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205-108
• • 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. ~,©~ ~ ~ ~ Well History File Identifier Organizing (aor,e) o r.o,a,a iiiuiiiiiiiiiiiiii o Re,~a~»e~ea iii!miiuiuiui RE CAN DIGITAL DATA OVERSIZED (Scannable) Color Items: ^ Diskettes, No. ^ Maps: r~Greyscale Items: ^ Other, No/Type : ^ Other Items Scannable by a Large Scanner ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: 3 Og /s! Project Proofing l 111 111 1! lll ~ ! !~l ! BY: aria Date: ' ~ ~ ©~ /s/ Scanning Preparation ~ x 30 = (Li~ + ~ =TOTAL PAGES „ , ~ (Count does not i ~ dude cover sheet) n ^ ~ " BY: _ Maria Date: ~ ' , V I ,1 Production Scanning Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation; _~ YES NO BY: Maria Date: ~ / ~ ~ ~~g !s/ ~/~~ r ~ Y~ Stage 7 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. .III II'1I!!l~(! 1!!~! ReScanned !l l ll ~l ~! ! 118 !! Il! Maria Date: !s/ Comments about this file: a..,.«~ea iuiuuiniimm 10/6/2005 Well History File Cover Page.doc • ~~a,., r~`~ ~ • Page 1 of 1 McMains, Stephen E (DOA) _. _ _. _ _. _ . _ . _ _. ~ _ _ ~ v... _ _~.. ,W ..m ~~µ.__~_ .~ ~:~ .. From: Ed Jones [jejones@aurorapower.comj Sent: Friday, January 11, 2008 2:47 PM To: McMains, Stephen E (DOA) Cc: 'Bruce D Webb' Subject: RE: Cancel Permit Steve, We still plan to drill the well, although it will not likely be until late 2008. t know that we wil4 be required to re- apply for the permit because it has expired, but if there is any way you can leave it open (uncancelled), please do so. If not, since we will have to re-apply any way, I don't know that it is a major thing for us if it is cancelled, but I would like to preserve the well name and location, most of all to avoid confusion. Thanks, Ed From: McMains, Stephen E (DOA} [mailto:steve.mcmains@alaska.gov] Sent: Friday, January 11, 2008 5:08 PM To: Ed Jones Subject: Cancel Permit Ed, While starting to do the annual report I noticed well permit 205-108, Api 283-20113-00, Kaloa 3 was approved on August 17, 2005. Steve Davies ask me to write this email to you asking if you still need this well permit? He notified Duane Vaagen July 11, 2005 that a spacing exception was required for the wel{. {f permit is not required, the 2 year time limit for the well expiration date, August 17, 2007, has passed. Could you please reply to this email about the expired permit so we can file this email in the welt file as a record that the operator was notified about the permit. It helps keep records straight. Thanks for your help. Steve McMains Alaska Oil & Gas Conservation Commission 333 W. 7th Ave. Suite 100 Anchorage, Alaska 99501 ph: 907.793.1241 fax: 907.276.7542 steve.mcmains@alaska.gov 1/] l/2008 Page 1 of 1 Okfand, Howard D (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, January 07, 2008 1:35 PM To: Ed Jones Cc: Okland, Howard D (DOA); 'Bruce D Webb' Subject: RE: Expired Drilling Permits Ed, If wells will be drilled, then new permits will need to be obtained. Since the existing permits have expired, we will append an "XX" to the well name in our records. You may use the same well names if desired. New API numbers will be issued as part of the permit process. Hopefully you will be able to drill the prospects in 2008. Call or message with any questions. Tom Maunder, PE AOGCC From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Monday, January 07, 2008 1:31 PM To: Maunder, Thomas E (DOA) Cc: Okland, Howard D (DOA); 'Bruce D Webb' Subject: RE: Expired Drilling Permits Tom, Locations were built (partial at Kaloa #3) and conductor was driven to 80` or so for both wells . Otherwise, no work was done (i.e., we did not rig up a drilling rig an either well). We still have plans to drill both, possible in 2008--please let me know what we need to do (re-apply for the drilling permits before drilling, but anything else?). Thanks, Ed From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, January 07, 2008 4:13 PM To: Ed Jones Cc: Howard D Okland Subject: Expired Drilling Permits Ed, Our records show that the drilling permits for Three Mile Creek #3 (205-197) and Kaloa #3 (205-108) have expired. The expiration dates were November 5, 2007 and August 17, 2007 respectively. Would you please confirm that no work was done on either of these wells? Thanks in advance, Tom Maunder, PE AOGCC l (?/2008 Kaloa No. 2 Mud Weights • • Subject: Kaloa No. 2 Mud Weights From: duane vaagen <duane@fairweather.com> Date: Fri, 22 Ju12005 17:57:09 -0800 To: Thomas Maunder <tom maunder@admin.state.ak.us> CC: Ed Jones <jejones@aurorapower.com> Tom: Per our conversation this afternoon, attached for your reference is a graph showing the mud weights used versus depth while drilling the Kaloa No. 2. Also indicated on the graph are the casing set depths and the results of the FIT performed at 640 ft, which came out to 17 ppg MWE. I hope this is sufficient to help in your decision concerning pilot hole waiver request we have submitted for the drilling of the Kaloa No. 3 well. Duane Vaagen Project Engineer Fairweather E&P Services, lnc. duane(c~fairweather.com Office: (907)258-3446 Cell: (907)240-1107 Content-Description: Kaloa Grad Analysis 072205.pdf Kaloa Grad Analysis 072205.pdf Content-Type: application/octet-stream Content-Encoding: base64 1 of 1 7125/2005 8:3? AM Aurora Gas, LLC, Kaloa No. 2 Mud /Depth Pressure Analysis FOR: KALOA NO. 3 DIVERTER LINE WAIVER 0 i 1 3/4' Co du or 500 8 /8" urf ce asi g i 1000 i 1500 , a .-. ~ ^ 12 3/4' Conductor ^ t ~ t 8 5/8" Surtace Casing ~ 2000 ~' -: ~ 5 12' Intermediate Csg ~~ ~~ ~Kaloa No. 2 Mud Wt Used 2500 t Kaloa No 2 FIT MVJE } I~ 3000 ~. 3500 5 /2" me ed ate sg 4000 8 9 10 11 12 13 14 15 16 17 18 MUD Weight Used (PPG in OH) Kaloa No. 2 ,~~.. ~~~ Subject: Kalua V"u. 2 From: cluane ~~aa~~en ~=~iuan~i~i~fair«eather,cuni> Date: [hu, 21 1ul `?OUP l 7: ~ l : ~S -~1~U(? Cu: ~Ih~~mas ~,4aunder-~=t~~m_maunder'a~.admin.state.ak.us%, Stephen L)a~ie~ ~~steve_d.iv~~,~il~~~idniiu.statc.ik.u~= Tom: The Kaloa No. 3 well has been postponed for 1 well and will now follow the Aspen No. 1. Also note, an error has been found in the well logging prog in that it is indicated that the well will have 8 5/8" casing there. This is a mistake as the well will, per all other references in the program, have 9 5/8" surface casing installed. There is also a chance that our activity on the Aspen may be delayed a few days as it is taking longer than anticipated to get the road and pad constructed as planned. I will update you all tomorrow as I hear more. Please call if any questions. regards Duane Vaagen Project Engineer Fairweather E&P Services, Inc. duane a('7fairweather.cam Office: (907)258-3446 Cell: (907)240-1107 1 of 1 8/30/2005 11:21 AM RE: Kaloa 3 -Again • • Subject: RE: Kaloa 3 -Again From: duane vaagen <duane@fairweather.com> Date: Wed, 20 Ju12005 09:43:04 -0800 To: Thomas Maunder <tom maunder@admin.state.ak.us> Tom: Per the below email and our phone discussion this morning, the following should apply. You are correct, my cement volumes were off. The volume of the tail system for cementing the 5 1/2" casing should be 99.5 bbls, including 25% OH volume. This would bring the total volume required for lead and tail at 144 bbls to cement the 5 1/2" casing above the 4 1/2" liner. As far as contingency, if we have too, we could perforate the 5 1/2", though I would hate to do that. Duane -----Original Message----- From: Thomas Maunder [mail.to:tom maurder~yadna.n.sta.te.ak.us Sent: Tuesday, July 19, 2005 3:23 PM To: duane vaagen Subject: Re: Kaloa 3 - Again Duane, 4. I think you need to check the tail length for the 5-1/2" casing job (page 8 of 13)> Tom Thomas Maunder wrote: Duane , Got #2 answered. Tapered holes will do it. 3. What is your contingency if you can't break circulation to cement the 5-1/2"?? Tom Thomas Maunder wrote: Duane, Thanks for the directional info. Do you have a drawing of wp 11?? I just started looking at the application. As I understand, this will be a pilot hole which will be plugged back and then the horizontal section drilled. This is all possible under one permit and the ultimate well (horizontal) will be known as Kaloa #3. The pilot- hole "doesn't count". As I looked at the actual 401 sheet there are 2 items. 1. This is not the "current" version of the permit application. The current revision is dated 06/2004. A letter was recently sent out to all operators regarding using the most current form. I think I sent you an email on the subject. Until September 1 we can accept this form, but please make a change in the copy you have. Sorry to be bureaucratic, but after September 1 the permit gets returned to you. 2. Are your hole and casing sizes correct?? I don't think 6-1/8" in bits or 4-1/2" casing go through 5-1/2" very well. Look forward to your reply, Tom Maunder, PE AOGCC duane vaagen wrote: 1 of 3 8/9/2005 1:21 PM RE: Kaloa 3 -Again • • Steve/ Tom: Attached are the directional profiles proposed for the Kaloa No. 3 well. Wp10 represents the pilot hole and Wpll the horizontal production. I apologize for not including that in the Permit package. Also attached is digital data for use in workstation. Duane -----Original Message----- From: Randall D. Jones [mailto:rjones~auroraoower.com] Sent: Tuesday, July 19, 2005 1:09 PM To: 'Stephen Davies' Cc: duane vaagen; 'Scott Pfoff'; 'Andy Clifford'; 'Ed Jones' Subject: Kaloa 3 - Directional Information Andy is out till next week, but please find the attached plat showing '. ' the SL, BHL of the K-3 deviated well portion,-and the BHL of the horizontal tail portion of the K-3. Although, the survey says it's the ', K-2 well at the BHL of the horizontal tail portion, it is a surveyor's error (unless you hear from Duane or Ed to the contrary). AS YOU CAN SEE THE BHL OF THE HORZ TAIL DOESN'T FALL WITHIN 3,000' OF THE K-2 BHL SO NO SPACING EXCEPTION WILL BE REQUIRED AS PREVIOUSLY THOUGHT LAST WEEK ', I haven't seen any directional data you requested, so by copy of this memo to Ed/Duane, I am asking them to provide if available presently. Randall D. Jones, CPL Manager, LAND & Negotiations AURORA GAS, LLC 10333 Richmond Avenue, Suite 710 Houston, TX 77042-4176 Telephone 713-977-5799 Facsimile 713-977-1347 Mobile 713-409-2378 •j onesi~auro.r.•apower . core rskn:~houston . rr . com -----Original Message----- From: Stephen Davies [mai.ltc:steve daviesaadmin.state.ak.us] Sent: Tuesday, July 19, 2005 2:47 PM To: Andy Clifford Cc: Randy Jones Subject: Kaloa 3 - Directional Information Andy, Could you please supply a plat that shows the well course for both the pilot hole and the horizontal sidetrack for the Kaloa 3 well? This is required by 20 AAC 25.050(b)(1). The plat provided with the permit to drill application does not show the course of the proposed well bores. Could you also provide a copy of the proposed directional survey for each well bore for use in the Commission's confidential geoscience workstation? Thanks for your help, Steve Davies Petroleum Geologist 2 of 3 8/9/2005 1:21 PM RE: Kaloa 3 -Again • Alaska 0i1 and Gas Conservation Commission ', Telephone: (907) 793-1224 3 of 3 8!912005 1:21 PM RE: Kaloa 3 - Directional Information • • Subject: RE: Kaloa 3 -Directional Information From: duane vaagen <duane@fairweather.com> Date: Tue, 19 Ju12005 13:27:25 -0800 To: Stephen Davies <steve_davies@admin.state.ak.us>, tom_maunder@admin.state.ak.us, "Randall D. Jones" <rj ones@aurorapower. com> CC: Ed Jones <jejones@aurorapower.com> Steve/ Tom: Attached are the directional profiles proposed for the Kaloa No. 3 well. Wp10 represents the pilot hole and Wpll the horizontal production. I apologize for not including that in the Permit package. Also attached is digital data for use in workstation. Duane -----Original Message----- From: Randall D. Jones [mailto:rjones~aurorapower.com] Sent: Tuesday, July 19, 2005 1:09 PM To: 'Stephen Davies' Cc: duane vaagen; 'Scott Pfoff'; 'Andy Clifford'; 'Ed Jones' Subject: Kaloa 3 - Directional Information Andy is out till next week, but please find the attached plat showing the SL, BHL of the K-3 deviated well portion, and the BHL of the horizontal tail portion of the K-3. Although, the survey says it's the K-2 well at the BHL of the horizontal tail portion, it is a surveyor's error (unless you hear from Duane or Ed to the contrary). AS YOU CAN SEE THE BHL OF THE HORZ TAIL DOESN'T FALL WITHIN 3,000' OF THE K-2 BHL SO NO SPACING EXCEPTION WILL BE REQUIRED AS PREVIOUSLY THOUGHT LAST WEEK I haven't seen any directional data you requested, so by copy of this memo to Ed/Duane, I am asking them to provide if available presently. Randall D. Jones, CPL Manager, LAND & Negotiations AURORA GAS, LLC 10333 Richmond Avenue, Suite 710 Houston, TX 77042-4176 Telephone 713-977-5799 Facsimile 713-977-1347 Mobile 713-409-2378 rjanes'~aur•o~•apower. corn rskn,:~houston.rr.com -----Original Message----- From: Stephen Davies [~:a:LI.tC:ste'ir'e davies~~%admn.state.ak.us] Sent: Tuesday, July 19, 2005 2:47 PM To: Andy Clifford Cc: Randy Jones Subject: Kaloa 3 - Directional Information Andy, Could you please supply a plat that shows the well course for both the pilot hole and the horizontal sidetrack for the Kaloa 3 well? This is required by 20 AAC 25.050(b)(1). The plat provided with the permit to drill application does not show the course of the proposed well bores. Could you also provide a copy of the proposed directional survey for each well bore for use in the Commission's confidential geoscience workstation? Thanks for your help, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 1 of 2 7f 19f2005 1:55 PM IZE: Kaloa 3 -Directional Information • Content-Description: Kaloa #3a - wpl l.txt Kaloa #3a - wpll.txt Content-Type: text/plain Content-Encoding: base64 Content-Description: Kaloa#3 Preliminary Plot - WP10.pdf ', Kaloa#3 Preliminary Plot - WP10.pdf Content-Type: application/octet-stream Content-Encoding: base64 Content-Description: Kaloa#3a Preliminary Report - WP1 l.pdf Kaloa#3a Preliminary Report - WPll.pdf Content-Type: application/octet-stream Content-Encoding: base64 Content-Description: Kaloa #3 - wpl0.txt Kaloa #3 - wpl0.txt i Content-Type: text/plain Content-Encoding: base64 2 of 2 7/19/2005 1:55 PM • tiublecl. ~( E.~. i. i. I ,, ,, _. ~~m F1D n'dt i. Jn i l.,i, w D: t Tl , h°-i f'. li•. ~.-r:~:.i. ii:'i, ,.'..~ t ~t:~- I_r.,: :~.~1n iir it i~-. I rJ II ' ,~..ii:",. , r: ~^~:~...:r ~„i.:~ C( Iii r:i _., 3.i, ~i~~- .. - , Steve/ Tom: Attached a e the directional proEilea proposed Eox the Kaloa No. 3 well. Wp 10 represents the pilot hole and Wpll the horizontal production. I apologize for not including that in the Permit package. Also attached ie digital data for use rn works[ a[ion. Duane -----Origival Meeeage----- From: Randall D. Jones {a::i _:;: r~_on rap;;we:r.~-ol- Sent: Tuesday, July 19, 2005 1:09 PM~~~ To: 'Stephen Daviee` Cc: duane vaagen; 'Scott Pfoff'; 'Andy Clifford'; 'Ed Jonee' Subject: Kaloa 3 - Directional Information Andy i out till next week, but please find the attached plat showing the SLe BHL of the K-3 deviated well portion, and the BHL of the horizontal tail portion of the K-3. Although, the a rvey says it•a the K-2 well at the BHL of the horizontal tail portion, it i a surveyor's error (unless you hear from Duane or Bd to the contrary)a AS YOU CAN EES THE BHL OF THH HORZ TAIL DOESN'T FALL WITHIN 3,000' OF THS K-2 BHL SO NO SPACING S%CEPTION WILL BE REQUIRED AS PRSVZOUSLY THOUGHT LAET WEEK I haven't s any directional data you requested, eo by copy of this memo to Ed/DUane, Z am Baking them to provide if available presently. Randall D. Jones, CPL Manager, LAND 4 Negotiations AURORA GAS, LLC 10333 Richmond Avenue, Suite ]10 Hou eton, TX ]]042-41]6 Telephone J13-9]]-5]99 Facsimile ]13-9JJ-134] Mobile J13-909-23]8 -----original Message----- Frwn: Stephen Daviee .~ - e day i.e~~a dmin.state.ak.:7a Sent: Tuesday, July 1932005 a2 P4] PM To: Andy C1 i.F Eord Cc: Randy Jones Subject: Kaloa 3 - Directional Information Andy, Could you please supply a plat that shows [he well c e for both the pilot hole and the horizontal eider rack for the Kaloau3awe11? Thie i required by 20 AAC 25.050 (b)(1). The plat provided with the permit to drill application does no[ show the c of the proposed well bores. Could you also provide a copy of the proposed directional a rvey for ach well bore for use rn the Commission's confidential ge science workstation? Thanks for your help, Steve Devise Petroleum Geologist Alaska Oil and Gae Conservation Comm iasion Telephone: (9071 ]93-1224 Cook Znlet Kaloa #3 6ID, Inc, Azim., SSTVD, TVD, N/S „ E/W„ Y„ X„ OLS, V.S., Comment e, E/W, N/S (°/l0oft), (ft), (Deg), (Deg), (ft), (ft), (f[)„(ft)„(ft)„(ft)„°/100ft, (ft), (ft), (ft) -16.00, 0.00, 0.00, -212.00, -16.00, 0.00, N, 0.00, E, 74.00, 0.00, 0.00, -122.00, ]4.00, 0.00, N, 0.00,8, 84.00, 0.00, 0.00, -112.00, 84.00, 0.00, N, O.OO,H, 184.00, 0.00, 0.00, -12.00, 184.00, D.DD, N, 0.00, E, 284.00, 0.00, 0.00, 88.00, 284.00, 0.00, N, 0.00, E, 384.00, 0.00, 0.00, 188.00, 384.00, 0.00, N, O.OO,E, 484.00, 0.00, 0.00, 288.00, 484.00, O.OO,N, O.OO,E, 408.00, 0.00, 0.00, 292.00, 488.00, 0. 00, N, D.O O, E, 584.00, 0.00, 0.00, 388.00, 589.00, 0.00, N, O.OO,E, 604.00, 0.00, 0.00, 408.00, 609.00, 0.00, N, O.OO,E, 624.00, 0.00, 0.00, 928.00, 624.00, 0.00, N, O.OO,E, 689.00, 2.47, 2]9.00, 481.98, 683.98, 0.20,N, 1.28, W, ]84.00, 6.59, 2]9.00, 58].64, 183.64, 1.49, N, 9.08, W, 889.00, 10.]1, 279.00, 686.48, 882.48, 3.J9,N, 23.94, W, 916.14, 12.09, 279.00, ]18.00, 914.00, 9.JB,N, 30.20, W, 989.00, 14.83, 2")9.00, ]83.99, 919.99, J.25,N, 45.]6,W, 3084.00, 18.95, 2]9.00, 8]9.65, 10]5.65, 11.]9, N, ]4.46,W, 1184.00, 23.0], 279.00, 9]2.98, 1168.98, 17.40, N, 109.86,W, 1283.99, 27.19, 279.00, 1063.60, 1259.50, 24.04, N, 3s1.80,W, 1383.99, 31.31, 279.00, 1150.73, 1346.73, 31.69, N, 200.06,W, 1434.00, 33.3], 279.00, 1192.98, 1388.98, 35.8], N, 226.48, W, 1483.99, 33.3'1, 2]9.00, 1234.12, 1430.]2, 40.1],N, 253.64, W, 1583.99, 33.37, 2]9.00, 1318.23, 1514.23. 48.]B,N, 30].9], W, 1605.2], 33.3], 279.00, 1336.00, 1532.00, 50.61, N, 319.53,W, 1683.99, 33.31, 279.00, 1401. J9, 1597.74, 57.38, N, 362.30,W, 1]83.99, 33.3"1, 279.00, 1485.26, 1681.26, 65.99, N, 416.63,W, 1870.00, 33.37, 279.00, 155].08, 1753.08, 73.39, N, 463.3fi,W, 1899.99, 34.59, 283.31, 1581.96, 1777.96, 76.64, N, 4]9.]9,W, 1949.99, 36.93, 289.90, 1622.54, 1818.54, 85.02, N, 507.74, W, 1970.00, 37.96, 292.33, 1638.93, 1834.43, 89.41, N, 519.DB,W, 1999.99, 38.]8, 296.47, 1661.95, 185].95, 97.10, N, 536.03,W, 2049.99, 40.45, 303.02, 1700.48, 1896.48, 112.93,N, 663.66, W, 2061.22, 40.88, 304.43, 1]09.00, 1905.00, 116. 99, N, 569.J4,W, 2099.99, 42.47, 309.10, 173].96, 1933.96, 132.42, N, 590.37,W, 2149.99, 44.]9, 314.69, 1]79.16, 1970.16, 155.4 ], N, fi16.O1,W, 2199.99, 97.36, 319.83, 1800.86, 2004.86, 181.92,N, 640.flO,W, 2218.08, 48.34, 321.58, 1821.00, 2017.00, 192.30, N, 648.89, W, 2299.99, 60.13, 329.54, 1841.84, 2037.84, 211.62, N, 663.41, W, 2299.99, 53.09, 328.8], 18]2.89, 2068.89, 244.37,N, 684.88, W, 2349.99, 56.19, 332.88, 1901.83, 2097.83, 279.99, N, ]04.70, W, 2401.64, 59.51, 336.71, 1929.32, 2125.32, 319. 55, N, ]23.29, W, 2449.99, 57.46, 332.16, 1954.61, 2150.61, 356.]2, N, ]41.OS,W, 2999.99, 56.50, 32].24, 1982.23, 2178.23, 392.70, N, ]62.OS,W, 2549.99, 53.75, 322.09, 2011.19, 220].19, 925.96, N, 785.60,W, 2599.99, 52.24, 316.]2, 2041.30, 223].30, 456.2fi, N, 811.55, W, 2649.99, 50.98, 311.15, 2072.36, 2268.36, 483.44,N, 839.]4, W, 2699.99, 99.99, 305.40, 2104.19, 2300.19, 50].33,N, 869.99, W, 2718.30, 99.]0, 303.25, 2116.00, 2312.00, 515.22,N, 881.55, W, 2]99.99, 49.29, 299.50, 2136.59, 2332.59, 527.76, N, 902.11, W, 2799.99, 48,90, 293.51, 2169.34, 2365.34, 544.62, N, 935.90,W, 2849.99, 48,82, 287.4], 2202.25, 2398.25, 551.79, N, 971. 19,W, 2899.99, 49.06, 281.4 s, 2235.11, 2931.11, 56'1.19, N, 1007.62,W, 2949.99, 49.61, 2]5.50, 2267.71, 2963.11, 572.77, N, 1045.10,W, 2999.99, 50.95, 269.68, 2299.85, 2995.85, 574.49, N, 1083.35, W, 3049.99, 61.58, 264.01, 2331.32, 2527.32, 5]2.39,N, 1122.13, W, 3090.19, 52.68, 259.60, 2356.00, 2562.00, 56].80, N, 11s3.52,W, 3099.99, 52.97, 258.54, 2361.92, 2561.92, 566.32, N, 1161.19, W, 3149.99, 59.61, 253.28, 2391.4], 258].97, 556.99, N, 1200.29, W, 3199.99, 56.46, 248.2 s, 2419.78, 261s.]e, 542. 90, N, 1239.18,W, 3249.99, 58.51, 293.43, 2496.66, 2642.66, 525.63, N, 1277.63, W, 3299.99, 60.73, 230.89, 2471.96, 266].96, 504.80, N, 1315.31, W, 3349.99, 63.10, 234.49, 2495.51, 2691.51, 480.54, N, 1352.19, W, 3399.99, 65.60, 230.23, 2517.16, 2]13.16, 452.99, N, 138J.84,W, 3499.99, 68.21, 226.18, 2536.78, 2]32.78, 422.34,N, 1422.11,W, 3499.99, 70.92, 222.29, 2554.24, 2750.24, 38B.J],N, 1454.J],W, 3549.99, 73.]0, 218.52, 2569.43, 2]65.93, 352.50, N, 1485.63,W, 3599.99, ]6.56, 214.85, 2582.2"1, 2778.2], 313.75, N, 1514.48,W, 25]0628.892, N, 2636]4.952,£, 0.000, 25]0628.892,N, 2636]4.952, E, 0.000, 2570628.892, N, 2636]4.952, E, 0.000, 25]0628.892, N, 2636]4.952, E, 0.000, a570628.892,N, 2636]9.952,£, 0.000, 25]0628.B92,N, 2636]4.952,5, 0.000, 25J0628.892,N, 2636]4.952,£, O.OOD, 25]0628.892,N, 2636]4.952,5, 0.000, 25]0628.892, N, 2636]4.952, E, 0.000, 25]0628.892, N, 2636]4.952, E, 0.000, 25 ]0628.892, N, 2636]4.952, E, 0.000, 25]0629.094,N, 2636]3.6]4,£, 4.120, 25J0630.330,N, 263665.8]2,£, 4.120, 25J0632.683,N, 263651.018,£, 4.120, 25J0633.6]S,N, 263694.]56, E, 4.120, 25]0636.140, N, 263629.189, E, 4.120, 25]0690.684, N, 263600.49], E, 4.120, 25]0646.292, N, 263565.092, E, 4.120, 25]0652.934,N, 263523.155, E, 4.120, 25]0660.5]6, N, 2634]9.909,£, 4.120, 25J0664.]61,N, 263448.482,£, 4.120, 2SJ0669.063,N, 263421.324,£, 0.000, 25]06]J.668,N, 263366.995, E, 0.000, 25]06]9.498, N, 263355.438,£, 0.000, 25]0686.2]2, N, 263312.66 ], E, 0.000, 25]0694.8]],N, 263258.339,£, 0.000, 25]0702.278, N, 263211.613,6, 0.000, 2570]0&.529, N, 263196.178, E, 9.000, 2570'Bil>T, N, 26316].231, E, 9.000, 2570]18.296,N, 263155.88],£, 9.000, 25]0]25. 98J,N, 263138.995, E, 9.000, 25]0]41.814,N, 263111.315,£, 9.000, 25]0]95.8]B,N, 263105.228, E, 9.000, 25]0]61.310, N, 263084.601, E, 9.000, 2570J84~.355, N, 263058.968, E, 9.000, 25]0810.806, N, 263039.&73,£, 9.000, 2570821.186,N, 263026.081,£, 9.000, 2s70840.501,N, 263011.&68,£, 9.000, 25708J3.25],N, 262990.093,£, 9.000, 25]0908.8]2,N, 2629]0.281, E, 9.000, 25]0948.434, N, 262951.690, E, 9.000, 25]0985.602, N, 262933.931, E, 9.090, 25]1021.5]8, N, 262912.929, E, 9.090, 25]1054.826, N, 262889.3]9, E, 9.090, 25]1085.136, N, 262863 .928, E, 9.090, 25]1112.318,N, 262835.239,£, 9.090, 25J1136.201,N, 262804.991, E, 9.090, 25"11149.090, N, 262]93 .437, E, 9.090, 25]11s6.634,N, 262]]2.8]2, E, 9.090, 25]1173.489,N, 262]39.086, E, 9.090, 25]1186.661, N, 262]03.844,£, 9.090, 25]1196.065, N, 26266].369, E, 9.090, 2sJ1201.699,N, 262629.889,£, 9.090, 25]1203.361, N, 262591.641,£, 9.090, 25]1201.20],N, 262552.864,£, 9.090, 25]1196.6]6,N, 262521.4 ]1, E, 9.090, 25]1195.194, N, 262513.804, E, 9.090, 25]1185.361, N, 2624]4.]04,£, 9.090, 25]11]1.]]0, N, 262935.813,£, 9.090, 25'11154.505, N, 26239].3]3,£; 9.090, 25]1133.6]6, N, 262359.62],£, 9.090, 25]1109.413, N, 262322.812, E, 9.090, 25]1081.869, N, 26228].159, E, 9.090, 25]1051.21], N, 262262.894, E, 9.090, 25]1017.650,N, 262220.231,£, 9.090, 25]0981.380, N, 262189.3]6, E, 9.090, 25]0992.634, N, 262160.522,£, 9.090, • 0.00, 0.00,13 3/e" Conductor - MWD (i) 0.00, 0.00, 0.00, 0.00, o.DD, 0.00, Baee Glacial Waah D.DO, 0.00,9 s/B" surface 0.00, 0.18, i.as, 3.30, 4.1J,TSUGA 2-7A 6.3a, 10.28, 16.16, 20.95, 2].61, 31.as, 35.00, 92.50, 44.10,TSUGA 2-88 50.00, 5].50, 63. 94,KOp: DLS 9°/100' TFO 65° 66.86, BLIND (2) ]4.67, ]8.83, Bt aYt DLS 9°/100' TPO ]3.94° 86.1], 101.43, 305.37,Top Tyonek 120.38, 142.90, 368.85, 179.06, CARYA 2-2INT 198.0], 230.39, 266.59, 304.J],Staxt DLS 9.09°/100' TPO -119.16° 341.57, 3]].11, 409.88, 439.65, 466.26, 489.52, 497.17,CARYA 2-3INT 509.30, 525.46, 537.91, 546.57, 551.39, 552.33, 549.38, 544.21,CARYA 2-9 - interp @ 2552.0 542.58, 531.95, 517.&7, 499.52, 477.93, 452.92, 424.66, 393.31, 359.09, 322.20, zea.e], ~' 5 ~- ' X N H Y vl ~ µ F ~ [i [+ Q 3 [' £ r pp~i ~ 3 X p p p £ £ m £ 3 S~ ''. r [. 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FlUlvtT.t„ii~ Steve/ Tom: Attached a e the directional profiles proposed for the Kaloa No. 3 well. Wp10 represents the pilot hole and Wpll the horizontal production. I apologize for not including that in the Permit package. Also attached ie digital data for use rn workstation. mane -----Original Message----- erom: Randall n. Jones -Eai l~-::r-,,- - rap,:,; E.r..„h Sent: Tuesday, July 19, 2005 1:09 PM4'~~ To: 'Stephen Daviee' Cc: dodos vasgen; 'Scott Pfoff'; 'Andy Clifford'; 'sd Jones' Subject: Kaloa 3 - Directional Information Andy i out till n eek, but please find the attached plat showing the SLB BHL of CheeKC3wdeviated well portion, and the BHL of the horizontal tail portion of Che K-3. Although, [he a rvey says it'd the K-2 well at the HHL of the horizontal tail portion, it i a surveyor's error (unless you hear from Duane or Ed to the co~traryle AS YOU CAN EEB THE BHL OF THE HORZ TAIL DOESN'T FALL WITHIN 3,000' OF THE X-2 BHL SO NO SPACING EXCEPTION WILL BE REQUIRED AS PREVIOUSLY THOUGHT LAST WEEK I haven't a any directional data you requested, eo by copy of this memo to Sd/DUane, I am asking Chem to provide if available presently. Randall D. Jones, CPL Manager, LAND 6 Negotiations AURORA GAS, LLC 10333 Richmond Avenue, Suite J10 Houston, T% ]]042-41]6 Telephone J13-9]]-5]99 Facsimile ]13-9]]-134] Mobile ]13-409-23]9 -----Original Meeaage----- From: Stephen Davies ~' - e davieaFadm in.acate.ak.;js Sent: Tuesday, July 19, 2005£2 e4] PM To: Andy Clifford Cc: Randy Jones Subject: Kaloa 3 - Directional Information Andy, Could you please supply a plat that shows the well c e for both the pilot hole and the horizontal aide[ rack for the Kaloau3swe11? Thie i required by 20 AAC 25.050 (b)(1). The plat provided with Che permit to drill application does not show the c of the proposed well bores. Could you also provide a copy of the proposed directional a rvey for ach well bore for use rn the Commission's confidential geoscience workstation? Thanks Eoz your help, Steve Daviee Petroleum Geologist Alaska Dil and Gae Conservation Commission Telephone: (90]) J93-1224 Cook Inlet Kaloa #3 MD, Inc, Azim., EST VD, TVD, N/E„ E/W„ Y„ X„ DLS, V.S., Comments, E/W, N/S (°/l0oft), (ft), (Deg), (Deg), (ft), Ift), (ft) „ (ft) „ (ft) „ (ft) „ °/lDOf<, (ftl, (ft), (ft) -16.00, 0.00, 0.00, -232.00, -16.00, O. OO,N, 0. 00, E, 25]062 B.B92,N, 2636]9.952, 6, 0.000, 0.00, ]4.00, 0.00, 0.00, -122.00, ]4.00, 0.00, N, O.OO,S, 25]0628.892, N, 2636]9.952, E, 0.000, 0.00,13 3/8^ Conductor - MWD (1) 84.00, 0.00, 0.00, -112.00, 84.00, 0.00, N, O.OO,E, 25]0628.892, N, 2636]9.952, E, 0.000, 0.00, 184.00, 0.00, 0.00, -12.00, 184.00, O.OO,N, O.OO,E, 25]0628.892, N, 2636]4.952, E, 0.000, 0.00, 284.00, 0.00, 0.00, 88.00, 284.00, 0.00, N, 0.00,6, 2570628.892, N, 2636]9.952,&, 0.000, 0.00, 384.00, 0.00, 0.00, 188.00, 384.00, O.OO,N, O.OO,S, 2570628.B92,N, 263674.952,&, 0.000, 0.00, 484.00, 0.00, 0.00, 288.00, 484.00, O.OO,N, 0.00, E, 2570628.892,N, 2636]9.952, E, 0.000, 0.00, 488.00, 0.00, 0.00, 292.00, 488.00, O.OO,N, 0.00, E, 25]0628.892, N, 263674.952, E, 0.000, O.OO,Haae Glacial Waeh 584.00, 0.00, 0.00, 388.00, 584 .0 D, O.OO,N, 0.00, E, 25J062s.892,N, 263674.952, E, 0.000, 0.00, 604.00, 0.00, 0.00, 408.00, 609.00, O.OO,N, 0.00, E, 25J0628.892,N, 2636]4.952, E, 0.000, 0.00,9 5/8^ Surface 624.00, 0.00, 0.00, 428.00, 624.00, O.OO,N, 0.00, E, 25J0628.892,N, 2636]4.952,&, 0.000, 0.00, 689.00, 2.47, 2]9.00, 48].98, 683.98, 0.20,N, 1.28, W, 25J0629.094,N, 2636]3.6]4, E, 4.120, 0.18, 789 .00, 6.59, 2]9.00, 58].64, ]83.64, 1.44,N, 9.08, W, 25J0630.330,N, 263665.8]2,&, 4.120, 1.25, 889.00, 10.]1, 2]9.00, 686.48, 882.98, 3.]9, N, 23.94,W, 25]0632.6a3, N, 263651.018,&, 4.120, 3.30, 916.14, 12.04, 2}9.00, ]18.00, 914.00, 4.78, N, 30.20, W, 2570633.6]5, N, 263694.}56,&, 9.120, 4.1J,TSUGA 2-7A 984.00, 19.83, 2]9.00, ]83.99, 9]9.99, 7.25, N, 45.]6, W, 25]0636. 140, N, 263629.189,&, 9.120, 6.32, 1084.00, 18.95, 2]9.00, 8]9.65, 10]5.65, 11.]9, N, ]4.46, W, 25J0640.fi89, N, 263600.A97,E, 4.120, 10.28, 1184.00, 23.07, 2]9.00, 9]2.98, 1168.98, 1].40, N, 109.86, W, 25]0696.292,N, 263565.092,&, 4.120, 15.16, 1283.99, 2}.19, 2]9.00, 1063.50, 1259.50, 24.04, N, 151.00, W, 25]0652.939, N, 263523.155,&, 4.120, 20.95, 1383.99, 31.31, 2]9.00, 1150.]3, 1346.]3, 31.69, N, 200.O6,W, 25]0660.576, N, 2634]4.904,6, 4.120, 2].61, 1434.00, 33.3], 2}9.00, 1192.98, 1388.98, 35.8'1, N, 226.48,W, 25]0664.]61, N, 263498.482,6, 4.120, 31.25, 1483.99, 33.3], 2]9.00, 1234.]2, 1430.]2, 40.IJ, N, 253.69,W, 25]0669.063, N, 263421.329,&, 0.000, 35.00, 1583.99, 33.3], 2]9.00, 1318.23, 1514.23, 48.78, N, 30].9J,W, 25706]7.66 B, N, 263366.995,8, 0.000, 42.50, 1605.2], 33.3], 2]9.00, 1336.00, 1532.00, 50.61,N, 319.53,W, 25]06]9.498, N, 263355.438,6, 0.000, 44 .10,TSUGA 2-sB 1683.99, 33.3], 2]9.00, 1401.]4, 159].]9, 5].38,N, 362.30,W, 25]0686.2]2, N, 263312.66], E, 0.000, 50.00, 1]83.99, 33.3], 2]9.00, 1485.26, 1681.26, 65.99,N, 416.63,W, 25]0694.BJ],N, 263258.339, E, 0.000, 57.50, 18]0.00, 33.3], 2]9.00, 155].08, 1]53.08, ]3.39, N, 463.36, W, 2570702.2] B, N, 263211.613,@, 0.000, 63.94, KOP: DLS 9°/100' TPO 65° 1899.99, 34.59, 283.31, 1581.96, 1]]].96, J6.64,N, 9]9.]9, W, 2570705.529, N, 263195.1]8, E, 9.000, 66.86, BLIND (2) 1949.99, 36.93, 209.90, 1622.54, 1818.54, 85.02,N, SOJ.J4,W, 25]DbE3:, N, 26316].231,&, 9.000, 74.6], 19'10.00, 3].96, 292.33, 1638.43, 1834.93, 89.41, N, 519.08, W, 2570J1B.296,N, 263155.88 ], E, 9.000, 78. 83, St art DLS 9°/100' TFO ]3.94° 1999.99, 38.]8, 296.4 J, 1661.95, 185].95, 9].10,N, 53fi .03,W, 25JOJ25.987,N, 263138. 945, E, 9.000, 86.1], 2049.99, 40.45, 303.02, 1]00.48, 1896.98, 112.93, N, 563.66, W, 25]OJ41.814,N, 263111.315,&, 9.000, 101,43, 2061.22, 40.88, 304.43, 1]09.00, 1905.00, 116.99, N, 569.]4,W, 25JOJ45.9]9,N, 263105.228,&, 9.000, 105.3J,TOp Tyonek 2099.99, 42.4], 309.10, 1737.96, 1933.96, 132.42, N, 590.3 }, W, 25]0761.310, N, 263084.601, E, 9.000, 120.38, 2199.99, 94.]9, 314.69, 17]9.16, 19]0.16, 155.4 J, N, 616.01, W, 25]OJ89.355,N, 263058.968, E, 9.000, 142.90, 2199.99, 9].36, 319.83, 1808.86, 2004.86, 181.92,N, 640.40, W, 25 ]0810.806, N, 263034.5 ]3,E, 9.000, 168.85, 2218.08, 48.34, 321.58, 1821.00, 201].00, 192.30, N, 648.89, W, 25]0821.186, N, 263026.081,&, 9.000, IJ9.O6,CARYA 2-2INT 2249.99, 50.13, 324.54, 1841.89, 203].84, 211.62, N, 663.41, W, 25]0840.501, N, 263011.568,6, 9.000, 198.07, 2299.99, 53.09, 328.87, 18]2.89, 2068.89, 244 .3 ], N, 684.BB,W, 25708]3.25], N, 262990.093,6, 9.000, 230.39, 2349.99, 56.19, 332.88, 1901.83, 209].83, 2]9.99, N, 704.JO,W, 25]0908.8]2, N, 2629]0.281,6, 9.000, 265.59, 2901.69, 59.51, 336.]1, 1929.32, 2125.32, 319.55, N, ]23.29,W, 25]0998.434, N, 262951.690,5, 9.000, 304.]], Start DLS 9.09°/100' TFO -119.15° 2449.99, 57.95, 332.16, 1954.61, 2150.61, 356.]2, N, 741.OS,W, 25]0985.602, N, 262933.931, E, 9.090, 341.5], 2999.99, 55.50, 32].24, 1982.23, 21}8.23, 392.JD,N, 762.OS,W, 25]1021.57 a, N, 262912.929,6, 9.090, 3]].11, 2549.99, 53.]5, 322.09, 2011.19, 220].19, 425.95,N, ]85.60, W, 25]1054.826, N, 262889.3]9, E, 9.090, 409.88, 2599.99, 52.24, 316.]2, 2041.30, 223].30, 956.26,N, 811.55, W, 25]1085:136, N, 262863.428, E, 9.090, 439.65, 2649.99, 50.98, 311.15, 20]2.36, 2268.36, 403.44,N, 839.74,W, 25]1112.318, N, 262835.239, E, 9.090, 466.26, 2699.99, 49.99, 305.40, 2104.19, 2300.19, 50].33,N, 869.99, W, 25]1136.201, N, 262804.991,&, 9.090, 489.52, 2]18.30, 49.]0, 303.25, 2116.00, 2312.00, 515.22,N, BB1.55, W, 25]1144.090, N, 362793.43], E, 9.090, 497.17, CARYA 2-3INT 2'149.99, 49.29, 299.50, 2136.59, 2332.59, 52].76,N, 902.11, W, 25]1156.634, N, 2627]2.872, E, 9.090, 509.30, 2]99.99, 48.90, 293.51, 2169.34, 2365.34, 544.62,N, 935. 90, W, 25]11]3 .489, N, 262]39.086, E, 9.090, 525.96, 2899.99, 40.82, 28].9'1, 2202.25, 2398.25, 55].]9, N, 9J1.14,W, 25]1186.661, N, 262]03.844, E, 9.090, 53].91, 2899.99, 99.06, 281.95, 2235.11, 2431.11, 56].19, N, 100 J. 62, W, 2571196.065,N, 26266].369, E, 9.090, 546.5], 2999.99, 99.61, 2]5.50, 2267.71, 2463. J1, 572.7], N, 1045.10, W, 25J1201.649,N, 262629.889,&, 9.090, 551.39, 2999.99, 50.45, 269.68, 2299.85, 2495.85, 5]4 .49, N, 1083.35, W, 25 ]1203.361, N, 262591.641,&, 9.090, 552.33, 3099.99, 51.58, 264.01, 2331.32, 252].32, SJ2.34, N, 1122.13, W, 25]1201.20], N, 262552.864,&, 9.090, 549.38, 3090.19, 52.68, 259.60, 2356.00, 2552.00, 56"1.80, N, 1153.52,W, 25]1196.6]6, N, 262521.4]1,&, 9.090, 544.21,CARYA 2-4 - Inte rp @ 2552.0 3099.99, 52.9], 258.54, 2361.92, 255].92, 566.32, N, 1161.19, W, 25J1195.199,N, 262513.804,&, 9.090, 542.58, 3149.99, 54.61, 253.28, 2391.4], 2$87.47, 556.99, N, 1200.29, W, 25J1185.361,N, 262974.704,&, 9.090, 531.95, 3199.99, 56.46, 248.25, 2419.]8, 2615.]8, 542.90, N, 1239.18, W, 25J1171.J70,N, 262435.813,5, 9.090, S1J.57, 3249.99, $8.51, 293.43, 2446.66, 2642.66, 525.fi3, N, 12]].63, W, 25J1154.SOS,N, 26239].3]3,&, 9.090, 499.52, 3299.99, 60.]3, 238.04, 24]1.96, 266].96, 504.80, N, 1315.37,W, 25]1133.6]6, N, 262359.627,&, 9.090, 4]].93, 3349.99, 63.10, 234.49, 2495.51, 2691.51, 980. 54, N, 1352.19, W, 25]1109.913,N, 262322.812,&, 9.090, 952.92, 3399.99, 65.60, 230.23, 251].16, 2]13.16, 452.99, N, 138]. 84,W, 25]1081.869, N, 26228].159,&, 9.090, 424.66, 3449.99, 68.21, 226.18, 2536.]8, 2]32.]8, 922.34, N, 1422 .11,W, 25]1051.21], N, 262252.899,6, 9.090, 393.31, 3499.99, }0.92, 222.29, 2554.24, 2]50.24, 3BB.J7,N, 1454.77,W, 25]101"1. 650, N, 262220.231,6, 9.090, 359.09, 3549.99, }3.70, 218.52, 2569.43, 2'165.93, 352.50, N, 1485.63,W, 25]0981.380, N, 262189,3]6,&, 9.090, 322.20, 3599.99, }6.56, 219.85, 2582.2], 27]8.2 J, 313.75,N, 1514 .48,W, 25]0992.634, N, 262160.522,&. 9.090, 282.8], x ~, x -- Y F ' Y £ F rc F ~ ~ w ~ x N a X p p .J£ £ W ^ 8 N.ml i £ Z.r ° O w9 ® F F E. 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A FT W V :. 5 a k 3 a a b u sa ~° •< A~ 0 >'c ~ a .n e 6 .. b T wtl A F W e ~ C e a o U U L 3 0 a a` '~ a S B ~ ~ '. ~C ~ a C O G A ~ W a a ai' c U U U g Y • +/- tiAurrora Gas, LLC www.aurorapower.com 18-July-2005 Mr. Tom Maunder P.E. Senior Petroleum Engineer 333 W. 7th Ave., Ste. 100 Anchorage, AK 99501 Re: Diverter fine size waiver request. Dear Mr. Maunder: ~~~~~ JUG ~. ~~05 ~I~~k~ Ril ~~~ Cqt~~~ Gsm~nission Aurora Gas, LLC recently submitted under separate cover an Application for Permit to Dri11, for the Kaioa No. 3 well. The proposed wellbore geometry includes installation of a 13 3/$° conductor, drilling 12 %<° surface hole and setting 9 s/$" surface casing, and drilling out to TD w/ 7 '/8" bit. Aurora Gas has available for use a 13 5/8" 5M diverter spool w/ single 10" ID outlet. Per 20 AAC 25.035 (c)(1)(A) there is a requirement that the diverter line outlet size be at least 16" in diameter or (B) at least as large as the hole size being drilled, unless one can show through historical precedent or other that drilling a hole size larger than the diverter line outlet size can be done safely. Aurora is requesting a waiver of the diverter line size requirements as required in the above mentioned regulations because of Aurora's knowledge of the area and recent work history in the immediate vicinity. Offset Well History: Based on drilling records for offset wells in the Kaloa Gas Field, namely the Albert Kaloa No. 1 drilled by the Pan American Oil Company in 1967 and the Kaloa No. 2 which was drilled by Aurora Gas, LLC in 2004, Aurora feels the intervals to be drilled through do not pose awell-control risk, and further Aurora feels there is enough information available to safely drill the surface hole interval without benefit of first drilling a pilot hole. Based on the historical well information indicated above, Aurora hereby requests a waiver of the pilot hole requirement per both 20 AAC 25.035 (c)(1)(B) and 20 AAC 25.035 (h)(2). Please do not hesitate to contact the undersigned at 277-1003, or Duane Vaagen (Fairweather E&P) at 258-3446 with any questions or concerns. Sincerely; ~.... f ,; ,' r,, ~J,,~Edward Jones f~ ' Executive Vice Pres~den Aurora Gas LLC. cc: Duane Vaagen Engineering-Operations 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 ^~ ~~~ LL 1# ,~ _...~ r~r _" '"~ C~p~r)w~aN ,,,,,.,, ` , ~~ ~~~ '~ F ..... ,___ _~~_ ~ ~ °~~'.r~'~ 1980$40 No AURORA GAS LLC LONECREEKI DEV 1-GAS 10!12!1 50-283-2D10PI' 2030620 Yes AURORA GAS LLC _ DEV CANC 6I10I 50.283-10021-00-00 166038D No AURORA GAS LLC -._.-......___________._ ............._.._......_.._.....__.... NICOLAI CK UNIT 2 ........_........~..__ _.._.. DEV 1-GAS _._ 7129! __ ..; -.___~._........__..._...---..__....._..___._. 50.283-20003-00-00 ....__.........._......_.____. 1670070 __ No __.._..._..._._._...__-. t _._.___.. AURORA GAS LLC NICOLAI CK UNIT 3 DEV 1 .GAS 12I25I,, ~~. 50.2$3-20D36~9D-Blj" 202107D No 202107D AURORA GAS LLC ___.__...._.._..._.__._... ~~__ NICOLAI CK UNIT 5 .._....__ __ __ SER . ExPIR 7I9I~~sy t _.__.__~- .............._._ ..~._.__ 50.283-10020 0~-BB' ..__.__.____..______ 1660080 No ._.._.-_.... _____~ AURORA GAS LLC NICOLAI CK_ST 1-A DEV SUSP ~~ $I14I1 5D-2$3.20104;AB-8l}' 2030710 Yes _ AURORA GAS LLC EXP CANC 6I9I 5D-2S3.2DD35~9-8$' 203D700 Yes AURORA GAS LLC Vd MOQUAVJKIE 1 50-283.20058-DO-00 1770490 No AURORA GAS LLC SIMPCO KALOA 1 EXP SI 10!2$!1 50-283-10019.00-DO 1650120 No AURORA GAS LLC MOQUAWKIE 1 DEV P&A 12!24!1; 50-2$3-20060-OD-DO 1780470 No _ _ _ .AURORA GAS LLC SIMPCO MOQUAWKIE 1 EXP 1-GAS 10l28l1~ 50-283-2D039;0- 2030680 Yes AURORA GAS LLC LONG LK 1 EXP SUSP $I25Ic 50.283.1D01~;~8~b0"~ 2D30690 Yes AURORA GAS LLC MOQUAWKIE 1 DEV 1-GAS 10I17Ic _.__-._ 50.283-1002D:9~2'O[f 2021620 No ____ AURORA GAS LLC NICOLAI CK UNIT 1$ DEV 1-GAS 9I22Ic 50.283-201D~flCr 202194D No AURORA GAS LLC LCl4-~~-E$9E-' _ DEV mm CANC , . 9I30Ic::`^ r _ ..............................____..--......_............................ 50-283-2D062-DD-DO .._........_.....__...__....... 17$D8$D ......................... N o _._..._........................._ .._ __.__.........._..._._.........__...____.._..__.._..__.._.._.._........_......._ AURORA GAS LLC .------..._.._........................_.__.___...~ -_.._.____..----.._........_.... SI' MPCO MOQUAWKIE 2 _- DEV __........_............... SI .....__ _._.___....; 2I25I1;' _ 50-283-20107-00-00~ 204096D _ _ Yes _ jl~4s __ AURORA GAS LLC ~~ KALOA 2 EXP 1-GAS 7I1$Ic 5D-283-2D102-00-00 2D22080 Yes ` 1.... . AURORA.GAS LLC ~~ ............. ~~~...-.... NICOLAI CREEK 9 ~~p' ....... ............-___..._.____...__~a DEV __. 1-GAS _____...~ 10I3I ' _............._ ~ _.__ ..............._.......---_.....,....-..._._. 50-283-1000E-~8~~ ..-___~.__ 20416DD ........... ...- Yes .._ . AURORA GAS LLC TYONEK RESERVE 1 Re-entry. _~.._ - ____ ~ ..............._._........._._ _.____.--.-..-....--_ 50.283-20108-00-OD _-____.__®__ 2041830 __..--.__-- Yes _-___. IaLI _.____.........._.. --..__._..--._ AURORA GAS LLC ~01~ THREE MILE CK UNIT 1 EXP 1-GAS ~s 1I23I~. 50.283-201 1 1-00-OD 20508D0 Yes _ St AURORA GAS LLC ~ MOQUAWKIE 3 5D-283-20112-00-00 205097D Yes AURORA GAS LLC LONE CREEK 3 Ffl `)Q'~'~l~Y~ F7i11f1 `•_ i ,,~ n~-~r;n i ,' ~ J I i L'hl fYA '} D~hif7 ~< RE: Kaloa 3 Subject: RE: Kaloa 3 F~roin: "I~unclall [~. Jones"'~~~j~~ri~;~r~ra~n~~~rapower.conl> T)atc: 1uc, l? Jul ~C)Oi u~::~<):-1~ -f)~OU To: 'Stephen 1)i~~i~s' <;teve c1a~ ie5(~ra~irriin.state.a(:.us~= Thanks for the reply, that is what I thought. Randall D. Jones, CPL Manager, LAND & Negotiations AURORA GAS, LLC 10333 Richmond Avenue, Suite 710 Houston, TX 77042-4176 Telephone 713-977-5799 Facsimile 713-977-1347 Mobile 713-409-2375 rj oncs~aurorapowe.r. ce,m r sknC~hou s t on . r x.~ . com -----Original Message----- From: Stephen Davies [ma.ilto:steve davi.esGa.d.°;;.i.n.state,ak.us] Sent: Monday, July 11, 2005 5:23 PM To: Randy Jones Subject: Kaloa 3 Randy, A spacing exception will be needed for Kaloa No. 3. r1 The applicable regulation is 20 AAC 25.055, DRILLING UNITS AND WELL SPACING, paragraph (a) (4): "if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool." Nearby well Kaloa No. 2 has been on gas production since Oct 2004, and has flowed at daily average rates between 4.3 and 5.6 MMCF/D since then. Kaloa No. 3 will reportedly be within 3,000' of Kaloa No. 2, so paragraph (a) (4) above applies (gas has been discovered). A spacing exception will be needed for Kaloa No. 3. Let me know if I can help further. Steve Davies AOGCC 1 of 1 8/30/2005 11:22 AM ?~<~ ~ 7/11/200 u.~;.ls,. ~Ii~FORMATION • HALLI B U RTOI N Sperry Drilling Services Aurora Gas, LLC Cook Inlet Seward Meridian Kaloa #3 Kaloa #3 Hrztl ST Plan: Kaloa #3a - wp11 Proposal Report 13 July, 2005 s HALLIBURTON Sperry Grilling Services 250 1 ~ 1750 0 a 2000 O C at ~ 2250 ar 2 F 2soo z75D Base Glacial Wash C Begin Build DLS 4.12°/100' TFO -81 ° 5° 10° ,O~ - -- TSUGA 2-7A 20 25 ~O - Start Sail ~ 33.37° INC, 2856.8' MD • WELL DETAILS. Kaloa #3 Ground Level: 196.0 +N/-S +E/-W Northing Easting Latittude Longitude Slot 0.0 0.0 2570628.89 263674.95 61°I'46.124N 151°19'S7.562W COMPANY DETAILS: Aurora Gas, LLC REFERENCE INFORMATION [billing Co-ordinate (N/E) Reference: Well Kaloa #3, Gdd North VerBpl (TVD) Reference: Rig RKB @ 212.ofl (Rig Elevaton) Measured Depth Reference: Rig RKB @ 212.Ofl (Rig Elevation) Calculation Method: Minimum Cu rvature Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method. Trav. Cylinder North Error Surface: Elliptical Conic blaming Method. Rules Based WELLBORE TARGET DETAILS Name TVD +N/-S +E/-W Shape Kaloa #3 - T2 3000.0 144.1 -1081.0 Point Kaloa #3 - T3 3000.0 264.1 -1569.0 Point SECTION DETAILS Sec MD Inc Aa TVD +N/-S +E/-W DLeg TFace VSec Taryret I 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 2 640.0 0.00 0.00 640.0 0.0 0.0 0.00 0.00 0.0 3 1450.0 33.37 279.00 1405.0 35.9 -226.5 4.12 279.00 228.3 4 4306.8 33.37 279.00 3790.7 281.7 -1778.6 0.00 0.00 1792.9 CASING DETAILS No TVD MD Name Size I 90.0 90.0 13 3/8" Conductorl3-3/8 2 620.0 620.0 9 5/8" Sutface 9-5/8 3 4001.6 8 1/2" Open Hole 8-1/2 750 ° 3° G T Azimuths to Gritl North True North: 1.17° = a Mtvlagnetic North: 21.08° o p 500 x TD at 4306.8' MD, 3790.T TVD Magnetic Field p a _ Strength:55559.5nT Dip Angle: 73.78° ,... ' Date: 6/3/2005 + y 8 h Model: BGGM2005 t ~ ~ o 7~ 250 N ~ o C ~ N $ O N Kaloa #3 - T3 ^' ~ ~ ~ o t Kaloa #3 - T2 - ~ $ O ~ 0 Start Sail rLil 33.37° INC, 2856.8' MD -- " 0 Begin Build DLS 4.12°/100' TFO -81° -1750 -1500 -1250 -1000 -750 -500 -250 0 West(-)/East(+) (500 ft/in) Aurora Gas, LLC D6.8' MD, 3790.T TVD \ A~01 Kaloa #3/Kaloa #3 - wp10 1 500 750 1000 1250 1500 1750 2000 „~~nc~ul Section at 254.3-~ 1500 tl n, • HALLIBURTC~N Sperm/ Drilling Services Aurora Gas, LLC Cook Inlet Seward Meridian Kaloa #3 Kaloa #3 Hrztl ST Plan: Kaloa #3a - wp11 Proposal Report 13 July, 2005 HALLIBURTON Sperry Drilling Services Database; EDM 2003.11 Single User Db Company: Aurora Gas, LLC Project: Cook Inlet Site: Seward Meridian Welk Kaloa #3 Wellbore: Kaloa #3 Hrztl ST Design: Kaloa #3a - wp11 r Halliburton Energy Services Planning Report -Geographic Local CooMinate Reference: Well Kaloa #3 TVD Reference: WELL (copy) @ 196.Oft (Original Well Elev) MD Reference; WELL (copy) ~ 196.Oft (Original Well Elev) North Reference: Grid Survey CalculatiomMethod: Minimum Curvature Rroject Cook Inlet, USA Map System: US State Plane 1927 (Enact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Using geodetic scale factor Welt Kaloa #3 , Well Positton +NI-S 0.0 ft Northing: 2,570,628.89 ft Latitude: 61 ° 01' 46.124" N +E/-W 0.0 ft Easting: 263,674.95 ft Longitude: 151 ° 19' 57.562" W Position Uncertainty 0.0 ft Wellhead Elevation: ft Ground Level: 196.Oft Weltbore Kaloa #3 HrzU ST Magnetics. Model Name ` Sample Date Declination (°I Dip Angle (°) Field Strength Ind BGGM2005 7/6/2005 19.90 73.78 55,560 Design Kaloa #3a - wp11 Audk Notes: Version: Phase: PLAN Tie On Depth: 1,870.0 Vertical Section: Depth From (TVDf ' +NI-S +FJ-W Direction 0.0 0.0 0.0 1.17 Plan Summary Measured Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +Nftiq +EI-W Rate Rate Rate ~O (ft) (°) (°) (f~: (ft) (fq' (°I100ft) (°HOOft) (°/100ft) (`) 1,870.0 33.37 279.00 1,753.1 73.4 -463.4 0.00 0.00 0.00 0.00 1,970.0 37.96 292.33 1,834.4 89.4 -519.1 9.00 4.59 13.33 65.00 2,401.6 59.51 336.71 2,125.3 319.6 -723.3 9.00 4.99 10.28 73.94 3,827.4 90.00 199.00 2,805.0 113.3 -1,615.8 9.09 2.14 -9.66 -119.15 4,577.5 90.00 199.00 2,805.0 -595.9 -1,860.0 0.00 0.00 0.00 0.00 7/13/2005 12.58:07PM Page 2 of 5 COMPASS 2003.11 Build 48 • • HAI..LIBURTON Halliburton Energy Services Planning Report -Geographic Sperry Drilling Services 'Database: EDM 2003.11 Single User Db Local Co-ordinate Reference: Well Kaloa #3 Company:... Aurora Gas, LLC TVD References WELL (copy) @ 196.Oft (Original Well Elev) Project: Cook Inlet MD Reference: ' WELL (copy) @ 196.Oft (Original Well Elev) Site: Seward Meridian North Reference: Grid Well: Kaloa #3 Survey. Calculatbn Method: Minimum Curvature Wellbore: Kaloa #3 Hrztl ST Design: Kaloa #3a - wp11 Planned Survey Kaloa #3a - wp11 Map Map MD Inclination Azimuth TVD SSTVD +NI-S +FJ-W Nordring Easting DLSEV Vert Section tftl (°} 1°} Ift} {fU Ift} Iftl Iftl (ft) 1°rloonl Iftl 74.0 0.00 0.00 74.0 -122.00 0.0 0.0 2,570,628.89 263,674.95 0.00 0.00 13 3/8" Conductor 488.0 0.00 0.00 488.0 292.00 0.0 0.0 2,570,628.89 263,674.95 0.00 0.00 Base Glacial Wash 604.0 0.00 0.00 604.0 408.00 0.0 0.0 2,570,628.89 263,674.95 0.00 0.00 9 518" Surface 916.1 12.04 279.00 914.0 718.00 4.8 -30.2 2,570,633.67 263,644.76 3.86 4.17 TSUGA 2-7A 1,605.3 33.37 279.00 1,532.0 1,336.00 50.6 -319.5 2,570,679.50 263,355.44 3.10 44.10 TSUGA 2-86 .1,870.0 33.37 279.00 1,753.1 1,557.08 73.4 -463.4 2,570,702.28 263,211.61 0.00 63.94 KOP: DLS 9°1100' TFO 65° 1,900.0 34.59 283.31 1,778.0 1,581.96 76.6 -479.8 2,570,705.53 263,195.18 9.00 66.86 1,950.0 36.93 289.90 1,818.5 1,622.54 85.0 -507.7 2,570,713.91 263,167.23 9.00 74.67 1,970.0 37.96 292.33 1,834.4 1,638.43 89.4 -519.1 2,570,718.30 263,155.89 9.00 78.83 Start DLS 9°/100' TFO T3.94° 2,000.0 38.78 296.47 1,857.9 1,661.95 97.1 -536.0 2,570,725.99 263,138.94 9.00 86.17 2,050.0 40.45 303.02 1,896.5 1,700.48 112.9 -563.7 2,570,741.81 263,111.32 9.00 101.43 2,061.2 40.88 304.43 1,905.0 1,709.00 117.0 -569.7 2,570,745.88 263,105.23 9.00 105.37 Top Tyonek 2,100.0 42.47 309.10 1,934.0 1,737.96 132.4 -590.4 2,570,761.31 263,084.60 9.00 120.38 2,150.0 44.79 314.69 1,970.2 1,774.16 155.5 -616.0 2,570,784.35 263,058.97 9.00 142.90 2,200.0 47.36 319.83 2,004.9 1,808.86 181.9 -640.4 2,570,810.81 263,034.57 9.00 168.85 2,218.1 48.34 321.58 2,017.0 1,821.00 192.3 -648.9 2,570,821.19 263,026.08 9.00 179.06 CARYA 2-21NT 2,250.0 50.13 324.54 2,037.8 1,841.84 211.6 -663.4 2,570,840.50 263,011.57 9.00 198.07 2,300.0 53.09 328.87 2,068.9 1,872.89 244.4 -684.9 2,570,873.26 262,990.09 9.00 230.39 2,350.0 56.19 332.88 2,097.8 1,901.83 280.0 -704.7 2,570,908.87 262,970.28 9.00 265.59 2,401.6 59.51 336.71 2,125.3 1,929.32 319.6 -723.3 2,570,948.43 262,951.69 9.00 304.77 Start DLS 9.09°1100' TFO -119.15° 2,450.0 57.45 332.16 2,150.6 1,954.61 356.7 -741.0 2,570,985.60 262,933.93 9.09 341.57 2,500.0 55.50 327.24 2,178.2 1,982.23 392.7 -762.1 2,571,021.58 262,912.93 9.09 377.11 2,550.0 53.75 322.09 2,207.2 2,011.19 425.9 -785.6 2,571,054.83 262,889.38 9.09 409.88 2,600.0 52.24 316.72 2,237.3 2,041.30 456.3 -811.6 2,571,085.14 262,863.43 9.09 439.65 2,650.0 50.98 311.15 2,268.4 2,072.36 483.4 -839.7 2,571,112.32 262,835.24 9.09 466.26 2,700.0 49.99 305.40 2,300.2 2,104.19 507.3 -870.0 2,571,136.20 262,804.99 9.09 489.52 2,718.3 49.70 303.25 2,312.0 2,116.00 515.2 -881.5 2,571,144.09 262,793.44 9.09 497.17 CARYA 2-31NT 2,750.0 49.29 299.50 2,332.6 2,136.59 527.8 -902.1 2,571,156.63 262,772.87 9.09 509.30 2,800.0 48.90 293.51 2,365.3 2,169.34 544.6 -935.9 2,571,173.49 262,739.09 9.09 525.46 2,850.0 48.82 287.47 2,398.3 2,202.25 557.8 -971.1 2,571,186.66 262,703.84 9.09 537.91 2,900.0 49.06 281.45 2,431.1 2,235.11 567.2 -1,007.6 2,571,196.07 262,667.37 9.09 546.57 2,950.0 49.61 275.50 2,463.7 2,267.71 572.8 -1,045.1 2,571,201.64 262,629.89 9.09 551.39 3,000.0 50.45 269.68 2,495.8 2,299.85 574.5 -1,083.4 2,571,203.36 262,591.64 9.09 552.33 7/13/2005 12:58:07PM Page 3 of 5 COMPASS 200311 Build 48 • • HALLIBURTON Halliburton Energy Services Planning Report -Geographic Sperry Drilling Services Database: EDM 2003.11 Single User Db Local Co-oMinateReference: Well Kaloa #3 Comperry: Aurora Gas, LLC ND Reference: WELL (copy) @ 196.Oft (Original Well Elev) Project: Cook Inlet MD Reference: WELL (copy) @ 196.Oft (Original Well Elev) Site: Seward Meridian North Reference: Grid We1C Kaloa #3 Survey Calculation Method: Minimum Curvature Wsliborer Kaloa #3 Hrztl ST .Design: Kaloa #3a - wp11 Planned. Survey Kaloa #3a - wp11 MD Inclination Azimuth ND SSND +NI-S Ift1 (°- , Ct Iff- (tt- (tq 3,050.0 51.58 264.01 2,527.3 2,331.32 572.3 3,090.2 52.68 259.60 2,552.0 2,356.00 567.8 CARYA 2.4 - Interp @ 2552.0 3,100.0 52.97 258.54 2,557.9 2,361.92 566.3 3,150.0 54.61 253.28 2,587.5 2,391.47 556.5 3,200.0 56.46 248.25 2,615.8 2,419.78 542.9 3,250.0 58.51 243.43 2,642.7 2,446.66 525.6 3,300.0 60.73 238.84 2,668.0 2,471.96 504.8 3,350.0 63.10 234.44 2,691.5 2,495.51 480.5 3,400.0 65.60 230.23 2,713.2 2,517.16 453.0 3,450.0 68.21 226.18 2,732.8 2,536.78 422.3 3,500.0 70.92 222.29 2,750.2 2,554.24 388.8 3,550.0 73.70 218.52 2,765.4 2,569.43 352.5 3,600.0 76.56 214.85 2,778.3 2,582.27 313.8 3,616.6 77.52 213.66 2,782.0 2,586.00 300.4 CARYA 2.4.2 3,650.0 79.46 211.28 2,788.7 2,592.66 272.8 3,700.0 82.40 207.77 2,796.5 2,600.54 229.8 3,750.0 85.37 204.31 2,801.9 2,605.87 185.2 3,800.0 88.36 200.88 2,804.6 2,608.61 139.1 3,826.9 89.97 199.03 2,805.0 2,609.00 113.8 K3H - K3H Heel (wp09) 3,827.4 90.00 199.00 2,805.0 2,609.00 113.3 Start 750.1' MD Horizontal Section - K3H Heel (wp11) 3,900.0 90.00 199.00 2,805.0 2,609.00 44.7 4,000.0 90.00 199.00 2,805.0 2,609.00 -49.9 4,100.0 90.00 199.00 2,805.0 2,609.00 -144.4 4,200.0 90.00 199.00 2,805.0 2,609.00 -239.0 4,300.0 90.00 199.00 2,805.0 2,609.00 -333.5 4,400.0 90.00 199.00 2,805.0 2,609.00 -428.1 4,500.0 90.00 199.00 2,805.0 2,609.00 -522.6 4,577.5 90.00 199.00 2,805.0 2,609.00 -595.9 7D at 4577.5' MD, 2805.0' ND - K3H Tce (wp08) Map Map +~ IN Northing Easting DLSEV Vert Section Ig) Iftl Ift) (°nooel (ftl -1,122.1 2,571,201.21 262,552.86 9.09 549.38 -1,153.5 2,571,196.68 262,521.47 9.09 544.21 -1,161.2 2,571,195.19 262,513. 80 9.09 542. 58 -1,200.3 2,571,185. 36 262,474. 70 9.09 531. 95 -1,239.2 2,571,171. 77 262,435. 81 9.09 517. 57 -1,277.6 2,571,154. 50 262,397. 37 9.09 499. 52 -1,315.4 2,571,133. 68 262,359. 63 9.09 477. 93 -1,352.2 2,571,109. 41 262,322. 81 9.09 452. 92 -1,387.8 2,571,081. 87 262,287. 16 9.09 424. 66 -1,422.1 2,571,051. 22 262,252. 89 9.09 393. 31 -1,454.8 2,571,017. 65 262,220. 23 9.09 359. 09 -1,485.6 2,570,981. 38 262,189. 38 9.09 322. 20 -1,514.5 2,570,942. 63 262,160. 52 9.09 282. 87 -1,523.6 2,570,929. 23 262,151. 40 9.09 269. 29 -1,541.2 2,570,901. 66 262,133. 85 9.09 241. 36 -1,565.5 2,570,858. 70 262,109. 53 9.09 197. 92 -1,587.3 2,570,814. 05 262,087. 72 9.09 152. 82 -1,606.5 2,570,767. 97 262,068. 54 9.09 106. 36 -1,615.7 2,570,742. 64 262,059. 35 9.09 80. 85 -1,615.8 2,570,742. 16 262,059. 18 9.09 80. 37 -1,639.4 2,570,673. 57 262,035. 57 0.00 11. 31 -1,672.0 2,570,579. 02 262,003. 01 0.00 -83. 88 -1,704.6 2,570,484. 48 261,970. 46 0.00 -179 .08 -1,737.1 2,570,389. 93 261,937. 90 0.00 -274 .27 -1,769.7 2,570,295. 38 261,905. 34 0.00 -369 .47 -1,802.2 2,570,200. 83 261,872. 79 0.00 -464 .66 -1,834.8 2,570,106. 28 261,840. 23 0.00 -559 .85 -1,860.0 2,570,033. 00 261,815. 00 0.00 -633 .64 7/13/2005 12:58:07PM Page 4 of 5 COMPASS 2003.11 Build 48 • • HALLIBURTON Halliburton Energy Services Planning Report -Geographic Sperry Drilling Services Database: EDM 2003.11 Single User Db l.owl Co-oMlnate Refenence: Well Kaloa #3 Gompanys Aurora Gas, LLC TVD Reference: WELL (copy) @ 196.Oft (Original Well Elev) Project: Cook Inlet MD References WELL (copy) ~.196.Oft (Original Well Elev) Site: Seward Meridian North Reference: Grid Weli: Kaloa #3 Survey Cakulatbn Method: Minimum Curvature Weilbore: Kaloa #3 HrzU ST Design: Kaloa #3a - wp11 .Geologic Targets- Kaloa #3 HrzU ST TVD Tecget Name ~~ • Shape, 2,805.0 K3H - Point 2,805.0 K3H Toe (wp08) - Point 2,552.0 Interp @ 2552.0 - Point 2,805.0 K3H Heel (wp09) - Point 2,805.0 K3H Heel (wp11) - Point +NlS +E/-W Northing Easting ft ft (ft) (ft) -506.8 -1,349.4 2,570,122.10 262,325.60 -595.9 -1,860.0 2,570,033.00 261,815.00 700.0 -1,400.0 2,571,328.87 262,275.00 -93.9 -1,358.0 2,570,535.03 262,317.03 113.3 -1,615.8 2,570,742.16 262,059.18 Prognosed Casing Points Measured Vertical Casing Hole Depth Depth Diameter Diameter Ift) Ift) t"1 1"I 74.0 74.0 13-3/8 17-1/2 604.0 604.0 9-5/8 12-1/4 3,985.6 8-1/2 8-1/2 3,985.6 8-112 8-112 Prognosed Formation Intersection Points Measured Vertical ~~ Inclination Azimuth depth +NI-E +EI-W Ift) (o) (o) ({{) Ift) Ift) Name 488.0 0.00 0.00 488.0 0.00 0.00 Base Glacial Wash 916.1 12.04 279.00 914.0 4.78 -30.20 TSUGA 2-TA 1,605.3 33.37 279.00 1,532.0 50.61 -319.53 TSUGA 2-SB 2,061.2 40.88 304.43 1,905.0 116.99 -569.74 Top Tyonek 2,218.1 48.34 321.58 2,017.0 192.30 -648.89 CARYA 2-21NT 2,718.3 49.70 303.25 2,312.0 515.22 -881.55 CARYA 2.31NT 3,090.2 52.68 259.60 2,552.0 567.80 -1,153.52 CARYA 2.4 3,616.6 77.52 213.66 2,782.0 300.35 -1,523.61 CARYA 2.4.2 7/13/2005 12:58:07PM Page 5 of 5 COMPASS 2003.11 Build 48 HALLIBURTON Sperry Drilling Services LEGEND $ Kaloa #3, Kaloa #3 Pilot, Kaloa #3 - wp10 VO $ Kaloa #3a - wp11 1250 ~ t 30° Start Sail ~ 33.37° INC, 2856.8' MD 1500 33° 1750 KOP: DLS 9°/100' TFO 65° Start DLS 9°1100' TFO 73.94° .2000 A5 2000 iop Tyone~ o hh ry z n Start DLS 9.09°/100' TFO -119.15° p 2250 ~ i:~:RYA 23iNi 2 2500 CARVA 2-4 3000 F Kaloa #3/Kaloa #3a - wp11 SS^ Cti RVC..a2 ~ °o ~O° 2750 v ~ ~ ~ sS ~, o K3H Toe (wp08) K3H Heel (wp11) ~~ Start 750,1' MD Horizontal Section TD at 45 77.5' MD, 2805.0' TVD I Kaloa #3/Kaloa #3 - wp10 3250 -1000 -750 -500 -250 0 250 500 750 1000 _~'I lr~ll ifl 1 .i I: Aurora Gas, LLC WELL DETAILS: Kaloa #3 Ground Level: 196.0 +N/-S +E/-W Northing Easting latittude Longitude Slot 0,0 0.0 2570628.89 263674.95 61°I'46.124N 151°19'S7.562W COMPANY DETAILS: Aurora Gas, LLC REFERENCE INFORMATION Dolling inate (N/E) Reference: Well Kaba fq, Grid North Verfical (TVD) Reference: WELL (copy) ~ 196.OR (Original Well EI l i h C l M d Measured Depth Reference: WELL (copy) ~ 196.OR (Original Well EI a cu at on et o : Minimum Curvature Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Trav. Cylinder Noah Error Surface: Elliptical Conic blaming Method: Rules Based WELLBORE TARGET DETAB-S Name TVD +N/-S +E/-W Shape K3H 2805.0 -506.8 -1349.4 Point K3H Heel (wpl I) 2805.0 113.3 -1615.8 Point K3H Toe (wp08) 2805.0 -595.9 -1860.0 Point SECTION DETAILS Sec MD Inc An TVD +W-S +E/-W DLeg TPace VSec Target F 1870.0 33.37 279.00 1753.1 73.4 -063.4 0.00 0.00 63.9 2 1970.0 37.96 292.33 1834.4 89.4 -519.1 9.00 65.1)0 78.8 3 2401.6 59.51 336.71 2125.3 319.6 -723.3 9.00 73.94 304.8 4 3627.4 90.00 199.00 2805.0 113.3 -1615.8 9.09 -119.15 80.4 K3H Heel (wpl I) 5 4577.5 90.00 199.00 2805.0 -595.9 -1860.0 0.00 0.00 -633.6 R3H Toe (wp08) CASING DETAILS No TVD MD Name Size 1 74.0 74.0 13 3/8" Conductor 13-3/8 2 604.0 604.0 9 5/8" Surface 9-5/8 ~ T Azimuths to Grid North True North: 1.17° MMagnetic North: 21.06° Magnetic Field Strength.55559.8nT Dip Angle: 73.78° Date: 7/6/2005 ry,~°,o Model: BGGM2005 750 SOU 5 1y- 250 O v~ 0 0 t 7 -250 0 ti~ o S h K3H Heel (well) 250 KOP: DLS 9°/ 100' TFO 65° 34 0 a K3H Toe (wp08) 0 ~C TD at 4577.5' MD, 2605.0' TVD -2000 -1750 -1500 -1250 -1000 -750 -500 -250 West(-)/East(+) (500 t1/in) 0 250 •I Kaloa 3 -Directional Information • • Subject: Kaloa 3 -Directional hiformation Froin: "Randall [). Jones" <ijones~~taurorapowe~r.com> Date: 1u~. <<) Jill ~UO~ 1(~:U~):l ; r)iOO 'To: 'St~plicil I)a~ie~' <~te~e del ic5~a~adnlin.statt.3k.u~=> CC: '~iuan< <~~a~~~n' ~:duaue a~~l~ain~e~~ther.ec~m=-.'Scott Pfaff' ~~~>>p1i~(~I~'u~aurcnapu~~-er.com?.':~nd_v C:liftbrd' ®~acclit(i,~~1 ~c;~urorapo~~rr.eon~ ,'}~d J~~ncs' ~ l~~oi~c,~~iaurorapo~wcr.cor~i., Andy is out till next week, but please find the attached plat showing the SL, BHL of the K-3 deviated well portion, and the BHL of the horizontal tail portion of the K-3. Although, the survey says it's the K-2 well at the BHL of the horizontal tail portion, it is a surveyor's error (unless you hear from Duane or Ed to the contrary). AS YOU CAN SEE THE BHL OF THE HORZ TAIL DOESN'T FALL WITHIN 3,000' OF THE K-2 BHL SO NO SPACING EXCEPTION WILL BE REQUIRED AS PREVIOUSLY THOUGHT LAST WEEK I haven't seen any directional data you requested, so by copy of this memo to Ed/Duane, I am asking them to provide if available presently. Randall D. Jones, CPL Manager, LAND & Negotiations AURORA GAS, LLC 10333 Richmond Avenue, Suite 710 Houston, TX 77042-4176 Telephone 713-977-5799 Facsimile 713-977-1347 Mobile 713-409-2378 rjanest~auroraoower.com rskn~houston.rr.com -----Original Message----- From: Stephen Davies [mailto:steve davies~sadmin.state.ak.usl Sent: Tuesday, July 19, 2005 2:47 PM To: Andy Clifford Cc: Randy Jones Subject: Kaloa 3 - Directional Information Andy, Could you please supply a plat that shows the well course for both the pilot hole and the horizontal sidetrack for the Kaloa 3 well? This is required by 20 AAC 25.050(b)(1). The plat provided with the permit to drill application does not show the course of the proposed well bores. Could you also provide a copy of the proposed directional survey for each well bore for use in the Commission's confidential geoscience workstation? Thanks for your help, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 __ Content-Type: application/pdf !kaloa#3sld 3000'R.pdf'. Content-Encoding: base64 1 of I 7/19/2005 1:43 PM • ~ ~i - ~ ~ ~'i "xr~ ~r T- ~' 'F} ~ ~. SEC 14 • SEC 93 ~S. + ~' SEC 23 SEC 24 ' ..-N.- .': a. "~` , <' .wij+'a ~•r~ - 1. s _ .r . .,,x ~4 `..~ „ n i~ .. '~"` ;'.~ "+' GRID N3573418 310 GRID E:262612010 atl.~ a ~' * ". ~' ~~*~. ~{-~ - fi ~` -' a `-•,+y 'i«. ~ .T -'} r,S~tiLC+ ~4. q,`~' ~ ~ LATTUDE: 81 0713 373' ,~; LONGITUDE 151 20'20291'V/ - . sy r ~ ~ '~. .!~ ~ ,,,~.'~ ~ ,r ~' ~ inch ~ wiQO(~ts. ~ r ~-: ~ { c se !" ~ ~ 4-~` _.~t W0~ i'-~ r 1544 2000 ~~ ~ a _ e §*'~ ~ a ~ ~` F 1 ~ {yam ~: ~ ,~3 ~~ y+ ~A i+c~'. +Sni ~~ t~, ~~ '~.';~ r .~:z ~~ ~ Z Grid, ~.~ ,~ '~( ~ ,~' "~ms~s~ "~ .s* -A S",w ~ ~ ~ ~ ~~~~~ ~ ~'~ ~ Y ~ .~ ^{. ~IOTESr~: e ._:.~ r ~y~ '`=~f' ~ A .~ °~~"" t s~ ~ 23 ` "~`'`~ EC; 't ~ 1) BASIS OF COORDINATES IS ALASKA STATE ;~. ' ~ ": PLANE NAD 27 ZONE 4 FROM A DIRECT TIE ~ ,, . ~ ~r ~ , ' ;~ ~~'~~ I~ "~"'~' ~ "7o3FEL =``~ ~ _ A •r ~~ ~ •'^e 'r.,i : TO ADL NO. 31270. e ~ BASIS OF ELEVATION IS FROM TIDAL ` 2 ~ . rPilzo os~~r~ , . "`-~:• ~? ~ ` { X ~ ~ ~ ~ ) -' ;OBSERVATION ON 9-22-93. DATUM IS MLLW ~'~ ~: ~` • Ez616sa.35 wETUND ~ ^' ' '' 1{1e FWL ALL ELEVATIONS SHOWN HEREON WERE ~' ""~' w ~TLM'D ~ ~ TAKEN ON GROUND. '~ KALGVa N3 WELL AS-BUILT - ~ :z ~ •° GRIDN257o629.892 ~ ~ #- ' 3) SECTION LINES SHOWN HEREON ARE ~ , GwDCZ63s74.es2 ~` a °' ~~~ ~ LATITUDE: 6101'46.124'N ~ ~ ~ BASED ON PROTRACTED VALUES "~' "~ ~ .:.. ..,~. .+a~a"'~° ` ~729'FELa LONGITUDE~15119'S7.562'W P,o K2 HORIZONTAL TD ,. ELEV. 20T ~ ' ~*~~*R` '.. .+a,. .~ ~~^r ",'°,*y..,~c ~t, '.. ~ #'y '".~~ .,,,,4''C.,,', a5 ~ -y- ~ ,,., ."+~+4'r~y .r'},~:> ,' 'h _!. , '~ej w>-.. ~ ' .+-,'R ~ ~ .>is N 2570033 t ` iiZ.~ j" .I -c~~ ~, ~ t, ~ ~? t~~$' Tt.. ~+ ~.'t rt '! 'ax't ^S l sr r h~E ~ gy=p.. 49 s ...... ..... ... . `t~ i_ ~~ % .4 ° .... Y :~ % c ~ M. SCOTT McLANE ~ $ KALOA #2 WELL AS-BUILT r .' i' ~' ,I ~ •~ 4928 S ~ . ~ 6 . N 2566864 691 '" _ - E 260774 4 ~ ~ - _~ ~ ' ~ . • . . `.' ~ ~ 1 , F ' ~ 4 ~ ~; '~ '~ '~ O • • ... .. •' P , ~ p~ i. ~ ~ ESS i GNAT ~ '' O` ~ :~ - ~ r s ~~~~~ KALOA NO. 3 WELL AS- BUILT SURFACE LOCATION DIAGRAM McLane Consulting Inc gppLICANT: ENGINEERING/MAPPING/SURVEYING/TESTING ~'==AU ~~ ~~S ~~~ P.O. BOX 468 SOLDOTNA, AK. 99669 ~ / V ' VOICE: (907) 263-4218 FAX: (907) 283-3265 EMAIL: msmclane®Inclanecg.com PROJECT NO. DRAWN BY: DATE: SEC. LINE LOCATION: July 12, 05 oFFSErs: PROTRACTED SECTION 24 053031 MSM 2767' FN L TOWNSHIP 11 NORTH, RANGE 12 WEST 1118' FWL SEWARD MERIDIAN, ALASKA • • NOTE TO FILE Aurora Gas, LLC Diverter Waiver Request Kaloa #3 (205-108) Aurora Gas, LLC (Aurora) has applied for an exception to 20 AAC 25.035(c)(1)(B) that requires the diverter line size to be equal to or greater than the drilled hole size. Aurora believes that sufficient drilling information is available in the general area to demonstrate that a 12=1/4" hole may be safely drilled employing a 10" diverter line. Aurora is proposing to employ the 10" diverter line since that size is all that was available from their equipment supplier. Aurora has previously secured waivers for drilling surface hole with an area up to 13% greater than the diverter line size. In this case, the hole area is 50% greater than the diverter line size. This document considers Aurora's request and recommends that it be denied. When drilling the initial sections of a well, the earth does not generally have sufficient strength to contain energized fluids in the wellbore. In order to allow some measure of personnel and equipment safety, equipment and techniques have been developed to allow an uncontrolled flow to be diverted some horizontal distance away from the wellbore. Due to the unfavorable experiences from actual divert situations on the North Slope (Cirque #1) and Cook Inlet (Steelhead), the Commission revised its diverter regulations requiring that at a minimum the initial hole size must be less than the diverter line size. The Commission was given discretion to allow a variance if the variance provided 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 [20 AAC 25.035 (h) (2)]. The requirement to have a diverter line size greater than the initially drilled hole size is to prevent the diverter line from acting like a choke if a divert situation were to occur. Where Aurora has previously proposed 12-1/4" hole with a 10" diverter line size (Nikolai Creek #9), they have rightly planned to drill a pilot hole. Aurora cites the experience of past operators as well as their own in support of their request. Where Aurora has drilled surface holes, they have not experienced difficulties. For this particular well the surface hole is only planned to be 700' deep and TD should still be in the over-compacted glacial sediments. As on these other surface holes, Aurora is proposing to keep their mud weight high in order to prevent any more than drilled gas entering the mud column. Thus far, Aurora has been successful however the differential area between the hole and diverter line sizes has not been so great. A similar request for Aspen #1 (205-111) was recently denied. To my knowledge, there has only been 1 recent well drilled with the 12-1/4" hole 10" line combination, Pelican Hill's N. Beluga #1. That well was drilled as a direct offset (< 200' distant) to a previously drilled (determined dry) well. Control for that particular well was much better than exists for Kaloa #3 where the nearest well is over 3000' distant. If this request is denied, the consequence will be that Aurora will have to drill and open a pilot hole. At 700', the time penalty should be less than a day. I recommend denial of Aurora's request. Tom Maunder, PE Sr. Petroleum Engineer August 9, 2005 G:\common\tommaunder\Well Information\By Subject\BOP-Diverter\Waivers\050809- note Kaloa#3 diverter line.doc .., - • ~p~rry F7ri~lin~ 'S~rarices w ;_,- , fI ~ ~~" ~~ ~ ~ ~ 4 i~ pIY " ~ I 1~~... ~''~~ 0 0 ~ 3M ;~ ~~t~~ ~. ... ~ ~~ ~ _~ Base Glacial Wash C Begin Build DLS 4.12°/100' TFO -81 ° 5° 10° ............... 1000 TSUGA 2-7A ZO z5 Start Sall ~ 33.37° INC, 2856.8' MD TSUGA 2-86 rrou-~ C ~" r { Top Tyonek 2000 __~__....____.._._........_ ~ CARYA 2-21NT v .~ ~ 2250 m ~ -{ -! CARYA 2-31NT CARYA 2-4 \ ~ l n,0 CARYA 2-4.2 ~- III -~ - -- WELL DETAIIS. Kaloa #3 Ground Level: 196.0 I +N/-S ~ +E/-W Northing Fasting Latittude Longtude Slot 0.0 0.0 2570628.89 263674.95 61°1'46.124N 151°19'S7562W COMPANY DETAII.S: Aurora Gas, LLC REFERENCE INFORMATION Drilling Co-ordinate (N/E) Reference: Well Kaloa #3, Gdtl North Vertical (fVD) Refeence: Rig RKB @ 212.OR (Rig Elevation) Calculation Method: Minimum Curvature Measured Depth Reference: Rig RKB ~ 212.Oft (Rig Elevation) Calculation Methotl: Minimum Curvature Error System: ISCWSA Scan Method: Trav. Cylinder North Error Surface: Elliptical Co nic Warning Method: Rules Based ~. WELLBORE TARGET DEI'AII-S Name 1'VD +N/-S +E/-W Shape Kaloa#3-T2 3000.0 144.1 -1081.0 Point Kaloa#3-T3 3000.0 264.1 -1569.0 Point SECTION DETAIIS Sec MD Inc Aa TVD +N/-S +E/-W DLeg TFace VSec Target 1 0.0 0.00 0.00 0.0 0.0 0.0 0.00 0.00 0.0 2 640.0 0.00 0.00 640.0 0.0 0.0 0.00 0.00 0.0 3 1450.0 33.37 279.00 1405.0 35.9 -226.5 4.12 279.00 228.3 4 4306.8 33.37 279.00 3790.7 281.7 -1778,6 0.00 0.00 1792.9 CASING DETAILS No TVD MD Name Size 1 90.0 90,0 13 3/8" Conductorl3-3/8 2 620.0 620.0 9 5/8" Surface 9-5/8 3 4001.6 8 1/2" Open Hole 8-I/2 7so ~ t 'a T Azimuths to Grid North True North: 1.17° _ ~ Mlulagnetic North: 21 08° ~ . `" ° 500 TD at 4306.8' MD, 3790.T TVD Magnetic Field p ~ Strength:55559.5nT ~ ~ Dip Angle: 73.78° + ° ~ ~ ~o Dale: 6/3/2005 - h h c Model: BGGM2005 250 ~ 0 0 ~ ~ '~1 oO / ~ ~ N S ~ Kaloa #3 - T3 - ^r ~ 0 0 ~ 0 ^ ` o 0 _ 0 ~ Start Sail @ 33.37° INC, 2856.8' MD . - ~ Begin Build DLS 4.12°/100' TFO -81 ° -1750 -1500 -1250 -1000 -750 -500 -250 0 West(-)/East(+) (500 ft/in) .J~i[ ~I GCi ~5~ TD at 4306.8' MD, 3790.T TVD \ A.6o1 Kaloa #3/Kaloa #3 - wp10 1- 0 250 500 750 1000 1250 1500 1750 2000 Vertical S~=,tion of 284.36° (50011/irlj LEGEND $ Kaloa #3 - wp10 Plan: Kaloa #3 - wp I O (Kaloa #3/Kaloa #3 Pilot) ~~~ Created By: Cary Taylor Date: 5/20/2005 Checked Date: Reviewed: Date: Approved: Date • Sperry L~rilliing Services Aurora Gas, LLC Cook Inlet Seward Meridian Kaloa #3 Kaloa #3 Hrztl ST • 13 July, 2005 i • ~~ "'~',. ~~ ~~"`' a~ Haiiiburton Energy Services Planning Report -Geographic Sperry Drilling Services Database: .DM 2003.11 Single User Db Local Co-ordinate Reference: `,^,'ell Kaloa #3 Company: 4urora Gas, LLC TVD Reference: Vt'ELL (copy) @ 196.Oft (Original Well Elev) Project: Cook Inlet MD Reference: WELL (ropy) (¢~ 196.Oft (Original Well Elev) Site: Seward Meridian North Reference: Grid Well: Kaloa #3 Survey Calculation Method: Minimum Curvature Wellbore: ~<aloa #3 Hrztl ST Design: Kaloa Jt3e - v.~p1 1 Project C ooB Inlet USA Map System: US State Plane 1927 (6cact solution) System Datum: Mean Sea Level Geo Datum: NAD 1927 (NADCON CONUS) Map Zone: Alaska Zone 04 Using geodetic scale factor Well ~(aloa #3 Well Position +N/-S 0.0 ft Northing: 2,570,628.89 ft Latitude: 61° 01' 46.124" N +E/-W 0.0 ft Easting: 263,674.95 ft Longitude: 151° 19' 57.562" W Position Uncertainty 0.0 ft Wellhead Elevation: ft Ground Level: 196.0 ft Wellbote... Kaloatt3Hrztl.„t. Magnetics Model Name Sample Date Declination DIp Anyle Flald Strength B~iGM2005 7/6/2005 19.90 73.78 55,560 Design kaloa #3a - wp11 Audit Notes: Version: Phase: PLAN Tie On Depth: 1,870.0 Vertical Section: Depth From )ND) +N/-S +E/-W Direction )8) (ft} (ft) (°J I 00 0.0 0.0 1.1 Plan Summary Measured Vertical Dogleg Build Turn Depth Inclination Azimuth Depth +N(-5 +EI-W Rate Rate Rate TFO (ft) (~) (~) (8) (8) (8) (`I100ft) (`/1008) ('11008) (~) 1,870.0 33.37 279.00 1,753.1 73.4 -463.4 0.00 0.00 0.00 0.00 1,970.0 37.96 292.33 1,834.4 89.4 -519.1 9.00 4.59 13.33 65.00 2,401.6 59.51 336.71 2,125.3 319.6 -723.3 9.00 4.99 10.28 73.94 3,827.4 90.00 199.00 2,805.0 113.3 -1,615.8 9.09 2.14 -9.66 -119.15 4,577.5 90.00 199.00 2,805.0 -595.9 -1,860.0 0.00 0.00 0.00 0.00 7/13/2005 12:58:07PM Page 2 of 5 COMPASS 2003.11 Build 48 i i m~ ~' Halliburton Energy Services Planning Report -Geographic Sperry Drilling Services Database: EDM ?005 11 Single User Db Local Co-ordinate Reference: Well kaloa #3 Company: Aurora Gas, LLG TVD Reference: l'VELL (copy) @ 196.Oft (Original Well Elev) Project: Gook Inlet MD Reference: `,.'ELL (copy) @ 196.Oft (Original Well Elev) Site: Seward Meridian North Reference: Gncl Well: Kaloa #3 Survey Calculation Method: Minimum Curvature Wellbore: Kaloa #3 Hrztl ST Design: I:alca #3a -wpt 1 Planned Survey 'rtaloa #Sa-wp11 Map Map MD In clination Azimuth TVD SSTVD +N!-S +E/-W Northing Fasting DLSEV Vert Section (ftl (`) (~) fft) (ft) (ft) (ft) (ft) (ft) (°l100ft) (ft) 74.0 0.00 0.00 74.0 -122.00 0.0 0.0 2,570,628.89 263,674.95 0.00 0.00 13 3f8" Conductor 488.0 0.00 0.00 488.0 292.00 0.0 0.0 2,570,628.89 263,674.95 0.00 0.00 Base Glacial Wash 604.0 0.00 0.00 604.0 408.00 0.0 0.0 2,570,628.89 263,674.95 0.00 0.00 9 518" Surtace 916.1 12.04 279.00 914.0 718.00 4.8 -30.2 2,570,633.67 263,644.76 3.86 4.17 TSUGA 2-7A 1,605.3 33.37 279.00 1,532.0 1,336.00 50.6 -319.5 2,570,679.50 263,355.44 3.10 44.10 TSUGA 2-8B 1,870.0 33.37 279.00 1,753.1 1,557.08 73.4 -463.4 2,570,702.28 263,211.61 0.00 63.94 KOP: DLS 9°/100' TFO 65° 1,900.0 34.59 283.31 1,778.0 1,581.96 76.6 -479.8 2,570,705.53 263,195.18 9.00 66.86 1,950.0 36.93 289.90 1,818.5 1,622.54 85.0 -507.7 2,570,713.91 263,167.23 9.00 74.67 1,970.0 37.96 292.33 1,834.4 1,638.43 89.4 -519.1 2,570,718.30 263,155.89 9.00 78.83 Start DLS 9°(100' TFO 73.94° 2,000.0 38.78 296.47 1,857.9 1,661.95 97.1 -536.0 2,570,725.99 263,138.94 9.00 86.17 2,050.0 40.45 303.02 1,896.5 1,700.48 112.9 -563.7 2,570,741.81 263,111.32 9.00 101.43 2,061.2 40.88 304.43 1,905.0 1,709.00 117.0 -569.7 2,570,745.88 263,105.23 9.00 105.37 Top Tyonek 2,100.0 42.47 309.10 1,934.0 1,737.96 132.4 -590.4 2,570,761.31 263,084.60 9.00 120.38 2,150.0 44.79 314.69 1,970.2 1,774.16 155.5 -616.0 2,570,784.35 263,058.97 9.00 142.90 2,200.0 47.36 319.83 2,004.9 1,808.86 181.9 -640.4 2,570,810.81 263,034.57 9.00 168.85 2,218.1 48.34 321.58 2,017.0 1,821.00 192.3 -648.9 2,570,821.19 263,026.08 9.00 179.06 CARYA 2-21NT 2,250.0 50.13 324.54 2,037.8 1,841.84 211.6 -663.4 2,570,840.50 263,011.57 9.00 198.07 2,300.0 53.09 328,87 2,068.9 1,872.89 244.4 -684.9 2,570,873.26 262,990.09 9.00 230.39 2,350.0 56.19 332.88 2,097.8 1,901.53 280.0 -704.7 2,570,908.87 262,970.28 9.00 265.59 2,401.6 59.51 336.71 2,125.3 1,929.32 319.6 -723.3 2,570,948.43 262,951.69 9.00 304.77 Start DLS 9A9°1100' TFO -119.15° 2,450.0 57.45 332.16 2,150.6 1,954.61 356.7 -741.0 2,570,985.60 262,933.93 9.09 341.57 2,500.0 55.50 327.24 2,178.2 1,982.23 392.7 -762.1 2,571,021.58 262,912.93 9.09 377.11 2,550.0 53.75 322.09 2,207.2 2,011.19 425.9 -785.6 2,571,054.83 262,889.38 9.09 409.88 2,600.0 52.24 316.72 2,237.3 2,041.30 456.3 -811.6 2,571,085.14 262,863.43 9.09 439.65 2,650.0 50.98 311.15 2,268.4 2,072.36 483.4 -839.7 2,571,112.32 262,835.24 9.09 466.26 2,700.0 49.99 305.40 2,300.2 2,104.19 507.3 -870.0 2,571,136.20 262,804.99 9.09 489.52 2,718.3 49.70 303.25 2,312.0 2,116.00 515.2 -881.5 2,571,144.09 262,793.44 .9.09 497.17 CARYA 2-31NT 2,750.0 49.29 299.50 2,332.6 2,136.59 527.8 -902.1 2,571,156.63 262,772.87 9.09 509.30 2,800.0 48.90 293.51 2,365.3 2,169.34 544.6 -935.9 2,571,173.49 262,739.09 9.09 525.46 2,850.0 48.82 287.47 2,398.3 2,202.25 557.8 -971.1 2,571,186.66 262,703.84 9.09 537.91 2,900.0 49.06 281.45 2,431.1 2,235.11 567.2 -1,007.6 2,571,196.07 262,667.37 9.09 546.57 2,950.0 49.61 275.50 2,463.7 2,267.71 572.8 -1,045.1 2,571,201.64 262,629.89 9.09 551.39 , 3,000.0 50.45 269.68 2,495.8 2,299.85 574.5 -1,083.4 2,571,203.36 262,591.64 9.09 552.33 7/13/2005 12:58:07PM Page 3 of 5 COMPASS 2003.11 Buifd 48 i i ,,, ~~ Halliburton Energy Services j Planning Report -Geographic Sperry Drill ing Services ~'I Database: cDM2003.11 Single Us er Db Local Co-ordinate Reference: Well h:aloa +k3 Company: 0.urora Gas, LLC TVD Reference: vVELL (copy) ~ 196.Dft (Original Weli Elev) Protect: Cook Inlet MD Reference: WELL (copy) ~~ 196.Oft(Original Well Elev) Site: Seward Meridian North Reference: Grid Well: Ka1oa #3 Survey Calculation Method. Mut~no,u?, Cucti!ature Wellbore: Kaloa #3 Hrztl ST Design: I;aloa#3a-wp11 Planned Survey 4%aloa #ja - wp11 MD Inclination Azimuth TVD SSTVC fft1 (") (°) fft) (it) 3,050.0 51.58 264.01 2,527.3 2,331.32 3,090.2 52.68 259.60 2,552.0 2,356.00 CARYA 2.4 -l nterp ~ 2552.0 3,100.0 52.97 258.54 2,557.9 2,361.92 3,150.0 54.61 253.28 2,587.5 2,391.47 3,200.0 56.46 248.25 2,615.8 2,419.78 3,250.0 58.51 243.43 2,642.7 2,446.66 3,300.0 60.73 238.84 2,668.0 2,471.96 3,350.0 63.10 234.44 2,691.5 2,495.51 3,400.0 65.60 230.23 2,713.2 2,517.16 3,450.0 68.21 226.18 2,732.8 2,536.78 3,500.0 70.92 222.29 2,750.2 2,554.24 3,550.0 73.70 218.52 2,765.4 2,569.43 3,600.0 76.56 214.85 2,778.3 2,582.27 3,616.6 77.52 213.66 2,782.0 2,586.00 CARYA 2-4.2 3,650.0 79.46 211.28 2,788.7 2,592.66 3,700.0 82.40 207.77 2,796.5 2,600.54 3,750.0 85.37 204.31 2,801.9 2,605.87 3,800.0 88.36 200.88 2,804.6 2,608.61 3,826.9 89.97 199.03 2,805.0 2,609.00 K3H - K3H Heel (wp09) 3,827.4 90.00 199.00 2,805.0 2,609.00 Start 750.1' MD Horizontal Section - K3H Heel (wp11) 3,900.0 90.00 199.00 2,805.0 2,609.00 4,000.0 90.00 199.00 2,805.0 2,609.00 4,100.0 90.00 199.00 2,805.0 2,609.00 4,200.0 90.00 199.00 2,805.0 2,609.00 4,300.0 90.00 199.00 2,805.0 2,609.00 4,400.0 90.00 199.00 2,805.0 2,609.00 4,500.0 90.00 199.00 2,805.0 2,609.00 4,577.5 90.00 199.00 2,805.0 2,609.00 TD at 4577.5' MD, 2805.0' TVD - K3H Toe {wp08) Map Map +N!-S +El-W Northing Easting DLSEV Vert Section (n) (ft) (ft) (ftl (°/100ft1 (tt1 572.3 -1,122.1 2,571,201.21 262,552.86 9.09 549.38 567.8 -1,153.5 2,571,196.68 262,521.47 9.09 544.21 566.3 -1,161.2 2,571,195.19 262,513.80 9.09 542.58 556.5 -1,200.3 2,571,185.36 262,474.70 9.09 531.95 542.9 -1,239.2 2,571,171.77 262,435.81 9.09 517.57 525.6 -1,277.6 2,571,154.50 262,397.37 9.09 499.52 504.8 -1,315.4 2,571,133.68 262,359.63 9.09 477.93 480.5 -1,352.2 2,571,109.41 262,322.81 9.09 452.92 453.0 -1,387.8 2,571,081.87 262,287.16 9.09 424.66 422.3 -1,422.1 2,571,051.22 262,252.89 9.09 393.31 388.8 -1,454.8 2,571,017.65 262,220.23 9.09 359.09 352.5 -1,485.6 2,570,981.38 262,189.38 9.09 322.20 313.8 -1,514.5 2,570,942.63 262,160.52 9.09 282.87 300.4 -1,523.6 2,570,929.23 262,151.40 9.09 269.29 272.8 -1,541.2 2,570,901.66 262,133.85 9.09 241.36 229.8 -1,565.5 2,570,858.70 262,109.53 9.09 197.92 185.2 -1,587.3 2,570,814.05 262,087.72 9.09 152.82 139.1 -1,606.5 2,570,767.97 262,068.54 9.09 106.36 113.8 -1,615.7 2,570,742.64 262,059.35 9.09 80.85 113.3 -1,615.8 2,570,742.16 262,059.18 9.09 80.37 44.7 -1,639.4 2,570,673.57 262,035.57 0.00 11.31 -49.9 -1,672.0 2,570,579.02 262,003.01 0.00 -83.88 -144.4 -1,704.6 2,570,484.48 261,970.46 0.00 -179.08 -239.0 -1,737.1 2,570,389.93 261,937.90 0.00 -274.27 -333.5 -1,769.7 2,570,295.38 261,905.34 0.00 -369.47 -428.1 -1,802.2 2,570,200.83 261,872.79 0.00 -464.66 -522.6 -1,834.8 2,570,106.28 261,840.23 0.00 -559.85 -595.9 -1,860.0 2,570,033.00 261,815.00 0.00 -633.64 7!13/2005 12:58:07PM Page 4 of 5 COMPASS 2003.11 Build 48 • ~ „'t ~ ~~,~ Ha lliburton Energy Services Planning Report -Geographic Sperry Drilling Services Database: EDM 2003.11 Single U ser Db Local Co-ordinate Reference: v'Jall k:aloa ~3 Company: Aurora Gas, LLC TVD Reference: vVELL icopy) @ 196. Oft (Original WeII Elev) Protect Cook Inlet MD Reference: '/VEL~ !copy) @ 196. Oft'{Original Well Elev) Site: Seward Meridian North Reference: Grid - Well: Kaloa #3 Survey Calculation Method: Minimum Curvature Wellbore: I<aloa #3 Hrztl ST Design: F.aloa #3a - wp 11 Geologic Targets Kaloa #3 Hr~tl ST TVD T::r,.p t ,drtrr : +N/-S +E!-W Northing Easting 2,805.0 K3H -506.8 -1,349.4 2,570,122.10 262,325.60 - Point 2,805.0 K3H Toe {wp0$) -595.9 -1,860.0 2,570,033.00 261,815.00 - Point 2,552.0 lnterp ~ 2552.0 700.0 -1,400.0 2,571,328.87 262,275.00 - Point 2,805.0 K3H Heal (wp09) -93.9 -1,358.0 2,570,535.03 262,317.03 - Point 2,805.0 K3H Heel (wp11) 113.3 -1,615.8 2,570,742.16 262,059.18 - Point Prognosed Casing Points Measured Vertical Casing Holc Depth Depth Diameter Diameter Ift) (ft) (..) (") 74.0 74.0 13-3/8 17-112 604.0 604.0 9-5/8 12-1/4 3,985.6 8-112 8-1/2 3,985.6 8-1/2 8-112 Prognosed Formation Intersection Points Measured Vertical Depth InclinatVon Azimuth Depth +NI-E +Ef-W 488.0 0.00 0.00 488.0 0.00 0.00 Base Glacial Wash 916.1 12.04 279.00 914.0 4.78 -30.20 TSUGA 2-7A 1,605.3 33.37 279.00 1,532.0 50.61 -319.53 TSUGA 2-$B 2,061.2 40.88 304.43 1,905.0 116.99 -569.74 Top Tyanek 2,218.1 48.34 321.58 2,017.0 192.30 -648.89 CARYA 2-2iNT 2,718.3 49.70 303.25 2,312.0 515.22 -881.55 CARYA 2-3lNT 3,090.2 52.68 259.60 2,552.0 567.80 -1,153.52 CARYA 2.4 3,616.6 77.52 213.66 2,782.0 300.35 -1,523.61 CARYA 2-4.2 7/1 3/2005 1 2:58:07PM Page 5 of 5 COMPASS 2003.11 Build 48 :. < . , Y£ ...~ ~ ' "s iii Sperry G7rll-rtig Services ._ ~~ Sr ;~~V 30° Start Sail @ 33.37° INC, 2656.8' MD 1500 ................................................................................................................................._............ 93° 1750 ~ KOP: DLS 9°/100' TFO 65° _ ~ Slart DLS 9°/100' TFO 73.94° - ,-. 2000 ....... '. A' ......_ ............... ........... ._... ........................................... .. o ~ y~ ~tv~l r a '-- `i' Start DLS 9.09°/100' TFO -119.15° p 2250 6~ 1 ~ 2500 r+=''.~'. . .;? 3000 Kaloa #3/Kaloa #3a - wp11 SS° 2750 i~~.Fi'ru s..~.2 °o °o ~O° v rn °v tl'is° i K3H Toe (wp08) K3H Heel (wp11) ` 3000 ` Start 750 1' MD Horizontal Section . TD at 4577.5' MD. 2805.0' TVD Kaloa #3/Kaloa #3 - wp10 3250 -1000 •750 -500 -250 0 250 500 750 VertlCalJet.lEGn al 1.11" (50(} ltlif'1'i 1000 C 0 O yO C u .C 7 to WE[.L DETAII-S: Kaloa#3 Ground Level: 196.0 +N/-S +E/-W Northing Easting Latittude Longitude Slo[ 0.0 0.0 2570628.84 263674.95 6l°i'46.124N 151°l9'S7.562W ' COMPAiVY DETAII.S: Aurora Gas, IS.C REFERENCE INFORMATION Drilling a-ordinate (N/E) Reference: Well Kaloa #3, Gdtl Nodh Vedical (ND) Reference: WELL (copy) (83 196.08 (Orginal Well Elegy Calculation Method: Minimum Curvaure Measured Depth Reference: WELL (copy) ~ 196.Ofl (Original Well Elegy Calculation Method: Minimum Curvature Error System: ISCWSA Scan Method: Trav. Cylinder North Error Surface: Elliptical Conic Warning Method: Rules Based i WE1-LBORE TARGET DECAII-S i Name TVD +N/-S +F/-W Shape K3H 2805.0 -506.8 -1349,4 Point K3A Heel (wpl i) 2805.0 113.3 -16158 Point K3H Toe (wp08) 2805.0 -595.9 -1860.0 Point SECTION DETAII-S Sec MD Inc Aa TVD +Nl-S +P/-W DLeg TFace VSec Tazget I 1870.0 33.37 279.00 1753.1 73.4 -463.4 0.00 0.00 63.9 2 1970.0 37.96 292.33 1834.4 89.4 -519.1 9.00 65.00 78.8 3 2401.6 59.51 336.71 2125.3 319.6 -723.3 9.00 73.94 304.8 4 3827.4 90.00 199.00 2805.0 113.3 -1615.8 9.09 -119.15 80.4 K3H Heel (wpl l) 5 4577.5 90.00 199.00 2805.0 -595.9 -1860.0 0.00 0.00 -633.6 K3H Tce (wp08) CASING DETAILS No TVD MD Name Size 1 74.0 74.0 13 3/8" Conductor 13-3/8 2 604.0 604.0 9 5/8" Surface 9-5/8 G T Azimuths to Grid North True North: 1.17° MMagnetic North: 21.06° Magnetic Field Strength: 55559.BnT Dip Angle: 73.78° Dale: 7/612005 tiyo Model: BGGM2005 ti 0 '^ o K3H Heel (well) N ° 250 KOP: DLS 9°/100' TFO 65° ,~ ~o' e K3H Toe (wp08) TD at 4577.5' MD, 2805.0' TVD -2000 -1750 -1500 -1250 -1000 -750 -500 -250 0 250 West(-)/East(+) (500 ft/in) ~J v tiAur~ora Gas, LLC www.aurorapower.com ~~ July 15, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~' Ave., Suite 100 Anchorage, Alaska 99501 Attn: Mr. Tom Maunder P.E. RE: Application for Permit to Drill: Kaloa No. 3 Dear Mr. Norman: Alaska Oil & Gas Cons. Coi~tmssan Anchorage Aurora Gas, LLC hereby applies for a Permit to Drill an onshore development well in the Kaloa Gas Field of Alaska. The well Kaloa No. 3 well will be located approximately 7 '/2 miles southwest of Tyonek, Alaska. Aurora Gas, LLC proposes to spud the Kaloa No. 3 on July 22, 2005. The Kaloa No. 3 well will be drilled on the north end of the Kaloa Airstrip constructed in the 1960's to support exploration activities in the region. Access will be via gravel roads already in place. The well surface location is 4900 ft northwest of the Kaloa No. 2 well. Pertinent information in and attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill - 2 copies 2) Fee of $100.00 payable to the State of Alaska 3) Location As-Staked plat 4) Days vs. Depth drilling curve 5) Drilling Procedure 6) Wellbore Schematic 7) Pressure and casing design and property information. 8) Description of the BOP equipment to be used per 20 AAC 25.035 (a)(1) and (b) 9) Cement program description 10) Drilling fluid program description 11) A summary of potential well hazards. 1 f ,' ~ r~ 1~5 r ~ ~ 1 ':~ ~ A J ! ~ ~ J' 10333 Richmond Avenue, Suite 710 • Houston, Texas 77042 • (713) 977-5799 • Fax (713) 977-1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277-1003 • Fax (907) 277-1006 r~ Mr. Norman July 1 S, 2005 Page 2 If you have any questions or require additional information, please contact the undersigned at 277-1003, or Duane Vaagen (project engineer, Fairweather E&P Services, Inc.) at (907) 258-3446. Upon approval of this application, please forward a copy of the approved packet to Fairweather's office as well for implementation. Sincerely, dward Jones Attachments cc: Andy Clifford Duane Vaagen f Ig y ~ '~ ~.,~ ~ ~ _'°'; ,Y '`~~' ~ z ~ 1 FRANK H. MURKOWSK/ GOVERNOR t~T ~l ~~ ~~ ~ ~1-a7T 333 W. T" AVENUE, SUITE 100 CO"Si~RQ~~~i` C~r~IIssj~i` ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 J. Edward Jones Vice President Engineering and Operations Aurora Gas, LLC 1400 West Benson Blvd, Suite 410 Anchorage, Alaska 99503 Re: Kaloa #3 Aurora Gas, LLC Permit No: 205-108 Surface Location: 2767' FNL, 1118' FWL, SEC. 24, T11N, R12W, SM Bottomhole Location: 3401' FNL, 729' FEL, SEC. 23, T11N, R12W, SM Dear Mr. Jones: Enclosed is the approved application for permit to drill the above referenced development well. In accordance with 20 AAC 25.005(fj, all records, data and logs acquired for the pilot hole must be clearly differentiated in both Kaloa 3 PH and API number 50-283-20113-70 from records, data and logs acquired for well Kaloa 3. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty- four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's petroleum field inspector at (907) 659- 3607 (pager) . r DATED this~day of August, 2005 • cc: Department of Fish 8s Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. STATE OF ALASKA ALA OIL AND GAS CONSERVATION COM~$ION RECEfVEf~ ~~ PERMIT TO DRILL 20 AAC 25.005 J U L ~ ~ 200 1a. Type of Work: Drill Q Rednll ^ Re-entry ^ 1b. Current Well Class: Exploratory ^ Development Oil ^ Multiple Zone ^ Stratigraphic Test ^ Service ^ A~It~ ~Qi]S• ~i~~~p ^ 2.Operator Name: Aurora Gas, LLC 5. Bond: Blanket[s] Single Well ^ Bond No. NZS 429815 }~'~ ®Mie and Number: Kaloa No. 3 3. Address: 1400 W. Benson Blvd, Suite 410 Anchorage, Alaska 99503 6. Proposed Depth: MD: 4578' TVD: 2805' 12. Field/Pool(s): Kafoa Gas Field 4a. Location of WeU (Governmental Section): Surface: 2767 FNL, 1118' FWL, Sec 24, T11N, R12W, SM ~ 7. Property Designation: 01393 Top of Productive Horizon. Same 8. Land Use Permit: 13. Approximate Spud Date: 7/22!2005 Total Depth: 3401' FNL, 729' FEL, Sec 23, T11N, R12W, SM 9. Acres in Property: 3435 14. Distance to Nearest Property: 729' 4b. Location of Well (State Base Plane Coordinates): Surface: x- 263674.95 y- 2570628.89 Zone- 4 1D. KB Elevation (Height above GL): 390 feet 15. Distance to Nearest Well Within Pool: 3098 ft ~ TD 16. Deviated wells: Kickoff depth: 640 feet Maximum Hole Angle: 90 degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 1743 psig (TD PH) "` Surface: 1326 psig .~ 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (incuding stage data) Driven 13 3/8" 61# Welded 94' 0 0 94' 94' No cement,driven 121/4 9518" 36# J-55 LTC 604' 0 0 620' 620' 72 bbls ~ 100°lo OH Excess 7 7/8" S 1/2" 15.5# J-55 BTC 3734' 0 0 3750' 2802' 6118" 41/2" 12.6# L-80 BTC 700' 3750' 2802' 4578 2802' Slotted Liner, No Cement 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrili and Re-Entry Operations) y~{ ~'J~~g ~t"~hsr,® Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measu Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee s BOP Sketch Drilling Program s Time v. Depth Plots Shallow Hazard Analysis Property Plat [] Diverter Sketch ^ Seabed Report ^ Drilling Fluid Program ~ 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name .1, Edward Jone Title Vice President Engineering and Operatiors Signature - Phone 907-25&3446 Date 15-Ju1-05 Commission Use Only Permit to Dri ~^ Number. -> ~ AP ber. 50- ~~ _ Z,f~f~,~ _ ~~ Pernik Approval Date: See ever letter for other requirements. Conditions of approval : w~ ~t2c.~so\.actic- c~^ rn`~~ amp! required Yes ® No ^ Mud log required Yes "~ No ^ sulfide measures ~ ;Yes ^ No ~' 1~Directional survey required Yes ~ No ^ Other S~CaS h~Gt~nLCJ . `7~~ ~~5~ ~• ~ " I~Q~S C` BY ORD R OF ~ ~ D Appr THE COMMISSION Date: Fo evised 12! 003 ~ ~ ¢ ~ Submi inDuplicate ~ ,~ r~. . +...si3 v'3 _. - • 1_ _,~ ~ ; .~~: ~ ~ w '' - SEC`14 SEC 13'.. ^y1 - .. ~,^° }, -. ~ 5. ~. ~ -' ~_,1p SEC 23 SEC 24 ~~~ ... _ _- - 'i .~` '• GRID N2573418 310 ~ ^~ .. v ~ ~ _ "~ ~ GRID E:262612 O10 '' `~14 'i ~ ° '. '°`"r:,~.7F'A 1 .~'• - _ LATITUDE: 61 0213.373"N ., t4. '= LIX4GfTUDF-157°20'20.291"W .,~. ° } li1Ch ~~=1000~t. • ;a °,~ ' ~ -'~ ` 0 •'s ' 1000 ~ ..1500. .. 2000 ~\ ~. ~ ~ .~.,~,~'=, _~. ' ` , LL ~ Grid r 8, _"~ "' ,~ ~,~ ~ ~, ~, ~ ,r f ~ ~ .. s~~x~ ~ T1,~.~J, 12V~f>,-~S.A~ - K - w-oRTH ~ ~~;~? ~:_.., ~ ~. ,.,~.. _ :ten r, ~ ~ ~i,~J.S. RVEY NO. r~ _ N~O~E~~ '~'" ' ' a.".-1) BASIS OF COORDINATES IS ALASKA STATE ' .. S"';~ '~ 23, *` 'y~EC+. ~ '~•. PLANE NAD 27 ZONE 4 FROM A DIRECT TIE 7~ -n ~ 7o3•FEL `:?~ TO ADL NO. 31270. -.~"', .. PILO7NaETn .. ~ ~t ~ ,* 2) BASIS OF ELEVATION IS FROM TIDAL ~~' .~' ti -N2s79ssase '~ .OBSERVATION ON 9-22-93. DATUM IS MLLW. 3 ez676593s ~,.t . o ALL ELEVATIONS SHOWN HEREON WERE ~ ~ ~" : 'tttaFevL ~``' ''- ~' :~'~ wEnAND ~ TAKEN ON GROUND. ~~ ICALOA to WELL ASEUILT , ~ 3) SECTION LINES SHOWN HEREON ARE `~ ' GwDN257o626.~z a BASED ON PROTRACTED VALUES -GRID E263674.952 Y., LATTTUDE: fi1°01'48 724°N „~. 1, - 72'9'FEl LONGITUDE: 751°19'575621N ~~~ '~~~":'S._ ~"~"'° T ~ ~'~~ 'F3'mnrT, ' ELEV. 20T ;'' 't`. ~°~ :.'~ I(zNORIZONrAL7D~ 'f '~ ~ "ws..:,..„'7'~ _ ;~'a*-'~'r'-'~"`'Y-, ~,,,.,~,~ N 2570033 t ~ .1 ~, '`~M+`c~ R±2• . w,~l'" • E 281875 ~; ~ ° ~~'~ ~,t3' ~ir~.: ~; r ~~~ » ~ ~Y° W r Aq;. I ~ ~ f ;4-c-i _ ~ ' - ~,, ~ k.~ ~'a';ry; ~, e ' BT, ti~ r.,, w ~ r~ 3 . r ~ + f~ ~' "' (~ ,. ~ . ~ . "~ - - o ~: ~~ a z, i ~ •-,~' ~~ ~~~' ~r~' ` ;,,; M. SCOTT McLANE:' ~ i :. _ ~, , KALOA #2 WELL AS-BUILT ~ - ~ _ `!7 ~~~ ', J~ ' • . Nzss666a.sa7~?'~~ ~' 4928-S _~ P`~E 28077 486 ^ .. , ti :- _ :4 ~.. , : ,, ~CnO ....... • ~ ,~,€' r,. KALOA NO. 3 WELL ' AS-BUILT SURFACE LOCATION DIAGRAM McLane Consulting Inc APPLICANT: ENpNEERING/MAPPING/SURVEYING/TESTING "'~ - .. ~~~~~ ~~~ ~~~ P.O. BOX 468 SOLDOTNA, AK. 99669 - ~= ~ VOICE: (907) 283-4218 FAX: (907) 283-3265 EMAIL: msmclaneOmclanecg.com PROJECT NO. DRAWN BY: DATE: SEC. LINE LOCATION: July 12, 05 OFFSETS: PROTRACTED SECTION 24 os3os~ MSM 2767' FNL ~ TOWNSHIP 11 NORTH, RANGE 12 WEST 1118' FWL ~ SEWARD MERIDIAN, ALASKA .f~tl1~~~r~cz ~ii:1S, .I:I..C. It:t~lr~~tr`~. 1?r°illin~; t'r°~~;r°crr~t 2 7/8 6.5# 8rd EUE J-55 Tubing 13 3/8" 61# LSS Conductor driven to 94' Kaloa No. 3 Proposed Configuration 2 7/8" X 5 '/n" annulus to be displaced over to inhibited packer fluid w/ diesel freeze protect at surface following completion. 9 5/8" 36# J-55 LTC Surface Csg to 620' MD 2 7/8" 6.5# EUE 8rd Tubing to Top of Screen. 30 ft Screen centralized and hung inside 5'/2" casing. Top Tyonek 2061.2' MD, 1905' TVD Proposed TD of 6 118" Horizonal Wellbore Section at 4578' MD (2802' TVD) 4'/z" 12.6# L-80 BTC slotted liner in in OH to TD. Attachment I ,~~L11`()t`lt ~JCI.S ~..~ ~i.,. ~t'd,'1%. ~7. ~~ l 5'/z" 15.5# J-55 BTC Production Csg to 3750' MD (2802' TVD) 5 '/z" cemented back to surface above TAM ECP & Port Collar 7 5/8" Pilot Hole to 4307' MD (3790' TVD) Plugged back pending log analysis. r';`I J;"()Q • • ~~ Aurora Gas, LLC Kaloa No. 3 n. Safety Factors To Be Used: dy Yield: 1.5 Strength: '1.8 (lapse 1.5 {lapse While Cementing 1.5 p Burst 1.1 ttom Burst 1.1 Properties: OD: 13 3/8" de: J-55 ght ppf: 61.00 piing: Welded Depth ft 94.00 (ft}MD t Casing Depth 620.00 (ft)MD TEST OR TD DEPTH N/A (ft)MD apse Resistance (psi) rnal Yield (psi) ~t Strength (psi) x 1000 y Yield (psi) x 1000 Drift Diameter (in) 12.359 I Thickness (in) 0.43 Formation ~ fluid Properties: 73 3/8" Conductor 94.00 (ft)TVD 620.00 (ft)TVD N/A (ft)TVD 1540.00 3090.00 962.00 962.00 962,000.00 * Tensile Limits 962,000.00 * Tensile Limits ;Material Weight ppg Gradient psi/ft (Mud Weight 9.50 0.494 psi/ft Anticipated Mud Wt Next Csg Pt. 10.00 0.520 psi/ft (Calculated Bouyancy Factor @ Mud Wt: 0.85 'Anticipated Cement Weight (ppg} 14 0.728 psi/ft Sea Water Gradient (ppg) 8.94 0.465 psi/ft 'Frac Gradient at Shoe ppg) 13 0.676 psilft Frac Gradient at Next Casing Point 16 0.832 Est. Pore Pressure Gradient p~ Shoe 8.65 0.450 Est. Pore Pressure Gradient ~ Next Csg Pt. 8.65 0.450 Gas Gradient (psi/ft) 0.11D Mud Backup Gradient ppg 8.95 0.465 Drop for. Collapse Calculation (Enter #). 55 0.55 • • Tensile Calculations: eight in Air (Ibs) 5,734.00 Bouyant Weight in Mud (Ibs) 4,901.08 Maximum setting depth (ft- 15, 770.49 In Air: = Jt Strength ! Wt.ppf Joint Strength Safety Factor 187.77 In Air: = Jt Strength / (Wt ppf "set depth) (At proposed depth] Body Yield Safety Factor 167.77 In Air: =Body Yld i (Wt ppf * set depth (At proposed depth] Collapse Calculations: Collapse Safety Factor 83.81 Cdlapse Res / (Depth TVD " % Fluid Drop *(Mud B-up Grad -Gas Grad)) Collapse SF while cementing 62.39 CWl~se Res /Depth TvD • (Cmt Grad - pup Mud Grad) No bst Crcculation/Evacuation occurs Burst Calculations: Assume seawaterbackupgradient .465 p~ft forburst design purposes Assume worst case by using anticipated flat gradient for TD of next hole section (TVD) for MASPcakulations MASP (Maximum Anticipated Surface 447.64 tF~ Grad -Gas Brad>- Next caste set Depth (TVD> Pressure) Top Burst Safety Factor 6.90 Tube burstratinglASP Bottom Burst Safety Factor 7.00 tint. Ym + Depth TvD' Seawater Grad) /ASP Summary of: 13 3/8" Sa#ety Factors Body Yield 167.77 in air'Tensile" OK Joint Strength 167.77 in air "Tensile" OK Collapse 83.81 OK Collapse 62.39 while cementing OK Top Burst 6.90 OK Bottom Burst 7.00 OK • ~ Aurora Gas, LLC Kaloa No. 3 Min. Safety Factors To Be Used: Body Yield: 1.5 Jt. Strength: 1.g Collapse 1.5 Collapse While Cementing 1.5 Top Burst 1.1 Bottom Burst 1.1 9 5/$" Surface Casing Casing Properties: Size OD: 9 5/8" Grade: J-55 Weight ppf: 36.00 Coupling: LTC Set Depth ft 620.00 {ft)MD 620.00 (ft)TVD Next Casing Depth 4578.00 (ft)MD 2802.00 {ft)TVD FIT TEST OR TD Depth 640.00 (ft)MD 640.00 (ft)ND Collapse Resistance (psi) 2020.00 Internal Yield (psi) 3520.00 Joint Strength (psi) x 1000 453.00 453,000.00 "Tensile Limits iody Yield (psi) x 1000 564.00 564,000.00 "Tensile Limits Pl Drift Diameter (in) 8.765 Wall Thickness (in) 0.352 &Fluid Properties: atenal Weight ppg Gradient psi/ft ad Weight 10.00 0.520 psi/ft iticipated Mud Wt Next Csg Pt. 10.00 0.520 psi/ft ~Iculated Bouyancy Factor @ Mud Wt: 0.85 iticipated Cement Weight (ppg) 15.8 0.822 psi/ft ~a Water Gradient (ppg) 8.94 0.465 psi/ft ac Gradient at Shoe(ppg) 16 0.832 psi/ft ac Gradient at Next Casing Point 14 0.728 .t. Pore Pressure Gradient ~ Shoe 8.65 0.450 ~t. Pore Pressure Gradient ~ Next Csg Pt. 9 0.468 ~s Gradient (psi/ft) 0.110 ad Backup Gradient ppg 8.95 0.465 Fluid. Drop for. Collapse Calculation (Enter#). 55 0.55 • • Tensile Calculations: Weight in Air (Ibs) 22,320.00 Bouyant Weight in Mud (Ibs) 18,907.16 Maximum setting depth (ft) 12,583.33 In Air: = Jt Strength f Wt,ppf Joint Strength Safety Factor 20.30 In Air: = Jt Strength / (Wt ppf * set depth) (At proposed depth) Body Yield Safety Factor 25.27 In Air: =Body Yld f ~ ppf * set depth (At proposed depth) Collapse Calculations: Collapse Safety Factor 16.67 cause t2es / (Depth rvD' % Fluid Drop'(Mud B-up Grad -Gas Grad)) Collapse SF while cementing 9.15 catapseRes/DeplhrvD'(cmtGrad-B-UpMudGrad) No bst CirculatioNEvacuation ocxurs B U rSt Cal C U I at I ~ n S : Assume seawater b~kr~ gradient, .465 psi/ft for burst design purposes Assume worst case by using antiapated free gradient and pore press gradients at sh with TD(TVD) of next hole section for MASP calculations MASP (Maximum Anticipated Surface 2,023.04 (Free Grad -Gag Grad)' Next Casing Set Depth TVD Pressure using Frac Grad) MASP (Maximum Anticipated Surface 952.12 (Pore Press Grad -Gas Grad)" Next Casing Set Depth rvD Pressure Using Known Area Pore P) Top Burst Safety Factor 3.70 Tube burst rating/ASP (Based on most realistic MASP above) Bottom Burst Safety Factor 1.85 (Int.Yki+DepthTVD'SeawaterGrad)/ASP Summary of: 9 5/8" Safety Factors Body Yield 25.27 in air "Tensile" OK Joint Strength 20.30 in air "Tensile" OK Collapse 16.67 OK Collapse 9.15 while cementing OK Top Burst 3.70 OK Bottom Burst 1.88 OK • • ID aurora Gas, LLC Kaloa No. 3 Min. Safety Factors To Be Used: Body Yield: 1.5 Jt. Strength: 1.8 Collapse 1.5 Collapse While Cementing 1.5 Top Burst 1.1 Bottom Burst 1.1 Properties: Size OD: 5 1 /2 Grade: J-55 Weight ppf: 15.50 Coupling: BTC Set Depth ft 4578.00 {ft)MD Next Casing Depth 4578.00 (ft)MD FIT Test Depth 640.00 (ft)MD CoNapse Resistance (psi) Internal Yield (psi) Joint Strength (psi) x 1000 Body Yield (psi) x 1000 PI Drift Diameter (in) 4.825 Wall Thickness (in) 0.275 ~ Fluid Properties: 51/2" Production 2802.00 (ft)TVD 2802.00 {ft)TVD 640.00 (ft)TVD 4040.00 4810.00 217.00 248.00 Weight ppg Gradient psifft 217,000.00 * Tensile Limits 248,000.00 * Tensile Limits ad Weight 10.D0 0.520 psi/ft ticipated Mud Wt Next Csg Pt. 10.00 0.520 psi/ft itculated Bouyancy Factor @ Mud Wt: 0.85 ticipated Gement Weight (ppg) 15.8 0.822 psifft ~a Water Gradient (ppg) 8.94 0.465 psi/ft ~c Gradient at Shoe(ppg) 14 0.728 psi/ft ~c Gradient at Next Casing Set Point 20 1.04D psi/ft i. Pore Pressure Gradient ~ Shoe 9 0.468 psi/ft t. Pore Pressure Gradient ~ Next Csg Pt. 18.5 D.962 psifft is Gradient (psi/tt) 0.110 psilft td Backup Gradient ppg 8.95 0.465 psilft Fluid- Drop. for Collapse Calculation (Enter #). 55 0.55 • • Tensile Calculations: eight in Air (Ibs) 70,959.00 Bouyant Weight in Mud (Ibs) 60,109.00 Maximum setting depth (ft) 14,000.00 In Air: = Jt Strength / Wt.ppf Joint Strength Safety Factor 3.06 In Air: = Jt Strength / (Wt ppf * set depth) (At proposed depth) Body Yield Safety Factor 3.49 In Air: =Body Yld / (Wt ppf "set dep#h (At proposed depth) Collapse Calculations: Collapse Safety Factor 7.38 calapse Res / {Depth TvD ` % Fria Drop `(Mud B-up Grad -Gas Grad)) Collapse SF while cementing 4A5 Cdlapse Res /Depth TW ` {Cmt Glad - B-up Mud Grad) No lost Circwlation/Evacuation occurs Burst Calculations: Assume seawaterhadr~gredient,.465psiAYforbursfdesignpurposes Assume worst case by using anticipated frac gradient and pore press gradients at shoe wl TD (TVD) of next hole section forASP calculatlons MASP (Maximum Anticipated SUlfaee 1, 731.64 ct=rac Grad -Gas Grad)' Next Casing Set Depth (TVD) Pressure Using Frac Gradient aQ TD) MASP (Maximum Anticipated Surface 1, 003.12 {Pore Press Grad -Gas Grad)' Next Casing Set Depth (1'VD) Pressure Using Known Area PP) Top Burst Safety Factor 4.80 Tube burst rating /ASP 4.03 Using PP (Based on Most Realistic MASP above) Bottom Burst Safety Factor 3.53 pnt. vld + Depth TvD • seawater Gras 6.09 Using PP Summary of: 5112 Safety Factors Body Yield 3.49 in air "Tensile" OK Joint Strength 3.06 in air "Tensile" OK Collapse 7.38 OK Collapse 4.05 while cementing OK Top Burst 4.80 OK Bottom Burst 3.53 OK .~~Lfr'f)1'fr Gcxs. LL.C;. Drilling Program: Kaloa No. 3 Is"c~Zr~~~. 3 l~~r~/lin I'r,~~ar"carrz 1. .File and insure all necessary permits and applications are in place. 2. Mob in rig and RU. 13 3/8" conductor has been pre-installed. Install 13 5/8" 5M starter head. 3. Rig up diverter and mud Ioggers.~Test and calibrate all PVT and gas sensor equipment. Provide 24 hr notice to AOGCC inspectors for chance to witness diverter test. 4. Notify AOGCC and pertinent agencies when ready to start drilling operations. ` ~ ~~ ~ ~~ , 5. Prepare mud system, weight up to ~9.5 ppg.' P `°~ `~ ~~ ~ °c ~~ `~~~~ 6. Drill 12 1/4" hole to 620 ft, using 6 314" stabilized BHA. Watch for gas in ~~ shallow coals and sands. Increase mud weight as needed to 9.8 - 10 ~ ppg 7. Condition hole for running 9 5/8" surface casing, POOH, LD 12 1/4" BHA. 8. Run and cement (new) 9 5/8" 36 #/ft, J-55 LTC surface casing at 620' installing 1 centralizer /joint centered on 1St 4 joints above shoe, and 1 centralizer every 2"d joint there after, cement to surface. Shoe joint connection at float shoe and float collar must be Baker-Locked. Cementing will be single stage using 14.5 ppg cement at 100% excess volume. 9. RU and test 11" 3M BOP stack and 5M choke manifold. Test stack and surface equipment to 3000 psi. Pressure test casing to 1500 psi or as required on approved permit. 10. PU 8 %2" bit, bit sub and RIH w/ 6'/" collars, drill out float equipment and shoe. Condition /treat mud as needed for cement contamination, drill ~20' OH. Pull back into shoe and perform FIT with MWE to 16.0 ppg, record results. TOH, LD 6 '/" collars while POOH. 11. PU 4 3/4" directional drilling assembly w/ 7 7/8" bit, motor and DIR MWD assembly, non-mag DC's, jars and HWDP as specified by directional hand. 12. RIH and directionally drill 7 7/8" pilot hole to TD per directional plan, or other as decided by Aurora Gas geologist. Monitor well and volumes carefully. Be prepared to shut well in and weight up immediately if flow or excessive gas build up in mud is noticed. Anticipated mud weights required are 9.5 - 10 ppg. -~ 13. Condition and circulate mud system, build mud weight to 9.5 ppg and be prepared to weight up more if required. Do not exceed fracture gradient determined in step 101 14. Proceed to drill ahead, 7 7/8" hole. 15. Drill Pilot Hole to TD at 4310 ft MD (3794 ft TVD) maximum, depending on lithology encountered. -' 16. Short trip and condition hole as needed for running wireline logs. 17. POOH, rack back drillstring and RU wireline BOP's and lubricator and logging tools. Log cased hole section w/gamma ray sensor, Log OH section with logging suite as indicated by Aurora Gas. <Ft Ltr"f.~~•ct ~r"u.~ LI:C'. f'a~;e 1 ~Jf ~ 1 r~ Ri~v. 3. C~ 7;'I Sr'(d(15 K'EaI~~T~'i~. 3 T.~rrl~in~; Pr~~;r~ca~lt 18. RD wireline, RIH open-ended with drill-pipe and displace Neat "G" w/ 2% CaCl2 balanced cement plugs across all potential gas zones as indicated in wireline logs. Cement volumes and plug design to be per [20 AAAc 25.112 (a)(1)] Top of upper most cement plug to be at 1800 ft. jj 19. PU 200 ft above cement and reverse out, POOH and PU drilling assembly for Horizontal sidetrack operations. RIH and after 24 hrs have elapsed, tag TOC cement to test for sidetrack. 20. Per instruction of on-site directional driller, drill down and polish top of plug in preparation for sidetrack. 21. Condition mud as needed for cement contamination prior to drilling ahead after getting off cement plug. 22. Drill OH sidetrack to 3790 ft or start of horizontal section of wellbore as decided by Aurora Gas. Short trip, POOH for BHA change. 23. C/O bit and stabilizers as needed to drill 6 1 /8" tapered hole section. Install straight blade 7 7/8" string stabilizer /reamer approximately 780 ft above bit in drill string. (Note, when drilling horizontal section, note placement of up-hole reamer/ stabilizer w/ respect to bit depth and end of original 7 7/8" hole section. Cannot drill beyond this point.) 24. At TD, condition hole, trip pipe back to surface casing and back to TD, condition mud for running and cementing of 5'/z" casing. 25. POOH LD drillpipe and BHA. -~ 26. PU and RIH w/ casing as follows: PU 700 ft 4'/s" 12.6# L-80 BTC slotted liner and RIH with centralizers installed every joint, Install 4'/2" BTC pin x 5 %2" BTC box XO. Runt jt 5'/z" 15.5# BTC casing. Install (Per instruction of on-site TAM tool hand) TAM 5'/Z" EXTRACAP inflatable casing annulus packer and TAM 5'/s" PORT collar NOTE: TAM equipment to be installed and operated per procedure instruction provided by TAM tool hand. All installation and operational procedures to be thoroughly reviewed and understood by TAM personnel, Co. Man and Tool pusher prior to initation. 27. Continue running remainder of 5 '/2" 15.5# J-55 BTC casing with centralizers installed and centered (1) per each of bottom 4 joints and (1) every other joint there-after to 2 joints inside of surface casing shoe interval. Then install centralizers (1) every 3~d joint to surface. 28. On last joint of 5'/2" casing, install mandrel) hanger and pup joint. 29. Reciprocate and circulate at least two hole volumes, do not attempt to rotate. Land mandrel in casing head and lock down. Back off landing joint. v~c~~~-s~~~~ 30. PU TAM COMBO shifting tool on 2 7/8" tubing and RIH picking up tubing from rack, latch in and inflate inflatable casing packer. Prior to PU tbg, tally's of casing and tbg to be double checked by Co. Man, TP and TAM .qtr°vr•ct C~rxs, .f.1:C;. ~ ~°taCc~T~V'~. 3 ,t~~°illinb I'~°oar~czrfiz tool-hand to validate where tag-up of combo tool and port collar should occur. 31. Inflate TAM Casing Annulus Packer "ExtraCAP" per procedure. 32. Shift open TAM port collar and attempt to break circulation. When good 1:1 circulation is established, initiate cementing procedure to cement 5'/Z" casing beck to surface as proposed in cementing procedure. 33. Shift Port col lac ed, PU and reverse out tubing to insure all cement is ~' clear, POOH and WOC. ~ C,hc~,~S~ ~~~~ ~~ ~. ~ /g ~ '~~ 34. RIH w/ tubing and jetting tool, RIH to enc~ of liner and begin displacing out l`~ mud w/ brine while circulating and POOH. 35. RIH w/ test /treating packer on 2 7/8" tubing and set 50 ft above (before) TAM port collar. Pressure test tbg / csg annulus to 1500 psi. 36. Swab in well and flow test, allowing remaining mud in liner /formation annulus to clean up. Test and establish flow rate /pressure information. 37. Open unloader and kill well w/ clean brine. POOH w/ test packer. 38. RIH w/ (1) 30 ft section of sand exclusion screen (centralizers installed), (1) jt 2 7/8" tbg, retrievable hydraulic set production packer and 2 7/8" tubing back to surface w/sliding sleeve installed at 2000 ft. 39. Space out, circulate inhibited brine around tubing until annulus is displace over. 40. Land tubing in hanger and lock down. 41. Drop ball and set packer. 42. RU Pollard, swab in well and gather pressure test data while allowing to clean up. 43. Set BPV, ND BOPE, RU tree and release rig. 44. Prepare site for well testing and surface production facilities. 45. File completion reports with proper agencies. Site Access: Kaloa No. 3 will be accessible via existing gravel road originally built to support early exploration activities in the region and now being used to support ongoing operations at the Kaloa No. 2 site, an active producing facility. Rig: Aurora Well Service, Rig No. 1 (AWS 1) will be used to drill the Kaloa No. 3 well. The Alaska Oil and Gas Conservation Commission has information on this equipment as it has been in use for the last (3) years on other Aurora Gas operations. The pits, BOP system and mud equipment configuration will be similar to that used for previous work. 0 Survey Program: The 12 '/4" surface hole will be drilled vertically and the survey program will consist of inclination only single-shot surveys to be obtained at 500' intervals in accordance with rules laid out in 20 AAC 25.050 (a) (1) & (2). After drill out of the surface hole, a pilot hole will be directionally drilled in a west by northwest direction to gather geologic structure information. Based on information gathered from the pilot hole, the plan is to plug back the pilot hole, kick off and drill a horizontal well-bore section. For all directional work, wellbore .{t u~•nr•c~ Ga.s LLC". ~'~~;e 3 oaf' 13 ~ra~~~t•cz Gus, .I:f.:C;. ~ K~tZ~~'r~. 3 I.~r/llirz~ ~ro~a~cxr~t surveys will be taken at maximum of 100 ft intervals, per AAC 25.050 (a)(1) with intervals likely to be surveyed more frequent while steering. Logging Program: Aurora will have mud loggers on site for the duration of ~ drilling activities. Schlumberger will provide wireline logging services and will run their Platform Express suite in open-hole for the pilot hole only.'A gamma ray log will be obtained to surface while logging out of the hole on one of the Platform Express runs. At minimum it is proposed to run areal-time gamma LWD log while drilling the horizontal well-bore section. Proposed logs at this time are: Kaloa #3 Proposed Logging Program Well Section De the ft OH CH Lo T e 12 1/4" Surface 0 - 620 N/A: No open-hole logs planned for surface at this time. 9 5/8" Surface 0 - 620 GR Cs 7 7/8" Pilot 620 - 4306 Platform Express: Array Induction, Compensated Hole Neutron, Litho-Density, SP, GR, DSI and FMI. Also MDT and Sidewall cores. 7 7/8" KOP - TD GR, EWR (LWD) Horizontal Prod Hole 5 1/2" Int. Cs 620 - 3200 N/A Surface - TD 0 - 4578 Mud Lo in Services BOP Equipment: Aurora Gas, LLC will use the same BOP system they have been using for the last (3} years which will consist of the following: 12 1/4" surface hole: While drilling the 12 1/4" surface hole, a 13 5/8" 5M annular w/ 13 5/8" diverter spool and 10" diverter line will be used. Information on this system is already on file at the AOGCC. A request for a waiver to forgo the requirement of drilling a pilot hole with a diameter less than or equal to diverter line size will be submitted under separate cover. 7 7/8" Production Hole: An 11" (3M) Schafco (Shaffer Equivalent) BOP system will be used which is configured with an 11" 3M annular preventer, (1) 3M double gate with a set of pipe rams installed sized to fit the pipe being run and a set of blind rams and (1) 11" 3M rated drilling spool. BOP tests will be performed to 3000 psi. The annular preventer will be tested to 1500 psi. Again, this is the same equipment Aurora has been using all along and information on the system is on file at the AOGCC. Pressure Considerations: Based on records from the original Albert Kaloa No. 1 and nearby offset well Kaloa No. 2, a pressure gradient of .46 psi/ft can be expected. Using this information, the maximum anticipated bottom-hole pressure to be encountered would be expected while drilling the pilot hole which will approach 3790 ft TVD with potential pressures approaching 1743 psi. The horizontal sidetrack proposed after plug back of the pilot hole will be drilled at .~tur•t~ru t~,'u.s 1.I:C'. ~'a~;e 4 ~~f, I .~tirt°crr~cr C~cts, .LI;C". . I~°~~lv!!~'v`~. ~ ,~rrllen~; Pr~~;1~carrr 2805'+/- TVD. Maximum anticipated surface pressures "MASP" can be calculated by subtracting the gas gradient of .11 psi/ft from pore pressure gradient of .45 psi / ft and multiplying by the total TVD depth. =>MASP = (.46 - .11) * 3790 = 1326 psi - Drilling Fluids: The drilling fluids are being furnished by Baroid Drilling Fluids. Baroid has extensive experience with drilling activities in this area. An experienced mud engineer will be on site at all times while drilling to monitor rheologies and make recommendations. Surface Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: Density Viscosity Plastic Viscosity Yield Point API FL pH 0 - 620' 9.6-10.0 45 - 65 16 - 23 20 - 30 <5 8.5-9.5 System Formulation: 6%KCI, EZ Mud if no used mud is available Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) BARAZAN D 1.25-1.5 ppb (as required 25 YP) EZ MUD DP 0.75 ppb (begin with .2 ppb) PAC-L or DEXTRID LT 1.5 to 2.0 ppb ALDACIDE G 0.1 ppb Barite As/if needed BARACOR 700 1 ppb BARASCV D 0.5 p b add as the wells uds • Mix in order as listed • Add polymers slowly to minimize fisheyes Recycle fluids as appropriate. No over pressured zones were encountered nor any major hole problems were seen on Kaloa #2. Some tight hole was seen on a trip at 3022'. Occasional short trips are suggested to help alleviate this problem. Pilot Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: Density Viscosit Plastic Viscosity Yield Point API FL pH 620 - 4578' 9.8 - 10.0 40-50 6 - 15 13 - 25 <5 8.5-9.5 System Formulation: 6%KCI, EZ Mud Product Concentration I~cw. 3.0 it f 5f'f~(}5 ,~ Zt!"~1 "LI ~~t14..~..~. ~,. Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25 ppb (as required 13-20 YP) Dextrid 2-3 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baroid as/if needed Baracor 700 1 ppb Barascav D 0.5 b maintain er dilution rate KEZIr.~l7ti`~~. , l:~r~llan~ F'~~~br~czr~t Production Hole Recommendations Mud Type: 6%KCI, EZ Mud Properties: Density Viscosit Plastic Viscosity Yield Point API FL pH 1900 - 4578' 9.8 - 10.0 40-50 6 - 15 18 - 28 <4 8.5-9.5 System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25 ppb (as required 13-20 YP) Dextrid 2-3 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baroid as/if needed Baracor 700 1 ppb Barascav D 0.5 b maintain er dilution rate BaradrilN Recommendations (if needed) Mud Type: 3% KCI BaradrilN Properties: Density Viscosit Plastic Viscosity Yield Point API FL pH 3827 - 4578' 9.8 - 10.0 40-50 6 - 15 18 - 28 <4 8.5-9.5 System Formulation: 3%KCI, BaradrilN Product Concentration Salt 55 ppb KCI 10.9 ppb KOH 0.2 ppb (9 pH) N-Vis 1.25 ppb (as required 18-25 YP) N-Dril HT 4 ppb Baracarb 5 12 Baracarb 25 12 Baracarb 50 7 Aldacide G 0.1 ppb Baracor 700 1 ppb Barascav D 0.5 b maintain er dilution rate Drilling Ftuid Handling System: ,F1ur•(a~•cx t~iu.s L:I1C;. t'rx~;e c5 c~f~1 .~~ur~~~r•c~ ~T(iti, I.l:~. • Ic`i~lc~r'~,~..~ I)r~Zlenb Pro~r~crrra Shale Shaker, Mud Cleaner, Centrifuge, PVT monitors Casing /Cementing Program: All casing is new. Analysis (attached) indicates casing program as designed provides adequate safety factors for this well. All casing strings with the exception of the 13 3/8" conductor and 4 %2" slotted liner will be cemented in place using industry standard casing cementing techniques utilizing a casing shoe, float equipment and wiper plugs and centralizers installed as needed. Kaloa No. 3, 13 3/8" 61# LSS Conductor Analysis and Cementing Program The conductor for Kaloa No. 3 has been installed by driving the 13 3/8" pipe to refusal at 94 ft. Joints were welded and a drive shoe was welded to the bottom joint. No cementing is required. Please see attached Conductor Analysis with specifications. Kaloa No. 3, 9 5/8" 36# J-55 LTC Surface Casing Analysis and Cementing Program The 9 5/8" surface casing will be cemented in fully from the proposed set depth of 620' to surface with a 14.5 ppg "G" tail cement system. Where: 12 1/4" OH Capacity = .1458 bbl/ft 9 5/8" 36# Csg x 12 1/4" OH capacity = .0558 bbl / ft 9 5/8" 36# Csg capacity = .0773 bbl/ft OH x Csg: 620 ft x .0558 bbl I ft x 2 (100 % excess) = 69 bbls Shoe Jt: 38ft x .0773 bbl/ft = 2.94 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 to utilize alias-Block type additive to minimize potential for gas entrainment and or channeling. Cement System Weight (ppg) Volume Reauired Gas-Block enhanced 14.5 72 bbls @ 100% Please see attached 9 518" surface casing analysis and specifications. Kaloa No. 3, 5 1/2" 15.5# J-55 BTC Production Casing Cementing Program The 5 1 /2" production casing will be cemented in fully from the proposed set depth of 3750' to surface. A 13.5 ppg lead "G" cement followed with a 15.8 ppg <~1 ur-c~~•c~ C~as I:LC". }'cx~;e 7 ~) f ~ 3 .~3uJ°vr•ct Crcxs..I.I:C. • t~calr3!!~v'~~..3 .I~rrllin~ 1'rr~~t~cz~}z "G" tail cement system will be used. This program is designed to insure the intended perforating /production intervals are isolated with 15.8 ppg "G" cement. Where: 5 %" 15.5# csg capacity = .0238 bbl/ft 5 %"15.5# csg X 7 7/8" OH capacity = .0309 bbl/ft 5 %" 15.5# csg X 9 5/8" 36# annular capacity = .0479 bbl/ft 5 %" 15.5# csg displacement = .0056 bbl/ft Lead System: 9 5/8" CH x 5 %"Csg: = 620 ft 620 ft x .0479 bbls/ft x 1 (0% excess= 29.7 bbls 7 7/8" OH x 5 %" CSG: 1000 ft - 620 ft = 380 ft 380 ft x .0309bb1/ft x 1.25 (25% excess) = 14.7 bbls Total Lead Svstem = 44.5 bbls Tail System: c~5~~' ~~ ~4's~ , 7 7/8" OH x 5 %" Csg: 3750 ft - 1000 ft = ft ~t 1550 ft x .0309 bbl/ft x 1.25(25% excess= 60 bbls ~, ~~`S Shoe Joint = 38' x .0238 bbl/ft = .9044 bbls ~r,~t5 Total Tail Cmt Volume = 69 bb/s Cement Svstem Type Cement Weight (ppq) Volume(a~% Excess Lead "G" 13.5 44.5bbls@ 25% OH Tail "G" 15.8 bls @ 25% OH ~5 ,5 ~h ~ S Please see attached 5 1/2" production casing analysis and specifications. Kaloa No. 3, 4 1/2" 12.6# L-80 BTC Slotted Liner Casing Cementing Program No cementing will be performed on the slotted liner interval for obvious reasons. Drilling Hazards: Drilling in the South Central Region of Alaska offers its own challenges. Common known hazards are as follows: Shallow gas: Shallow gas is a known hazard which exists throughout the area. The northwest side of Cook Inlet is noteworthy for its shallow gas hazard. All responsible personnel will be made aware and a notice of such hazards will be posted in the rig doghouse. There is no record of H2S in the region, however; a gas detection system capable of detecting H2S as well as methane will be installed on the rig with detectors at the floor level, the shale shaker and in the cellar. ~1r~~~t~rcx ~,'c~.s LLC;. t'a~;e c~ E)f~l ~°itlr.1'!'~v'i~. 3 .l.~rllin~; Pf°o~;f~czrrt Coal Seams: The Cook Inlet region is rich in coal seams, inter-bedded between the sands, gravels and shale's that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break when drilled with a tri-cone bit. The major hazard of drilling into a coal seam without observing the proper response is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in this fashion until successfully through the coal bed. The key word in successfully drilling the coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight of the overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason it is critical to maintain the proper weight and viscosity of your drilling fluid to properly remove the coals drilled up, and to hold flowing coals in place. Again, heed the recommended drilling fluid program and advice offered by the on-site Mud Engineer. Nearby Well's: There are no known active wells in close proximity to Kaloa No. 3. The nearest known well is Kaloa No. 2 which is ~ 4900 ft to the southwest on surface, subsurface distance will be 3098 ft at TD. . Other: Sticky bentonitic clays, boulders, lost returns & differential sticking w/ overbalanced muds and gas influx while cementing. ~tur~f,~r•r~ ~~usILC,". ~'a~;e. 9 ~~f~13 Inc°i~. 3. (J %~15,'?00.5 Kaloa No. 3 Tc'EZlr~1r~~. ~ I.~r~llend .1'rr~~r~ctr~t Summary of Drilling Hazards POST THIS NOTICE IN DOGHOUSE ~ There is potential for abnormal pressured shallow gas. ~ There is potential for stuck pipe in coals encountered while drilling from surface to TD. Be extra vigilant while performing hole opener run. Short trip to be performed every 600 ft or 24 hrs, whichever comes first. ~ There is no H2S risk anticipated for this well. ~' ~ Due to potential for shallow gas kick, very little response time will be afforded to respond. 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 "KALOA No. 3" WELL PLAN FOR ADDITIONAL INFORMATION. .F1ut•rar•r~ ~u.s LLC;". I'cx~,>e 1(? raf 13 .~~°car.ca G~xs..I:I:C. ~ Is~'calr~ 1 'i~. 3 I~rrllin~; Pr~ar~cxrrr ~~,i y ~ : r . ~~, ._. Kaloa No. 3 Days vs. Depth Days From Spud u ~ 1 ~~ _ 12 1!4" Hole to 620', Set /cement 9 200 5/8"surface casing at 620. NU 300 ROPE, P-test, Drill out and FIT to 16 _ 400 PP9 NNVE 500 600 700 800 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 .~. 2100 ~ 2200 ~ 2300 ~ 2400 2500 2600 ~ 2700 ~ 2800 2900 3000 3100 3200 3300 3400 3500 3600 3700 3800 3900 4000 4100 4200 4300 4400 4500 4600 4700 4800 5 4900 5000 ,f~ut~Ear=ct t~tcr.s .L1~C;. 1'tx~;e~ 11 ~~f' 1` ,~~1. 3. (I 7,'1 Sr?(~f~ 5 0 0 0 _Q r u~ N 2 r~ T11 N, R12W, SM KALOA 2xx O KALbA 2 ~F 26D,DDD i Ka~oa sPN 4 KAL 3 151 2D DD W 23 a a 26 f d6 151 Kaloa No. 3 za Proposed 1-Gas 2051080 Confidential wells are red SFD 711912005 25 Feet D 1 ,DOD 2,DDD 3,DDD 4,DDD 27D,DDD i ~ ~~~.~Aurora ~OWer FIRST NATIONAL BANK ALASKA 2 2 $ 6 ~1ri ANCHORAGE, AK 99520 1400 WEST BENSON, SUITE 410 89-6/1252 ANCHORAGE, AK 99503 PH: (907) 277-1003 7/ 15/2005 PAY TO THE AOGCC ORDER OF ---__--- ~ ~ **100.00 One Hundred and 00/100**************~**~**~****:~*******,~,~**~~,~**,~~~ ~- - DOLLARS 8 Alaska Oil and Gas i APD Kaloa #3 MEMO 11'00 2 28611' ~: L 25 200060: 30 20 389 711' ~7 • • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~~CX-~ PTD# 2-U ~^ ~~g CHECK WHAT ADD-ONS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing well , Permit No, API No. (If API number Production should continue to be reported as last two (2) digits a function of the original API number stated are between 60-69) above. PILOT HOLE In accordance with 20 AAC 25.005(f), all (pT~ records, data and logs acquired for the pilot hole must be clearly differentiated in both e (name on permit plus PH) nam t 2102--3~ and API number (50 Z~'3=~ 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to full EXCEPTION compliance with 20 AAC 25.055. Approval to perforate and produce/infect is contingent upon issuance of a conservation order approving a spacing exception. (Company Name) assumes _ the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the SAMPLE Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. X1(3-70 Rev: 04/01/05 C\jody\transmittal_checklist WELL PERMIT CHECKLIST Field & Pool ALBERT KALOA, UNDEFINED GAS -40500 Well Name: KALOA 3 Program DEV Well bare seg ^ PTD#:2051080 Company AURORA GAS LLC Initial Class/Type DEV I PEND GeoArea 820 Unit On10ff Shore On Annular Disposal ^ Administration 1 Permh_feeattached_-___- - - _Yes_ __________________-____-_ - 2 Lease numberapprgpriat_e__ __-_______________________ __________Yes_ --__Proposedwell_and pilot hole bothlie_inClRlfeeleaseC-61393.__-_-___-___--_-_-__-_-__---_ 3 Uniquewell_nameandnumbe[______________________-___ .____-____ Yes_ _.___-,____-___„_--,__-_ 4 Well located in_a-d_efnedpool ______-______-_- -_-_____ _____, No_ _,___-Albert Kaloa_lJndefi_nedgas-pool-40500________________________------_--_- -_-_ 5 Well locatedproperdistancefromdrillingunit_boundary_______ _____ ___________Yes- _,______.-_-_,___--_-_--____,-___-_-_-_-___________-_- -___-_ 6 Well located proper distance-from other wells_ - _ _ - - _ _ - _ -Yes _ - - Qnly well-in Sections_23 and 24; will_be 3,098' from-Kal_oa 2, - _ - _ - - _ - - _ - _ - _ - _ _ _ 7 Sufficient acreageayailablein_drillingunit-______-_______ __-___---_Yes_ _-_-_.___-_____-_- - - 8 If_deviated,is_wellboreplat-inc_luded________________________ ____ ______Y_es_ -_-__. - - 9 Operatoronlyaffectedparty_.___-___-__-------- -------- --Yes- -----------.------- _---- 10 Ope[atorhasappropriate.bondinforce_------_------------- -----------Yes- __._._.-._.-_______._--. 11 Permit_canbeissuedwithoutconservationorder__-_-_-_-_-___- __- -__-_-Yes- ___-___-_______________________- - - - - - Appr Date 12 Permit_canbeissuedwithoutadministrative_approval______________ -_- -_-___Yes_ _-_---_-___-_-____-_-___._-________-_--_-_-_--_,-- -.-_- -_ SFD 8/16!2005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized bylnjectionOtder#(put_10#in _comments)_(F4r_ NA- --__-__---_-_.___---_-_--_-_-_--_ -_-______________________________ 15 All wells within 114_mile area of review identified (For service well only) _ _ - , _ _ _ _ . - _ _ _ _ NA_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ --------------------------------------------- 16 Pre-produced injector; duration of pre ptoduction less than, 3 months_(For service well only) , NA_ _ _ - - - - 17 ACMP_Finding of Consistency_has been issued_for.this project_ - - - - - - NA_ _ - - ~ ACMP determination_no longer_affects AOGCC approval_ of permit to drill._ - _ - - - _ _ Engineering 18 Conductor string_provided___________________ Yes_ __-_.____-_-_--__-_-_-_-___-_-_-____-----_--- ---_- -_- 19 Surface casing_protects all-known USDWs _ - - - - - Yes . - - , -Surface and-production casing will_protgcS any_FW sands.- - - - - - - - 20 C_MT_vol_adequate_tocirculateonconductor-&su_rf_csg___ __________ __ _____ Yes- _-__-_--_______-__---- - - 21 CMT_v_ol_ adequate_to tie-in long string tosurf csg_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes - _ _ - _ _ - Production_casing is planned to be cemented to surface._ _ _ _ - _ _ _ _ _ _ - _ - _ . _ _ _ - _ - _ _ _ - - - _ - 22 C_MT_wilfcover.allknown.protluctiyehorizons_-__-_______ -_-_- -_ Yes_ _______________-_._. - - ----------------- 23 Casing designs adequatefo[C,TB&-permaftost__._-_ ___ Yes_ ___-_-_-_-___________________________._ 24 Adequate tankage_o_r reserve pit _ - _ - _ _ Yes Rig is-equipped with steel_pits. -Although relatively small, Aurora hs successfullydrilled-similar wells _ - 25 If a_re-drill, has_a-1.0-403 for abandonment been approved _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA_ - _ - - _ - _ - _ using this rig. Drilling waste likely handled via Envirotech. _ _ . _ _ _ _ - - _ _ _ , _ - _ - - - _ _ _ - _ - - - - _ - - _ 26 Adequate wellbore separation-proposed_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ - _ _ _ -Nearest wellbore? 3000' distant._ _ _ _ . _ _ 27 If diverter required, does it meet regulations_ - - _ _ - _ - - _ Yes - - . - - -Aurora should_drill a pilot hole t_o meet the regulations. - _ - _ - _ - _ _ _ - _ _ - . - _ - . Appr Date 28 Drilling fluid_program schematic & equip list adequate_ - - - - - - - Yes - Maximum expected formation pressure up to 8.$ EMW-at TD.. Up to 10.0-EMW in su_rface,h_ole, Surface hple - _ _ TEM ~ 8/9!2005 29 BOPEs, do they meet regulatwn - Yes - - - caution noted. - ( 1' 30 BOPE_press rating appropriate; test to (put psig in comments) _ - - - _ Yes - - . MASP calculated at 1326 psi 3000_psi BOP testproposed._ - ~~ 31 Choke_manif4ldcompliesw/API_RP-53 (May 84)______-_-____- ___ _,__ Yes_ -_-_._-__-__-_-_ - - - - 32 Work willoccurwithoutoperationshutdown-_-_-__-__________ ____---__Yes_ ______________________--_--____-_--_-----___-_ 33 Is presenee_ot H2S gas_probable_ - _ , _ - - Ko_ _ - - - - H2S has npt_bee reported_in gas_produced without oil. _Rig ie_equipped with sensors and_alarms._ - - - - - - - 34 Mechanical condition of wells within AOR yerifled (For_service well only) - _ - _ - NA_ _ - - - Geology 35 Pe[mitcan be issued wlo hyd[ogen_sulfidemeosures - - Yes _ - - - _ . HAS no_t expected, but well will be mudlogged and H2S monitoring equipment will be installed- 36 Data-presented on-potential overpressure zones- _ - , . _ _ - _ . _ _ - Yes - _ and fgnctioning of the rig at all times during drilling operations. Appr Date 37 Seismic analysis_ of shallow gas zones, - - _ - _ - - NA_ _ _ - _ - - - - _ . ---- -------- Based 9n Kaloa 1- $ 2,_pressure gradient of $.9 pR9 ~I>AW; will be drtled with 9,5 to 1Q ppg mud, Well will be - - - _ SFD 711912D05 38 Seabed condition curve - if off-shore - - _ - . - - . y (' } _ _ - NA- - _ - - - - mt~dlogged during dri_Iling operations andgas, PVT and H2S sensors will be utilized. - - - _ _ - _ _ - - - 39 -Contact namelphone-for_weekly prggressreports [exploratory oply) _ NA- - - - - - - - - - - - - - - - - - - - - - - - - - Geologic Engineering Public Commissioner: >~ i S Date: Commissioner: Date Commi ~~17/S ~~~~~, 8 fj.as~ Date ~-^ ~l~ aJ t
