 .. " . . 1. Introduction Pelican Hill Oil and Gas, Inc. is planning to drill a well at the north end of the Beluga River Gas Field where gas drilling and production operations have been underway sin¿,~ 1962. Numerous roads and drílling pads have been built in this area over the years and all but two drilling pads are still in use today. All of the roads and pads in the Beluga River Gas Field area were constructed prior to the requirement for the compilation of an archaeological assessment of the area. The proposed well, N. Beluga No.1, will be located on an existing gravel pad and accessed by an existing gravel road. Both have been in existence for years. This pad was used to drill the Alaska Energy Development Burglin X33-12 well in 1976-77. That well was a dry hole and the location was abandoned. Since that time vegetation has grown up over much of the drilling pad. However, the short access road predates this well and local seasonal residents along the bluff of the Beluga River have used it for years. Therefore, the vegetation has been kept in check on the access road. 2. Surface Activities Pelican Hill has plans to remain contain all operations entirely on the existing short gravel access road and the existing gravel pad. All activities will be designed to operate within the area ofthe existing pad. Should it be necessary to expand this area, some gravel might be moved ftom the southeast corner of the pad to the northwest corner of the pad in order to extend the pad in that direction. However, the area of possible extension was the location of a gravel pit for the previously drílled dry hole. Therefore there wíll be no encroachment onto new areas beyond those that have already been the site of cut or fill operations. The potential for damage to any existing but undiscovered archaeological sites is almost nonexistent under these operating conditions. There will be no traversing off the existing gravel road and drilling pad. 3. Conclusions It is the conclusion of Pelican Hill that drilling operations for this proposedweil will provide no threat to any potential cultural resources in the project area. It is further concluded that, should there be any inadvertent traversing of any archaeological sites, no damage of any kind will occur to those sites as these areas were traversed previously in the building of and use of the existing road and drilling pad. ~~~ (NAME) 2::J J~éJ~ (DATE) Arlen Ehm Vice President Pelican Hill Oil & Gas, Inc. 2 . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certification #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 "Fax: 907-333-3454 E-mail: arlenehm(aJgci.net June 4,2004 Ms. Kaye Laughlin Project Review Coordinator Alaska Department of Natural Resources Office of Project Management & Permitting C/o Joint Pipeline Office 411 West 4th Avenue, Suit 2-C .Anchorage, AK 99501-2342 Re: Permits for Gas Well Dear Ms. Laughlin: Pelican Hill Oil and Gas, Inc. is preparing to drill a shallow gas well in the onshore Beluga River area of the Cook Inlet Basin. We are in the final stages of obtaining the necessary permits for this activity. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, additional state permits and a letter to the COE substantiating that the well is not located in a wetlands area. Attached please find a complete package of permit applications. Details of our operations are given in the Lease Plan of Operations. However, if you have any additional questions, please call on me as soon as possible. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. Thank you for your assistance. Sincerely, ~~ Arlen Ehm Vice President! Alaska Pelican Hill Oil & Gas Inc. Ene. Cc: AI Gross, Pelican Hill Oil and Gas . . Coastal Project Questionnaire and Certification Statement Please answer all questions. To avoid a delay in processing, please call the department ¡fvou answer "yes" to auv of the questions related to that department. Maps and plan drawings must be included with your packet. All ill complete packet will be returned. · APPLICANT INFORMATION I. Pelican Hill Oil and Gas Inc. Name of Applicant 1401 N. EI Camino Real, Suite 207 Address San Clemente, CA City/State 949-498-2101 or 949-632-5789 Daytime Phone 949-498-2132 Fax ]'\¡umber 99672 Zip Code 2. Arlen Ehm Agent (or responsible party if other than applicant) 1441 B Street, Suite 20~.. Address Anchorage, AK CitylState State Zip Code 907 -333-8880* Daytime Phone 907-333-3454 * 99503 Zip Code gross(ãJ,hotmail.com E-mail Address Fax Number *New telephone numbers to be provided arlenehm@J;!;cLnet E-mail Address · PROJECT INFORMATION Yes No 1. This activity is a: "'new project 0 modification or addition to an existing project If a modification, do you currently have any State, federal or local approvals related to this activity? ................................................... ................................................. ............ ... ........ 0 0 Note: Approval means any form of authorization. If "yes," please list below: Approval Type Approval # Issuance Date Expiration Date 2. If a modification, has this project ever been reviewed by the State of Alaska under the ACMP? .......... 0 0 Previous State I.D. Number: AK _ Previous Project Name: · PROJECT DESCRIPTION 1. Provide a brief description of your entire project and ALL associated facilities and land use conversions. Attach additional sheet(s) as needed. See Attached Plan of Operations. One:: well will be drilled in the Beluga Rive area. Access will be from the existing Beluga River airstrip in Sec. 34-13N-R1 OW. There will be no wetland fill for road or pad construction. Campsite will be the Chugach Electric Facility or the VECO camp at the BeluJ;!;a River airstrip. There will be no discharging of domestic wastes or wastewater. Onsite water usage will be temporary and for drilling operations only. There will temporary onsite storage of drilling mud and well cuttings. There will be no flaring. Proposed starting date for project: Estimate 6-01-04 Proposed ending date for praj-:ct: Estimate 12-01-04 2. Attach the following: . a detailed description of the project, all associated facilities, and land use conversions, etc. (Be specific, including access roads, caretaker facilities, waste disposal sites, etc.); . a project timeline for completion of all major activities in the proposal; - a site plan depicting property boundary with all proposed actions; - other supporting documentation that would facilitate review of the project. Note: If the project is a modification, identify existing facilities as well as proposed changes on the site plan. Revised 1199 Page 1 . . . PROJECT LOCATION J. Attach a copy of the topographical and vicinity map clearly indicating the location of the project. Please include a map title and scale. See attachments 2. The project is located in which region (see attached map): 0 Northern ./ Southcentral 0 Southeast o within or associated with the Trans-Alaska Pipeline corridor 3. Location of project (Include the name of the nearest land feature or body of water.) Belu,g,a River area of Cook Inlet Township -.1.JkLRange lOW Section R Meridian ---L Latitude/Longitude I USGS Quad Map Tyonek A-3 4. Is the project located in a coastal district? Yes ./ No 0 If yes, identify: Kenai peninsula Borough (Coastal districts are a municipality or borough, home rule or jìrst class city, second class with planning, or coastal resource service area.) Note: A coastal district is a participant in the State's consi.rtency review process. It is possible for the State review to be acfjusted to accommodate a local permitting public hearing. Early interaction with the district is important; please contact the district representative listed on the attached contact list. 5. Identify the communities closest to your project location: Beluga River 6. TI~e project is on: 0 State land or water* 0 Federal land if Private land (ClRI) o Municipal land 0 Mental Health Trust land *State land can be uplandv, tidelands, or submerged lands to 3 miles ofþhore. See Question #1 in DNR section. Contact the applicable landowner(s) to obtain necessary authorizations. . DEPARTMENT OF ENVIRONMENT AL CONSERVATION (DEC) APPROVALS Yes No I. Will a discharge of wastewater from industrial or commercial operations occur? .................................. 0 ./ Will the discharge be connected to an already approved sewer system?................................................. 0 ./ Will the project include a stormwater collection/discharge system? .......................................................0 ./ 2. Do you intend to construct, install, modify, or use any part of a wastewater (sewage or greywater) disposal system? ............................... ...............................................................,. ..... ........ 0 if a) If so, will the discharge be 500 gallons per day or greater?............................................................. 0 0 b) If constructing a domestic wastewater treatment or disposal system, will the system be located within fill material requiring a COE permit? ....................................................... 0 0 If you answered yes to a) or b), answer the following: I) What is the distance from the bottom of the system to the top of the subsurface water table? 2) How far is any part of the wastewater disposal system from the nearest surface water? 3) Is the surrounding area inundated with water at any time of the year? ............................................. 0 0 4) How big is the fill area to be used for the absorption system? (Questions I & 2 will be used by DEC to determine whether separation distances are being met; Questions 3 & 4 relate to the required size of the jìll if wetlands are involved) 3. Do you expect to request a mixing zone for your proposed project? .................................................... 0 .,/ (lfyour wastewater discharge will exceed Alaska water quality standards, you may apply for a mixing :tone. lfso, please contact DEC to discus.r information required under 18 AAC 70.032.) 4. a) Will your project result in the construction, operation, or closure of a facility for the disposal of solid waste? Temporary storage of drilling wastes only......................;....................... 0 .,/ (Note: Solid waste means drilling wastes, household garbage, refuse, sludge, construction or demolition wastes, industrial solid waste, asbestos. and other discarded, abandoned or unwanted solid or semi-solid material, whether or not subject to decomposition, originatingjì'OIn any source. Disposal means placement of solid waste on land.) Revised 1/99 Page 2 . . ,...,.,.,......,..,...,................................................................................................................... . Yes No b) Will your project result in the treatment of solid waste at the site?................ ................................. 0 .¡' (Examples a( treatmellf methadf include, but are not limited to: incineration, open bUl'/1il1g. baling, and can/posting.) c) Will your project result in the storage or transfer of solid waste at the site?................................... 0 .¡' d) Will the project result in the storage of more than 50 tons of materials for reuse, recycling, or resource recovery?. ................................. ................................................................................... 0 .¡' e) Will any sewage solids or biosolids be disposed of or land-applied to the site? ............................. 0 .¡' (.<;ewage solids include wastes that have been removed from a wastewater treatment plant system, such as a septic tank, lagoon dredge. or wastewater treatment sludge that col1lain no free liquids. Biosalids are the solid, semi-solid. or liquid residues produced during the treatment of domestic .feptage ill a treatment works which are land appliedfor beneficial use.) 5. Will your project require the application of oil, pesticides, and/or any other broadcast chemicals? ........................................ .................................... .... ................ ............... ............ ................. 0 .¡' 6. a) b) c) d) e) f) g) h) i) Will you have a facility with industrial processes that are designed to process no less than five tons per hour and needs air pollution controls to comply with State emission standards? .,.............................................................................................. ............. ........... 0 .¡' Will you have stationary or transportable fuel burning equipment, including flares, with a total fuel consumption capacity no less than 50 million Btulhour?...................................... 0 .¡' Will you have a facility with incinerators having a total charging capacity of no less than 1,000 pounds per hour? .......................................................................................................... 0 .¡' Will you have a facility with equipment or processes that are subject to Federal New Source Performance Standards or National Emission Standards for hazardous air pollutants? ...... 0 .¡' i) Will you propose exhaust stack injection? ............................................................................... 0 .¡' Will you have a facility with the potential to emit no less than 100 tons per year of any regulated air contaminant?...................... .............................. ..... ............... ................... ................... 0 .¡' Will you have a facility with the potential to emit no less than 10 tons per year of any hazardous air contaminant or 25 tons per year of all hazardous air contaminants? ......................... 0 .¡' Will you construct or add stationary or transportabl~ fuel burning equipment of no less than 10 million Btu/hour in the City of Un alaska or the City of St. Paul? ......................................0 .¡' Will you construct or modify in the Port of Anchorage a volatile liquid storage tank with a volume no less than 9,000 barrels, or a volatile liquid loading rack with a design throughput no less than 15 million gallons? ................................................................................... 0 .¡' Will you be requesting operational or physical limits designed to reduce emissions from an existing facility in an air quality non attainment area to offset an emission increase from another new of modified facility?........................... .............. ......... ........... ..............................0 .¡' 7. Will you be developing, constructing, installing, or altering a public water system?.............................. 0 ./ 8. a) Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non-crude oil as bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? ..................................................¡' 0 b) Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of greater than 5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? .............................................................................0 .¡' Revised 1/99 Page 3 . . Yes No c) WílI you be operating facilities on the land or water for the exploration or production of hydrocarbons? ....................................................................... ...... ............... ....... .......................... ,( 0 If you 3Ilswe."ed "NO" to ALL qucstions in this section, continuc to ncxt section. If you answered "YES" to ANY of these questions, contact the DEC offiee nearest you for information and application fonus. Please be advised that all new DEC permits and approvals require a 30-day public notice period. DEC Pesticide permits take effect no sooner than 40 days after the permit is issued. Based on your discussion with DEC, please complete the following: Types of project approvals or permits needed ADEC Temporary Waste Storage Pennit Date application submitted Concurrent with this CPO 9. Does your project qualifY for a general permit for wastewater or solid waste? ....................................... 0 ,( Note: A general permit is an approval issued by DEC for certain types of routine activities. Uyou answered "YES" to any questions in this section and are not applying for DEC permits, indicate reason: o (DEC contact) told me on that no DEC approvals are required on this project because o Other: . DEPARTMENT OF FISH & GAME (DFG) APPROVALS ]. Will you be working in, removing water or material from, or placing anything in, a stream, river or lake? (This includes work or activities below the ordinary high water mark or on ice, in the active flood plain, on islands, in or on the face of the banks, or, for streams entering or nowing through tidelands, above the level of mean lower low tide.) Note: If the proposed project is located within a special jlood hazard area, ajloodplain development permit may be required Contact the affected city or borough planning department for additional information and ajloodplain determination.)................. 0 ./ Name of water body: 2. WílI you do any of the following: ........................................................................................................... 0 ,( Please indicate below: o Build a dam, river training structure, other 0 Build a bridge (including an ice bridge) instream impoundment, or weir 0 Use the stream, lake or water body as a road o Use the water (even when frozen), or cross the stream with o Pump water into or out of stream or lake tracked or wheeled vehicles, log-dragging or (including dry channels) excavation equipment (backhoes, bulldozers, o Divert or alter the natural stream channel etc.) o Change the water flow or the stream channel 0 Install a culvert or other drainage structure o Introduce silt, gravel, rock, petroleum 0 Construct, place, excavate, dispose or remove products, debris, brush, trees, chemicals, or any material below the ordinary high water of a other organic/inorganic material, including water body waste of any type, into the water 0 Construct a storm water discharge or drain into o Alter, stabilize or restore the banks of a river, the water body stream or lake (provide number of linear feet 0 Place pilings or anchors affected along the bank(s) 0 Construct a dock o Mine, dig in, or remove material, including 0 Construct a utility line crossing woody debris, from the beds or banks of a 0 Maintain or repair an existing structure water body 0 Use an in stream in-water structure not o Use explosives in or near a water body mentioned here Revised 1/99 Page 4 . . Yes No 3. Is your project located in a designated State Game Refuge, Critical Habitat Area or State Game Sanctuary? ..... ....... ................ ............ ................................................................................ .0 ../ 4. Does your project include the construction/operation of a salmon hatchery? ......................................... 0 ../ 5. Does your project affect, or is it related to, a previously permitted salmon hatchery? ............................. 0 ../ 6. Does your project include the construction of an aquatic farm? ............................................................. 0 ../ If you answered "No" to ALL questions in this section, continue to next section. If you answered "Yes" to ANY questions under 1-3, contact the Regional or Area DFG Habitat and Restoration Division Office for information and application forms. If you answered "Yes" to ANY questions under 4-6, contact the DFG Commercial Fisheries Division headquarters for information and application forms. Based on your discussion with DFG, please complete the following: Types of project approvals or permits needed Date application submitted If you answered "YES" to any questions in this section and are not applying for DFG permits, indicate reason: o (DFG contact) told me on that no DFG approvals are required on this project because o Other: . DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS 1. Is the proposed project on State-owned land or water or will you need to cross State-owned land for access? ("Access" includes temporary access for construction purposes. Note: In addition to State-owned uplands, the State owns almMt all land below the ordinary high waterline of navigable streams, rivers and lakes, and below the mean high tide line seawardfor three miles.) .................................................. .......... .... .................... ............. ........ .0 )11' . l'. ·1 ..? ../ a s t 11S prOject lor a commercIa activIty. ........................................................................................... ../ o 2. Is the project on Alaska Mental Health Trust land (AMHT) or will you need to cross AMHT land? Hole: Alaska MenIal Health Trust land is nol considered State landfor the purpose of ACMP reviews. ................................... 0 ../ 3. Do you plan to dredge or otherwise excavate/remove materials on State-owned land? .......................... 0 ../ Location of dredging site if different than the project site: Township Range Section Meridian USGS Quad Map 4. Do you plan to place fill or dredged material on State-owned land?....................................................... 0 ../ Location of fill disposal site if other than the project site: Township _Range _ Section_ Meridial1_ Latitude/Longitude I_USGS Quad Map Source is on: State Land 0 Federal Land 0 Private Land 0 Municipal Land 5. Do you plan to use any of the following State-owned resources:............................................................ 0 ../ o Timber: Will you be harvesting timber? Amount: o Material.f such as rock, sand or gra¡'el, peat, soil, overburden, etc.: ............................................... Which material? gravel Amount: Location of source: 0 Project site 0 Other, describe: Township Range Section Meridian USGS Quad Map Revised 1199 Page 5 . . Yes No 6. Are you planning to divert, impound, withdraw, or use any fresh water, except from an existing public water system or roof rain catchment system (regardless ofland ownership)? ................................/ 0 Amount (maximum daily, not average, in gallons per day): maximum 4,000 daily, mostly 2.000 daily Source: onsite well Intended Use: drilling operations If yes, will your project affect the availability of water to anyone holding water rights to that water? ...0 ./ 7. Will you be building or altering a dam (regardless ofland ownership)?................................................ 0 ./ 8. Do you plan to drill a geothermal well (regardless of land ownership)? ................................................. 0 ./ 9. At anyone site (regardless ofland ownership), do you plan to do any of the following?....................... 0 ./ o Mine five or more acres over a year's time o Mine 50,000 cubic yards or more of materials (rock, sand or gravel, soil, peat, overburden, etc.) over a year's time o Have a cumulative unreclaimed mined area of five or more acres If yes to any of the above, contact DNR about a reclamation plan. If you plan to mine less than the acreage/amount stated above and have a cumulative unreclaimed mined area ofless than five acres, do you intend to file a voluntary reclamation plan for approval? ..... 0 0 10. Will you be exploring for or extracting coal? ......................................................................................... 0 ./ 11. a) Will you be exploring for or producing oil and gas? ...............................................................;~........./ 0 b) Will you be conducting surface use activities on an oil and gas lease or within an oil and gas unit?./ 0 12. Will you be investigating, removing, or impacting historical or archaeological or paleontological resources (anything over 50 years old) on State-owned land? ................................................................ 0 ./ 13. Is the proposed project located within a known geophysical hazard area? ............................................. 0 ./ Note: 6 AAC 80.900(9) defines geophysical hazard areas as "those areas which present a threat to life or property from geophysical or geological hazards, including flooding, tsunami run-up, storm surge run-up, landslides, snowslides, faults, ice hazards, erosion, and littoral beach process." "known geophysical hazard area" means any area identified in a report or map published by afederal, state, or local agency, or by a geological or engineering consultingfirm, or generally known by local knowledge. as having known or potential hazards from geologic, seismic, or hydrologic processes. 14. Is the proposed project located in a unit of the Alaska State Park System? ............................................ 0 ./ If you answered "No" to ALL questions in this section, continue to Federal Approvals section. If you answered "Yes" to ANY questions in this section, contact DNR for information. Based on your discussion with DNR, please complete the following: Types of project approvals or pem1its needed ADNR DML W Temporary Water Use Permit ADNR DOG Lease Plan of Operations Date application submitted Concurrent with this CPO Concurrent with this CPO If you answered "YES" to any questions in this section and are not applying for DNR permits, indicate reason: o (DNR contact) told me on _ that no DNR approvals are required on this pro.iect because o Other: Revised 1(99 Page 6 . . . FEDERAL APPROVALS Yes No U.S. Army Corps of Engineers (COE) I. Will you be dredging or placing structures or fills in any of the following: tidal (ocean) waters? streams? lakes? wetlands*? ................................................................................... 0 ./ If yes, have you applied for a COE ..permit?.................................................................................... 0 0 Date of submittal: (Note: Your application for this activity to the COE also serves as application for DEC Water Quality Certification.) "'1/ you are not certain whether your proposed project is in a wetlands (wetlands include muskegs), contact the COE, RegulatOlY Branch at (907) 753-2720 for a wetlands determination (outside the Anchorage area call tollfree 1-800-478-27l2). DUI'eau of Land Management (ßLM) 2. Is the proposed project located on BLM land, or will you need to cross BLM land for access? ............. 0 ./ rfyes, have you applied for a BLM permit or approval? .................................................................. 0 0 Date of submittal: U.S. Coast Guard (USCG) 3. a) Will you be constructing a bridge or causeway over tidal (ocean) waters, or navigable rivers, strean1S or lakes? ............ ............................... .............. ....... .............................................................. 0 ./ b) Does your project involve building an access to an island?.............................................................. 0 ./ c) Will you be siting, constructing, or operating a deepwater port? ..................................................... 0 ./ If yes, have you applied for a USCG permit? ............................................................................ 0 ./ Date of submittal: U.S. Environmental Protection Agency (EPA) 4. a) Will the proposed project have a discharge to any waters? .............................................................. 0 ./ b) Will you be disposing of sewage sludge (contact EP A at 206-553-1941)? ...................................... 0 ./ If you answered yes to a) or b), have you applied for an EPA National Pollution Discharge Elimination System (NPDES) permit?......................................... ................ ............ .......... ........ 0 0 Date of submittal: (Note: For í'1/ormation regarding the needfor an NPDES permit, contact EPA at (BOO) 424-4372.) c) Will construction of your project expose 5 or more acres of soil? (This applies to the total amount of land disturbed, even if disturbance is distributed over more than one season, and also applies to areas that are part of a larger common plan of development or sale.) ................................................................................................ 0 ./ d) Is your project an industrial facility which will have storm water discharge which is directly related to manufacturing, processing, or raw materials storage areas at an industrial plant? ............ 0 ./ If you answered yes to c) or d), your project may require an NPDES Stormwater permit. Contact EPA at 206-553-8399. Federal Aviation Administr'ation (FAA) 5. a) Is your project located within five miles of any public airport?........................................................ 0 ./ b) Will you have a waste discharge that is likely to decay within 5,000 feet of any public airport? ..... 0 ./ If yes, please contact the Airports Division of the FAA at (907) 271-5444. Federal Energy Regulatory Commission (FERC) 6. a) Does the project include any of the following: 1) a non-federal hydroelectric project on any navigable body ofwater.......................................... 0 ./ 2) a location on federal land (including transmission lines)........................................................... 0 ./ 3) utilization of surplus water from any federal government dam.................................................. 0 ./ b) Does the project include construction and operation, or abandonment of natural gas pipeline facilities under sections (b) and (c) of the Federal Power Act (FPA)? ............................................. 0 ./ Revised 1/99 Page 7 . . Yes No c) Does the project include construction for physical interconnection of electric transmission facilities under section 202 (b) of the FP A? .. ................................................................................... 0 ./ If you answered yes to any questions under number 6, have you applied for a permit from FERC? ............................................................................. ................................ ................. ......... 0 0 Date of submittal: (Note: For information. col!lact FERC, Office of Hydropower Licensing (202) 219-2668; OjJif..é t)f Pipeline Regulation (202) 208-0700; Office of Electric Power Regulation (202) 208-1200.) U.S. Forest Sen'ice (USFS) 7. a) Does the proposed project involve construction on USFS land?...................................................... 0 ./ b) Does the proposed project involve the crossing ofUSFS land with a water line?............................ 0 ./ If the answer to either question is yes, have you applied for a USFS permit or approval? ........ 0 0 Date of submittal: 8. Have you applied for any other federal permits or authorizations? ......................................................... 0 ./ AGENCY ApPROVAL TYPE DATE SUBMlTTED Please be advised that the CPQ identifies permits subject to a consistency review. You may need additional permits from other agencies or the affected city and/or borough government to proceed with your activity. Certification Statement The infonnation contained herein is true and complete to the best of my knowledge. I certifY that the proposed activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal Management Program. ~~ Signature of Applicant or Agent Vice President/Alaska March 31, 2004 Date Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal consistency determination, per 15 CFR 930, Subpar1 C, rather than this certification statement. DOC has developed a ~uide to assist federal a¥encies with this requirement. Contact DOC to obtain a copy. This certification statement will not be complete until all required State and federal authorization requests have been submitted to the appropriate agencies. . To complete your packet, please attach your State permit applications and copies of your federal permit applications to this questionnaire. Revised 1/99 Page 8 . . PELICAN HILL OIL AND GAS RESPONSE TO MITIGATION MEASURES N. BELUGA NO.1 GAS WELL MARCH 31, 2004 . . RESPONSE TO MITIGATION MEASURES General 1. Oil and hazardous substance pollution control: This well will be drilled as a gas welJ and definite steps have been taken to avoid encountering oil and other heavy hydocarbons. The likelihood of a crude oil spiJl is almost nonexistent since this well is being drilled for dry gas where associated oil has never been found in the Cook Inlet Basin. Therefore, there will be no Oil Discharge Prevention and Contingency Plan (C-plan) in place. An application for an exception to a C-Plan requirement is being made to the AOGCC and the DEC concurrently with the filing of this document. When the AOGCC has made a determination, that document wi I] be added to and incorporated with this Response To Mitigation Measures. A Spill Prevention Control and Counter Measure Plan spill plan (SPCC) has been prepared and will be in place at the site. All rig personnel will be made familiar with all details of it. While Pelican Hill will make every effort to prevent spills of any type, small spills might occur. Pelican . Hill is prepared to not only reduce the risk of a spill to a very low possibility but also to work diligently to make any remedial measures necessary. Any spill will be reported at once through the proper channels. Blow Out Prevention Equipment (BOPE) will be in place throughout the drilling of the well and as long as the hole is open. This will consist of an annular preventer on the top and a double gate ram system below. The BOPE will be tested on all new casing strings and at regular intervals as per the requirements of the AOGCC. All supervisory personnel will have current BOPE certification while on the project. Gas detection instrumentation will be in place as long as the drill hole is open. Sufficient barite (heavy mud additive) will be maintained on location at all times to counteract any unforeseen gas kicks. Sufficient loss circulation material will also be on location to counteract fluid losses into the formation. Standard industry monitoring and control measures will be maintained at all times. Containment material will be in place under the rig components should any inadvertent spill occur on the well site. Additionally, a container will be on site stocked with spill clean up material. Gas detection instrumentation will be in place and operating at all times with monitors on the rig floor and the geologist's office area. H2S monitoring equipment will also be in place and operating at all times. This equipment will also monitor natural gas at various sites around the rig. All operations will be in accordance with the regulations and advisories of the Alaska Oil and Gas Conservation Commission. The drilling with casing method will be used to drill this well which means that casing is always in place in the hole while drilling operations are underway. Therefore, should any zone of high pressure be encountered where well control could be a problem, the casing could be cemented immediately and the well sealed off. There would be no need for the drilling of a relief well. This method was used with considerable success for the Pelican Hill IIiamna No. I well last year. 2 . . 2. Use of explosives N/A 3. Operational suppori The existing airstrip associated with the Beluga Gas Field will be used for all air traffic except, possibly, occasional helicopter traffic. Barge shipments departing from Anchorage will be the primary method of mobilization while a lesser amount of freight and supplies will depart from Kenai. After mobilization, barge shipments from Kenai will be the primary method of freight transportation. The materials will be offloaded at the barge landing site below the Beluga airstrip. Efforts will be made to coordinate these barge shipments with other users on the west side of the inlet. Fuel supply will be from Kenai or Anchorage and will be primarily by air. Other critical items of freight will be either from Kenai or Anchorage. The Beluga airstrip will be the destination of these flights. Transportation for the rig crews and Pelican Hill supervisory personnel will be primarily from Anchorage. Transportation for suppol1 personnel will be primarily from Kenai with some from Anchorage. The Beluga airstrip will be the destination of these flights. Existing permanent roads leading from the airstrip will be the primary method of transportation within the project area. These roads have been in place for as long as thirty-five years. 4.a. Flowing water and streams There will be no water taken from these natural water bodies. 4.b Snow compaction There will be no off road activities. 5. Water intake pipes There will be no water taken from these natural water bodies. Facilities and Structures 6.a. Siting of onshore facilities No facilities will be sited within 500 feet of any of the named items. 3 . . 6.b Impacts of new facilities Should a gas-producing wellhead and well house be sited, it will be less than one-half mile from riverbank of the Beluga River but not in an immediate area of recreation use. It wiJI be on the site of an existing, but abandoned, gravel drilling pad. 6.c Surface entry within KRSMA. N/A 6.d Surface entry within KNWR. N/A 6.e. Kenai River setback N/A 6.f Water monitodng There will be no permanent storage facilities. 7. Facilities in wetlands N/A 8. Industrial development on key wetlands N/A 9. Onshore oil storage and sewage ponds Diesel fuel storage will be in a IO,OOO-gaIlon double walled steel tank that will be on location. It will be refilled from the airstrip by a tank mounted on a bed truck. A SOO-gallon diesel tank wiJI be used as a day tank to refuel the smaller pieces of equipment. Gasoline will be stored in barrels off the immediate location throughout operations. An impermeable lining will be placed on areas of the drilling pad and nearby storage areas where oily substances might be located. These operations will not involve any sewage ponds. However, a reserve pit remains on the existing pad from the drilling of the Alaska Energy Development BurgHn X33-12 dry hole. That reserve pit is covered and care will be taken to avoid disturbing that pit in any manner. 4 . . 10. Exploration facilities Existing permanent roads leading from the airstrip to the existing gravel pad will be the primary method of transportation within the project area. These roads have been in place for longer than thirty-five years. Temporary roads wìll not be needed nor wìll they be constructed. ll.a. Pipelines All pipelines wìll be buried and, wherever possible, wìll use existing roads and pipeline ROW's. H.b Offshore pipelines N/A ll.c. Cleanup of hydrocarbons f.'om pipeline spills These will be gas pipelines and there will be no spìlled liquid hydrocarbons on the surface. Local Hire 12. This drillìng rig is small and these operations require the employment of a much smaller work force than the usual drilJìng operations. Where available, drìllers, roughnecks, welders and other personnel are being hired fì'om the local labor force. Local contractors and local manufacturers' representative have been selected for rig up and weIl site operations. Training 13. Safety will be the major priority during the conducting of these operations. Safety meetings will be held regularly and all personnel will be made familiar with all of the aspects of the operations, especìaIly where caution should be exercised or possible danger might be encountered. AIl ofthe personnel are experienced in the operations of drìlling rigs, rolJìng stock or the other aspects of rig activities. AdditionaIly, alI personnel wìII be trained in those operations that are new to Alaskan drìIling operations, such as casing drillìng, operating on matting boards and others. All personnel will be apprised of the geological, archaeological, and biological resources of the area where operations will occur. 5 . . Access 14.a. Public access Public access to the leased area will not be restricted except as required by the DEC Division of Air and Water Quality. 14.b. Blocking of navigable watel's No operations will block access to these waters. 15. Lease related use When notified of a potential conflict, the operator will cooperate to the fullest extent and attempt to alter operations in order to comply. Prehistoric, Historic and Archaeological Sites 16.a. Survey Only existing roads and an existing drilling pad will be used. There wìll be no off road activities into new areas. This area has been covered with gravel so that any prehistoric, historic or archaeological sites will already have been covered. Therefore, a survey has not been made of the area nor has a Section 106 Final Report been compiled. 16.b. Report Although a Section 106 Final Report has not been filed with the State Historic Preservation Office, a report with maps and photos has been made to that office testifying to the facts given in , 16.a., above 16.c. Future discovery of items Onsite personnel will be instructed regarding the preservation and reporting of any such items. However, there will be no off road activities. Therefore the discovery of any such items would depend on visual detection from a distance. Fishbearing streams 17. Title 16 Operations will not encounter any fishbeaing streams. 6 . . Waste Disposal IRa. Solid waste disposal Cuttings from this well will be washed as the drilling progresses. The washed cuttings will likely be of sand and gravel size and will be collected and stored temporarily in steel tanks for ultimate disposition by one of three methods. If production is established for this well, permits will be obtained to utilize the washed gravel to construct a concrete pad for the needed production facilities. In the event that production is not established, the cuttings will be permanently removed from the well site and placed on nearby surface property with the consent of the landowners. It is also possible that the cuttings will be ground and if1iected into a wellbore under acceptable conditions for such disposal. Trash will be collected and disposed of at an approved facility or taken by barge to an approved facility. All solid waste disposal will be in accordance with methods approved by the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. Human wastes will be primarily collected at the camp. Portable "Rent-A-Can" type offacitities will be in place at the rig site I8.b. Muds and cuttings Drilling fluid will consist of fresh-water mud that contains fewer additives than other muds and is more compatible with mud recycling programs. The mud quality will be constantly maintained such that it can be used at the next well site. At the end of the well plans call for the cleaned mud to be taken to the next well site for use again as drilling mud. Mud that is spent will be removed from the project site and disposed of in an approved manner. This would likely be by the if1iect method in an approved well. All spent mud will be retained in metal containers while at the project site It is possible that application might be made for annularinjection in the upper part of this well. It is also possible that application might later be made to convert the Alaska Energy Development Burglin X33-12 well to a Class II Injection Well. All liquid waste disposal will be in accordance with methods approved by the Alaska Department of Environmental Conservation, the Alaska Oil and Gas Conservation Commission and the Environmental Protection Agency. I8.c. Prohibited methods of discharging muds and cuttings Discharge of mud and cuttings will only be in the manner given above. 7 . . Wastewater disposal 19.a. Unauthorized disposal of wastewater Disposal will not be made into these water bodies. 19.b. Unauthorized disposal of produced water Disposal will not be made into these water bodies. 19.c. Unauthorized disposal of pr'oduced water Disposal will not be made into these water bodies. 19.d. Surface discharge . There will be no surface discharge. Gravel Mining 20. Gravel mining on an active floodplain There will be no gravel mining. Special Areas 21. State game refuges and critical habitat areas Proposed operations are not within these areas. 21.a. Tule goose and trumpeter swan nesting areas N/A 21.b. Operations within Tule goose and trumpeter swan habitat N/A 21.c. Gravel pads and wellheads N/A 8 . . 21.d. Discharge of produced waters N/A 21.e. Disposal of muds and cuttings N/A 21.f. Spill and spread of hydrocarbons N/A 21.g. Design of facilities Proposed facilities will consist of wellheads and well houses. These facilities will be as compact . as possible and designed to prevent fires. Since liquid hydrocarbons will not be present, there will be no spills. Insofar as is possible, the facilities will be designed to prevent vandalism. 21.h. Abandonment Upon abandonment of the well, whether a dry hole or depleted producing well, the only remediation that would be required under this plan of operations would be an open cellar that would be approximately 7 feet in diameter. Those would be filJed with gravel from the surrounding area. 2l.i. Gravel roads The construction of new gravel roads is not proposed in the Plan of Operations. 2l.j. Public access Public access to the leased area will not be restricted except as required by the DEC Division of Air and Water Quality. 22. Kasilof River N/A 23. Trumpeter swan nesting sites Such surface entry is not being proposed. 9 . . 24. Bald eagle nests Any nests that are discovered will be promptly reported and the nests will be avoided as per the requirements. 25. Kenai Lowlands Herd N/A 26.a. Bear attraction There will not be a campsite at the drilling rig and most, if not all, meals will be eaten at the camp. . 26.b. Bear interaction The rig layout is very dense and will be located in natural clearings. 26.c. Bear education All personnel will be instructed concerning operations in area inhabited by bears. Sawed-off shotguns will be on location and certain parties will be designated as bear guards. 26.d. Bear deterrent The most effective bear deterrent for the rig consists primarily of keeping all food away from the rig. 26.e. Bear contingencies Without human food at the rig, it is unlikely that bears will remain at the site. If they do remain, proper measures will be taken to insure the safety of the personnel. 26.f. Bear toxins Any toxic material will be properly stored. 26.g. Bear sightil1gs A record of all bear sightings will be compiled. 10 . . 27. Bear dens Proposed activities should be ended by November 15. If not, operations will conform to the given requirements. 28. Kenai Peninsula brown bears N/A 29. Requests for exceptions So noted. 30. Communication with communities Except for the Beluga River area some 4Y2 miles to the south, there are no communities within the project area. When operations are scheduled to begin, the nearby recreational lot owners will be notified. 31. Plan of operations A plan of operations has been subn'litted. The drilling activities will occur on land surface owned by the Cook Inlet Region. There are no residential areas in the project area. Lessee Advisories 1. Explosives N/A 2. Seismic permits N/A 4. Aircraft flight information So noted. 5.a. Clean air II . . An application has been made for a Permit by Rule with the DEC. However, it should be noted that this drilling rig uses considerably less diesel fuel than conventional rigs. This smaller usage, in turn, reduces all emissions from the operation. 5.b. Alternate energy So noted. 6. Populated areas N/A 7. Kenai Peninsula vegetation] N/A 8. Kenai Peninsula brown bears N/A ~~ (NAME) 3 -.5/ -eJ ~ (DATE) Arlen Ehm V ice President! Alaska Pelican Hill Oil & Gas, Inc. 12 . . /Æ/ ARLEN EHM Geological Consultant AAPG Certified Petroleum Geologist Certificatiofl #2503 2420 Foxhall Drive Anchorage, AK 99504 Phone: 907-333-8880 "Fax: 907-333-3454 E-mail: arlellehm@gci.net June 4, 2004 Ms. Patricia Bettis, Natural Resources Manager Department of Natural Resources Division of Mining, Land and Water 550 West 7''' Avenue, Suite 900A Anchorage, AK 99501-3577 Re: Water Source for Drilling Activities Beluga River Area Dear Ms. Bettis: Pelican HilI Oil and Gas, Inc. is preparing to drill a shallow gas well in the onshore Beluga River area of the Cook Inlet Basin. We are in the final stages of obtaining the necessary permits for this activity. Attached please find a completed Application for Temporary Water Use and a check in the amount of $200.00. For your possible use, we are also sending you copies of the Coastal Project Questionnaire, additional state permits and a letter to the CaE substantiating that the well is not located in a wetlands area. This well is located on the attached topographic map and photo. Details of our operations are given in the Lease Plan of Operations. However, if you have any additional questions, please call on me as soon as possible. Although all of the permit applications with the various agencies were completed on March 31, 2004, the permits were not filed awaiting permission form the surface landowner. Negotiations are presently still underway with Cook Inlet Region, Inc. Sincerely, ~~ Arlen Ehm Vice President! Alaska Pelican Hill Oil & Gas Enc. Cc: Al Gross, President Pelican Hì11 Oil & Gas .\ .... . . DIVISION OF MINING, LAND & WATER WATER RESOURCES SECTION 550 West 7th Ave., Suite 900A Anchorage, AK 99501-3577 907 -269-8503 Fax: 269-8947 400 Willoughby, 4th Floor Juneau, AK 99801 907 -465-3400 Fax: 586-2954 I Office Use Only TWUPILAS # I Office Use Only CID# I Office Use Only Receipt Type WR ~ ÑÃruRÃL" " RESOURCES '-- Office Use Only DatelTime Stamp APPLICATION FOR TEMPORARY WATER USE PERMIT Instructions · Complete one applícation for each project - Incomplete applications will not be accepted · Attach map indicating water withdrawal point(s), location(s) of water use, and point(s) of return flow - Map must identify meridian, townshJÍp, range, and section · Attach sketch, photos, andlor plans of water system, and driller's well log, if applícable . Attach completed Coastal Project Questionnaire, if applicable (see page 3) . Submit filing fee - Non-refundable (see page 3) N. Beluga No.1 Gas Well ----~----------------------------------------------------------------------- ---------. Project Name Pelican Hill Oil & Gas, Inc. Arlen Ehm ------------------------------------------------- -------------------- Business Name Contact Person 2420 Foxhall Drive (will provide new) --------------------------------------- Mailing Address 333-8880 (will provide new) --------------------------.._-- Phone Number ------------ AK 99504 Anchorage ------------------------ ------------ ---~-------~-- City 333-3454 (will provide new) arlenehm@gci.net -------------------------- ------------------------------------- Fax Number E-mail Address State Zip Code Legal Descriptions Location of Water Use - It is applicant's responsibility to obtain and maintain legal occupancy Identifiable Landmarks (e.g. milepost, subdivision) Meridian Township Range Section Quarter Sections AED Burglin X33-l2 dry hole marker Seward lOW l2N 13 NW X SE X (SEE A TT ACHED MAP AND AIR PHOTO) X X Location of Water Source - It is applicant's responsibility to obtain and maintain legal access Geographic Name of Water Body or Well Depth Meridian Township Range Section Quarter Sections AED Burglin X33-12 water well (abandoned) Seward l2N lOW 13 NW X SE X Drill new well if reworking not successful Seward l2N ION Location of Water Return Flow or Discharge, if applicable Geographic Name of Water Body or Well Depth Meridian Township Range None -- 125+/- feet TD January 2000 Page 1 of 3 13 NW y.¡ SE X Section Quarter Sections X y.¡ X y.¡ Attach extra page if needed . . Water Quantity and Use Purpose of Water Use . Season Permit not to exceed 5 years (may be renewed) Date Work "'Date All Will Start Work Will be Completed Calculations Show how quantity was determined Quantity of Water Mud system for rig operations Maximum Withdrawal Rate 4,000 gpd Total Daily Amount Hours/day _~~_____ Days/week _J_____ 2,000 gpd ave Total Amount 45,000 gals Method of Taking Water Pump Pump intake ___~_____ inches Pump output __~Q_____ GPM Pipe diameter _________ inches Head feet Gravity ---------- Ditch Reservoir Dam L ---- H ------ W ------ feet L ----- H ------ W ------ feet L ------ H ------ W ------ feet 6/1/04 6/31-04 "'You may want to use the end of the construction season for your ending date Hours working _~1_______ hours/day Length of pipe }.º-º::!-!:.___ feet (from pump to point of use) Length of pipe ________ feet (take point to use point) Diversion GPM or CFS --------- Water storage _________ AF Water storage __________ AF Project Description What alternative water sources are available to your project should a portion of your requested diversion be excluded because of water shortage or public interest concerns? Beluga River Are there any surface water bodies or water wells at or near your site(s) that could be affected by the proposed activity? If yes, list any ground water monitoring programs going on at or near the sites, any water shortages or water quality problems in the area, and any information about the water table, if known. Water shortage is not considered to be a problem. Briefly describe the type and size of equipment used to withdraw and transport water, including the amount of water the equipment uses or holds. Electric pump will produce water to an above ground water line that will deliver it to the rig. Briefly describe what changes at the project site and surrounding area will occur or are likely to occur because of construction or operation of your project (e.g. public access, streambed alteration, trenching, grading, excavation). None Briefly describe land use around the water take, use, and return flow points (e.g. national park, recreational site, residential) Private gravel pad owned by Cook Inlet Region, Inc. Will project be worked in phases? State reason for completion date. Will be continuous from onset until completion. January 2000 Page 2 of 3 . . . . Briefly summarize your entire project. A small truck mounted drilling rig is being brought to the project area to drill a relatively shallow gas well to a ------------------------------------------------------------------------------------------------- ~~~i~u~_<!~~_~!_~J_~~!~~~_!~~~~~!!~i~IJ2E_~~~~~~~_~_~~~~!!~~~d, ~he _~:~_wi~ be placed on PE~duct~n._ If production is not established, the rig will be moved out and the well will be abandoned according to the ---------------------------------------------~--------------------------------~----------------~-- regulations of the AOGCC. All opertions will be on existing gravel roads and existing gravel pad. ------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------- ---------- -------~---------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- ._--------------------------------------------~---------------------------------------------------- -------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ ---------------------------------------------~---------------------------- References Coastal Zone If this appropriation is within the Coastal Zone, and you are using more than 1,000 GPD from a surface source or 5,000 GPD from a subsurface source, you need to submit a completed Coastal Project Questionnaire. For more information on the Coastal Zone, contact the Division of Governmental Coordination; Anchorage 269· 7470, Juneau 465-3562. Definitions GPO = Gallons per day CFS = Cubic feet per second GPM = Gallons per minute AFY = Acre-feet per year (325,851 gallons/year) AFD = Acre-feet per day (325,851 gallons/day) MGO = Million gallons per day Fee Schedule - Make checks payable to "Department of Revenue" $ 50.00 For use of 5,000 GPO or less. $ 1 00.00 For use of more than 5,000 GPO but less than 30,000 GPO. $ 200.00 For use of 30,000 GPO or more but less than 1 00,000 GPO. $ 300.00 For use of 100,000 GPO or more but less than 500,000 GPO. $ 500.00 For use of 500,000 GPO or more but less than 1 ,000,000 GPD. $ 1,000.00 For use of 1,000,000 GPO or more except...(see next line) $ 1,500.00 For use of 1,000,000 GPO or more, outside of the hydrologic unit from which it was removed (based on current USGS Hydrologic Unit Map of Alaska). $ 500.00 For use of any quantity of glacier ice. Conversion Table 5,000 GPO= 30,000 GPO= 0.01 CFS 0.05 CFS 3.47 GPM 20.83 GPM 5.60 AFY 33.60 AFY 0.2 AFO 0.09 AFO 0.01 MGD 0.03 MGD Attach extra page if needed 100.000 GPO= 0.2 CFS 69.4 GPM 112.0 AFY 0,3 AFO 0.1 MGD 500.000 GPO= 0.8 CFS 347. 2 GPM 560.1 AFY 1.5 AFD 0.5 MGD 1,000,000 GPD= 1.5 CFS 694.4 GPM 1120.1 AFY 3.1 AFO 1.0 MGD The information presented in this application is true and correct to the best of my knowledge. I understand that no water right or priority is established per 11 AAC 93.210-220, that water use remains subject to appropriation by others, and that a temporary water use permit may be revoked if necessary to protect the water rights of other persons or the public interest. -~--~---------------------- Signature Arlen Ehm ---------------------------------------------------------- Name (please print) January 2000 Page 3 of 3 March 31, 2004 --------------------------------- Date Vice President/Alaska --------------------------------- Title · e '~""~"\L 'U......WNN'lHij, '-""'\"\"-~/ill' ''',\'----",,,,,-...,,''',\ .Jj__lhH~"'" "'~\\'""'__'"1~,I1' .- ,,, \ lO~O --~··-h""""·""'\\I.\__"w ". -h'I~;¿¡ Õjt"',,,,'....--..J'UJ'hll. DATE .."'I__......\~"......,...f,,'f__... ,. \( "MIoo."":/lq.. -..~\\,"-'>. '3 , r:. f ..,....,._.... _"._"~"'_ > ........ .·.........'-i'..x~_·,· .',-:>.-"'."~',-:-,~'.~"'~" ~~'. ~. .. ..~ .. ", J. ~~ro~E @~ &~&~~& ALASKA OIL AND GAS CONSERVATION COMMISSION July 26, 1994 Mark. H Wittow Preston Gates & Ellis 420 L St Ste 400 Anchorage, AK 99501-1~37 ,~.. . Re: Z-Energy Spacing Exception Request Dear Mr Wittow: '.~ '....:~...,.,'II!\....Õ'.... ~.~ .....,;.....' - . . . WALTER J. HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 99501-3192 PHONE: (907) 279-1433 TELECOPV: (907) 276-7542 Tk~~+~ç "? ~ 's 0.3((- \ t ~d ') -S ~~\. t,-~ \ . T 0- ~'Y~C=~T"' ~'S ~Co ~/\ " In the coUl;se of its deliberations in theabove·referenced matter, the Commission has found if helpful to refer to its public files of well records and production records relating to the Beluga River field and surrpunding areas. This letter is to ensure that you are aware that the Commission takes official notice of the contents of these public well files: ~ . Beluga River Unit Beluga River Unit Beluga River Unit Beluga Rive~ Unit Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit BelLiga River Unit Beluga River Unit 212-35 212-25 232-04 233-27 14-19 244-04 212-24 241-34 224-13 '''24&;t8~7f'i",~-f?J¡4f 221-23 Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit Beluga River Unit Burglin ..Þretty Creek Unit 214-35 232-09 224-23 232-26 BRWD-1 211-03 224-34 214-26 X33-12 #1 Data specifically referenced in the files included open hole well logs, completion information, including perforation intervals and production data. If you wis~ to rebut any of the material in these files, please notify the Commission no later than August 8, '1994. Such notification should include a statement of whether you wish to submit a rebuttaHn writing or at an oral hearing and, if the latter, the reasons you' believe a written submission would be insufficient. jo/Jpc\z-energy ~(''''r, p'¡nfp.d on Il~(vd,..rl UJf' . ~ I . (: :-: 0(,. . . POm> No. P-4 REV. ~ 1-70 .^' STATE O~ OIL AND GAS CONSERVATION COMMITTEE MONTHLY REPORT Of DRILLING AND WORKOVER OPERATIONS SUBMIT IN DVP'LlCATl!: .~ ~ER1CAL CODE 50-283-20050 6 LEASE DES:CNA'I'lON AXD SERIAL NO. ADL 58822 1. 7 IF INDI"~. "LOTTEE OR TRIBE NAME OIL 0 GAl );'1 WELL WSLL iÃ.J OTRJ:a 2. NAME OF OPER.ATOR Alaska Energy Development, Inc. 3. AtlDRESS 0.. OPERATOR p.O. Box 131, Fairbanks, Alaska 99707 4. LOCATION OF WELL 1500' FSL and 2050' FEL, Sec. 12, T. 13 N.t R. 10 W., S.M. N/A 8. l."'NIT FARM OR LEASE NAME BurgI in 9 WELL ~o BW X33-12 10 l"1ELO A.."lD POOL. OR WILDCAT Wildcat 11 SEe. T.. R., M. (Bo'I"I'OM HOLl: OB.JEC'l'lVF,) Sec. 12, T. 13 N., R. 10 W., S.M. 12. PJ!:R.MIT NO 75-64 13. REPORT TOTAL DEPTH AT END OF MONTH. CHAJ'ilGES IN HOLE SIZE, CASING AND CEMENTING JOBS INCLUDING DEPTH SET AND VOLUMES USED. PERFORATIONS. TESTS AND RESULTS FISHING JOElS JUNK IN HOLE AND SIDE·TRACKED HOLE AND ANY OTHER SIGNIFICANT CHANGES IN HOU CONDITIONS. Commenced operations January 10, 1977. Drilled float collar and shoe. Drilled 8~" hole to 3452. Drilled with directional equipment to 6730. Ran Dual Induction Laterolog, Bore Hole Compensated Sonic w/Caliper, Compensated Formation Density and Compensated Neutron Log w/Gamma Ray. Plugged well with 50' Cément plugs @ 4360'-4410', 2722'.2772', 2672'-2722', and 0'-50'. Welded casing shut at the surface. Moved rig offfíocation ..and prepared to clean up the area. i. Î\ I. ':::>ù ~c.:..e ~ ""'-C) Q GO~f\OE.~"f\~\.. RECEIVED FER 1 5 \977 DMsion of Oil and Gas LUl13ervatio,1 Anchorage 1.'Ibe~t~.t~~~ Vice President Drilling 2/11/77 S1G . -<d"A~U-----T1TU Qpill!!lrAtinnfll DATI: NOTE - R.po,t on till. fOl'lll Is "Qulrtd ror toCII cOlltldor montll, r.gor...... of till .totlll of operations, and IIIU.t Do fllld ÌfI ""pllcotl wltlt tll, 011 and 9as cOII..,vatlon cOnt",I"" II,,,,. 18th ot tb. ,"c"dln9 mantl!, unl... otb.,.I.. directed, Form No. P-4 REV. 3-1-70 ;--..., . SUBMIT IN DUPUCATE STATE OF'1'LASKA OIL AND GAS CONSERVATION COMMITTEE ~\. I CI,: ~ 5. APINUMERlCALCODE-l·l...· L:·.L~""L 50-283-20050 .=/..c. :'~'? ' 1~ 6. LEASE DESIGNATION AND SERIA _ (1101 I : ,'·;0 I ADL 58822 ~r~2 ~'r, øw. _.I.::: c:~. ~ 7. IF INDlAN'AWTTEE OR TRIBE N....ME I '': S': .... -, r.~'.' I ! :" I ~: ., --( ~>:':" . [~. !..: 10. FlELDANDPOOL,ORWILDCAT I D~:.'· ~ I Wildcat 1"5!':~ 11. SEe. T. R. M. (BOTIOM HOLE CONFE~: I OBJECTIVE) FILC·--·...Y Sec. 12, T. 13 N., R. lU-W:~M NIA 8. UNIT FARM OR LEASE NAME Ki I L! MONTHLY REPORT OF DRilliNG AND WORKOVER OPERATIONS I. OIL 0 WELL 2. NAME OF OPERATOR Alaska Energy Development, Inc. 3. ADDRESS OF OPERATOR GAS r.; WELL !.AI OTHER p.o. Box 131, Fairbanks, Alaska 99707 4. LOCATION OF WELL 1500' FSL and 2050' FEL, Sec. 12, T. 13 N., S.M. Burglin 9. WELL NO. BW X33-l2 12. PERMIT NO. 75-64 13. REPORT TOTAL DEPTH AT END OF MONTH, CHANGES IN HOLE SIZE, CASING AND CEMENTING JOBS INCLUDING DEPTH SET AND VOLUMES USED, PERFORATIONS, TESTS AND RESULTS FISHING JOBS JUNK IN HOLE AND SIDE-TRACKED HOLE AND ANY OTHER SIGNIFICANT CHANGES IN HOLE CONDITIONS. Commenced operations December 1, 1976. Drove 20" conductor pipe to 60'. Drilled 12t" hole to 321 t . Reamed hole to 17~" and ran 333' of 61# N-80 13 3/8" casing. Cemented with 350 sacks of class G cement with good returns. Cut 20't conductor pipe and 13 3/8" casing and installed 12" 900 series 3000 PSI double gate and hydril preventors on 13 3/8" casing. Tested BOPE equipment. Drilled 12t" hole to 2722" and ran dual induction laterolog. Ran 2722' of 43.5# 9 5/8" buttress casing. Cemented with 900 sacks of class G cement. Cut 9 5/8" casing and installed 900 series 3000 PSI double gate and hydril preventors on 9 5/8" casing. Te:sted BOPE to 3000 PSI. Wait on orders per Brinkerhoff Drilling Co. from December 13 to December 16 (labor problems). Shut down :rig and left caretaker on fig from December 16 to 31. RECE IYED. 'dAN' 71f17 Division of 011 and Gas eonltlVatlon .' " ::. AnOhor. '..;. 14. I hereby ~at the joreJ>ingHf)e and ~. e and COlleCt SIGNED ~ W ~ TITLE Dri11i1\g SuperintendAnt DATE 1/7/77 NOTE-Report on this form is required for each calendar month, regardless of the status of operations, and must be filed in duplicate with the oil and gas conservation committee by the 15th of the suct:8eding month,unless otherwise directed. . . ~ TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTERJP ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER ! WELL NAME ¡/.ÞJ~ I PTD# 22:>1-"220 Development Service CHECKWHAT APPLIÈS ADD-ONS (OPTIONS) MULTI LATERAL (If API Dum ber last two (2) digits are between 60-69) t/i Exploration Stratigraphic ~'CLUEn Tbe permit is for a new w ell bore segment of existing weD,. . Permit No, .' APJ 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(f), an records, data and logs acquired for tbe pilot bole must be dearly differentiated In botb name (name on permit plus PH) and API Dum ber (50 70/80) from records, data and logs acquired for well (name OD permit). PILOT (PH) SPACING EXCEPTION ~/ DRY DITCH SAMPLE Tbe permit is approved subject "to fuD compliance witb 20 AAC 25..0SS~ Approval to perforate and produce is contingent upon issuance of ~ conservation order approving a spacing e:Jception. (Company Name) assumes tbe liability of any :~:~~~t Ü::- ~d~~8Y. .~" AU dry ditch sample sets submitted to tbe Commission must be iD no greater ·tbaD 30' sample intervals from below tbe permafrost or from where samples are first caught and 10' sample inter:vals tbrougb target zones. ~LL;F'Úd ¡~r':d ...-.ø~/¿ud7 ~ A~ 1('33~/2 M-f5~~ "6<::£ Z 722/ .- ¿'? 3cJ HiÞ.& ""i D Well bore seg Annular Program EXP On/Off Shore Well Name: N BELUGA _EXP I PEND GeoArea 820 Disposal On Uni S¡::>ACINGEXCEPTION REQUJREQ: Proposed wellloc.ation_ is tess than_ 600 Jeet from propertylioe with US SUr\ley3901 NearbY6urg.lio X33-12_ is P&A'çI; opeo OWlled Þy Paul Craig. nearestwell isBRU_212-.16 which is -4200' SE. withio Sectioll R T13N~ R 1 OW,. UM. _ Offset well BurgJio X33-12 is phlgged &abandOneJ:L Wi Vertic.al wel Offset laodowoer, ¡::>aul L. will be affected. Le_tter_ of _ Cred.it#_BOK035_SDP012_65 Craig, _be 90ly wel . Yes Yes Yes No_ No Yes Yes NA N9_ Yes No NA Yes NA _NA NA NA Field & Pool PTD#: 2042260 Administration nitial ClasslType PELICAN HILL OIL AND GAS INC Permit fee attacheJ:l Company boundary from driJling unit from otber wells_ _Lease _number appropriate _ _U_nique welln_arne_aod oumb_er WellJoC<Jted ¡na. defineJ:lpool We.lUocated pr_operdistance_ WellJocated pr_oper _distance. _S_ufficient ~ Jfdeviate< indrilJiog unit incJuded ~creageaYailable is_ weJlbore plat _Oper_ator only affected party _Oper_ator bas.appropriate_ bond inJorce ~ao be issued witbout co.nser\lation order t c.ao be issued witbout ad_mioistrative_approvaJ Can permit be approved before 15-day wai Permit Permi' WellJoC<Jted withill area alld_strataauthorized by_lojectioo Order # (put 10# in_comrneots)_ (For All welJs_withi!11l4_mile_are.a_of reyiew id_eotified (For servJc_e)vell only) J:luratio_n_of pre-production less_ than 3 montbs (For_service well onJy) Pre-produced iojector 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Date 11/16/2004 Appr SFD 8CMP determination_n_olongeraffects issu_aoceoJ a permiUo dr: < 3000 ppmmay Surface casi!1g poioUs well_below depths_ wh_ere_ wa_ter welJs wo_uldbe reason_ably drilled exist beJow the su_rface. casing shoe._ amna #1 Rig iSßquippe_d_with steelpits. _ Capacity isJimJted, _howe.ver ri~Ls_uCœssfully was employed at _ Drillingwasteto Ellvirotech_per emailJromPH. Nearest 2. ¡:¡bout300' _distant WelUs ¡::>&AeJ:l. hole. with_ to'~ line._ Offse_t evaJu.ationJeveals no gas io surface wellþore isJ~urglio X33-1 iotervalproposed Maximum BHP pos_sibleestimated_ at 9.8_EMW._ Plan to_driIJ with 9.2 ~ 9.5 ppgand adjus.t up as needed, MWJo surface. hoJe_ planned. to Þe highe.r th_ao normat as mitigation for to" diverter line. Waiyer_requested. for 12,2.5" . W\S¡::> wlo_shoe. breakdown_at 268_0 pst _3000_ psi systemproposeJ:l. the formations that wil PM reCOrds eJ!:amineJ:l_aod determined acceptable. be_ penetrate_d. is notknown io 2'::" 30Q' aw¡:¡y, H2S Burglin _X33-1 Yes Yes Yes Yes Yes Yes Yes NA _Yes Yes Yes Yes Yes _Yes Yes No_ NA ACMPFïndingof Con_sisteocyh.as bee.nJssued_ fOrtbis protect _C_ooductor _S_urf¡:¡œ casing protec.ts al strillg_provided 18 19 20 Engineering _known_ USDWs _CMT v_ot adeq uate_ to circutate o!1_cOnd_uctor_ & surf csg tie-in Jong .string to surf csg. _CMT v9t adequ_ate to koown_pro_ductiye bori~ons C,T, B&permafr_ost AJ:lequateJankageor re_serve pit JfaJe-drilt has a 10:403 for abandOllme!1t beeo approved Açlequate _w.el/bore separatio_n proposeJ:l açlequate Kdiverter req_uired, does it meet reguJations _DriUiog fJuid_ program sc.hematic & equip . list _BOPEs,_dothey meetreguJation _BOPE_press ratiog appropriate; test to_(pu_t psig incomments) 21 22 23 24 25 26 27 28 29 30 31 _CMTWil! coyer_a! _C_asiog desigos ad_equa_te for Date TEM 11/18/2004 ~1'v( Appr (May 84) withoutoperatio!1sbutdown _CJ1oke_ manifold compJies_ w/API R~-53 Work will OCc_ur 32 33 34 wells withill 80R yerified. (for_serviq~ welJ onJy) Js pres_ence_ of H2S gas_ prObable MechanicalcoodJlion of None encountered in offset well IOGateJ:l_-_3_00'to the souJh ª"-ddrilJeJ:l_same $ection_ ¡::>eliçanestimate~ a gradient of Q.5t psi/foot whJ~heJ:1l,1al~ 9.8 PP9-EMvY. Off~et weJ this weJI wi Burgl¡nX33-J 2,_ whic_h is Ye$ Yes No NA Ye$ c_ao be issued w/o_ hYdrogen_s_ulfide meas.llres P~rmit _D_ata_pJeseoted on pote_ntial overpres_sure _zones 35 36 Date 37 11/16/2004 38 39 Geology Appr SFD same seçtjoR _be_30Q' away~ andd.ri BurgJio X33-12 d.id ooJ elJc_ounter_shallow gas; _Setsm[c_analysJs of sbaJlow 9as.zooes_ _(if off-sh_ore) _Seabed _conditioo $urvey 8rJe_nEhm, 9Q7-2J7-1432, arlen.ebm@ata$ka,net SPACING EXCEPTION REQUIRED: Proposed well location is less than 600 feet from property line with US Survey 3901, owned by Paul Craig. On 11-1-04, Commission received copy of letter discussing need for spacing exception from William Bankston of Bankston, Gronning, et al. addressed to Carl Bauman of Hughes, Thorsness, et al. EXPLORATORY WELL: permit application cover letter states this is a develpment well, but it does not meet the regulatory definition of a development well. which is "a well drilled to a known oroductive 0001." Sam Dies waived as offset well uralin X33-12 collected sam Dies Date ~ .:y....¿- -~~ Contact namelphoneJorweekly progressreRorts [expJoratoryonlYl Public Commissioner Original Signed By .1~tvI K. NeIMan Date Engineering Commissioner Date: II !/<f/~ Geologic Df§ioner