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Home My WebLink About205-116• • 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. ~~- ~ L I~ Well History File Identifier Organizing ~aone~ RESCAN ~olor Items: ~Greyscale Items: ^ Two-sided ~IIII'l1IIIIlIIIII~ DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Re.~a~~eeae~ iiiiiiiiiaiuiiiii ^ Poor Quality Originals: ^ Other: NOTES: OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other.: BY: ~ria Date: ~ ~ J ~ V !sl Project Proofing III II llll I I III I l 111 BY: Maria Date: ~ /s! Scanning Preparation ~ x 30 = ~_ + ~ ~ =TOTAL PAGES^~ (Count does not include cover sheet) BY: Maria Date: ~ ' ©~ /s/ ~/~ ~_ 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/ ~/~/-, Stage 1 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. II I II I~I) ~II~I I I III ReScanned III II'III III~I II III BY: Maria Date: !s! Comments about this file: Quality Checked (I~ (I'~~~ (~) III ~II 10/612005 Well History File Cover Page.doc ANY NEW MATERIAL U1~DER THtS PAGE F:\LaserFiche\CvrPgs_Inseris\Microfilrn_Marker.doc fvC~ v ~~~'I DATA SUBMITTAL COMPLIANCE REPORT 11 /23/2007 Permit to Drill 2051160 Well Name/No. BEAVER CK UNIT 16 Operator MARATHON OIL CO API No. 50-133-20554-00-00 MD 6422 TVD 5872 Completion Date 10/4/2005 Completion Status 1-GAS Current Status P&A UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey Yes DATA INFORMATION Types Electric or Other Logs Run: (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log! Electr Data:. Digital Dataset Log Log Run Interval OH / Tye Med/Frmt Number Name Scale Media No Start Stop CH Received Comments D C Las 15179 Induction!Resistivity 2370 6210 Open 3/28/2007 GR, SP, Poro, Dens, ~ Sonic, MudLogs LAS & ' _ PDF, Dir Survey Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y /'lJ Daily History Received? N Chips Received? -'P'7-N~ Formation Tops Y / N Analysis '" Received? Comments: -- -.~ - Compliance Reviewed By: --- -- Date: _ ~'1-~~~ M Marathon MARATHON Oil Company October 26, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-407 Well Completion Report Field: Well: Dear Mr. Maunder: Beaver Creek Beaver Creek #16 Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1377 Fax 907/283-7350 ~ECEIVEQ O C T 3 12007 Alaska Oii & Gas Cons. Commission Anchorage Enclosed, please find a Well Completion Report form 10-407 for the Beaver Creek #16 well with associated attachments. The well has been plugged back to 5188 feet MD (4644 TVD). The 3 '/2" tubing was cut 3 feet above the packer set at 5410 feet. A cement retainer was set at 5390 feet and 7 barrels of Class G cement was pumped below the retainer and 16.7 barrels of Class G cement set on top of the retainer. Top of cement was tagged at 5188 feet. A whipstock was oriented and set at 5008 feet. I can be contacted at 907-283-1372 / (cell) 907-394-1824 or crang(a~marathonoil.com if you should require any further information. In addition, you may contact Kevin Skiba in our Kenai field office at 907-283-1371 or by email at kskiba marathonoil.com. Sincerely, Craig Rang Completions Engineer Enclosures: 10-407 Sundry Report cc: Houston Well File Operations Procedure Kenai Well File Well Schematic KJS CLR -~~~' ~C~rCI V GI • ~ STATE OF ALASKA ~ .1a,~l~~ 0 G T 3 1 2007 • ALA OIL AND GAS CONSERVATION COM SION WELL COMPLETION OR RECOMPLETION REPOI~sJ~lAl~l$ Q~~~6• Cott~r-ission 1a. Well Status: Oil^ Gas^ Plugged ^ Abandoned Q Suspended ^ 2oaaczs.~os zonnczs.»o GINJ^ WINJ ^ WDSPL^ WAG ^ Other^ No. of Completions: 1b. Well Class: flC Oi8$B Development 0 Exploratory^ Service ^ Stratigraphic Test ^ 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp., or Aband.: 9/26/2007...- 12. Permit to Drill Number: 3~`~-- a'~,~ 205-116 3. Address: PO Box 1949 Kenai Alaska 99611-1949 6. Date Spudded: 9/19/2005 13. API Number: If,(j 50-133-20554-00-00 4a. Location of Well (Governmental Section): Surface: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 7. Date TD Reached: 9/29/2005 14. Well Name and Number: BC 16 Top of Productive Horizon: NA 8. KB (ft above MSL): 21' Ground (ft MSL): 158' 15. Field/Pool(s): Total Depth: 3,321' FNL, 2,031' FWL, Sec. 34, T7N, R10W, S.M. 9. Plug Back Depth(MD+TVD): 5,188' MD 4,644' ND BeaVel' Creek / Sterling POOI 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 317,399.50 y- 2,433,922.51 Zone- 4 10. Total Depth (MD +TVD): 6,422' 5,872' 16. Property Designation: A - 028083 TPI: x- NA y- NA Zone- 4 Total Depth: x- 317,825.14 y- 2,431,805.86 Zone- 4 11. SSSV Depth (MD + ND): NA 17. Land Use Permit: 18. Directional Survey: Yes ~ No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: NA (ft MSL) 20. Thickness of Permafrost (TVD): NA 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): 22. CASING, L INER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20" 133 K-55 0' 83' 0' 83' Driven 0 13-3/8" 68 K-55 0' 2,500' 0' 2,285' 16" 670 sks of Type 1 0 9-5(8" 40 L-80 0' 6,402' 0' 5,852' 12-1/4" 209 bbls 12.5ppg "G" 0 109 bbls 13.Sppg "G" 23. Open to production or injection? Yes ^ No0 If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) 3-1/2" 5,516' 5,410' 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 5,390' - 5,188' plug 43.7 bbls Class G 26. PRODUCTION TEST Date First Production: NA Method of Operation (Flowing, gas lift, etc.): Date of Test: NA Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate .-~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No Q Sidewall Cores Acquired? Yes ^ No Q If Yes to either question, list formations and intervals cored (MD+ND of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. ~1. .: i ~ ~_ '~ ~: ~€~~af a~ 2007 Form 10-407 Revised 2/20070 R i G I ONTINUED ON REVERSE ~\1 NAB 3 28. GEOLOGIC MARKERS (List all formations and m encountered): 29. FORMATION TESTS NAME MD TVD Well tested? Yes ff yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit Permafrost -Top detailed test information per 20 AAC 25.071. Permafrost -Base Sterling B-2 Sand 5,598' 5,049' Formation at total depth: 30. List of Attachments: Operations Summary, Wellbore Diagram 31. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Kevin Skiba (907) 283-1371 Printed Name: Craig L. Rang Title: Senior Completions Engineer Signature: Phone: (907) 283-1372 Date: 10/26/2007 a INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: ff this well is completed for separate production from more than one interval (multiple completion}, so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 212007 Marathon Oil Company Page 1 of 6 Operations Summary Report Legal Weli Name: BEAVER CREEK 16 Common Well Name: BEAVER CREEK 16 Event Name: RE-ENTRY Contractor Name: GLACIER DRILLING Rig Name: GLACIER DRILLING Date From - To Hours Code ~~ Co ~ Phase Spud Date: 9!18!2005 Start: 9/2012007 End: Rig Release: Group: Rig Number: 1 Description of Operations 9/22!2007 ~ 10:00 - 06:00 ~ 20.00 ~ RURD_ RIG_ ~ MIRU 9/2312007 06:00-06:00 ~ 24.OO~RURD_~RIG_ MIRU 9/24/2007 106:00- 10:00 1 4.001 CIRC_ (CFLD IXMBO 10:00- 10:30 0.50 PULL_ EOIP XMBO 10:30- 11:00 0.50 TEST_ EOIP XMBO 11:00- 13:00 2.00 INSPCT RIG_ MIRU 13:00- 13:30 0.50 WORK ELEC PLUGAB 13:30- 16:00 2.50 WORK ELEC PLUGAB 16:00- 17:30 1.50 CIRC_ CFLD PLUGAB 17:30 - 18:00 0.50 NUND TREE PLUGAB 18:00 - 04:30 10.50 NUND TREE PLUGAB 04:30 - 06:00 1.50 TEST_ BOPE PLUGAB 06:00- 11:00 5.00 TEST_ BOPE PLUGAB 11:00 - 12:00 1.00 RURD_ CSG_ PLUGAB 12:00 - 21:30 9.50 RUNPUL TBG PLUGAB 21:30-22:00 0.50 RURD_ CSG_ PLUGAB 22:00-23:30 1.50 RURD_ RIG_ PLUGAB 23:30 - 02:30 3.00 TEST BOPE PLUGAB 02:30 - 43:00 0.50 REPAIR RIG_ PLUGAB 03:00 - 06:00 3.00 PULD ^ DP_ PLUGAB 9/26/2007 06:00 - 12:30 6.50 PULD DP PLUGAB 12:30 - 13:30 1.00 CIRC_ CFLD PLUGAB 13:30- 16:00 4.50 TRIP_ DP_ PLUGAB 18:00- 19:00 1.00 REPAIR RIG_ PLUGAB 19:00-23:00 4.00 TRIP_ DP_ PLUGAB 23:00 - 23:30 0.50 SETREL PLUG PLUGAB 23:30 - 00:00 0.50 TEST_ PLUG PLUGAB 00:00 - 00:30 0.50 SAFETY MTG_ PLUGAB 00:30 - 01:00 0.50 RURD_ CMT PLUGAB 01:00 - 01:30 0.50 PUMP CMT PLUGAB PJSM; Off load at BG76,set mud pump, pits, spot gen. house, boiler house, water tank, hanson tank, scope up sub base, over BC-16, set mud boat, carrier, and level, continue receiveing loads, set up camp trailers, hook up electrical power, derrick inspection and service lines and sheaves, Run water line from well to water tank, set cutting tank, PJSM; Begin crane work, set derrick house, sub base, wings and stairs, fuel tank, raise derrick, make up standpipe, crane in grey iron, ~ drillers side, put up wind walls, set in drillers side doghouse, set stairs, set grey iron on off drillers side, set in flow line, put in panic, off side stairs, raise gas buster. PJSM; Crane in back floor piece, and three back wind walls, pin all windwalls, put up doghouse lites, wire up top doghouse lites, finish hyd. loop, scope up derrick, install trip tank, dresser sleeves, rig up pump #3, catwalk, beaver slide, Epoch trailer, welding shop, water tank, new generator house, fire boiler, replace two inch steam hoses, pull wires, to top drive, chnage pump liners to 5" -#1 and #2 mud pumps, rig up top drive, rig up kill line, adjust linkages for pump suction. Rig up to pump down tubing, take returns out annular valve, thru choke Pull baclG.pressufe valve_ Pressure test mud manifold on rig floor to 500 psi.10 min Work on rig audit, pu earn aroun ng, pur clamp on saver sub, PJSM; Rig up to wire line fill well with 6% KCL. PJSM; Make up cutter and RIH to 5407' and cut 3 112 tubing. , PJSM; Circ. one annular and tubing volume. at 4 bbls. min.86 stks.=225 psi Install back pressure valve in tree. Nipple down tree, nipple up BOP. -Pull back pressure valve and install two way check, test BOP. Test Bop-250-2500psi for 5 min.test annular, pipe rams, inside, outside e yva vas, ,floor, and dart valves, upper, lower, kelly cock, check, blind rams, Choke manifod valves 1-12, Koomey perfomance test, rig down test equipment,pull two way check in hanger. PJSM; Rig up weathertord to pull 3 112 tubing, back out lockdowns. PJSM; Pull hanger, fill hole took 40 bbls.Lay down 3 1/2,tubing, 184 jts. and 3.72' cut off, chem. injection mandrel, hde taking 1 1/2 bbls. hour. PJSM; Rig down Weatherford tongs. PJSM; Rig up floor for drill pipe, spinners, elevators, slips, tongs. Rig up test !BOP, dart valve,annular, and varibles with 5" drill pipe, to 250 psi-2500 psi.rig down test equip. install wear bushing. Repair hyd. on Top Drtve. Pick up junk mill, scraper, 5" HWDP, 5" drill pipe RIH. PJSM; Measure rabbit and pickup 5" drill pipe, RIH with 8 1/2 mill and scraper. Circ. bottoms up PJSM; POOH with drill pipe and lay down BHA Repair Hyd. elavators. Makeup Halib.FZSV and RIH with drill pipe. Set retainer at 5390' U~ wt.=130K Dn. wt.=90K Pre job safety meeting with BJ. Space out drill pipe to work thru Hydril. test lines sting back in retainer Pump injection rate .50 bbl.=34 psi, 1.0 bpm=535 psi, 2.0 bpm=903psi Panted: 10/26/2007 2 40:54 PM • Marathon Oil Company Operations Summary Report Page 2 of 6 Legal Well Name: Common Well Name: Event Name: Contractor Name: Rig Name: Date From - To 9262007 01:00 - 01:30 01:30 - 02:30 02:30 - 04:00 04:00 - 06:00 9272007 06:00 - 07:00 BEAVER CREEK 16 BEAVER CREEK 16 RE-ENTRY GLACIER DRILLING GLACIER DRILLING Hours I Code Ii Code Phase 0.50 PUMP_ CMT_ PLUGAB 1.00 PUMP_ CMT_ PLUGAB 1.50 ~ PUMP_ CMT_ ~ PLUGAB 2.00 TRIP DP_ PLUGAB 1.00 TRIP_ DP_ PLUGAB 07:00-07:30 0.50 SERVIC RIG_ 07:30- 08:30 1.00 PULD_ BHA_ 08:30- 13:30 5.00 PULD_ DP y 13:30- 15:30 2.00 TRIP DP PLUGAB PLUGAB PLUGAB PLUGAB 15:30- 16:00 0.50 CIRC_ MUD_ PLUGAB 16:00 - 16:45 0.75 TEST ~ CMT_ PLUGAB 16:45 - 19:00 2.25 TRIP DP_ PLUGAB 19:00 - 20:00 1.00 TRIP Spud Date: 9118/2005 Start: 9/20/2007 End: Rig Release: Group: Rig Number: 1 Description of Operations 3bpm=1244 psi. Unsling from retainer, pump 5 bbl fresh water, and start cement,Pump with hydril closed and hdding 800 psi back pressure thru choke for 81 bbls, sting back into retainer, continue displacement, shutda~vn with total of 108 bbls displaced, pressured up to 1500 psi, calculated 7 bbls. cmt. under retainer. Cmt in place ~ 0220 hr. Est.TO -5186' mt wt. Unsling from retainer with 900 psi, bled off to 19 psi, POOH to 5186' reverse out 1 12 drill pipe volumes, Got 20 bbls. cmt back to surface, pump wiper ball down drill pipe long way. POOH with Halib.running tool. Continue Poh with Halliburton EZ cementer running tod on 5 "drillpipe. Lay down same Luba carrier ,crown, blocks and Top Drive PJSM: M/U 8 12mi11 and scrapper HWDP and Jars Rack Tally PfU and drift 5" drillpipe and RIH to 3877` 100jts Continue RIH with 5 "drillpipe to 5150' break circulation and tag up cement at 5188'/ Shut pumps down and set 20k down on cement plug. confirm hard cement. Top of cement at 5188' = 202' of cement above retainer set at 5390' Circulate BIU at 5188' trace of cement returned over shakers Test cement plug 9 5/8 csg.at 5188' 1500psil30min. test good PJSM; POH with 5 "drillpipe from 5188' Pnntetl: 10/26/2007 2 40:54 PM ' ~ i 4: 50-133-20554-00-00 iertv Des: A - 028083 21' AGL (179' KB Elevation) 317,399.46 2,433,922.36 60° 39' 29.546" N 151 ° O t' 4.102" W is 9/19/2005 leached: 9129/2005 Release: 1014/2005 BC-16 Pad 3 1,269' FNL, 1,587' FWL Sec.34, T7N, R10W, S.M. M M~w~TMON •- 20", @ 100' 13-318", 68#/ft, K-55 2500' Cmt w/ 670 sxs type 1 -~ Cement Retainer @ 5,390' 3-1/2" Tubing top @ 5,407' MD Packer assembly ~ 5410' MD Xn @ 5483' WLEG @ 5516' Top of Cement f_~ Tagged @ 5,188' MD 202' of Cmt above Retainer ~ ', Cement below Retainer y ~ calculated @ 7 bbls I •• Sterllno Perroratlons ~ 1~ MD TVD ~ ~ B3 5676.5686 5127 - 5137 9-5/8', 40ppf, L-80 6402' ~ Cmtw/209bb1512.51ead PBTD @ 5,188' MD 109 bbls 13.5 tail, 90 bbls cement rtns Well Name 8 Number: Beaver Creek 16 Lease: Beaver Creek Count or Parish: Kenai Peninsula Borou h State/Prov. Alaska Count USA Perforations: (MD ND An le/Perfs: An le KOP and Depth: 1.8 500' KOP TVD: 500' BHP: 2000 BHT: Completion Fluid: 6% KCI FWHP: FBHP: FWHT: FBHT: Date Completed: 10/03105 RKB: 21' Preparetl B : Kevin Skiba Last Revision Date: 10126/07 i ~I~Q~C~ 01~ %!,i~GJ~~ri~! ~aas~S~ OITi A1~TD G,~S C011TSERRAI'I011T COMl-'IISSIOI~T Willard Tank Advanced Senior Driling Engineer Marathon Oil Company 3201 C. Street, Suite 800 Anchorage, AK 99503 Re: Beaver Creek Field, Sterling Gas Pool, BC 16 Sundry Number: 307-278 Dear Mr. Tank: SARAH PAL/N, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. DATED this ~ day of September, 2007 Encl. S, ~.. Sincerely, ~ ~ M Marathon MARATHON Oil Company August 23, 2007 John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7t" Ave, Suite 100 Anchorage, AK 99501 Reference: Approval to Plug and Abandon Field: Beaver Creek Well: Beaver Creek Unit - BC 16 Dear Mr. Norman Worldwide Drilling North America P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 ~~~~1 V G~ AUG 2 4 2001 Alaska Oil & Gas Cons, Commission Anchorage Enclosed please find the APPLICATION FOR SUNDRY APPROVALS, along with the associated attachments for plugging and abandoning the current wellbore. It is our intention to submit an application shortly to sidetrack from this wellbore to a new bottomhole location. If you require further information, I can be reached at 713-296-3273 or by a-mail at wjtank@marathonoil.com. Sincerely, J f'(/ f _. Willard J. Tank Advanced Senior Drilling Engineer Enclosures ~~ ~ ~~,~r Q ~~ r~tS fIC°LP ~e ~e~l eH C©v~! ~~ ~j ~kP ~artpkfia~ ,~n*~~~~1 ~1~ C?~~Sr,~~ ~~~ ~~ ;~~ fi~~G~~ rs ~" ~/~~"~~ well ~~~ Vie. ~~~ REC~I~"I~C ~~ ~~~~STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION ~~`~~ 2 4 2.007 APPLICATION FOR SUNDRY APPROVAL~ska Oil & Gas Cons. Ctxnmission 20 AAC 25.280 h ....I 1. Type of Request: Abandon Q Suspend ^ Operational shutdown ^ Perforate ^ Waiver Other ^ Alter casing ^ Repair well ^ Plug Pertorations ^ Stimulate ^ Time Extension ^ Change approved program ^ Pull Tubing Q Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Marathon Oil Company Development ^ Exploratory ^ 205-116 - 3. Address: Stratigraphic ^ Service ^ 6. API Number: 3201 C. Street, Suite 800, Anchorage, AK 99503 50-133-20554-00 7. If perforating, closest approach in pool{s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ BC 16 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): Beaver Creek Unit - (21' AGL) 179 Beaver Creek Field /Sterling Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 6,422 ~ 5,872 6,315 5,765 N/A N/A Casing Length Size MD TVD Burst Collapse Structural 103' 20" 103' 103' Conductor Surface 2,482' 13 3/8" 2,503' 2,288' 3,450 1,950 Intermediate Production 6,381' 9 5/8" 6,402' 5,852' 5,750 3,090 Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Sterling B3 5,676' - 5,686' Sterling B3 5,127' - 5,137' 3 112", 9.3#, EUE L-80 5,517' Packers and SSSV Type: Packers and SSSV MD (ft): 9 5/8" x 3 1/2" Baker S3 permanent packer Packer @ 5,411' 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program ~ BOP Sketch 0 Exploratory ^ Development ~ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: September 10, 2007 Oil ^ Gas ^ Plugged Q Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. i hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer Signature Phone 713-296-3273 Date August 23, 2007 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity `~ BOP Test ~ Mechanical Integrity Test ^ Location Clearance ^ Other: ~ ~ V ~ ~`i ~ ~®~ ~~ ~~ ~~CC ~>~ ~ d~ ~.<C: ~~. Subsequent Form Required: ~~`~,^~ APPROVED BY ~ ~ro Approved by: COMMISSIONER THE COMMISSION Date: Form 10-403 Revised 06/2006 ~ ~ ~ {~'~ + $i:P ~ ~ 2d~~ licate • ~ BC 16 Abandonment Program / ~ MARATHON MARATHON OIL COMPANY ABANDONMENT PROCEDURE Beaver Creek Field BC 16 Originator: Will Tank Reviewed by: Pete Berga Brian Roy August 23, 2007 Date Date Date Marathon Oil Company Alaska 8/23/2007 Page 1 of 10 BC 16 Abandonment Program Marathon Oil Company Alaska TABLE OF CONTENTS 1. Emergency Response fnformation .................................................................................... .............................. 4 1.1 Directions to Location ........................................................................................................ .............................. 4 1.2 Rig Contact Numbers ........................................................................................................ .............................. 4 1.3 Marathon Emergency Response Contacts ....................................................................... .............................. 4 1.4 Outside Emergency Response ......................................................................................... .............................. 4 1.5 Marathon Contact List ....................................................................................................... .............................. 5 2. Regulatory Agency Contacts ............................................................................................ .............................. 5 2.1.1. Internal Regulatory Contact .............................................................................................. .............................. 5 2.1.2. External Regulatory Contact ............................................................................................. .............................. 5 3. Regulatory Compliance ..................................................................................................... .............................. 5 4. Program Summary ............................................................................................................ .............................. 6 4.1 General Well Data ............................................................................................................. .............................. 6 4.2 Working Interest Owners Information ............................................................................... .............................. 6 4.3 Surface Location Summary ............................................................................................... .............................. 6 4.4 Casing & Cement Summary .............................................................................................. .............................. 7 4.5 Tubing Summary ............................................................................................................... .............................. 7 4.6 Perforation Summary ........................................................................................................ .............................. 7 4.7 Calculation of Maximum Anticipated Pressures (MAWP and MASP) ............................... .............................. 7 4.8 Casing Test Pressure Calculations ................................................................................... .............................. 8 4.9 Blowout Prevention Equipment, Testing and General Procedures ................................... .............................. 8 4.9.1. Function Testing ................................................................................................................ .............................. 8 4.9.2. Pressure Testing ............................................................................................................... .............................. 9 4.10 Wellhead Equipment Summary ....................................................................................... .............................. 9 4.11 Drilling Fluid Program Summary ....................................................................................... .............................. 9 4.12 Testing and Abandonment Program ................................................................................. ............................ 10 8/23/2007 Page 2 of 10 BC 16 Abandonment Program Attachments Marathon Oil Company Alaska Grou Attachment Attached Commercial Information AFE n/a Da s/Cost vs. De th Curves n/a Pro'ect Ob'ectives and Scorecard n!a RSO Codin Information n/a Re uisitions n/a Vendor List n/a Bonus Pro ram n/a Drillin Contract n/a Re ulato / HES Information Emer enc Evacuation Plan n/a H2S Contin enc Plan n/a Re ulato Permits X Re ulato Rules and Re ulations n/a Risk Anal sis n/a Miscellaneous Pro rams endors Bit Pro oral n/a Cement Pro osal n/a Directional Plan n/a Fluids Pro ram n/a Wellhead E ui ment - Descri tion/Drawin s n/a Drill Strin and BHA Summa n/a Ri Mobilization/Moorin Procedure n/a Geolo ical Information Location Ma w/ offsets n/a Offset Data n/a Pro osed Formation Pore Pressure, Mud Wt 8~ Fracture Gradient n/a Tem erature Curves n/a Geolo is Structure Ma s n/a Geolo is Cross Section n/a Bath met Ma n/a Anal sis Riser Anal sis n/a Station Kee in Anal sis -Moorin /DP n/a Stress Check Casin Desi n File n!a Maximum Allowable Over ull n/a Miscellaneous Information Wellbore Dia ram X Ri Elevations n/a Well Location Dia ram X BOP Schematic X BOP Well Control Brid in Document n/a Detailed Casin S ecifications n/a Detailed Drill Pi e S ecifications n/a 8/23/2007 Page 3 of 10 BC 16 Abandonment Program Marathon Oil Company Alaska 1. Emerqencv Response Information 1.1 Directions to Location Method Directions Air Latitude - 60°39'27.414"N Longitude - 151 °01'11.992"1IV (NAD 83) From the Kenai airport, go 0.4 mile South on North Willow Street. Turn East on Airport Way, go 0.5 miles. Turn East on Kenai Ground Spur Highway and go less than 0.1 miles. Turn East on Marathon Road and go 10 miles. In the Beaver Creek Field stay to the left, running past the field office. Go 1.4 miles to Beaver Creek Pad 3. 1.2 Rig Contact Numbers Contact Office Cell Glacier Drilling Rig 1 Inlet Drilling Tool Pusher 907-283-1314 907-394-1321 Marathon Supervisor 907-283-1312 907-394-1317 1.3 Marathon Emerqencv Response Contacts Individual Postion Main Phone Alternative Kenai Gas Field Emergency Number 907-283-6465 CERT 24 hrs Notification 1-800-MOC-CERT CERT Crisis Center Houston 713-296-4230 713-296-4237 1.4 Outside Emerqencv Response Location Contact Phone Fire Kenai /Soldotna, Alaska 907-262-4792 Ambulance Hospital Kenai /Soldotna, Alaska Central Peninsula Hospital 907-262-4404 Police Kenai /Soldotna, Alaska Kenai Police Soldotna Police State Police 907-283-7879 907-262-4455 907-262-4453 Coast Guard 800-478-5555 Spill and Contamination Alaska Alaska State Spill Reporting National Response Center Oil /Toxic Chemical Spills 800-424-8802 Best Practices: 1 Policy: Post emergency notification information on rig floor, company man's and tool pushers' office Comments: 8/23/2007 Page 4 of 10 BC 16 Abandonment Program 1.5 Marathon Contact List Marathon Oil Company Alaska Contact Title Office Mobile Facsimile Home Will Tank Drilling Engineer 713-296-3273 713-203-8398 713-499-6737 832-934-2617 Pete Berga Drilling Superintendent 907-565-3032 907-529-0551 907-565-3076 907-346-3763 Bryan Roy Drilling Manager 713-296-3256 832-444-4772 713-499-6707 281-246-4686 Scott Szalkowski Geologist 713-296-3390 713-301-9834 Moksh Dani Reservoir Engineer 713-296-3140 832-692-4700 Craig Meese Completion Engineer 713-296-2214 713-725-7114 Ken Walsh Production Engineer 907-283-1311 907-394-3060 907-283-3050 John Nicholson Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Dan Byrd Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Mike Feketi Drilling Supervisor 907-283-1312 907-394-2641 907-283-1313 Rowland Lawson Drilling Supervisor 907-283-1312 907-394-0953 907-283-1313 2. Reaulatorv Agency Contacts 2.1.1. Internal Reaulatorv Contact Contact Title Office Phone Cell Phone Home Phone Facsimile Chick Underwood Re ulato Com liance 713-296-3254 979-830-7927 979-836-9390 713-499-6748 2.1.2. External Reaulatorv Contact Contact Title Office Phone Facsimile 24 hr Eme enc Pa er AOGCC 907-793-1236 BLM 907-267-1442 3. Reaulatorv Comaliance Regulation Requirement 20 AAC 25.035 a 10 A BOP testing interval requirement is now 14 days. ~~ ~ ~~~ ~ ~tQN G.` ~~ 20 AAC 25.035 a 10 F tn~ ~~~ ~~ Requirement fora 24 hour notice to AOGCC prior to BOP test. ~ Comments: V Vv~~J ~/ 1 ~~~ ~~~ ~ ~~~ 8/23!2007 Page 5 of 10 • BC 16 Abandonment Program Marathon Oil Company Alaska 4. Program Summary 4.1 General Well Data Well Name BC 16 Lease /License Surface Location 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R1 0W, S.M. WBS Code DD.07.15539.CAP.DRL SIoUPad Beaver Creek Pad 3 Field Beaver Creek Field Spud Date 09/10/07 (est.) KB (above MSL) 179' County/Province Kenai Peninsula API No. 50-133-20554 GL (above MSL) 158' State !Country Alaska Permit No. 205-116 Perm. Datum KB Well Class Development TD (MD) 6,422' TD TVD 5,872' Rig Contractor Glacier Drilling PBTD (MD) 6,315' PBTD TVD 5,765' Rig Name Glacier Rig 1 Best Practices: Comments: 4.2 Working Interest Owners Infonmation Com an Workin Interest Address Phone Facsimile Marathon 100% P.O. Box 196168 g07-561-5311 907-565-3076 Anchora e, AK 99519-6168 4.3 Surtace Location Summary Surface Location Coordinates - NAD 83 From Lease/Block Lines 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. Latitude 60° 39' 27.414" N Longitude 151 ° 01' 11.992" W UTM North (Y) 2,433,674.563' UTM East (x) 1,457,426.777' Tolerance 8/23/2007 Page 6 of 10 BC 16 Abandonment Program 4.4 Casing ~ Cement Summary Marathon Oil Company Alaska Casing MD (ft) TVD (ft) Cement Size (in) Top Bottom Top Bottom Weight (Ibs/ft) Grade ID (in) Drift (in) Burst Collapse Record (sacks) 20 0 103 0 103 130.1 K-55 Driven 13 3/8 0 2,503 0 2,288 68.0 K-55 12.415 12.259 3,450 1,950 670 9 5/8 0 6,402 0 5,852 40.0 L-80 8.835 8.750' 5,750 3,090 805 Comments: Note that the 9 5/8", 40.0#, L-80 casing is a special drift of 8.750". 4.5 Tubinct Summary Tubing Setting Depth Packer Set Size Weight MD MD (in) (Ib/ft) Grade Connection (ft) (ft Comments Wireline entry guide @ 5,516', BXN nipple at 5,483', Baker Model S-3 ~ 3 1/2 9.3 L-80 EUE - 8rd 5,517 5,411 permanent packer @ 5,411', and chemical injection mandrel @ 1,203'.3 1/2" hung off in 13 5/8", 5M wellhead with a mandrel hanger. Comments: 4.6 Perforation Summary Active Perfs Previous Perfs Isolated Perfs Top (ft) Bottom (ft) Zone Top (ft) Bottom (ft) Zone Top (ft) Bottom (ft) Zone 5,676 5,686 Sterling 63 Comments: See wellbore diagram for more detailed information. 4.7 Calculation of Maximum Anticipated Pressures (MAWP and MASP) Setting Casing Depth Size PBTVD MAWP * MASP ** Mud/Gas (in) (ft) (Psi) (psi) Percentage 9 5/8 5, 765 4, 025 1,131 30/70 " MAWP =Maximum allowable working pressure ** MASP =Maximum anticipated surface pressure The calculation method for MASPeHP has been modified from the standard AOGCC use of a Bottom Hole Pressure - 0.1 psi/ft gas gradient to what Marathon considers a more accurate Bottom Hole Pressure - 30% Mud Column - 70% Gas Column. This method follows the MMS standard for any well with a TVD of 12,000' or less. Marathon believes that constant gas monitoring and proper rig supervisor well control training will prevent the possibility of a wellbore being completely evacuated with only a gas gradient remaining. 8/23/2007 Page 7 of 10 • BC 16 Abandonment Program Production casing: 9 518" (PBTD 6.315' MD. 5.765' TVD~ MASPbnp = BHPb°n°m perfs -- Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnp = (7.7 ppg x .052 x 5,765') - (0.3 x 8.6 ppg x .052 x 5,765') - (0.7 x 0.1 psi/ft x 5,765') MASPbnp = 2,308 psi - 773 psi - 404 psi MASPbnp = 1,131 psi MASP =MASPbnp = 1,131 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 5,750) - (1;1.6 - 9.5) x .052 x 5,765' MAWP = 4,025 psi - 0 psi = 4,025 psi Comments: 4.8 Casing Test Pressure Calculations Marathon Oil Company Alaska Casing test pressure calculations are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. AOGCC regulations state that casing pressures must be 50% of the BOP working pressure documented on the approved permit to drill. Best Practices: 1 Comments: 4.9 Blowout Prevention Equipment. Testina and General Procedures BOP PROGR AM Casin g Test Test Casing Test Fluid Pressure. Size MAWP MASP press Density BOPS Low/High Casing (in) (psi) (psi) (psi) {Ib/gal) Size & Rating (psi) (1) 13-5/8" 5M annular Production 95/8 4,025 1,131 1,500 8.6 (1) 13-5/8" 5M pipe ram 250/1,500 (1) 13 5/8" 5M blind ram (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Blowout Preventers The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blind rams in the bottorri and pipe rams in the top and a 13-5/8" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure '.the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. 4.9.1. Function Testing Function I~egularly. 8/23/2007 Page 8 of 10 C~ BC 16 Marathon Oil Company Abandonment Program Alaska 4.9.2. Pressuire Testing The Marathon Drilling Supervisor will verify all pressure tests of BOP's, surface lines, seals, casings and FIT or LOT tests. All tests are to be recorded on the IADC and daily drilling reports. Best Practiices: 1 Comments: 4.10 Wellhead EguiKiment Summary Component Description Casing Hanger Type Casing Head 13-5/8" 5M X 13-3/8" Slip-On Weld 13 5/8" x 9 5/8" Mandrel Hanger Tubing Head 13-5/13" 5M X 13-5/8" 5M 13-5/8" x 3-112" Mandrel Hanger Adapter Flange 13-5/ti" 5M X 3 1/8" 5M Best Practices: 1 Comments: 4.11 Drilling Fluid Program Summary Interval - MD Minimum Inventory From To Density GeI (ft) (ft) (Ib/gal) Fluid Description Additives ~scosifier Barite 0 6,315 8.6 6% KCL Brine KCL Best Practices: 1 Comments: 8/23/2007 Page 9 of 10 BC 16 Marathon Oil Company Abandonment Program Alaska 4.12 Testing and Abandonment Proaram History: The original completion on BC 16 did not result in a viable Sterling 63 co-production completion. The well appears to be water only. The well is currently shut-in. Objective: To abandon the current wellbore in preparation to perform a sidetrack and deepening to the Beluga formation (separate procedure). 1. Move in and rig up Glacier 1 drilling rig. 2. Monitor pressure on 3 1/2" tubing and 3 1/2" x 9 5/8" annulus. Attempt to bleed off any pressure on the tubing and annulus. Line up to pump 6% KCL brine down the 3 1/2" tubing, filling the well. Confirm well is dead. 3. Install BPV and nipple down tree. Nipple up BOP with 3 1!2" pipe rams, and variable rams for 5" drill pipe. Pull BPV and test BOP to 250/1500 psig. 4. Rig up to pull chemical injection line. Make up landing joint into tubing hanger and pull tension. RU wireline. RIH with tubing cutter and cut tubing at 5,407' (target is approximately 3 - 4' above the packer in a 6' pup joint). RD wireline. Circulate 3 1/2" tubing, taking returns up 3 1/2" x 9 5/8" annulus. Pull out of hole, laying down 3 112" tubing and spoofing up chemical injection line. 5. Pick up mill and casing scraper for 9 5/8", 40# pipe. Round trip mill and scraper. nfirming cut depth. Circulate hole clean. TOOH laying down mill and scraper. 6. Pick up cement retainer on 5" drill pipe. Set retainer at approximately 5,3 MD (at least 15' above cut tubing). RU BJ cementers and establish an injection rate into the existing Sterling B3 perforations from 5,676' - 5,686'. Cement squeeze B3 perforations, sting out of retainer and dump 50' of cement on top of retainer. PU to approximately 5,200' and reverse circulate drill pipe clean. TOOH. WOC. 7. See the Sidetrack Procedure for the remaining work on this well Q~~r\ ti 1' ~ ~S `~ q~,,~t Best Practices: ~C'` ~~ ~, ~, i c~ ~ y`~ ~ ~ ~" ~ 1 Comments: t~;+~~C.`~ ~~ . 'fir-- ~~ ~~~~5 v.~ci^ ~~ La.~~E ~~5~ vc-~ ~~~C _ ~ ~ ~ ~ ~~~ 8/23/2007 Page 10 of 10 • • M Bc-16 ~,ro~ Sterling Aug-07 60° 39'27.414" N Lat 151° 01' 11.992" W Lonp. GL: 158' KB: 179' 121' AGL1 SPUD: 10:30hrs 09/18/2005 TD: 09129/2005 Ria Released:10:00 hrs 10104/2005 ~_ 20", @ 103' 1203' API# 50-133-20554.00 Permit # 205-116 WBS # DD.04.S0978. Property: A-028083 13-3/8", 68#/ft, K-55 ~. 2503' Cmt w/ 670 sxs type 1 3.5" EUE BrdTubing Packer assembly 5411' MD ~ ~ t>~ ~ t~ Xn @ 5483' WLEG @ 5516' Sterling Perforations MD TVD B2 B3 63 5676-5688 5127-5137 PBTD @ 6315 s', r: ;.j '., 9-5/8", 40ppf, L-80 6402' ~- Cmt w/ 209 bbls 12.5 lead 109 bbls 13.5 tail, 90 bbls cement rtns Well Name 8 Number: BC-16 Lease Beaver Creek Coun or Parish: Kenai State/Prov. Alaska Count USA Perforations: MD ND An le/Perfs An le KOP and De th 1.8 500' KOP ND 500' BHP: BHT: Com letion Fluid: 6% KCI FWHP: FBHP: FWHT: FBHT: Other: Date Com leted: 10/03/05 RKB: 21' Pre ared B : M A Mullin Last Revision Date: 08/23/07 WJT SECTION LINE NOT TO SCALE w J U O 0 z w z J Z O U //W~/~ ~/J N 2434967.8500 E 1455858.5930 NW CORNER S34 COMPUTED POSITION SECTION 34 T7N R10W SM AK ~~\~ ~~~~ 0 ~ ~ \\ r I TNOF PERIMETER/ 1 CIXJTgIMEM BERM B.C.U. No. 10 8' DIA. SILO N: 2433849.28 B.C.U. No. 11 E: 1457382.87 ~ 6' DIA. SILO ~ ELEV: 160.4' N: 2433822.28 E: 1457321.77 O ELEV: 160.6' O B.C.U. No.6 14.5' DIA. SILO N: 2433775.31 ~/ 5 RD / ~ E: 1457332.98 B C U N . . . . 14.5' DIA WELL t ® ' ELEV: 160.4' , / ~ J SILO ~ l( A00685 N: 2433 3.90 S R v ep • E: 1457 9.97 TD pFS ,c ELEV: 16 .T B.C.U. No.3 o j ~ ~ N: 2433711.7887 j E: 1457345.3373 A / 1587' FWL~ ELEV: 160.4' ~\ coN7Ra PaNi 6C31 N = 2433547.38 E =14571]8.91 ELEV =163.58 NOTES ~~~ ~~ B.C.U. No. 13 \ O O 8' DIA. WELL • SILO O • N: 2433644.60 E: 1457313.65 ~ ~ ELEV: 160.8' ~~ ~/ s ~ re2• ~ 0 EDGE OF GRAVEL PAD ~~ 1) BASIS OF GEODETIC CONTROL AND NAD83 POSITION (EPOCH 2003) IS AN OPUS SOLUTION FROM NGS COORDINATES STATIONS "KEN1 CORS ARP", "TLKA TALKEETNA CORS ARP", AND "POT3 POTATO POINT 3 ARP" TO ESTABLISH THE POSITION OF NGS BENCHMARK V80 PID TT0508. THE GEODETIC POSITION OF V80 WAS DETERMINED TO HAVE A LATITUDE OF 60°31'54.63013"N AND A LONGITUDE OF 151°04'53.81758"W. THE ALASKA STATE PLANE COORDINATES (ASP) ZONE 4 ARE: N=2367882.657 E=1445616.986 2) BASIS OF VERTICAL CONTROL IS NGS BM V80 PID TT0508 LOCATED WITHIN THE KENAI SPUR HIGHWAY RIGHT OF WAY AT MILE POST 3.75 HAVING AN ELEVATION OF 164.55 FEET NAVD 88 ACCORDING TO NGS PUBLISHED DATA. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BLM MONUMENTS ALONG SOUTH BOUNDARY OF TOWNSHIP AND BLM DATA OF RECORD. TCP OF PERIMETER GOMgIMEM BERM \~ //^ ~\\ ~/ DRAINAGE 9451N\l/ l 1 1Z EDGE OF GRAVEL PAD \ LL CO J N B.C.U. No.9 B.C.U. NO. 19 / 8' DIA. WELL 8' DIA WELL SILO CELLAR ONLY / N: 2433756.16 N: 2433995.01 E: 1457406.97 E: 317469.49 ELEV: 160.4' ~ ELEV: 160.5' / 0 ~~ / B.C.U. NO. 16 RD ASBUILT LOCATION ASP ZONE 4 NAD83 GRID N:2433674.563 GRID E:1457426.777 LATITUDE: 60°39'27.414"N LONGITUDE: 151 °01'11.992"W FWL = 1587' FNL = 1269' ELEV: 160.7' (NAVD88} S34 T07N R10W SM AK SCALE NORTH 0 100 200 FEET PROJECT REVISION: NO. 1 BEAVER CREEK UNIT PAD 3 DATE: 08/01/2007 B.C.U. NO. 16 RD ~ DRAWN BY: MSM ww-rHON WELL ASBUILT scALE: r=aoa • )~A~ SURFACE LOCATION DIAGRAM ~ PROJECT NO. 073091 M~~p BOOK NO. 07-04 VV1~A~ LOCATION SHEET ~"'~ S34, T7N, R10W, SEWARD MERIDIAN, ALASKA ~,' '~ oP 1 ~~ • M Marathon MARATHON Oil Company September 4, 2007 Mr. Tom Maunder Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-404 Sundry Report Field: Well: Sundry # Dear Mr. Maunder: Beaver Creek Unit BCU-16 306-325 • Marathon Oil Company Alaska Asset Team P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1371 Fax 907/283-1350 SEP 0 6 2C-07 Alaska Oif & Gas Cons. Gammissian Anchorage The AOGCC approved Marathon's request to isolate the water production from the lower B-3 sand and perforate the upper B-3 and B-2 sands on well BCU-16. Marathon has elected to forgo implementation of this work in favor of side-tracking this well. The accompanying 10-404 Sundry reflects that no work has been performed on this well in reference to Sundry number 306-325. If you have any questions or need additional information please call me at (907) 283- 1371. Sincerely, Kevin J. Skiba Production Technician Enclosures: 10-404 Sundry Report ~-~,~ ~,, ~ , ~ E. cc: Houston Well File Kenai Well File KJS MAM ~~~~RV~a f + STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMIS510N CEP 4 6 20(l? REPORT OF SUNDRY WELL OPERATI~a~Sp~~ & Gas Cans. Cammissiaf~ 1. Operations Abandon Repair Well Plug Perforations Stimulate r No work Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ performed Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Well ^ 2. Operator 4. Well Class Before Work: 5. Permit to Drill Number: Name: Marathon Oil Company Development ~ Exploratory^ 205-116 3. Address: Stratigraphic ^ Service ^ 6. API Number: PO Box 1949, Kenai Alaska, 99611-1949 50-133-20554-00-00 7. KB Elevation (ft): 9. Well Name and Number: 179' (21' AGL) BC 16 8. Property Designation: 10. Field/Pool(s): A - 028083 Beaver Creek /Sterling Pool 11. Present Well Condition Summary: Total Depth measured 6,422' feet Plugs (measured) NA true vertical 5,872' feet Junk (measured) NA Effective Depth measured 6,315' feet true vertical 5,765' feet Casing Length Size MD TVD Burst Collapse Structural 83' 20" 83' 83' 3,060 psi 1,500 psi Conductor 0 0 0 0 0 0 Surface 2,500' 13-3/8" 2,500' 2,285' 3,450 psi 1,950 psi Intermediate 0 0 0 0 0 0 Production 6,402' 9-5/8" 6,402' 5,852' 5,750 psi 3,090 psi Liner 0 0 0 0 0 0 Perforation depth: Measured depth: 5,676' - 5,686' True Vertical depth: 5,127' - 5,137' Tubing: (size, grade, and measured depth) 3-1/2" 9.2 # EUE 5,516' Packers and SSSV (type and measured depth) Permanent Production Packer Packer @ 5,410' 12. Stimulation or cement squeeze summary: NA Intervals treated (measured): NA Treatment descriptions including volumes used and final pressure: NA 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: NA Subsequent to operation: NA 14. Attachments: 15. Well Glass after work: Copies of Logs and Surveys Run Exploratory ^ Development ~ Service ^ Daily Report of Well Operations 16. Well Status after work: Oil ^ Gas ^~ WAG ^ GINJ ^ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 306-325 Contact Kevin Skiba (907) 283-1371 Printed Name Kevin J. Skiba Title Production Technician r Signature ~ Phone (907) 283-1371 Date September 4, 2007 Form 10-404 Revised 04/2006 ~I~ Submit Original Only ~ ~~°l • u C~ Maunder, Thomas E (DOA) From: Tank, Will [wjtank@marathonoil.com) Sent: Wednesday, September 05, 2007 12:41 PM 70: Maunder, Thomas E (DOA) Cc: Berga, Pete Subject: RE: BC-16 (205-116) Tom, Page l of 2 i ~~``> ~ ~~ f~ Yes, that would be fine, faxing to Pete. Then just call Pete, or Betty for therY to pickup the original signed on the Sundry and the APD when it is approved. Thanks, Will -~~ sws-3o~ ~ From: Maunder, Thomas E {DOA) [mailto:tom.maunder@alaska.gov) Sent: Wednesday, September 05, 2007 3:34 PM To: Tank, Will Cc: Berga, Pete Subject: RE: BC-16 (205-116) Thanks Will. I am moving the sundry to the Commissioners recommending approval. Do you need the approval faxed to Pete? Tom From: Tank, Will [mailto:wjtank@marathonoil.com) Sent: Wednesday, September 05, 2007 11:40 AM To: Maunder, Thomas E (DOA) Cc: Berga, Pete Subject: RE: BC-16 (205-116) Tom, I received my information from the field, so I can now answer all your questions 1.) Thanks for the info. As you and I talked the other day, I've had difficulty utilizing the online regs. I've talked with Rowland in the field and he is aware that the BOP test time on workovers is 7 days. 2.) The operator in Beaver Creek went out to the well today and noted only 20 psi showing on the tubing. 3.) You probably just received the APD for the BC 16RU today. We are proposing a BOP test of 2,500 psi for the sidetrack work. If you would prefer we test at this higher pressure for the workover, since the BOP stack won't be coming back off, we can certainly do that. 4.) Calculating the cement above the retainer and how much we estimate we would use to squeeze with, we estimate 224 sacks. We will have plenty extra out there, mixing on the fly. Once we catch a squeeze, we'll sting out and put the 50` of cement on top and keep the remaining cement for the EXCAPE completion. Thanks, Will Tank 9/5/2007 Maunder, Thomas E {DOA) From: Tank, WiH [wjtank~marathonoil.com) Sent: Wednesday, September 05, 2007 11:40 AM To: Maunder, Thomas E (DOA) Cc: Berga, Pete Subject: RE: BC-16 (205-116) Tom, f received my information from the field, so 1 can now answer all your questions. Page 1 of 1 1.) Thanks for the info. As you and I talked the other day, I've had difficulty utilizing the online regs. I've talked with Rowland in the field and he is aware that the BOP test time on workovers is 7 days. 2.) The operator in Beaver Creek went out to the welt today and noted only 20 psi showing on the tubing. 3.} You probably just received the APD for the BC 16P,D today. We are proposing a BOP test of 2,500 psi for the sidetrack work. If you would prefer we test at this higher pressure for the workover, since the BOP stack won't be coming back off, we can certainly do that. 4.) Calculating the cement above the retainer and how much we estimate we would use to squeeze with, we estimate 224 sacks. We will have plenty extra out there, mixing on the fly. Once we catch a squeeze, we'll sting out and put the 50' of cement on top and keep the remaining cement for the EXCAPE completion. Thanks, Will Tank From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska,gov) Sent; Tuesday, August 28, 2007 11:44 AM To: Tank, Will; Berga, Pete Subject: BC-16 (205-116) Will and Pete, I am reviewing the sundry application for BC-16. A couple of observations/questions ... 1. On Page 5 of 10, a statement is made that the BOP test interval is now 14 days. This is for development drilling operations. For workover type activities, the interval is still 7 days. See 20 AAC 25.285 (f)(1). 2. On page 7 of 10, MAWP and MASP are discussed and calculated. The MASP calculation is according to the 30% mud 70% gas column. What is the actual SITP on the well? 3. You propose a 1500 psi. BOP test. Is that just for this phase of the work? 1 haven't gotten to the PTD yet, does the test pressure increase for the drilling operations? 4. What cement volume are you profsing for the P8~A? Thanks in advance for your reply. Tom Maunder, PE AOGCC 9/512407 . . • Page 1 of 2 Roby, David S (DOA) From: Roby, David S (DOA) Sent: Tuesday, August 28, 2007 7:47 AM To: 'Tank, Will' Cc: Bergs, Pete; Skiba, Kevin J.; Walsh, Ken Subject: RE: Sundry application for Beaver Creek Unit - BC 16 ~~ ~/~ ~ Will, Thanks for answering my question about the planned work on BC 16. Since the work permitted by Sundry 306- 325 was not done no additional follow-up is necessary. Thanks, Dave Roby Phone: 907-793-1232 email: dave.roby@alaska.gov From: Tank, Will [mailto:vvjtank@marathonoil.com] Sent: Tuesday, August 28, 2007 6:44 AM To: Roby, David S (DOA) Cc: Bergs, Pete; Skiba, Kevin J.; Walsh, Ken Subject: RE: Sundry application for Beaver Creek Unit - BC 16 Mr. Roby, BC 16 was a well that Marathon drilled to test the viability of producing gas on top of water in the Sterling Pool at Beaver Creek. This is something that we are evaluating in other fields as well. The Sundry (306-325) was additional work in the Sterling that we thought might help us to clarify the concept. Although I don't have any details on what changed our minds on this work, I know that the decision was made to not do this work. The Sundry that I submitted to the AOGCC was to abandon the current Sterling perforations in preparation to mill a window, sidetrack the well, and deepen it to the Lower Beluga. The well would then be completed with our EXCAPE completion system, which we have done many times in Beaver Creek, Kenai Gas Field, Cannery Loop, and one in Ninilchik. The EXCAPE completions we have done in the Cook Inlet with the subsequent fracture treatments are targeted on the Beluga and Upper Tyonek sands that won't produce economically with just perforations. Wells such as BC 11 and BC 13 are grassroots EXCAPE wells drilled in 2003 on this same pad. BC 16 would be sidetracked as BC 16RD (APD to follo4v), an additional EXCAPE development well on this pad. I hope this explanation has answered your questions. I:s there any follow-up need on Sundry 306-325 that Marathon needs to submit to you? Please let me know and we wi{l get this to you. Thanks, Will Tank From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Monday, August 27, 2007 7:39 PM To: Tank, Will Subject: Sundry application for Beaver Creek Unit - BC 16 Mr. Tank, In reviewing your application dated August 23, 2007, for proposed work on the BC 16 well I noticed that on 9/6/2007 Page 2 of 2 September 21, 2006, the Commission approved another sundry application (Sundry 306-325) for this well to isolate the existing Lower Sterling B-3 Sands and perforate and test Upper B-3 and B-2 Sands. Based on the well description and wellbore diagram in your current application it does not appear that this earlier permitted work was performed. Could you please confirm for me that the previously permitted work was not pertormed and provide a brief discussion as to why it was not and why you now choose to abandon the well to prepare it for sidetracking? Thanks in advance, Dave Roby Reservoir Engineer Alaska Oil and Gas Conservation Commission Phone: 907-793-1232 Fax: 907-276-7542 email: dave.roby at7alaska~ov 9!6/2007 M Marathon MARATHON Oil Company March 26, 2007 Alaska Oil & Gas Conservation Commission Attn: Howard Okland 333 W. 7~` Avenue, Suite 100 Anchorage, AK 99501 RE: Marathon BCU #16 -API 50-133-20554-00 CONFIDENTIAL Dear Mr. Okland: Alaska Asset Team Northern Business Unit P.O. Box 3128 Houston, TX 77253 Telephone 713-296-3597 Fax 713-499-4469 FEDERAL EXPRESS Enclosed is one CD containing confidential digital well data for the above referenced well, as described on the attached CD Contents document. Please indicate your receipt of this data by signing below and returning one copy to my attention at the letterhead address or fax to 713-499-4469. Thank you, Courtney McElmoyl Enclosures ~ is~~~ Received by: Date: ~1 ~ n., ~,1~0 7 ,~05 -Jl~ • BCU 16 API 50-133-20554-00 CD CONTENTS Confidential Operations Summary: ~._'1DIM5 Operations -8C 16.x1s Directional Bata: ~~BC-16INTEQ EOWR.pdf ~~ ®bcu16_dir sur.dat (-~ BC•16 survey.txt Wireline Data: . ., . , FINAL BCU 16_MFT.dpk FINAL_BCU 16_5QUAD_camplete.dpk FINAL BCU 16_SQUADylotted.dpk ~ bcu16 mairdepth,las ®BCUl6 FINAL_AIS.tiF BCU16 FINAL CSB.tif BCU16_FINAL_PNS. of BCU16 FINAL TVDRIS.tif ~BCU16_MFTI FINALtif ~BCU16_MFT2_FINALtif BCU 16_MFT FIELDSLIMMARY.csv Mudlog Data: uBCU16,las .,_ ........ ....:.. ~BCU16_DRILDYN_MD.pdf ~- BCU16_DRILDYN_TVD,pdf ~- BCU16 MUDLOG_MD,pdF `X BCU16_MUDLOG TVD.pdf ~BCU16.dbf -.... .._...,. _. BCU16 SCL.DBF BCU 16 tvd.dbf • bcul6r.dbF bcul6.hdr BCU16.mdx BCU16_SCL.MD7C • BCU16_tvd.mdx • bcul6r.mdx BCU16 Final.xip BCU 16 REMARKS dat .. __ Well Report BCU36.pdF As-built Plat in PDF format. • ;. ra 1 , ~ ~ ~ ~ ~ s 1 i '~., 3 a 'ate,{ ; ~ ~ ~ 3 1 ~ ' ~ ~! ~ I ~ ~ ~ $ .y.d ~~ ~s3 ~a3 _ _..~ ~ Ss ~ ~~"yTyr~ :. .~i , .s:. _ ad ~ d _cu~ -m ALA-5II1, OII, A11TD ~5 CO1~TSI;RQ~'TIOl~ COl-IIH15SIO1~T Michael Mullin Senior Production Engineer Marathon Oil Company PO Box 1949 Kenai, Alaska 99611 Re: Beaver Creek Field, Sterling Gas Pool, BC-16 Sundry Number: 306-325 Dear Mr. Mullin: 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~,;'~~- Cathy P. Foerster Commissioner S~ DATED this day of September, 2006 Encl. • FRANK H. MtIRKOWSKI, GOVERNOR ~4.~ v_, ~ • Marathon Oil Company Alaska Asset Team M Marathon ~ P.O. Box 1949 ^ /~~ Kenai, AK 99611 MARATHON OII ~+V111pany Telephone 907/283-1326 Fax 907/283-1350 August 30, 2006 ~E~'E~~E'~ SEP Q 7 100 Mr. Winton Aubert Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, Alaska 99501 Reference: 10-403 Sundry Notice Field: Beaver Creek Field Well: BC-16 Dear Mr. Aubert: Alaska Oil & bas Cons. Commission Anchorage Well BC 16 is a Beaver Creek Sterling top structure producer. The well was drilled in September 2005, completed in Oct, 2005 and produced only water from the lower Sterling B-3 sand. We would like to isolate the water producing lower B-3 sand and perforate the upper B-3/ and B-2 sands to produce,stranded gas reserves in these intervals. To allow for future dee ening, the lower B-3 sand will be isolated with an inflatable bridge plug, a sand cap, and ` 10' cement plug. After isolating the lower B-3 we will perforate upper B-3 and B-2 sands and produce the well at a limited rate to delay water coning as long as possible.. If you have any questions or need further information please call me at (907) 398-9954. Sincerely, Mic ael A. Mu in Senior Production Engineer Enclosures: 10-403 Sundry cc: Houston Well File Well Schematic Kenai Well File Operations Procedure MAM Rp Gh 2- zoo4 ~~ STATE OF ALASKA ' " G ZI f 0~ ~ E~' ~~E ~ l AL~ OIL AND GAS CONSERVATION COM SION ~~ APPLICATION FOR SUNDRY APPROVALS SEP 0 7 20Q6 20 AAC 25.280 A~8Sk8 Oti R Gac f^nn~ (`,...,.,.:....:__ 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ Perforate ^ W~~ Other ^ ge Alter casing ^ Repair well ^ Plug Perforations ~ Stimulate ^ Time Extension Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number; Marathon Oi{ Com an Development ^ / Exploratory ^ 205-116 3. Address: Stratigraphic ^ l Service ^ 6. API Number: PO Box 1949, Kenai Alaska, 99611 50-133-20554 ~ 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ BC-16 ~ 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): Beaver Creek Unit A-028083 179' (21' AGL) Beaver Creek Field / Sterlin Pool 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 6422' 5872" 6315' 5765' N/A NIA Casing Length Size MD TVD Burst Collapse Structural 83' 20", 133#, K-55 83' 83' Conductor Surface 2500' 13-318", 68#, K-55 2500' 2285' Intermediate Production 6402' 9-5/8", 40#, L-80 6402' 5852' Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): ~ ~ 5676' - 5686' 512T - 5137 3-1/2" 9.2# EUE 5516' Packers and SSSV Type: Permanent Production Packer Packers and SSSV MD (ft): Packer @ 5410' 13. Attachments: Description Summary of Proposal ~ 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development 0 Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencing Operations: 10-Sep-06 Oil ^ Gas ^ ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Michael A. Mullin Printed Name Michael A. Mullin Title Senior Production Engineer Signature ~ one (907) 283-1337 Date 30-Aug-06 t i! a ~ ~ . COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~~ ~~ ~'~,~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: I~~DIVIS BFI sFP 2 ~ coos Subsequent Form Required: ~,~ _ ~ 0 ~ ' APPROVED BY Approved by: C~i1MISSIONER THE COMMISSION Date: ~ ~ ~. vl~- Form 10-403 vised 06/2006 O Submit in Duplicate U M ~w-TroN 60.658208 N Lat 151.017805 W Iona. GL: 158' KB: 179' (21' AGLI SPUD: 10:30hrs 09118/2005 TD: 0 9/2 912 0 0 5 Ria Released: 10:00 hrs 10/04/2005 BC-16 Proposed Sterling Aug-06 • 20", @ 83' f- 1203' API # 50-133-2055400 Permit # 205-116 WBS # DD.04.10978. Prooerty: A-028083 13-3/8", 68#/ft, K-55 2500' Cmt w/ 670 sxs type 1 Packer assembly 5410' MD ~ PBTD @ 6315 3.5" EUE SrdTubing Xn @ 5483' Proposed WLEG @ 5576' Sterling Perforations MD TVD B2 5605'-5607' 5056'-5058' B3 5645' - 5647' 5096' - 5098' 10' cement Plug 5' Sand cap Inflatable Bridge Plug B3 5676 •5686 5127 - 5137 _ 9-5/8", 40ppf, L-80 6402' Cmt w/ 209 bbls 12.5 lead 109 bbls 13.5 tail, 90 bbls cement rtes Well Name & Number: BC-16 Lease Beaver Creek County or Parish: Kenai State/Prov. Alaska Country: USA Perforations: (MD) (TVD) Angle/Perfs Angle @KOP and Depth 1.8 @ 500' KOP TVD 500' BHP: 2000 BHT: Completion Fluitl: 6% KCI FWHP: FBHP: FWHT: FBHT: Other: Date Completed: 10/03/05 RKB: 21' Prepared By: M A Mullin Last Revision Date: 08/22/06 MAM • • M MARATHON MARATHON OIL COMPANY ALASKA REGION Beaver Creek Field Beaver Creek #16 Non-Rig Completion Procedure WBS # DD.04.10978.CAP.CMP.02 History: Well BC 16 is a Sterling top structure producer. The well was drilled in September 2005, completed in Oct, 2005 and produced only water from the lower Sterling B-3 sand. Objective: To allow for future deepening the lower B-3 sand will be isolated with an inflatable bridge plug, a sand cap, and a 10' cement plug. After isolating the lower B-3 we will perforate upper B-3 and B-2 sands. OUTLINE PROCEDURE: ~ . Backflow well with BC-3 to push away water. 2. Run correlation log and verify water level. ~ 3. Set inflatable bridge plug on E-line. 4. Dump bail 5' of frac sand on plug. 5. Dump Bail 10' cement on sand. 6. Perforate Sterling upper B-3 and B-2. ~ 7. Test Well and turn over to production. PROCEDURE: ~. Backflow well with BC-3 to push away water. Hold Safety and environmental awareness meeting. MIRU chiksan from BC-16 to choke manifold. Open manifold to,. backflow BC-16 with BC-3. Allow pressure to equalize for 4 hours. 2. Run correlation log and verify water level. MIRU Expro. Run SRO PT with drift for 2- 3/8" guns. Note fluid level. 3. Set inflatable bridge plug on E-line. RU 2-1/8",.inflatable bridge plug. RIH and set plug at 5670' (6' above lower B-3 perfs). 4. Dump bail 5' of frac sand on plug. 2.13 ft3 sand (16 GAL) back to 5665' 5. Dump Bail 10' cement on sand. 4.26 ft3 cement (32 GAL) back to 5655' Page 2 of 2 s. PERFORATE Sterling Upper B-3 and B-2: PU select fire safe 2-3/8" perforating gun dressed to perforate the following: ~ PROPOSED STERLING PERFORATIONS Measured Depth TVD B-3 5645`- 5647' (2ft) 5096`-5098' B-2 5605`- 5607' (2ft) 5056`-5058' Surface Wellhead SBHP Pressure 2000 psi 1950 psi 1970 psi 1920 psi 7. FLOW TEST WELL. No more than 0.5MM /day production rate is permitted for the well to defer water coning problems. Obtain stabilized flow within the 0.5MM maximum production limit. The unloading rate up 3-1/2" tubing is 1.6 MMCFGPD @ 350 psig FTP. Report flow rate and flowing pressures to BLM and AOGCC. Periodic blowdowr~ proceduresx will be developed after the well is on production. CONTACTS Mickey Mullin: 907-283-1337 (w) 907-398-9954 (c) Ken Walsh: 907-283-1311 (w) 907-394-3060 (p) BC Operators: 907-283-1316 BC-16 Completion Procedure MAM - 8/30/2006 STATE OF ALASKA R~~ElVE~ ALASI4~ AND GAS CONSERVATION COMMIS WELL COMPLETION OR RECOMPLETION REPORT ANp LO ~ Z 5 2006 1a. Well Status: Oil^ Gas Plugged Abandoned zoaaczs.~os GINJ ^ WINJ ^ WDSPL^ No. of Completions 1 Suspended^ WAG zoaACZS.~~o Other 1b. Well Class: 1 G8S Development ^ Expl~-~ Service ^ Stratigraphic TesT 2. Operator Name: Marathon Oil Company 5. Date Comp., Susp., or Aband.: 4-Oct-05 12. Permit to Drill Number: 205-116 3. Address: P. O. Box 1949, Kenai, AK 99611 6. Date Spudded: September 19, 2005 13. API Number: 50-133-20554-00-00 4a. Location of Well (Governmental Section): Surface: 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 7. Date TD Reached: September 29, 2005 14. We11 Name and Number: BC #16 Top of Productive Horizon: 3,321' FNL, 2,031' FWL, Sec. 34, T7N, R10W, S.M. 8. KB Elevation (ft): 179' (21' AGL) 15. Field/Pool(s): Beaver Creek Field Total Depth: 3,321' FNL, 2,031' FWL, Sec. 34, T7N, R10W, S.M. 9. Plug Back Depth(MD+TVD): 6315 MD RKB / Sterling Pool 4b. Location of Well (State Base Plane Coordinates): Surface: x- 317,399.50 y- 2,433,922.51 Zone- 4 10. Total Depth (MD +TVD): 6422 MD RKB / 16. Property Designation: A-028083 TPI: x- 317814.11 y- 2431855.14 Zone- Total Depth: x- 317825.14 y- 2431805.86 Zone- 11. Depth Where SSSV Set: N/A 17. Land Use Permit: 18. Directional Survey: Yes ~ No 19. Water Depth, if Offshore: N/A feet MSL 20. Thickness of Permafrost: N/A 21. Logs Run: Precision Quad combo (GR/res/sonic/neutron) Poor quality. Schlumberger GR / Litho density /Compensated neutron /Caliper 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 20" 133 K-55 0 83' 0 83' Driven 13-3/8" 68 K-55 0 2500 0 2285' 16" 670 sxs type 1. 9-5/8" 40 L-80 0 6402 0 5852' 12-1/4" 209 Bbls 12.5ppg "G" 109 Bbls 13.5 ppg "G" 23. Perforations open to Production (MD +TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) Sterling upper B-3, 1 SPF. 5676' - 5686' MD / 5127' - 5137' TVD 3-1/2" 9.2# EUE 5516' 5410' 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: None Method of Operation (Flowing, gas lift, etc.): Shut In Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~•- Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None COi`"Pl~TiON ~AT- ~t~~MS ~F~. AUG ~ ~ 20D6 a FIEQ Form 10-407 Revised 12/20Q3'~ n ~ ~ ~ n t ~ ~ONTINUED ON REVERSE COtI'iR]ISSiO~ 28. GEOLOGIC MARKER 29. ORMATION TESTS NAME TVD Include and briefly su ze test results. List intervals tested, and attach Sterling Formation B-2 sand 5598' 5049' detailed supporting data as necessary. If no tests were conducted, state "None". Sterling Upper B-3 was perforated and produced only water. 30. List of Attachments: Wellbore Diagram ,Daily Summary, Directional Survey 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Mickey Mullin Printed Name: Michael A. Mullin Title: Senior production Engineer ...a .// Signature: ~C~ . - '~~ f ~ Phone: (907) 283-1337 Date: 18-Aug-06 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 • Marathon MARATHON Oil Company Aug 21, 2006 Winton Aubert State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Well Completion Report (10-407) Field: Beaver Creek Well: BC 16 Dear Mr. Aubert, Alaska Region DAmestic Production P.O. Box 1949 Kenai, AK 99611 Telephone 907/283-1305 Fax 907/283-1350 Enclosed please find a Well Completion Report Form 10-407, along with the associated attachments for the BC 16 well in the Beaver Creek Field. The well was perforated. in the Lower Sterling b-3 sand and produced only water. We intend to isolate the lower B-3 sand and perforate the upper B-3 and B-2 sands. We plan to deepen the well in the future. A form 10-403 will be submitted in the near future for the continued work. If you require further information, please contact me at (907) 283-1337. Sincerely, Mi ae Mullin Senior Production Engineer Telephone: 907-398-9954 Email: MAMullin(c~MarathonOil.com Attachments: Form 407 Current wellbore diagram Operations Summary Report Directional Survey • • M Bc-~s ~~~ Sterling Sep-05 60.658208 N Lat 151.017805 W Iona. i GL: 158' KB: 179' (21' AGLI SPUD: 10:30hrs 09118/2005 TD: 0912912_005_ Rig Release,: 10:00 hrs 10/041200:1 ~--- zo", @ 100' Chemical Injection Mandrel 1203' API # 50-133-20554-00 Permit # 205-116 WBS # DD.04.10978. Property: A-028083 13-3/8", 68#/ft, K-55 2500' Cmt w/ 670 sxs type 1 3.5" EUE 8rdTubing Packer assembly 5410' MD ~ PBTD @ 6315 Xn @ 5483' WLEG @ 5516' Sterling Perforations MD ND B2 83 83 5676 - 5686 5127 - 5137 9-5/8", 40ppf, L-80 6402' ~~ Cmt w/ 209 bbls 12.5 lead 109 bbls 13.5 tail, 90 bbls cement rtns Well Name & Number: BC-16 Lease Beaver Creek County or Parish: Kenai State/Prov. Alaska Country: USA Perforations: (MD) (ND) Angle/Perfs Angle @KOP and Depth 1.8 500' KOP ND 500' BHP: 2000 BHT: Completion Fluitl: 6% KCI FW HP: FBHP: FWHT: FBHT: Other: Date Completed: 10/03/05 RKB: 2t' Prepared By: M A Mullin Last Revision Date: 10/10!05 MAM • Daiiy Summary for Well: .] BEAVER CREEK 16 Report Report MD ND Daily Cos# Summary Da#e Number 2005 Drilling 16-Sep-05 1 17-Sep-05 2 18-Sep-0S 3 36 19-Sep-O~ 4 20-Sep-05 5 21-Sep-05 6 22-Sep-0S 7 23-Sep-05 8 24-Sep-05 9 25-Sep-05 10 26-Sep-05 11 27-Sep-05 12 $280,599 Complete Move F- 41-7, Rig Up On BC-16 $39,899 Rig Up On BC-16, Set And Test Starting Head, Rig Up MWD Unit, Build Spud Mud, Function testAccumlator 36 $77,586 Complete Rig Up ,Set And R/U MWD Unit, Epoch Unit And Rig Monitoring System. Transfer New Spool OfC1 Drilling Line To Spool On Carrier. String Up new Drilling Line. P/U 5' D/P Handling Tools And Rig Floor Equip^ Inspect Rig. 860 859 $46,583 2,515 2,298 $66,868 2,515 2,298 $54,254 2,515 2,298 $348,628 2,515 2,298 $89,123 2,515 2,298 $72,184 4,147 3,669 $86,350 5,215 4,668 $70,304 6,216 5,666 $93,521 Complete rig up on BC-16, MU BHA #1, spud well, drill ahead 16" hole Drill 16" hole 860 - 2515 ft, circ for wiper trip POH,Wiper Trip, Repair Rig, RIH, Wiper Trip, Circ, POH, R/U Run 13 318 Csg. Run 13 3/8" CSG. Run 5" inners#ring DP. Sting into float collar and circ. CSG. Cement CSG. POOH w/DP and cmnt. stinger. While WOC inspect and begin to replace drawworks disk brakes. Rough cut 13 318" CSG and N/D diverter. Remove starter head. Install 13 5/8" wellhead. Weekly safety meeting. N/U BOPS. Test BOPE. Test CSG. Replace tugger line and install carrier tarps while wait on RTTS{mix new flopro mud). Test GSG. RIH w/13 3/8" RTTS. Test CSG above and below 2325'. Test indicated wet shoe. POOH UD RTTS. M/U 12 114" BHA. P/U 5" DP and R1H. Wash down and tag cmnt@2441'. Drill shoe track to 2503'. Drill shoe tract and shoe. Clean 16" hole. Drill 2515' to 2535'. C/O mud. Perform LOT. Drill F/2535' to 4147'. Drill F/414T to 4525'. Circ. clean. Wiper trip to the shoe. RIH. Drill F/4525' to 5215'. Drilf F/5215' to 6193'. Circ. clean. Drill F/6193' to 6216'. Circ. clean. Wiper trip to shoe. Printed - 11 /1 /2005 • • Daily Summary for Well: BEAVER CREEK 16 Report Report AAD TVD Daity Cost Summary Date Number 28-Sep-0S 13 6,216 5,666 $89,388 Service rig. RIH. Circ. and condition mud. POOH. Run logs. 29-Sep-05 14 6,422 30-Sep-Q5 15 A 6,422 5,872 $182,345 Log,RIH W/ Precision CMFT, R/D Logging Toois, P/U 12 114 Bit & BHA, RIH, Drill F-G216 To 6422'i7 Circ. Wiper Trip F 6422 To 6215', Wash And Back Ream F 6370' To 6215'. 5,572 $111,354 POOH to 6100'. RIH. Circ. POOH. Printed -1111 /2005 • Daiw Summary for Weil: • BEAVER CREEK 'i 6 Report Report MD TVD Daily Cost Summary Date Number 2005 Rig Completion 30-Sep-0S 1 B 6,422 5,872 $9,456 Tih Wiper Trip, Repair Problem W/Top Drive Rotary, Circ. Clean Hole, Pooh To Run 9 5/8 Csg. 01-Oct-05 2 6,422 5,872 $432,052 POOH. R/U and run 9 5/8" CSG. Circ. CSG. Cement 9 5/8" CSG. 02-Oct-05 3 6,422 5,872 $40,542 R/D cement line and head. Install packoff and test. R/U rig floor to run DP. C/O upper pipe rams and test. M/U bit and scraper assy and RIH. Tag @ 6315'. CBU. Mix brine. Displace weAbore,Test 95/8 Csg. Pooh UDQ DIP 03-Oct-05 4 6,422 5,872 $64,655 UD DP and BHA. R/U EL. Run CBL log. Run 3 1/2 Tubing Completion/Circ. Land Tubing, Set PackerD At 5415'. Test Annulus To 1500 psi. F- 30 Min 04-Oct-05 5 6,422 5,872 $146,558 Test packer. N/D BOP. N/U tree. Test tree. Test TBG. Set BPV. Clean Pits, Begin Rig Down. R/D Top Drive^ Torque Tube, All Electrical Lines,Mud Lines, R/D Pits. Scope Down Derrick„& UD. R/D & Remove Dog Housed And Rear Wind Walls. 05-Oct-05 6 6,422 5,872 $16,533 R/D rig. & Load Out Printed - 11/1/2005 ~. ~ ~ Daily Summary for Well: BEAVER CREEK 16 Report Report MD TVD Daily Cost Summary Date Number 2005 Post-Rig Completion 11-Oct-05 1 6,422 5,872 $3,905 Pull packer setting bar and plug body. 13-Oct-05 2 6,422 5,872 $18,100 RU BJ CTU. 14-Oct-05 3 6,422 5,872 $6,100 Pressure test CTU. Replace quick connect. Repair injector head. 15-Oct-0S 4 6,422 5,872 $20,600 Slow down well to 5850' CTMD. Leave well with 1700 psi N2 pressure. 22-Oct-05 5 6,422 5,872 $9,100 Perforated 568p` - 5690` CBL depth. Well produces water at 800+ BWPD at less than 200 psi drawdown. Printed - 11/1/2005 MARATHON Oil Company,slot #16 Pad #3, MARATHON Beaver Creek Unit,Kenai Peninsula, Alaska ~, SURVEY LISTING Page 2 Wellbore: BC-16 Wellpath: MWD <0-6422> Date Printed: 3-Oct-2005 +,. aTy. , INTIEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg de !1'0 VerticaF Section ft Fasting Northing, 0.00 0.00 0.00 0.00 O.OON 0.00E 0.00 0.00 317399.53 2433922.51 113.00 0.20 205.00 113.00 0.18S 0.08W 0.18 0.16 317399.44 2433922.33 165.00 0.30 212.20 165.00 0.38S 0.19W 0.20 0.33 317399.33 2433922.14 259.00 0.50 207.00 259.00 0.95S 0.51 W 0.22 0.82 317399.00 2433921.57 317.00 0.40 211.90 317.00 1.35S 0.73W 0.18 1.16 317398.78 2433921.17 380.00 0.60 213.10 379.99 1.81S 1.03W 0.32 1.55 317398.47 2433920.72 440.00 1.10 197,40 439.99 2.62S 1.37W 0.91 2.27 317398.12 2433919.91 500.00 1.80 179.90 499.97 4.12S 1.54W 1.37 3.69 317397.92 2433918.42 560.00 2.50 173.30 559.92 6.36S 1.39W 1.24 5.92 317398.04 2433916.18 620.00 3.00 175.00 619.86 9.22S 1.10W 0.84 8.78 317398.29 2433913.31 680.00 4.10 170.70 679.74 12.90S 0.62W 1.88 12.48 317398.71 2433909.62 740.00 5.20 168.40 739.54 17.68S 0.28E 1.86 17.34 317399.53 2433904.83 804.00 7.40 166.40 803.15 24.53S 1.83E 3.45 24.36 317400.98 2433897.96 866.00 9.00 167.20 864.51 33.14S 3.84E 2.59 33.20 317402.86 2433889.32 929.00 11.00 169.00 926.55 43.85S 6.08E 3.21 44.14 317404.93 2433878.58 992.00 13.60 169.10 988.10 57.02S 8.63E 4.13 57.56 317407.27 2433865.36 1055.00 16.90 167.20 1048.88 73.235 12.06E 5.30 74.12 317410.45 2433849.11 1118.00 19.80 166.80 1108.67 92.55S 16.53E 4.61 93.95 317414.62 2433829.72 1182.00 21.00 166.80 1168.65 114.27S 21.62E 1.88 116.26 317419.38 2433807.93 1245.00 23.50 167.90 1226.96 137.55S 26.83E 4.02 140.11 317424.23 2433784.57 1307.00 27.50 169.30 1282.91 163.71S 32.08E 6.52 166.79 317429.07 2433758.33 1370.00 30.70 169.10 1337.95 193.80S 37.83E 5.08 197.42 317434.35 2433728.16 1433.00 32.30 167.90 1391.66 226.05S 44.40E 2.73 230.33 317440.42 2433695.81 1496.00 32.00 168.50 1445.00 258.87S 51.25E 0.70 263.85 317446.76 2433662.90 1559.00 31.50 168.10 1498.57 291.33S 57.97E 0.86 297.00 317452.98 2433630.33 1623.00 31.50 166.70 1553.14 323.96S 65.27E 1.14 330.44 317459.77 2433597.59 1685.00 31.70 166.60 1605.95 355.57S 72.77E 0.33 362.92 317466.78 2433565.88 1748.00 33.50 166.20 1659.02 388.56S 80.75E 2.88 396.85 317474.25 2433532.77 1811.00 33.40 165.80 1711.59 422.26S 89.15E 0.38 431.56 317482.13 2433498.95 1873.00 33.20 166.10 1763.41 455.28S 97.42E 0.42 465.58 317489.88 2433465.81 1936.00 32.70 167.00 1816.27 488.60S 105.39E 1.11 499.84 317497.33 2433432.37 1998.00 32.50 166.00 1868.51 521.08S 113.19E 0.93 533.23 317504.63 2433399.77 2059.00 33.20 167.00 1919.75 553.26S 120.91E 1.45 566.31 317511.85 2433367.48 2121.00 35.00 168.00 1971.09 587.19S 128.42E 3.04 601.07 317518.84 2433333.44 2185.00 34.80 168.00 2023.58 623.01 S 136.04E 0.31 637.69 317525.90 2433297.51 2248.00 34.30 167.10 2075.47 657.90S 143.74E 1.13 673.41 317533.05 2433262.51 2311.00 33.90 168.70 2127.64 692.43S 151.14E 1.56 708.73 317539.92 2433227.87 2374.00 33.50 168.10 2180.05 726.67S 158.17E 0.83 743.68 317546.42 2433193.52 2437.00 33.20 167.90 2232.68 760.55S 165.37E 0.51 778.32 317553.09 2433159.54 2572.00 32.20 168.20 2346.28 831.90S 180.47E 0.75 851.25 317567.09 2433087.97 2635.00 33.10 166.50 2399.32 865.06S 187.92E 2.04 885.23 317574.02 2433054.70 2698.00 34.60 167.70 2451.65 899.26S 195.75E 2.61 920.32 317581.32 2433020.38 2760.00 34.40 167.70 2502.74 933.57S 203.23E 0.32 955.44 317588.27 2432985.96 2824.00 34.10 168.50 2555.64 968.82S 210.66E 0.85 991.46 317595.15 2432950.61 2887.00 34.30 167.80 2607.75 1003.47S 217.93E 0.70 1026.87 317601.88 2432915.85 2950.00 34.10 168.80 2659.86 1038.15S 225.11E 0.95 1062.27 317608.53 2432881.07 3014.00 33.50 168.20 2713.04 1073.04S 232.21E 1.07 1097.87 317615.08 2432846.08 3077.00 33.30 169.00 2765.63 1107.03S 239.07E 0.77 1132.55 317621.41 2432811.98 3140.00 33.30 168.80 2818.29 1140.97S 245.72E 0.17 1167.13 317627.54 2432777.94 3203.00 32.30 168.60 2871.24 1174.44S 252.41E 1.60 1201.26 317633.71 2432744.38 3267.00 32.90 168.70 2925.16 1208.25S 259.20E 0.94 1235.73 317639.97 2432710.47 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 167.78 degrees Bottom hole distance is 2159.16 Feet on azimuth 167.74 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,slot #16 Pad #3, MARATHON Beaver Creek Unit,Kenai Peninsula, Alaska SURVEY LISTING Page 3 Wellbore: BC-16 Wellpath: MWD <0-6422> Date Printed: 3-Oct-2005 ~%! INTEQ We ll. .. ath G rid Re ort MD[ftj Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg e /1 Oft Vertical S .coon. ft Fasting Northing 3331. 00 32.90 167. 90 2978. 90 1242 .29S 266 .25E 0.68 1270. 49 317646. 49 2432676. 33 3394. 00 33.30 168 .10 3031. 67 1275 .94S 273 .40E 0.66 1304. 90 317653. 12 2432642. 57 3458. 00 33.60 167. 00 3085. 07 1310 .39S 281 .01E 1.06 1340. 17 317660. 19 2432608. 02 3522. 00 32.60 168 .90 3138. 69 1344 .56S 288 .31E 2.25 1375. 12 317666. 97 2432573. 73 3585. 00 32.00 167. 60 3191. 94 1377 .52S 295 .16E 1.46 1408. 78 317673. 31 2432540. 68 3648. 00 32.10 166 .50 3245. 34 1410 .10S 302 .65E 0.94 1442. 21 317680. 29 2432507. 99 3712. 00 32.90 166. 00 3299. 32 1443 .50S 310 .83E 1.32 1476. 58 317687. 95 2432474. 47 3775. 00 32.50 167 .90 3352. 33 1476 .65S 318 .51E 1.75 1510. 61 317695. 12 2432441. 20 3838. 00 32.30 166. 80 3405. 53 1509 .59S 325 .91E 0.99 1544. 36 317702. 00 2432408. 16 3902. 00 32.00 167 .50 3459. 71 1542 .79S 333 .48E 0.75 1578. 42 317709. 06 2432374. 84 3965. 00 31.60 168.10 3513. 25 1575 .24S 340 .50E 0.81 1611 .62 317715. 57 2432342. 29 4027. 00 31.40 167 .80 3566. 12 1606 .92S 347 .26E 0.41 1644. 01 317721. 84 2432310. 51 4090. 00 30.50 168. 10 3620. 15 1638 .60S 354 .02E 1.45 1676. 41 317728. 12 2432278. 73 ~ 4153. 00 28.10 166 .70 3675. 08 1668 .69S 360 .74E 3.96 1707. 24 317734. 36 2432248. 54 4216. 00 27.20 167. 40 3730. 89 1697 .185 367 .29E 1.52 1736. 47 317740. 47 2432219. 95 4279. 00 27.30 167 .80 3786. 90 1725 .36S 373 .48E 0.33 1765. 32 317746. 23 2432191. 69 4342. 00 26.40 167. 40 3843. 11 1753 .15S 379 .59E 1.46 1793. 77 317751. 91 2432163. 81 4405. 00 25.30 167 .10 3899. 80 1779 .94S 385 .65E 1.76 1821. 24 317757. 55 2432136. 93 4468. 00 24.40 168. 60 3956. 97 1805 .82S 391 .23E 1.74 1847. 71 317762. 73 2432110. 97 ~~ 4532. 00 23.50 167 .90 4015. 46 1831 .25S 396 .52E 1.47 1873. 69 317767. 62 2432085. 46 4594. 00 22.40 168. 30 4072. 55 1854 .91 S 401 .51E 1.79 1897. 86 317772. 24 2432061. 73 4657. 00 21.10 168 .00 4131. 06 1877 .75S 406 .30E 2.07 1921. 21 317776. 68 2432038. 81 4719. 00 19.60 168. 80 4189. 19 1898 .87S 410 .64E 2.46 1942. 77 317780. 69 2432017. 63 4783. 00 18.2.0 169 .00 4249. 74 1919 .21 S 414 .63E 2.19 1963. 49 317784. 37 2431997. 23 4845. 00 16.80 168. 50 4308. 87 1937 .50S 418 .26E 2.27 1982. 13 317787. 72 2431978. 89 4907. 00 15.50 167 .00 4368. 42 1954 .35S 421 .92E 2.20 1999. 38 317791. 11 2431961. 98 4971. 00 14.30 165. 60 4430. 27 1970 .34S 425 .80E 1.96 2015. 83 317794. 75 2431945. 94 5034. 00 13.40 166 .20 4491. 43 1984 .97S 429 .48E 1.45 2030. 90 317798. 20 2431931. 26 5096. 00 12.20 167. 50 4551. 89 1998 .34S 432 .61E 1.99 2044. 63 317801. 12 2431917. 84 5158. 00 11.10 167 .60 4612. 61 2010 .57S 435 .31E 1.77 2057. 15 317803. 63 2431905. 57 5219. 00 9.60 170. 20 4672. 62 2021 .31 S 437 .44E 2.57 2068. 11 317805. 59 2431894. 79 5281. 00 8.40 170 .10 4733. 86 2030 .87S 439 .10E 1.94 2077. 80 317807. 10 2431885. 22 5345. 00 7.10 167 .30 4797. 27 2039 .33S 440 .77E 2.11 2086. 42 317808. 64 2431876. 73 5408. 00 5.70 166 .00 4859. 88 2046 .17S 442 .38E 2.23 2093. 44 317810. 15 2431869. 87 5470. 00 4.70 163 .80 4921. 62 2051 .59S 443 .84E 1.64 2099. 05 317811. 52 2431864. 42 5533. 00 4.2U 163 .70 4984. 43 2056 .29S 445 .20E 0.79 2103. 93 317812. 81 2431859. 71 5597. 00 4.30 162 .90 5048. 25 2060 .83S 446 .57E 0.18 2108. 66 317814. 11 2431855. 14 5660 .00 3.70 166 .80 5111. 10 2065 .07S 447 .73E 1.05 2113. 04 317815. 20 2431850. 89 5724. 00 3.20 165 .40 5174. 98 2068 .81S 448 .65E 0.79 2116. 89 317816. 06 2431847. 14 5788 .00 3.30 167 .80 5238. 88 2072 .34S 449 .49E 0.26 2120. 52 317816. 85 2431843. 60 5851. 00 3.30 164 .00 5301. 78 2075 .85S 450 .37E 0.35 2124. 14 317817. 68 2431840. 07 5978 .00 3.50 166 .20 5428. 55 2083 .135 452 .30E 0.19 2131. 67 317819. 49 2431832. 76 6104. 00 3.40 166 .40 5554. 32 2090 .49S 454 .10E 0.08 2139. 25 317821. 18 2431825. 37 6136 .00 3.60 167 .70 5586. 27 2092 .40S 454 .54E 0.67 2141. 20 317821. 58 2431823. 46 6216. 00 3.60 167 .70 5666. 11 2097 .31 S 455 .61E 0.00 2146. 22 317822. 58 2431818. 53 f 6422 .00 3.60. 167 .70 5871. 70. _ 210_9 .95S 458 .36E 0.00 2159. 16 _ 317825. 14.. 2431805. 86 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 179.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 167.78 degrees Bottom hole distance is 2159.16 Feet on azimuth 167.74 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated r M Marathon MARATHON O~' COI'11pan~/ August 24, 2005 Mr. Bob Crandall Alaska Oil & Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Dear Bob: Northern Business Unit Alaska Asset Team 5555 San Felipe Houston, TX 77056-2799 P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-296-4469 ~~~v ~ ~: ~~~~~ kF ~ ~ ' AIJ~ ~~ %'ll~! ~~, At _. b~ .. Marathon, as operator of the Beaver Creek Unit, would like to resume production from the Sterling reservoirs in the field. We currently have plans to drill well BCRJ 1~'i this year, which targets dry gas in the upper Sterling B2, B3, and B3A sands, and hope to initiate a reverse coning project in the B4 sand in 2006. The B2 Sand has never produced in the field (completed in well BCU 7, but indications are it did not flow gas), and the B3 and B3A sands have not produced since the perforations in BCU 6 were squeezed in March, 2003. The latest Sterling production was from the B4 sand where we coned water in well BCU 9; the short string of that well was shut in in June, 2004. I have attached a map with all wells completed in the Sterling highlighted; none of these wells are producing today. BCU 9 was drilled in 1994, with the long string completed in the Beluga and the short string an annular completion in Sterling B4. The B4 sand produced 18.8 Bcf of gas and was eventually shut in in 2004 after it started coning. water. The reverse coning project being designed will target the B4 sand where we have gas on water and will be located on the northern part of the structure. Please let me know if you have any questions or need additional information. Regards, ~~ Jennifer Enos Geologist Attachment i w r / rce~ -S 1 74.2 r i . ~~ .' p~ ~' ~\`` Yb ~ ~ 3 {. , ~ S '/ 6 B~ S i -4 4 ~~ ~. 9D. r ~ ~ 9 w r -•bJV~. BCU 16PTD = ,.: -5320` SSTVD w i ~ ~ -49L . -49 0.5 i ~~ ~~,'8 ~ '~~~; .. 8 ~ i i~ - 6B. i~/ i i i i i ~~ y i ~ ~``J, '~ ~ \ \ ~ O Top Sterling B3 Sand Beaver Creek Field, Alaska Sterling completion C1=25ft ~N 1 mi ~~ h ~~ ~ ~ a ~ , ~ ; 9 ~ ; ~ , ~ a ~ )`, a ~ ~~ ~ FAANK H. MURKOWSKI, GOVERNOR ~~ ~~ ~~ ~~++ i~ ~ t~T~~ ~ ~ ~+ ~ ~-78~. OII/ ~ ~ 333 W. 7~" AVENUE, SUITE 100 COI~TSERQAZ'[O1~T COMl•'IISSI011T ~ ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Willard Tank Advanced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Houston, Texas 77253 Re: Beaver Creek # 16 Marathon Oil Company Permit No: 205-116 Surface Location: 1269' FNL, 1587' FWL, SEC. 34, T7N, R10W, SM Bottomhole Location: 3321' FNL, 2031 FWL, SEC. 34, T7N, R lOW, SM Dear Mr. Tank: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations. until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. 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 ommission to witness any required test. Contact the Commission's petrol m eld inspector at (907) 659- 3607 (pager). ~-~ _ K. DATED this ~ day of August, 2005 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. M Marathon MARATHON Oil Company July 29, 2005 P.O. Box 3128 Houston, TX 77253-3128 Telephone 713-629-6600 Fax 713-499-6737 ~~~~~V~~ John Norman Commissioner State of Alaska Alaska Oil & Gas Conservation Commission 333 West 7th Ave, Suite 100 Anchorage, AK 99501 Reference: Drilling Permit Application Field: Beaver Creek Field Well: Beaver Creek Unit BC-16 Dear Mr. Norman AIIG 0 ~ 2~Q~'i Alaska Oil & Gas Can$, Commis~or~ Anchorage Enclosed please find the PERMIT TO DRILL application, along with the associated attachments and filing fee of $100. The intent is to drill a development well in the Sterling Pool in the Beaver Creek Field. This well will utilize tubing and packer for the completion, rather than a monobore construction. This allows for more flexibility in future completion designs if issues such as water production or sand control become important. If you require further information, I can be reached at 713-296-3273 or by a-mail at witank@ marathonoil.com. However, from August 1 -August 19 I will be unavailable. Please contact Pete Berga at 907-565-3032 or by a-mail at pkberga@marathonoil.com in my absence. Since I will be out, please send the approved permit to Pete Berga in our Anchorage office. That address is: Marathon Oil Company 3201 C. Street Anchorage, AK 99503 Sincerely, Willard J. Tar Advanced Senior Drilling Engineer Worldwide Drilling North America Enclosures ~.t k ~~, ~ ~,.,% e I ~1s 6 STATE OF ALASKA AL . A OIL AND GAS CONSERVATION CONA~FSSION PERMIT TO DRILL 20 AAC 25.005 1a. Type of Work: Drill ~ Redrill 1b. Current Well Class: Exploratory Develop I ' f o Re-entry ~ Stratigraphic Test ~ Service ~ Development Gas ~~i~e 2. Operator Name: 5. Bond: Blanket ~ Single Well 11. Well Name and Number: Marathon Oil Company Bond No. 5194234 BC #16 3. Address: 6. Proposed Depth: 12. Field/Pool(s): P.O. Box 3128, Houston, TX 77253 MD; 7,854 TVD: 7,380 Beaver Creek Field ' 4a. Location of Well (Governmental Section): 7. Property Designation: Sterling Pool s ' ' ~ Surface: 1,269 FNL, 1,587 FWL, Sec. 34, T7N, RiOW, S.M. A-028083 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 3,321' FNL, 2,031' FWL, Sec. 34, T7N, R10W, S.M. September 15, 2005 ~''~ Total Depth: 9. Acres in Property: 14. Distance to Nearest ' ' ~ 3,321 FNL, 2,031 FWL, Sec. 34, T7N, R10W, S.M. 2,560 Property: 1,950 ft 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface: x - 317,399.53 y - 2,433,922.51 Zone - 4 (Height above GL): (21' AGL) 179 feet Within Pool: 930 ft. to BC #9 16. Deviated wells: Kickoff depth: 500 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 33.84 degrees Downhole: 2,492 Surface: 1,261 ~ r 18. Casing Program: Setting Depth Quantity of Cement Size Specifications Top Bottom c,f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 20" 133 K-55 PE 83' 0' 0' 104' 104' 16" 13 3/8" 68 K-55 BTC 2,494' 0' 0' 2,515' 2,300' 773 sacks 12 114" 9 518" 40 L-80 BTC 6,172' 0' 0' 6,193' 5,639' 835 sacks 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft}: Junk (measured): Casing Length Size Cement Volume MD ND Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program s Time v. Depth Plot Shallow Hazard Analysis Property Plat Q Diverter Sketch Q Seabed Report ~ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Willard J. Tank Title Advanced Senior Drilling Engineer ` Signature „__~r~,,.y~~ Phone 713-296-3273 Date July 29, 2005 Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number..Zp` j'- ~~ r~ 50- ~-3~ " -2- ~J~y Date: ~ a ' requirements. Conditions of approval ampl required Yes ~ No ~ Mud log required Yes ~ No ydr n ulfide measures Yes ~ No ~ Directional survey required Yes No Other: ~' S ~ ~ ~ ~ ~ S o - - APPROVED BY T MISSION D t A Z e: ppro a ~.rc~r_ ~(~jz~~s, ~~~~ pUG 0 ~ 2Q05 ,~ Fo 401 R 06/2004 Sub it inDuplicate / ~ MARATHON MARATHON OIL COMPANY DRILLING PROGRAM Beaver Creek Unit BC #16 Original 7/29/05 Originator: W.J. Tank Drilling Superintendent: P.K. Berga North America Drilling Manager: B.J. Roy Page 1 of 13 • • Table of Contents General Well Data ...................................................................................................................................................................3 Geologic Program Summary ................................................................................................................................................. ..3 Summary of Potential Drilling Hazards .................................................................................................................................. ..4 Formation Evaluation Summary ............................................................................................................................................ ..4 Drilling Program Summary .................................................................................................................................................... ..5 Casing Program ..................................................................................................................................................................... ..6 Casing Design ....................................................................................................................................................................... ..6 Maximum Anticipated Surface Pressure ............................................................................................................................... ..6 BOPE Program ...................................................................................................................................................................... ..8 Wellhead Equipment Summary ............................................................................................................................................ ..9 Directional Program Summary .............................................................................................................................................. ..9 Directional Surveying Summary ............................................................................................................................................ 10 Drilling Fluid Program Summary ........................................................................................................................................... 10 Drilling Fluid Specifications .................................................................................................................................................... 11 Solids Control Equipment ...................................................................................................................................................... 11 Cement Program Summary ................................................................................................................................................... 12 Bit Summary .......................................................................................................................................................................... 12 Hydraulics Summary ............................................................................................................................................................. 12 Formation Integrity Test Procedure ....................................................................................................................................... 13 Page 2 of 13 r: General Well Data r: Well Name BC #16 Lease/License "Surface Location 1,269' FNL, 1,587 FWL, Sec. 34, T7N, R10W, S.M. WBS Code DD.04.10978.CAP.DRL Slot/Pad BCU Pad 3 Field Beaver Creek Spud Date 9/15/05 (est.) KB Elev. 179 County/Province Kenai Peninsula API No. Ground Level Elev. 158 State / Gountry Alaska We11 Class Development .Penn. Datum KB Totaf MD 6,193' Rig Contractor Glacier Drilling Water pepth N/A Total TVD 5,639' Rig Name #1 Water Protection Depth Comments: Geoloaic Proaram Summary Formation MD -RKB (ft) TVD -RKB (ft) Pore Pressure- (psi} Pore Pressure (ppg) Lithotogy Ppssible Fluid Content Sterling B-0 (Not a Prod Target) 5,392 4,839 8.5 Sandstone Gas /Water Sterling B-1 (Not a Prod Target) 5,483 4,929 8.5 Sandstone Gas /Water Sterling B-2 (Primary Target) 5,603 5,049 4.4 Sandstone Gas Sterling B-3 (Primary Target) 5,638 5,084 4.4 Sandstone Gas Sterling6-3A (Primary Target) 5,695 5,141 4.4 Sandstone Gas Sterling B-4 (Secondary Target) 5,798 5,244 8.5 Sandstone Gas /Water Comments: Surface Location Coordinates From Lease/Block Lines. 1,269' FNL, 1,587 FWL, Sec. 34, T7N, R10W, S.M. ~ Latitude 60° 39' 29.547" N Longitude 151 ° 01' 04.101" W UTM North (Y) 2,433,922.51' UTM East (x) 317,399.53' Tolerance Horizontal Depth Displacement (ft) MD TVD +N/-S +Ef-W Tolerance .Directional Target (ft) (ft) Location (Y) {X) (ft) Sterling B-3 5,638 5,084 3,321' FNL, 2,031' FWL, Sec. 34, T7N, R10W, S.M. -2,052 444 Circle 100' radius TD 6,193 5,639 3,321' FNL, 2,031' FWL, Sec. 34, T7N, R10W, S.M. -2,052 44.4 Circle 100' radius Comments: Page 3 of 13 • • Summarv of Potential Drillina Hazards Hazard Event Discussion Lost Circulation in Low Pressure Sterling sands Control losses b usin sufficient) sized LCM. Y 9 Y Comments: Potential Hazards Statement To comply with state regulations the Potential Hazards section and the well shut-in procedures must be posted in the drillers dog house. The man on the brake (driller or relief driller) is responsible for shutting the well in (BOPE or diverter as applicable) as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC or BLM inspector. This well's primary objective is gas and no oil sands are expected to be encountered. No HZS is anticipated. ~ Gas sands will be encountered from +/- 5,392 MD (4,839' TVD) to total depth of the well. These sands will run from highly depleted to normal pressure. Lost circulation and differential sticking are potential hazards in some of the Sterling sands. The Flo-Pro mud system that will be used to drill the well will help reduce these risks and lost circulation materials will be on location. Weighting material will available on location for proper well control. Formation Evaluation Summarv Interval LWD Electric Logs Mud Logs Surtace 0' - 2,515' MD None None None Production 2,515' - 6,193' MD None Reeves Quad Combo and MFT. Pull GR- Neutron to surtace inside casing. Basic with GCA, shale density, temperature in and out, sample collection (10' samples). Completion N/A GR, CCL N/A Coring Requirements: None Comments: Page 4 of 13 Drilling Pro4ram Summary CONDUCTOR: 1. Drive 20" conductor to +/-100 ft. RKB. 2. Move in and rig up rotary drilling rig. 3. Install starting head 20" SLC x 21 1/4", 2M flanged. 4. Nipple up 21 1/4", 2M diverter, 16" diverter valve, and 16" diverter line. 5. Function test diverter and diverter valve. SURFACE: 1. Drill a 16" hole to 2,515' MD (2,300' TVD) per the directional plan. 2. RIH with 13 3/8" casing and hang off in the elevators. Make up stab-in sub and centralizer on 5"drill pipe. TIH with inner string and latch into stab-in float collar. Cement 13 3/8" casing. Sting out, shear out drill pipe wiper plug, and circulate drill pipe clean. TOOH with inner string. 3. Cut off 13 318" casing. ND diverter. 4. Install 13 3/8" slip lock connection X 13 5/8" 5M flanged multibowl wellhead. 5. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2,000 psi. ~ 6. Set wear bushing. / 7. Test surface casing to 2,000 psi. PRODUCTION: 1. Drill float equipment and 20' of new formation w/ 12 1/4",bit. CBU. 2. Test shoe to leak off. Estimated EMW 14.3 ppg. 3. Drill a i2 1/4" hole to 6,193' MD (5,639' TVD) per the directional program, short tripping as necessary (1,000' or 24 hours, but can be extended depending on hole conditions). /~ 4. At TD circulate hole clean. Make wiper trip. TOOH. 5. RU logging company. Run open hole logs as per plan. RD logging company. 6. TIH w/ 12 1/4" bit to TD for wiper trip. TOOH to 13 3/8" shoe and trip to TD, circulate clean. TOOH and laydown directional BHA components. Pull wear bushing. 7. Change out variable pipe rams with 9 5/8" casing rams. Run test plug and test casing rams to 2,000 psi. 8. RU and run 9 5/8" casing. RU and cement 9 5/8" casing. Reciprocate 9 5/8" casing during cement job until excessive drag is seen. Land hanger in multibowl wellhead. Bump plug with 500 psi over displacement pressure. WOC. 9. PU 8 1/2" bit and scraper. TIH and clean out 9 5/8" casing to the float collar, circulate clean. Test casing to 2,000 psi. Displace hole with 6% KCL brine. TOOH LD drill pipe and BHA. 10. 1f decision is made not to complete the well (based on log information), ND BOP, NU dryhole tree and rig down. Otherwise go / to the completion. COMPLETION: 1. PU 3 joints of 3 112", EUE, modified 8rd tubing for tail pipe and production packer. PU and TIH with 3 1/2" completion string. 2. Set tubing tail at approximately 5,500' MD. Circulate inhibited fluid around backside of tubing. Pressure up and set packer. 3. ND BOP. Set 3 1/2" packoff. NU 13 5/8" 5M X 3 1/8" 5M tubing head adapter and 3 1/8" 5M tree. Test tree to 5,000 psi. 4. Rig down and move out drilling rig. Note: Drill all hole sections with 5" drillpipe. If decision is made not to complete the B-2 through B-3A zones, the well will be temporarily abandoned and the rig released until a plan is set up for re-entering the well for a completion in the B-4 as a co-production well, utilizing sand control and artificial lift. Page 5 of 13 • • Casino Program MD {ft) Connection AP( Ratings Casing Makeup L = o. = °- N Size Weight ~ / O. D. Torque Hole Size m a o n. m ~' (in) Top Bottom (Ibs/ft) Grade Type (inj (tt-Ibs) (in) U ~ 133/8 Surface 2,515 68 K-55 BTC 14.375 N/A' 16 3,450 1,950 1,300 95/8 Surface 6,193 40 L-80 BTC 10.625 N/A' 121/4 5,750 3,090 979 Comments: The make up of the buttress connection will be to the proper mark. Casino Design Casing Shoe Safety Factors Casing Size {in) Weight (IbJft) Grade Setting Depth (TVD) Mud Wt When Set (IWgal) Frac. Grad (Ib/gal) Form Press (Ib/gal) Maximum Surface Pressure (psi) ~ m' ~ U .~ h 13 3/8 68 L-80 2,300 9.0 14.3 8.5 1,261 2.19 1.36 2.65 9 5/8 40 L-80 5,639 9.5 15.0 8.5 1,261 1.55 1.41 ~ 2.57 Comments: Maximum Anticipated Surface Pressure Setting Depth. Casing Size ND MAWP' MASP " Mud/Gas (in) (ft) (psi) (psi) Ratio 13 3/8 2,300 2,331 1,261 30/70 95/8 5,639 3,878 1,261 30/70 MAWP =Maximum allowable working pressure MASP =Maximum anticipated surface pressure Comments: MASP /MAWP CALCULATIONS: Surface casino: 13 318" (2.515' MD. 2.300' TVD) MASPfrac =((Fracture gradient at shoe + S.F.) x .052 x TVDsnoe) -Hydrostatic pressure of gas column at the shoe. MASPfrac = (14.3 ppg + 0.5 ppg) x .052 x 2,300' - (.1 psl/ft x 2,300') MASPfrac = 1,770 psi - 230 psi MASPfrac = 1,540 psi. Page 6 of 13 r~ • MASPbnP = BHPoPa„ nae fd -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnP = (8.5 ppg x .052 x 5,639') - (0.3 x 9.5 ppg x .052 x 5,639') - (0.7 x 0.1 psi/ft x 5,639') MASPbnP = 2,492 psi - 836 psi - 395 psi MASP~,P= 1,261 psi MASP =MASPbnP = 1,261 psi MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAWP = (0.7 x 3,450) - (9.0 - 8.3) x .052 x 2,300' MAW P = 2,415 psi - 84 psi = 2,331 psi Production casing: 9 5/8" (6.193' MD. 5.639' TVD1 MASPf,e~ _ ((Fracture gradient at shoe + S.F.) x .052 x TVDsn~) -Hydrostatic pressure of gas column at the shoe. MASPr~a~ _ (15.0 ppg + 0.5 ppg) x .052 x 5,639' - (.1 psi/ft x 5,639') MASPr,e~ = 4,545 psi - 564 psi MASPt~e~ = 3,981 psi. MASPbnP = BHPoPe~ rwie td -Hydrostatic pressure of mud portion -Hydrostatic pressure of gas portion MASPbnP = (8.5 ppg x .052 x 5,639') - (0.3 x 9.5 ppg x .052 x 5,639') - (0.7 x 0.1 psi/ft x 5,639') MASPbnP = 2,492 psi - 836 psi - 395 psi MASPbnP = 1,261 psi MASP =MASPbnP = 1,261 psi / MAWP = (0.7 x Casing Burst) - (Mud Wt. -Backup Fluid Wt.) x .052 x TVD MAW P = (0.7 x 5,750) - (9.5 - 9.0) x .052 x 5,639' MAWP = 4,025 psi - 147 psi = 3,878 psi Page 7 of 13 • BOPE Proaram Casing Test Test Casing Test Fiuid Pressure.... Size MAWP MASP Press Density BOPS. Low/High Casing (in) (psi) (ps-) (psi) (Ib/gal) Size &"Rating ` (psi) (1) 13-5/8" 5M annular (1) 13-5/8" 5M pipe ram Surface 13318 2,331 1,261 2,000 9.0 (1) 13 5/8" 5M blind ram 250/2,000 (1) 13-5/8" 5M drilling spool with 3-118" 5M outlets (1) 13-5/8" 5M annular (1) 13-518" 5M pipe ram Production 9 5/8 5,639 1,261 2,000 9.5 (1) 13 5/8" 5M blind ram 250/2,000 (1) 13-5/8" 5M drilling spool with 3-1/8" 5M outlets Comments: Blowout Preventers I The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer with blindlrams in the bottom and pipe ~ams in the top and a 13-518" x 5000 psi drilling spool (mud cross) with 3-1/8" x 5000 psi outlets. The choke manifold will be rated 3-1/8" x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also included is a poor-boy gas buster, and avacuum-type degasser. A flow sensor will be installed in the flowline and the mud pits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. Casing Test Pressures Casing test pressures are based on the lesser of (1) MASP, or (2) 70% of rated burst pressure of the casing adjusted for the mud weight used during the test less a 8.3 ppg back-up unless otherwise noted. Page 8 of 13 Wellhead Equipment Summary • Component Description Casing Hanger Type Casing Head 13-5/8" 3M X 13-3/8" Slip Loc W/ 2, 2" LPO, Landing Base for 20" Conductor, U, AA, PSL1, 13 5/8" x 9 5/8" Fluted PR1 Mandrel Tubing Head 13-518" 3M Studded Bottom X 13-518" 5M Flg Top, W! 2, 2-1116" 5M Studded Outlets, 13 5/8" x 3 1I2" Manual U,AA,PSLI,PR1 Slip Adapter Flange 13-5/8" 5M X 3-1 /8" 5M W/ Seal Pocket and 3" H BPV Threads Comments: Control lines and electric cable for the EXCAPE system will be routed through the tubing head side outlet. Directional Program Summarv Build Turn Coordinates Seca No. Description MD (ft) ND (ft) Rate (°/100') Rate (°/100') Dogleg (°/100') Inclination (deg) Azimuth .(deg) +N/-S (ft) +E/-W (ft) VS (ft) 1 Tie On 0 0 0 0 0 0 167.78 0 0 0 2 KOP 500.00 500.00 0 0 0 0 167.78 0 0 0 3 Build up Section 3.00 0 3.00 l 167.78 4 End of Build 1,628.01 1,563.56 3.00 0 3.00 33.84 167.78 -316.22 68.47 323.54 5 Hold Section 0 0 0 33.84 167.78 6 End of Hold 3,945.74 3,488.65 0 0 0 33.84 167.78 -1,577.68 341.62 1,614.24 7 Drop Section -2.00 0 2.00 167.78 8 End of Drop to the Target 5,637.76 5,084.00 -2.00 0 2.00 0.00 167.78 -2,052.01 444.32 2,099.56 9 TD 6,192.76 5,639.00 0 0 0 0.00 167.78 -2,052.01 444.32 2,099.56 Comments: Vertical section calculated from a reference azimuth of 167.78° taken from surface location to bottom hole location. Potential Wefl Interference: Well Distance (ft) Depth (MD) BC #9 81.82 509 BC #3 & 3RD 87.41 6 BC #5 108.34 451 BC #13 116.35 557 BC #6 136.10 500 BC #10 173.57 513 BC #11 180.95 Surface No serious interference exists. See attached directional plan and anticollision analysis for more details. Page 9 of 13 :J 0 0 r a _o C N N 7 H Vertical Section at 167.76° [1600fUin] Directional Surveying Summary r C Z L 7 O N Interval MWD Survey Magnetic Multishot Gyro Multishot Comments 0-2,515' X 2,515' - 6,193' X Comments: Drilling Fluid Program Summary Interval - TVD ~ Minimum Inventory From To Density Gel (ft) (ft) (Ib/gal) Fluid Description Additives Viscosifier Barite Gel, Gelex, Soda Ash, Caustic, Barite, 0 2,300 8.6 - 9.4 Gel / Gelex Spud Mud Polypac Supreme UL, Sodium Meta Bisulfate / Flo-Vis, Polypac UL, KCI, SafeCarb F&M, 2,300 5,639 9.0~ 9.5~ 6% Flo-Pro w/ Safecarb Barite, Caustic, Conqor 404, Sodium Meta Bisulfate, Lubetex Comments: See mud prognosis for details. Sized CaCO3 (SafeCarb) will be used to control leakoff. Page 10 of 13 West(-)/East(+) [750fUin] • • Drilling Fluid Specifications Interval - TVD LSRV From (ft) To (ft} Density (Ib/gal) Vis (sec/gt) 1 min. (IbJ100ftz) PV (cP) YP (Ib/100 fiz) Fluid Loss (cc) pM DriA Solids (°k) 0 2,300 8.6 - 9.4 60 - 100 N/A 25 - 35 NC - 12 +/- 9.5 < 7 2,300 5,639 9.0 9.5 30,000 + 8 - 12 7 - 9 +/- 9.5 +/- 5 Comments: ~v As a standard practice for long string completions, the drilling mud that will remain. above the top of cement on the 9 5/8" production casing wilt be treated with corrosion inhibitor (Congor 303A) at a concentration of 1 drum per 100 barrels of drilling fluid. See mud ~ prognosis for details. Solids Control Equipment 0 d m ~ rn ~ ~ cLi ~ ~ ~ y ~ N Qf N N W N ~ ~ ~ C m ~. 7 O ~ Interval ~' 0 0 ~_ U U U N Comments 0 - 6,193' MD X X X X Closed Loop System, Full Containment Item Equipment Spec cations (quantity, design type, brand; model, flow capacity,. etc) Shaker 2 -Derrick Model 2E48-90F-3TA Desander N/A Desilter 1 -Derrick Model 0522 Mud Cleaner N/A Centrifuge 2 - MI/Swaco units Cuttings Dryer N/A Cuttings Injection Marathon G&I Facility Zero Discharge N/A Comments: The solids control equipment will consist of two flowline cleaners, a desilter, and the MI centrifuge van. Included will be equipment to de-water the underflow from the mud processing equipment to allow for disposal of the cuttings and solids by slurrification and injection into the disposal well at the KGF. Page 11 of 13 .7 Cement Program Summary De pth Gauge Top of Cement Open Casing Size. {in) MD (ft) TVD (ft) Hole Size (in) MD (ft) TVD (ft) Ann Vol To TOC (ft3) Slurry Vot (ft3) WOC Time (hrs) Hole Excess {%)- 13318 2,515 2,300 16 0 0 1,110 1,939 8 75 95/8 6,193 5,639 121/4 2,400 2,205 1,191 1,685 8 40 Mix Water Compressive. Casing Size 'Density ~Y Yield Slurry Vol TOC MD Qty WL FW Strength Psi) (in) Slurry. Cement'Description (Ib/gaq (sx) (ft3/sx) (ft3) (ft) (gal/sx) Type (cc) {°k,) 8 hr 24 hr 133/8 Tait Type I Cement 12.0 773 2.51 1,939 0 11.28 Fresh 812 0 196 818 9 5/8 fead Class "G" 12.5 558 2.10 1,172 2,400 11.92 Fresh 273 769 Tail Class "G" 13.5 277 1.85 513 5,100 9.31 Fresh 0 0 208 981 Comments: See cement prognosis for details and spacer specifications. Bit Summarv .Interva l - MD TYpe Recommended Estimated From (ft) To ft) Size (in) Manufacturer Model No. {ADC WOB (kips) RPM Rotating Hours ROP (ft/tir) 0 2,515 16 Christensen MX-DS1 DX 115 1 - 4 80 - 350 2,515 6,193 12 1/4 Christensen HCM506Z M323 Up to 52 Motor Comments: See bit prognosis for additional information. Hydraulics Summarv Rig mud pumps available are shown below. Max Press ~ Displacement ~ ' Liner ID Stroke 90% WP 95% eff Max Rate - Hole Sections Used Qty Make Model (in) (in) (psi) (gal/stroke) {spm/gpm) On 5 8 2,597 2.04 125 / 255 Surface 3 National Oil A600PT 5 8 2,597 2.04 125 f 255 intermediate Well 5 8 2,597 2.04 125 / 255 Production Tabulated below are the expected flow rates, standpipe pressures and nozzle sizes for each hole section. Page 12 of 13 L- Hole Standpipe Min Nozzle Depth-MD Size Pump Rate Pressure AV ECD Size (ft) (~) (91~) (psi) (fP-n) (Ib/gaq {32"s) Remarks 0 - 2,515 16 650+ 1,850 69 3 - 18's 1-15 2,515 - 6,193 12 1/4 662 2,000 130 6 - 13's Actual Data from CLU 8 (~ 6,722' MD) Comments: See separate hydraulics calculations. Annular velocities in the 16" and 12 ~/a" holes were calculated using 5" drillpipe. 5" drillpipe should be used to drill all hole sections to maximize hole cleaning, while minimizing stand pipe. pressure. Formation Integrity Test Procedure Surface and Intermediate casing shoes will be tested to Leak-off. Prior to drilling out of casing strings, test BOPs and casing to the specified pressure listed in the BOP Program section. Plot test and record volume required on the drilling report. Leak-off tests (LOT) are to be conducted as described below: 1. Drill 20' to 25' of new formation below the casing shoe and condition the mud to the same properties in and out. 2. Pull drill string into the casing shoe and close ram preventer, and line up to the choke manifold with a closed choke. 3. Begin slowly pumping fluid down the drill string at 1/2 bpm while recording casing and drillpipe pressures at 1/2 bbl intervals. / A running plot of pressure versus volume should be kept by the drilling foreman while the test is in progress. 4. Stop pumping when the pressure curve departs form a straight line sufficiently to indicate leakage into the formation. Record as ppg equivalent mud density in the IADC and morning reports. 5. Monitor and plot pressure drop and time after shut-in for 10 minutes or until the shut-in pressure stabilizes. Page 13 of 13 • Marathon Oil Well BC #16 Diverter Flow line 21 1!4" 2M Diverter _~ 16" Automatic Knife Valve I I~ Diverter Spool ~~ uu LJ u 16" Diverter Line .~' Marathon Oit Well BC #16 BOP Stack 13 5/8" 5M Mnular Preventer ~' 13 5/8" 5M Cross Marathon Oil Well BC #16 Choke Manifold To Gas Buster To Biooey Line Bleed off Line to Shakers ~ • Surface Use Plan for Beaver Creek #16 Surface location: Anticipated at 1,269' FNL, 1,587' FWL, Sec. 34, T7N, R10W, S.M. 1) Existing Roads Existing roads which will be used for access to Beaver Creek #16 are shown on the attached map. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Beaver Creek #16. 3) Location of existing wells Well BC-16 will be drilled on pad BC 3. A pad drawing is enclosed that shows existing wells and the proposed location of BC-16. 4) Location of existing and/or proposed facilities The locations of existing production facilities are shown on the enclosed pad drawing. Aline heater and separator will be added to the facilities. A flowline will be installed from BC-16 to the facility. 5) Location of Water Supply A water supply well exists on the pad that Beaver Creek #16 will be drilled from. This is shown on the pad drawing. 6) Construction Materials No construction is planned on the pad. If the pad requires minor leveling, the sand and gravel will be obtained from the approved gravel pit in the SW/4, NE/4, Sec. 5, T6N, R10W, S.M. Other materials will be obtained from various vendors and suppliers in Alaska. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The cuttings and excess mud will be hauled to Pad 41-18 of the Kenai Gas Field for disposal into Well KU 24-7, a Class II disposal well (AOGCC Disposal Injection Order No.9, Permit #81-176). b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids Clear fluids will be injected into approved disposal wells Beaver Creek # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled to Pad 34- • 31 of the Kenai Gas field and injected in Well WD #1, an approved disposal well (AOGCC Permit #7-194). d) Chemicals Unused chemicals will be returned to the vendors that provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. S & R will collect and transport sanitary wastes to their ADEC approved disposal facility. No additional structures will be necessary. 9) Plans for reclamation of the surface Beaver Creek #16 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of Beaver Creek #16 and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service prior to any reclamation work beginning. 10) Surface ownership The surface owner of the land in the Beaver Creek Unit is the U.S. Fish and Wildlife Service. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. 11) Operator's Representative and Certification I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions that currently exist; that the statements made in this plan are, to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Marathon Oil Company and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 18 U.S.C. 1001 for the filing of a false statement. Date: 7 2 ~S Name and Title: ~ v~ Wi rd J. Tank, Adv ced Senior Drilling Engineer Marathon Oil Company P.O. Box 3128 Houston, TX 77253 (713) 296-3273 __, __ _, __ / - EXISTING P.+~a Li~49TS ~ ~ ~ 2~1?~- - SECTION LINE / `~`~ / \ 33 ~ 34 / \~' t/ BEAVER CREEK GAS FIELD ~~~ SECTION // PAD 3 \~`~~` I 34 / ~.c.U. No. 10 / 1 a' ala. sll.o / I TREE LINE ~ / ~~ N: 2434097.30 t+t+EL.I ~{t3UsE ~~ 12.0' x 12.2' E: 317355.76 ~ ELEV: 160.3' / ~ ^~; B.C.tJ. NC3, 11 8' D!R. SlLO / ~ ; ~ / ~.„ GUARt'~ PIPE ~ N: 2434G5ft.'3() CON'ROL~OIN`~2 / E:317294.5Ei (~ / N =..2x34038.87 -- / ~~ (rYP!C:AL} ELEV: i6t).5' c- / I E. _ 31~T174.Op / ELEV = if3.92 / ME;"t;ANOL'rARIK ~ r. i' x 5.0' / / a.c.u. NO. & U W ias' D[A. slLa / Z I ~ N: 2434023.22 ~~ m / J / ~ E: 317305.34 B.C.U. h10. 9 / Z WiE7ER BOX ELEV: 160,4' 14.5' DIA. SII_E7 Z / 1.8' x 1,9' ~`'`., ~ N: 2434004.02 { J LL B.C.t p !..iEATE'-n B.C.C1. NC). 5 E:.3173753.72 ``,_--/ ~ 8' DlF V ~ / ~ t55.5' x 2 o`SK9fS) 14.5' ala. SILO [ ELEV: 160.4' / ~ N: 24: \ ~` ~ ~~ N: 2433991.43 `~ ~ N / E: 31" W( rDGFFjC ~`~~= l~ CONCRETEPAa E:317332.53~ h7E1'HnNOL"t~RNK~ r / ELEV ~ F ~~`~~" ~... W? CONTROL PANE>_ ELEV: 500.4' 6,1' x 5.U' / ~ ~, \ 3.0' x 4.0° ME'fHRNOL TRNK~ ~ ~' I "~ 6.1'x 5.0' `~~~B.c.u. Nc~, s B.C.U. NO. 16 1 i-IRE E~cnN~u!sF~ER ~ wELL ~+c,USE ASBUILT LOCATION ~ aulLO!NG (3.8' x 5.3'1 N: z43•=953.ss ASP ZONE 4 NAD27 / '~. E: 317398.08 GUaRDP!PE ELEV ;60.4' N: 2433922.51 / (TYPICALi , E: 317399.53 I ` 1587 FWL B.C. # 16 LAT: 60°39'29.547" LIGFtT Po(..E / ^~! 3~~-..., soft aeL.. kvRSre 40NG: -151 °01'04.101" (TYP9e.,aL} ``~..,,/ ~-: °„~~ Vvar~~ TaNK B.G.LI. N~. 13 FWL = 1587 /'''a. ,~ ~ No. ~ L!Ne r!EnTER ~` aIA. s!L° FNL = 1269' I NO. 9 T -PAK / `~ ~ 20.Q` x 7. i' ~ N: 2433899.66 27 ~,,~ ~ o, -..„,~ ~~ ~ E: s17z~s.37 ~ ELEV: 160.4' (MSL) / ~,,~ ~ o ELEV: 1sz 2• / S34 T07N R10W 5M AK T ARK /! ~ a ~ NO. 6 LtNE HEATER / ~ r / 20.0' x 9.2' ~~ ~ ~ O ~`~w,,,. l 143.8' x 8.a' p ~~ R(Q. $?' - PaK EXfSTiNto PAD ? tA9iTS -~., N0.6T-PAK / ~ 28.0'x9.fl' / 21.1'x9.8' ~Q *" ~ aq ~ ~ / / FREE LINE I GONTROI \\ ~ ~ O'ti / POINT #249 \ N = 2433796.10 ~ ~ ~ ~ +~ * w~ ~~~„"_- Gl1RRD PIPE / E = 397101.60 ~- ~ ~ ~~ (TYPICAi_) ELEV = 963.76 ~ - ~ ~ `~'' ~ CONCRETE PAD / BU;LL)!NG ? ~ ~ o~ (TYP4CALj / 26.0'xiQ.O' `~~ o / I BUILDING ? 1 \ 0 26.0' x 10.0' ~ / ~ \ \ ` wit / ~ vauLT / NOTES ~~~\__V,-/ NORTH 1. BASIS OF COORDINATES IS KEN1 CORS STATION, BASED ON NGS OPUS SOLUTION, NAD27 ALASKA STATE PLANE ZONE 4. 2. BASIS OF VERTICAL CONTROL IS NGS MONUMENT D 81 NEAR LITTLE SKIMO'S IN DOWNTOWN KENAI, ELEVATION = $4.11 FEET (NAND 88). M ~~rxryomrN ARATHON O~ ~-"_ N~ > Consultin Grou ENGINEERING/MAPPING/SURVEYING/TESTING 9 P P.O. BOX 468 SOLDOTNA,AK. 99669 McLane esting VOICE: (907)2834218 FAX: (907)283.3266 EMAIL: SAMCLANE@MCLANECG.COM PROJECT LOCATION SCALE 0 60 120 FEET REVISION: BEAVER CREEK GAS FIELD PAD 3 °A~ '"~°~ WELL B C 16 STAKED LOCATION U DRAWN BY: CRM . . . BCALE: ~~=6B' ASBUILT SURFACE LOCATION DIAGRAM PROJECT NO. 0530 BOOK NO. 04-15 S34 T7N R10W SEWARD MERIDIAN, ALASKA SHEET 1 OF • • VICINITY MAP 0 8000 Scale in Feet oad P o Drillsite ~ro ata N KENAI Spurr HWy * /BCU 10 ~ ~ Sec. 34, T7N, R10W, S.M. ~ ~P~ _BCU 9 J ~P BCU 6 8 -BCU 5 PRODUCTION PAD -BCU 3 PAD 3 `BCU 16 BCU 4 BCU 13 BCU 12 PAD 4A SEC. 33 SEC. 34 N Marathon Oil Company Road PrgjeCt LOCBtIOn 1 BCU 11 ~ ~ 09 B 14~ ` PAD 1A X pes F BCU i 5 BCU 2 ,~~ CA F BEAVER F~ PAD 2 BCU 7 PAD ~ SEC. 4 SEC. 3 PURPOSE: PLAN VIEW PROPOSED LOCATION ON: PAD 3 New Development Gas Well 0 1000 0 AT: BEAVER CREEK PRODUCTION FACILITY BCU No. 16 Scale in Feet IN: KENAI PENINSULA BOROUGH, ALASKA ADJACENT PROPERTY OWNER: Marathon APPLICATION BY: MARATHON OIL COMPANY Kenai National Wildlife Refuge M Mnaanroe 01~ Company P.O. BOX 196168 ALASKA 99519 NCHORAGE , A ~_ . _- .Y - ~ ~_. _. ; . i~ ~ j 111/ - -. _~.~-~_ ___ -.=-11.._.,__ ~ -o" ~~ ~ I •lat 'Y. k ~ .. _ /r2 ..~~ E _ _b -~ _ _ -_-._. -_.. - _ _ ~r ~ '~ ` - P~ ~ __ _.___~ urlgru. ~ W. 97 .y ~ x-~ J/ ~ _a, ~ Y.1F4PEL/NE _ ...~ ~~-O \ II L r - ~ p r1 - ~ _ ll, ... 717 F . 1 :.. 6 - r~- ~ ---- t-- - l./o ~~ ; 'Pinner I,nkw I2 1 ~~- -- 6 s , 5 ~L I s1nU. ~ ~ ~ j ' ,} {.~ ~. ~f ~ I ~ r71 ' ~ Killdeer .4 o n 1 i - ~'j~ ~ ~. . . _ ~ Luke +, ,, 1 ~~~ ~1~' ~ ~ ~ "~l ~I ~ ~ . ~ Fiat Lake~~n7 ~ ~~ ~ d ~d. '" ... W -w.- _ _ ~IW W fo - _ ~ - -. ~. i "1i~" -.(1' d --- - ® 1 ----- __ - - - . ____. --- ~- -- -- R ~ .. .4 Y7 ( S ,Shndurn I,ake% ~.. 18~ ~ .Q" Lake'. Ootka~;~ I _ ~ 3 I ~ -~ t'~ i r;:- ,~o '~~ ~ ~ ~ I ~.~.. 1,r, ~ P .e. - 14 l , " ~ ]3 lg 17 _ ~- ~7 1,, ,.. o ~.: ~- - o e~ ~~ - ;. ~. r ~ ,. - W _. - - - - - _ -- - _ _ - r ~ I LL{ ~. ~ _ _ _ y ~ .. +v I ~~ w ` ~ \ ' ~. i~ .. ~ V W I ~~ .. Gb ~ 1 _ _ o - l ;,1. ; 1 ~_ ~ r^.~ 20 Akula Lake i `` - Beaver Creek Field J 19 0 ~ '20 ,~ l! J°~ - ~.~ B ~ ~ ~ O G .,,> >. - i 0.1 - ~ - Ermone Lake'- I i ~ weu ' Y _ C] ~ ~ W 25 30 l r (~ C ,~ ~ ~ ` , .. // 1,. .. - -o -. .....: '" . __.. ; -., ~ r ~~ I I ~ a K E N A I jLake a. = - r 4~ ~ ~ ~ °oa ,, ) / of _ s \J - _ ~ Well s Y ~ ~ Welf s .. ,~ i ' "~ ~ (~ ~~ ~_ W. ~ I ~ B ;r ~ _ - .«~ 31-x- _ ,32' I 3~ ~ / ~n d ~ I~v 31 ~ " ~~le 2,"~Ti ~, , ~~ .. w,. .,~_ ~ Z;~ ~ ,~~ ~ >I . _ I ` 1 .~. `~` I - ~- , o T6N ~ ~ ou wen l 1 c, a. ~ ...~,~~` ~ - _ ~ s I Well J ,. ~ ~ .~ Ftragt~* ~ k w . r W. ~;~ NATIONAL ~ ~~_. ~. <, ~- _ -_ ,., W I L D L I F E ~._. - ~ ,,.~: ,r .,,r . _ 1 ~~'~° ` Hhode ~~ ~. ~__w --'~r'-- ~,._ ._ ,xe- - ~ ;... _ I fake ~. .~ i ~ ~,1.... «- .. - .,. ~ ~I Q -, _ _ _., .12 _ 1' 7 I ~8 ~~~ w. ~' 10 ~~ .11 (~ ~,~ -1 7 1? 1; 7 ~ ~ 8 ~ ~ ~ . ~. y. _ ,~- ~' ~, ~~ ~ n~k ~, ~~-. J.. 5 r- '''~\ _ fir- --~ , z $ -,~ - -- ~-Lake ~ -- - - ~ ; `ts~. . f~ _ _ ~_ ~. ~ ~- , ~. ~ R10W ~R9W ~~' , ~-~ „` o ~~ ~3 18 ~ `~ -- }'?'~ 16 15 ~/ ~ 14 1 ~ ~ 1R I ~ '.Lake ~. ,~ ° ~ ~` ,~ Eapke Lake ~ „ _ . ~!~ .'L ;1„~ _. ~..- .: ~~ - - D~ -- .,,_.,. ~~ ~ ~ - ~~.-~,~~wr. ~%~ ~~~~ 21 22 ~~' ~ 23 (~~ ~~ 7ro 4 `y~~,~ {'•"V~19 (~ 2-0 GLACIER DRILLING RIG #1 --- MUD PITS AND PUMP ROOM LAYOUT ARATHON Oil Com ny Location: Kenai Peninsula, Alaska Siot: slot #16 Field: Beaver Creek Unit Well: BC-18 Installation: Pad #3 Wellbore: BC-16 Ver 1 Scale 1 cm = 100 a East (feet) -> -400 -200 0 200 400 600 800 o -400 N I I E U () r N ~ 400 Boo 1200 1600 yy 2000 ... t Q 2400 d ~ 2800 3200 L I--. 3600 V 4000 4400 4800 5200 5600 6000 WELL PROFILE DATA Point MD Ina Azl TVD North East dagl100fl V. Secl Tie on 0.00 0.00 167.78 0.00 0.00 0.00 0.00 0.00 KOP 500.00 0.00 167.78 500.00 0.00 0.00 0.00 0.00 EM o/Build 1628.01 33.04 167.78 1563.58 -316.22 88.47 3.00 323.54 End d Hold 3945.74 33.84 167.78 3488.85 -1577.68 341.82 0.00 1614.24 Target BC-16 - BIerIM 5637.76 0.00 167.78 5084.00 -2052.01 444.32 2.00 2099.56 TargetBGe-Tergel 5052.76 0.00 0.00 5299.DD -2D52.D1 444.32 0.00 2099.56 T.D. 8 End of Hold 8192.78 0.00 0.00 5639.00 -2052.01 444.32 0.00 2099.56 KOP 6.00 12.00 DLS: 3.00 deg/100ft 24.00 30.00 End of Build \~ 13 3/bin Casing MARATHQN End of Hold KOP End of Build ~~~ 13 3/bin Casing 200 0 -200 -400 -600 -800 n Z -1000 ~ '^+, -1200 ~ 4rt v -1400 -1600 -1800 End of Hold 29.84 25.84 DLS: 2.00 deg/100ft 17.84 13.84 9.84 Sterling BO 5•~ Sterling B1 BC-16 -Sterling 63 - 7/21/05 End of Drop _ Sterling B2 Sterling 64 Sterling B3A Target ~ 9 5/Sin Casing 1 h TD -400 -0 400 800 1200 1600 2000 2400 scale 1 cm = zo~,ertical Section (feet) -> Azimuth 167.78 with reference 0.00 N, 0.00 E from slot #16 Sterling B1 Sterling B2 Tar et Sterling BO Sterling B3A ~ ~ TDg End of Drop Sterling 64 9 5/bin Casing -2000 -2200 0 0 -2400 ~ crea[eD Dy : rlanner Date plotted : 26-Jul-2005 Plot reference is BC-16 Ver 1. Ref wellpath is BG16 Ver 1. CooMinates are in feet reference slot #16. True Vertical Depths are reference Rig Datum. Measured Depths are reference Rig Datum. Rig Datum: Glacier 1 Rig Datum to mean sea level: 179.00 ft. Plot North is aligned to TRUE North. MARATHON Oil Company,slot #16 Pad #3, MARATHON Beaver Creek Unit,Kenai Peninsula, Alaska PROPOSAL LISTING Page 1 Wellbore: BC-16 Ver 1 Wellpath: BC-16 Ver 1 Date Printed: 26-Ju1-2005 ~"~ _` li~l'1 Jail Wellbore Name _ Created Last Revised BC-16 Ver 1 21-Jul-2005 ~- 26-Jul-2005 Wefi Name Government ID Last Revised BC-16 21-Jul-2005 Slot Name Grid Northing Grid Eastina Latitude Lonoitude North East slot #16 2433922.5100 317399.5300 N60 39 29.5473 W151 14.1009 4011.43N 3697.28W Installation _ Name Eastina Northing Coord Svstem Name North Alignment j Pad #3 321035.2950 ~y 2429855.7240TAK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastina Northing Coord Svstem Name North Alignment Beaver Creek Unit 321035.2950 2429855.7240 AK-4 on NORTH AMERICAN DATUM 1927 datum True _ - - -- :omments All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 179.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 167.78 degrees Bottom hole distance is 2099.56 Feet on azimuth 167.78 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • MARATHON Oil Company,slot #16 Pad #3, MARATHON Beaver Creek Unit,Kenai Peninsula, Alaska PROPOSAL LISTING Page 2 WeNbore: BC-16 Ver 1 Wellpath: BC-16 Ver 1 Date Printed: 26-Ju1-2005 ,~ t ~~~ INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg] ND[ft] North[ft] _ East[ftJ Dogleg d /100ft Vertical Section ft Easting Northing ', 0.00 0.00 167.78 0.00 _ O.OON 0.00E 0.00 0.00 317399.53 _ 2433922.51 100.00 0.00 167.78 100.00 O.OON 0.00E 0.00 0.00 _ 317399.53 2433922.51 200.00 0.00 167.78 200.00 _ O.OON 0.00E __ 0.00 0.00 317399.53 2433922.51 300.00 0.00 167.78 300.00 O.OON 0.00E _ 0.00 _ 0.00 317399.53 2433922.51 400.00 0.00 167.78 400.00 O.OON 0.00E 0.00 0.00 317399.53 2433922.51 500.00 0.00 167.78 500.00 O.OON 0.00E 0.00 0.00 317399.53 2433922.51 600.00 3.00 167.78 599.95 2.56S 0.55E 3.00 2.62 317400.04 _ 2433919.94 700.00 6.00 167.78 699.63 10.23S 2.21E 3.00 10.46 317401.59 2433912.25 800.00 9.00 167.78 798.77 22.98S 4.98E 3.00 23.51 317404.15 2433899.46 900.00 12.00 167.78 897.08 40.79S 8.83E 3.00 41.74 317407.73 2433881.59 1000.00 15.00 167.78 994.31 63.60S 13.77E 3.00 65.08 317412.31 2433858.71 1100.00 18.00 167.78 1090.18 91.36S 19.78E 3.00 __ 93.48 317417.89 2433830.86 1200.00 21.00 167.78 1184.43 123.98S 26.84E 3.00 126.85 317424.45 2433798.14 1300.00 24.00 167.78 1276.81 161.38S _ 34.94E 3.0 ~ 317431.97 2433760.62 1400.00 27.00 167.78 1367.06 203.45S 44.05E 3.00 ~ 208.16 317440.42 2433718.42 1500.00 30.00 167.78 1454.93 250.08S . 54.15E 3.00 _ 255.87 317449.80 2433671.64 1600.00 33.00 167.78_ 1540.18 301.14S _ 65.21E 3.00 _ 308.12 __ _ 317460.06 2433620.42 1628.01 33.84 167.78 1563_56 316.22S 68.47E 3.00 323.54 317463.09 2433605.29 1700.00 33.84 167.78 1623.36 355.40S 76.95E 0.00 363.63 317470.97 2433565.99 1800.00 33.84 167.78 _ 1706.42 409.82S 88.74E 0.00 _ _ 419.32 317481.91 _ 2433511.39 1900.00 33.84 167.78 1789.47 464.25S 100.53E 0.00 475.01 317492.85 2433456.79 2000.00 33.84 167.78 1872.53 _ 518.68S 112.31E _ 0.00 530.70 _ 317503.79 2433402.19 2100.00 33.84 167.78 1955.59 573.10S 124.10E 0.00 586.39 317514.73 2433347.59 2200.00 33.84 167.78 2038.65 627.53S 135.88E 0.00 642.07 317525.67 2433292.99 2300.00 33.84 167.78 2121.71 681.96S 147.67E 0.00 697.76 317536.61 2433238.39 2400.00 33.84 _167.78 2204.77 736.38S 159.45E 0.00 753.45 317547.55 2433183.79 2500.00 33.84 167.78 _ 2287.83 790.81S 171.24E 0.00 __ 809.14 317558.49 2433129.19 2600.00 33.84 167.78 2370.89 845.24S 183.02E 0.00 864.83 317569.43 2433074.59 2700.00 33.84 167.78 2453.95 899.66S _ _ 194.81 E 0.00 920.51 317580.37 2433019.99 2800.00 33.84 167.78 2537.01 954:09S _ 206.59E _ 0.00 976.20 __ 317591.31 2432965.39 2900.00 33.84 167.78 2620.07 1008.52S 218.38E 0.00 1031.89 _ _ 317602.25 2432910.80 000.00 33.84 167.78 2703.13 _ 1062.94S 230.16E 0.00 _. _ 1087.58 317613.19 2432856.20 3100.00 33.84 167.78 2786.19 1117.37S 241.95E 0.00 1143.27 317624.13 2432801.60 3200.00 33.84 167.78 2869.24 1171.SOS 253.73E 0.00 1198.95 317635.07 2432747.00 3300.00 33.84 167.78 2952.30 1226.23S __ 265.52E 0.00 1254.64 317646.01 2432692.40 3400.00 33.84 167.78 3035.36 1280.65S 277.30E 0.00 1310.33 317656.95 2432637.80 3500.00 33.84 167.78 3118.42 1335.08S _ 289.09E 0.00 1366.02 _ 317667.89 2432583.20 3600.00 33.84 167.78 3201.48 1389.51S 300.87E 0.00 1421.71 317678.83 2432528.60 3700.00 33.84 167.78 3284.54 1443.93S 312.66E 0.00 1477.40 317689.77 2432474.00 3800.00 33.84 167.78 3367.60 1498.36S 324.44E 0.00 1533.08 317700.71 2432419.40 3900.00 33.84 _167.78 _3450_66 1552.79S 336.23E 0.00 1588.77 317711.65 2432364.80 3945.74 33.84 167.78 3488.65 1577.68S 341.62E __ 0.00 1614.24 _ . 317716.66 2432339.83 4045.74 31.84 167.78 3572.67 1630.68S 353.09E 2.00 1668.47 317727.31 2432286.66 4145.74 29.84 167.78 3658.52 1680.78S 363.94E 2.00 1719.73 317737.38 2432236.40 _ 4245.74 27.84 167.78 3746.12 1727.93S 374.15E _ 2.00 1767.97 _ _ 317746.86 2432189.11 4345.74 25.84 167.78 3835.34 1772.05S 383.70E 2.00 1813.12 317755.73 2432144.84 4445.74 23.84 _ _ 167.78 3926.08 1813.11S 392.60E 2.00 1855.12 317763.98 2432103.66 4545.74 21.84 167.78 4018.24 1851.04S 400.81E 2.00 _ 1893.94 317771.60 2432065.60 4645.74 19.84 167.78 _ 4111.69 1885.81 S .. 408.34E 2.00 1929.51 _ 317778.59 _ 2432030.72 4745.74 17.84 167.78 4206.33 1917.37S ._ 415.17E 2.00 - _ 1961.81 __ 317784.94 2431999.06 _ 4845.74 _ 15.84 167.78 4302.03 1945.68S 421.30E 2.00 1990.77 317790.63 _ 2431970.66 _ _ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 179.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 167.78 degrees Bottom hole distance is 2099.56 Feet on azimuth 167.78 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated MARATHON Oil Company,slot #16 Pad #3, MARATHON Beaver Creek Unit,Kenai Peninsula, Alaska • PROPOSAL LISTING Page 3 Wellbore: BC-16 Ver 1 Wellpath: BC-16 Ver 1 Date Printed: 26-Ju1-2005 ;mac. INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[degj TVD[ft] North[ftj East[ft] Dogleg de /100ft Vertical Section ft Fasting Northing 4945.74 13.84 167.78 4398.69 __ 1970.71S 426.72E 2.00 2016.39 _ 317795.66 2431945.55 5045.74 11.84 167.78 4496.19 1992.43S 431.43E 2.00 2038.61 317800.03 2431923.76 5145.74 9.84 167.78 4594.40 _ 2010.82S 435.40E 2.00 ~ 2057.41 317803.72 2431905.32 5245.74 7.84 167.78 4693.20 2025.83S 438.66E 2_00 _ 2072.78 317806.74 2431890.26 5345.74 5.84 167.78 4792.49 2037.47S 441.18E _ 2.00 2084.69 317809.08 2431878.58 5445.74 3.84 167.78 4892.13 _ 2045.72S 442.96E 2.00 2093.13 317810.74 2431870.31 5545.74 1.84 167.78 4992.00 2050.56S 444.01E 2.00 __ 2098.08 _ 317811.71 2431865.45 5637.76 0.00 167.78 5084.00 2052.01 S 444.32E 2.00 2099.56 317812.00 2431864.00 5700.00 0.00 167.78 5146.24 2052.01S 444.32E 0.00 2099.56 317812.00 2431864.00 5800.00 0.00 167.78 5246.24 2052.01S 444.32E 0.00 2099.56 317812.00 2431864.00 5852.76 0.00 0.00 5299.00 2052.01S 444.32E 0.00 2099.56 317812.00 2431864.00 5900.00 0.00 0.00 5346.24 2052.01S 444.32E 0.00 2099.56 317812.00 2431864.00 6000.00 0.00 0.00 5446.24 2052.01S 444.32E 0.00 2099.56 317812.00 2431864.00 6100.00 0.00 0.00 5546.24 __ 2052.01 S 444.32E 0.00 _ 2099.56 317812.00 _ 2431864.00 6192.76 0.00 0.00 5639.00 i _ 2052.01 S 444.32E _,. 0.00 _ _ 2099.56 L 317812.00 2431864.00 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 179.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 167.78 degrees Bottom hole distance is 2099.56 Feet on azimuth 167.78 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~J MARATHON Oil Company,slot #16 Pad #3, MARATHON Beaver Creek Unit,Kenai Peninsula, Alaska PROPOSAL LISTING Page 4 Wellbore: BC-16 Ver 1 Wellpath: BC-16 Ver 1 Date Printed: 2ti-Jul-2005 INTEQ Comments MD ft ND ft North fit Eas ft Comment 500.00 500.00 O.OON 0.00E _ KOP 1628.00 1563.56 _ 316.22S 68.47E End of Build _ _ 3974.75 3512.83 1593.35S _ 345.01E __ _ _ End of Hold 5392.46 4839.00 2041.75S 442.10E Sterling BO 5482.69 4929.00 2047.91S 443.44E Sterling B1 _ 5602.76 5049.00 2051.80S 444.28E Sterlin 62 _ 5637.75 5084.00 2052.01S 444.32E End of Droo 5637.76 5084.00 2052.01 S 444.32E Sterlin B3 Tar et 5694.76 5141.00 2052.01S 444.32E Sterlin 63A 5792.76 5239.00 2052.01S 444.32E Sterlin 64 5852.76 5299.00 2052.01 S 444.32E Tar et 6192.76 5639.00 2052.01S 444.32E TD __ Hole Sections Diameter in Start MD ft Start TVD ft Start North ft Start Eas ft End MD ft End TVD ft End North ft Start East ft Wellbore 16.000 0.00 0.00 O.OON 0.00E 2514.65 2300.00 798.79 172.96E BC-16 Ver 1 12 1/4 2514.65 2300.00 798.79S 'i__ 172.96E .6192.76 5639.00 2052.01S 444.32E BC-16 Ver 1 Casin s Name Top MD ft Top ND ft Top North ft Top East ft Shoe MD ft Shoe TVD ft Shoe North ft Shoe East ft Wellbore 13 3/bin Casin 0.00 0.00 O.OON 0.00E 2514.65 2300.00 798.79S 172.96E BC-16 Ver 1 9 5/bin Casin 0.00 0.00 O.OON 0.00E 6192.76 5639.00 2052.01S 444.32E BC-16 Ver 1 Tar ets Name North ft East ft TVD ft Latitude Longitude Eastin Norhtin Last Revised BC-16 -Sterling B3 -.7/21/05 2052.01S 444.32E 5084.00 N60 39 9.33 W151 0 55.18 _ _ 317812.00 _ _ 2431864.00 _ 14-Apr-2003 i __ _ _ BC-16 -Target - 7/21/05 - 2052.01S 444.32E 5299.00 N60 39 9.33 W151 0 55.18 - 317812.00 2431864.00 --- 14-Apr-2003 ~ - ~ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Glacier 1 179.Oft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 167.78 degrees Bottom hole distance is 2099.56 Feet on azimuth 167.78 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated //.~~ MARATHON Oil Com~ny BAKER i, HUGHES Location: Kenai Peninsula, E i Field: Beaver Creek Unit INTF.Q Installation: Pad #3 Scale 1 cm = 50 ft East feet) -> -200 -100 0 00 200 300 400 100 0 -100 -200 -300 -400 -500 -600 -700 n y -800 ~ -900 O Z -1000 -1100 -1200 -1300 -1400 -1500 -1600 II _1700 E U -1800 U -laska Slot: slot #16 Well: BC-16 wellbore: BC-16 yer 1 MARAT HON Scale 1 cm = 5o ft East (feet) -> -0 100 200 300 400 500 600 I I I _I I 1 I I I_ I ~ 100 -200 ~ " ~Q ~ -200 m ~' ^~~ ~ 0 -300 ~ ,ap ~ -300 ,eoo ,,~ - 8 -100 -400 ~ noo ,~ - -400 ~ ~ ~, +900 -200 -500 1 ~ ~- -500 A ,900 ~, 1- -300 ~ -600 -{ p00 o8 -600 ~ e~ ~ ~,~ , '1 -aoo ~ -700 - -700 ~ '~°° o -500 Z -800 -{ "°° Ir -800 -600 -900 :600 - ze00 - ' -900 -700 -1000 - ~°°° - -1000 ~ noo n ~ -800 C -1100 - - -1100 Z O „~ S ~ -900 ~ -1200 ~ ~°° - -1200 ~D ~ ~ 0oao . -f ~. -1000.... -1300 ~ 3100 ~- -1300 -1100 -1400 3~o I -1400 -1200 -1500 - 0wo 0aoo ~ -1500 -1300 -1600 ~ -1600 0wo r -1400 -1700 1 »~ -1700 _ 090o r -1500 -1800 moo -1800 .000 r .,oo I -1600 -1900 ,~ -1900 ~ ~ i 6300 ~ ~ O _ ~ 6x00 6 I~ -1700 -2000 - - -200 ~ 3 ~ ~ ~ ~ Bc-i6' II II -1800 cn ~ -2100 _2100 0 O U ~ ~ i ~ -0 100 200 300 400 500 600 Scale 1 cm = 50 fast (feet) -> -200 -100 -0 100 200 300 400 Scale 1 cm = 50 ft East (feet) -> -ii~ BAKER HUGHES INTF.Q ~ARATHON Oil Com~ny Location: Kenai Peninsula, Alaska Slot: slot #16 Field: Beaver Creek Unit Well: BC-16 Installation: Pad #3 Wellbore: BC-16 Ver 1 MARATHON g (1 ~ (~~ TRUE NORTH U 1200 ~/ 1 ~ 1000' 1 ~ ~ n 290 280 270 260 250 reate0 by: Planner Date plotted : 26-Jul-2005 Plot reference is BC-16 Ver 1. Ret wellpath is BC-i6 Ver 1. Coordinates are in feet reference slot #16. ~, True Vertical Depths are reference Rig Datum, Measured Depths are reference Rig Datum. Rig Datum: Glacier 1 Rig Datum to mean sea level: 179.00 ft. Plot North is aligned to TRUE North. 70 80 90 100 110 190 180 170 Normal Plane Travelling Cylinder -Feet All depths shown are Measured depths on Reference Well 200 160 MARATHON Oil Company CLEARANCE LISTING Page 1 _ _ _~ BC-16 Ver 1, BC-16 Ver 1 Date Printed: 26-Ju1-2005 MARATHON slot #16, Pad #3 Beaver Creek Unit, Kenai Peninsula, INTEQ Alaska Ellipse separations are reported ONLY if BOTH wells have uncertainty data Only Depth and Magnetic Reference Field error terms are correlated across tie points Proximities beyond ft with expansion rate of ft/1000ft are not reported Cutoff is calculated on CENTRE to CENTRE distance Summary data uses Closest Approach clearance calculation for all minima Hole size/Casings are NOT included Hole size/Casings are NOT subtracted from Centre-Centre distance Ellipses scaled to 2.OOstandard deviations. Closing Factor Confidence limit of 99.80% Errors on Ref start at Slot Permanent Datum (0.00) Report uses Revised: (D-C)/E Factor Calculation Wel l _ Name Government ID Last Revised _ BC-16 21-Jul-2005 Slot Name _ Grid Northin Grid Eastin __ Latitude _ Longitude North East slot #16 2433922.5100 317399.5300 N60 39 29.5473 W151 14.1009 4011.43N 3697.28W Installation Name Eastin Northin Coord S stem Name North'Aii nment Pad #3 321035.2950 2429855.7240 AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Beaver Creek Unit 321035.2950 2429855.7240 AK-4 on NORTH AMERICAN DATUM 1927 datum True Reference Wellbore Surve Tool Pro ram Surve Name MD ft Surve Tool __ Error Model Planned 5852.76 Navi Trak Standard i All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated MARATHQN MARATHON Oil Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 • CLEARANCE LISTING Page 2 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated ~~~ INTEQ r 1 M MARATHON MARATHON Oil Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 • CLEARANCE LISTING Page 3 Date Printed: 26-Jul-2005 Beaver Creek Unit, Kenai Peninsula, Alaska ~~~ °s INTEQ Clearance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation jftJ 0.00 0.00 O.OON 0.00E ___BC-6_ 0.00 1_00 98.76N 93.65W -43.5 136.11 136.11 _16.40 16.40 O.OON 0.00E BC-6 _ _ 15.40 __ _ 16.40 __ 98.76N 93.65W -43.5 136.10 135.62 100.00 100.00 O.OON 0.00E BC-6 99.00 100.00 98.76N _ 93.65W -43.5 _ 136.10 134.89 200.00 200.00 O.OON 0.00E BC-6 199.00 200.00 98.76N 93.65W -43.5 136.10 134.25 300.00 300.00 O.OON 0.00E BC-6 299.00 300.00 98.76N 93.65W -43.5 136.10 133.72 400.00 400.00 O.OON 0.00E BC-6 399.00 400.00 98.76N 93.65W -43.5 136.10 133.24 500.00 500.00 O.OON 0.00E BC-6 499.00 500.00 98.76N 93.65W -43.5 136.10 132.79 524.93 524.93 0.16S 0.03E BC-6 523.95 524.95 98.75N 93.66W 148.8 136.24 132.73 600.00 599.95 2.56S 0.55E BC-6 598.97 599.97 98.70N 93.69W 149.2 138.33 134.29 700.00 699.63 10.23S 2.21E BC-6 698.70 699.70 98.61N 93.76W 150.7 145.11 140.40 800.00 798.77 22.98S 4.98E BC-6 797.86 798.86 98.43N 93.89W 152.8 156.58 151.23 853.02 851.01 31.80S 6.88E BC-6 850.18 851.18 98.32N 93.97W 154.1 164.63 158.93 885.83 883.21 37.96S 8.22E BC-6 882.39 883.39 98.23N 94.04W 154.9 170.30 164.40 900.00 897.08 40 79S 8.83E BC-6 i 896.27 897.27 98.19N 94.07W 155.2 172.92 166.94 1000.00 994.31 63.60S 13.77E BC-6 ~ . __ 993_55.__ 994.55 97.90N __ __ _ 94.28W 157.8 194.31 187.69 1100.00 1090.18 91.36S 19.78E BC-6 ~ 1089.66 1090.65 97.55N 94.47W 160.2 220.77 213.31 1200.00 1184.43 123.98S 26.84E BC-6 1184.02 _ 1185.01 97.19N 94.66W 162.3 252.35 244.08 1300.00 1276.81 161.38S 34.94E BC-6 1276.76 1277.76 96.84N 94.82W 164.3 288.99 279.92 1400.00 1367.06 203.45S 44.05E BC-6 1367.18 1368.17 96.46N 94.90W 165.9 330.54 320.71 1500.00 1454.93 250.08S 54.15E BC-6 .1455.23 1456.23 __ 96.10N 94.99W 167.3 .376.93 366.36 1600.00 1540.18 301.14S 65.21E BC-6 1540.58 1541.57 95.77N 95.04W 168.4 428.03 416.67 _ 1628.01 1563.56 316.22S 68.47E BC-6 1564.01 1565.00 95.68N 95.05W 168.7 443.17 431.57 1700.00 1623.36 355.40S __ 76.95E BC-6 1623.94 1624.94 95.46N 95.07W 169.6 _ 482.56 _ 470.37 Offset Wellbore Surve Toof Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Model _ BC-6 ____, _ BC-6 GMS <0-15844'> 15844.00 j Level Rotor Gvro Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • M MARATHON MARATHON Oil Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 • CLEARANCE LISTING Page 4 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska ~%~ ItS INTEQ Clearance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] .Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft ENipse Separation [ft] 0.00 0.00 O.OON ___ 0.00E BC-3 6.00 _ 6.00 34.79N 80,19W -66.5 87.62 87.62 6.00 6.00 O.OON 0.00E _ BC-3 _ 6.00 __ 6.00 34.79N __. 80.19W -66.5 87.41 87.36 100.00 100.00 O.OON 0.00E __ BC-3 99.59 99.59 34.51 N 80.61 W -66.8 87.69 87.23 200.00 200.00 O.OON 0.00E BC-3 199.28 199.26 33.71 N 81.77W -67.6 88.45 86.94 300.00 300.00 O.OON 0.00E _ BC-3 _ 299.51 299.48 32.77N _ 83.04W -68.5 89.28 86.51 400.00 400.00 O.OON 0.00E BC-3 399.50 399.47 31.92N 84.OOW -69.2 89.87 86.20 500.00 500.00 O.OON 0.00E BC-3 499.74 499.70 31.12N 84.72W -69.8 90.26 85.83 508.53 508.53 0.02S 0.00E BC-3 508.27 508.23 31.06N 84.78W 122.3 90.30 85.82 600.00 599.95 2.56S 0.55E BC-3 ~ 599.59 599.55 30.50N 85.35W 123.2 92.04 86.84 606.96 606.90 2.93S 0.63E BC-3 606.53 606.49 30.52N 85.38W 123.4 92.28 87.06 672.57 672.34 7.62S 1.65E BC-3 673.24 673.17 32.09N 84.63W 126.9 94.98 89.58 700.00 699.63 10.23S 2.21E BC-3 700.72 700.59 _ 33.48N 83.67W 129.1 96.37 90.89 800.00 798.77 22.98S 4.98E BC-3 _ 799.34 _ 798.74 41.03N 78.05W 139.5 104.84 99.01 900.00 897.08 40.79S 8.83E BC-3 _895.16 893.51 51.99N 69.14W 151.5 121.25 114.95 1000.00 994.31 63.60S 13.77E BC-3 _988.29 985.16 64.55N 58.34W 162.0 147.33 140.43 1100.00 1090.18 _ 91.36S 19.78E BC-3 1077.30 1072.49 77.41 N 47.01 W 169.8 182.37 174.75 1200.00 1184.43 123.98S 26.84E BC-3 _ 1161.32 1154.54 _ _ 91.27N _ 35.34W 175.6 226.03 217.61 1300.00 1276.81 161.38S 34.94E BC-3 1240.91 1231.73 106.15N 22.95W -180.0 277.41 268.13 1400.00 1367.06 203.45S 44.05E BC-3 1311.98 1300.08 121.21 N 10.67W -176.7 335.98 325.86 1500.00 1454.93 250.08S 54.15E BC-3 1379.93 __ 1364.70 137.41 N 2.71 E -173.8 401.17 390.18 1600.00 1540.18 301.14S 65.21E BC-3 1439.25 1420.45 152.90N 15.76E -171.4 472.16 460.36 1628.01 1563.56 316.22S 68.47E BC-3 1457.22 1437.21 157.80N 19.99E -170.7 492.96 480.90 _ Offset Wellbore Surve Tool Pro rams Well Wellbore Surve Name MD ft Surve Tool Error Mod I BC-3 BC-3 MSS <0-6387'> 6387.00 Photomechanical Ma netic Standard BC-3 BC-3 _ __..___ MWD <6433-10005> 9999.00 Navi Trak__ __ Standard _________. All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated .J MARATHON MARATHON O[I Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 CLEARANCE LISTING Page 5 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska 7 ~ , L~ NTE(? Clearance Data Reference MD[ft} Reference ND[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside Closest. Approach Distance Ellipse Separation [ff] 0.00 0.00 O.OON 0.00E BC-9 6.14 0.04 80.48N 18.89W -13.2 82.67 82.56 100.00 __ 100.00 O.OON 0.00E _ BC-9 106.14 ___ 100.04 80.44N 18.85W -13.2 82.62 _ 81.95 200.00 200.00 O.OON 0.00E BC-9 ~ 206.22 200.12 80.35N _ 18.76W _ -13.1 __ 82.51 _ 81.45 300.00 300A0 __O.OON 0.00E BC-9 _306.31 300.21 80.22N 18.64W -13.1 82.36 80.95 400.00 400.00 O.OON 0.00E _ BC-9 406.31 400.20 80.01N 18.43W -13.0 82.11 80.37 500.00 500.00 O.OON 0.00E BC-9 506.35 500.25 79.77N 18.22W -12.9 81.83 79.70 508.53 508.53 0.02S 0.00E BC-9 514.88 508.78 79.75N 18.20W 179.4 81.82 79.67 600.00 599.95 2.56S 0.55E BC-9 ' 606.39 600.29 79.51 N 17.99W 179.5 84.14 81.67 700.00 699.63 10.23S 2.21E BC-9 706.71 700.60 78.94N 17.93W 179.5 91.41 88.58 800.00 798.77 22.98S 4.98E BC-9 807.80 801.68 77.04N 17.75W 179.4 102.61 99.43 900.00 897.08 40.79S 8.83E BC-9 911.84 905.54 71.23N 18.26W 178.6 115.56 111.95 1000.00 994.31 63.60S 13.77E BC-9 _ 1018.21 1011.15 59.16N 21.53W 176.2 128.84 124.75 1100.00 1090.18 91.36S 19.78E BC-9 I 1127.51 __ 1118.51 39.34N __ 26.05W 173.0 _ 141.37 136.70 1200.00 1184.43 123.98S 26.84E BC-9 1232.16 1219.73 13.28N 31.05W 169.6 153.09 147.77 _ 1300.00 1276.81 161.38S _ 34.94E BC-9 1341.09 1323.43 __ 19.57S 36.27W 166.1 165.39 159.27 1400.00 1367.06 203.45S 44.05E BC-9 1445.31 1420.92 56.06S 41.17W 162.8 178.57 171.52 1500.00 1454.93 250.08S 54.15E B C-9 _ 1552.09 1518.81 98.33S 46.70W _ 159.6 193.08 _ 184.92 1600.00 1540.18 301.14S 65.21E _ BC-9 1660.13 __ 1615.35 146.34S 53.35W __ 156.3 208.97 199.49 1628.01 1563.56 316.22S 68.47E B C-9 1689.95 1641.44 160.64S 55.26W 155.3 213.49 203.62 1700.00 1623.36 355.40S 76.95E ___ _ BC-9 ~ 1759.89 1702.27 194.88S 59.76W 153.3 225.14 _ 214.21 1800.00 1706.42 409.82S 88.74E BC-9 1857.39 1787.35 242.05S 66.20W 150.9 242.29 229.85 1900.00 1789.48 464.25S 100.53E BC-9 1957.44 1874.51 290.71 S 72.99W 148.7 _ 259.73 245.65 2000.00 1872.53 518.68S __ 112.31E BC-9 _ 2058.18 1961.81 340.58S _ 79.32W __ 146.7 276.43 260.65 2100.00 1955.59 573.10S 124.10E BC-9 2159.88 2049.40 391.91S 85.19W 144.9 292.29 274.71 2200.00 2038.65 627.53S 135.88E BC-9 2257.40 2133.04 441.75S 90.88W 143.2 307.97 288.58 2300.00 2121.71 681.96S 147.67E BC-9 2358.00 2219.15 493.38S 97.11 W 141.5 323.99 302.70 _ 2400.00 2204.77 _ 736.38S 159.45E BC-9 2458.30 2304.52 545.69S 103.03W 139_9 339.42 316.17 2500.00 2287.83 790.81S 171.24E _ BC-9 2555.32 2386.85 596.68S 108.96W 138.4 354.96 329.75 2600.00 2370.89 845.24S 183.02E BC-9 2652.62 2469.42 647.75S 115.39W 137.0 _ 371.16 343.95 _ 2700.00 2453.95 899.66S 194.81E ____ BC-9 2749.00 . 2551.42 697.99S 121.91 W 135.7 387.92 __, 358.73 2800.00 2537.01 _ 954.09S 206.59E BC-9 __ 2 847.15 2635.18 748.70S 128.49W 134.6 405.10 _ 373.91 2900.00 2620.07 _ _ 1008.52S 218.38E _ BC-9 _ 2942.65 2716.53 798.25S 135.39W 133.6 422.69 _ _ 389.52 3000.00 2703.13 1062.94S 230.16E BC-9 _ 3041.72 2800.87 849.69S 142.88W 132.5 440.67 405.43 3100.00 3200.00 2786.19 2869.25 1117.37S 1171.80S 241.95E_ 253.73E BC-9 BC-9 __ 3139.83 3235.03 2884.34 2965.62 900.73S 949.80S _ 150.14W__ 157.15W _ 131.6 130.8 458.59 _ 476.85 _ 421.29 437.58 3300.00 2952.30 1226.23S 265.52E BC-9 3324.87 3043.41 994.23S 163.81 W 130.3 496.43 455.38 3346.46 2990.89 1251.51S 270.99E BC-9 3368.46 3081.62 1014.97S 167.02W 130.2 . ._. 506.01 464.13 3400.00 3035.36 1280.65S _ 277.30E BC-9 _ 3417.23 _ 3124.71 1037.52S 170.51 W 130.2 517.34 474.59 3500.00 3118.42 1335.08S 289.09E BC-9 3508.55 3206.18 1078.30S 176.86W 130.2 539.21 494.90 Offset Wellbore Surve Tool Pro rams Well _ Wellbore __ Surv~Name ______ _ MD ft _ Survev Tool_ Error Model BC-9 BC-9 ! MWD <0-5965'> No Tool 5923.00 Navi Trak Standard BC-9 ____ BC-9 I Schlumberger <5943-8858'> 8858.00 No Tool ___ No Model All data is in Feet unless othervvise stated Coordinates are from Slot and ND's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1D) Prepared by Baker Hughes Incorporated M MARATHON MARATHON Oil Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 CLEARANCE LISTING Page 6 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska ~~~ INTEQ Clearance Data Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation ,[ft] 0.00 0.00 _ O.OON 0.00E BC-13 __ 0 16 0.16 _ _ 31.95S 112.71 W -105.8 117.15 117.14 '~ 100.00 100.00 O.OON 0.00E BC-13 100.47 ___ 100.47 31.88S 112.55W -105.8 116.97 116.52 200.00 200.00 O.OON 0.00E BC-13 200.34 _ 200.33 31.66S 112.18W -105.8 116.56 115.88 300.00 300.00 O.OON 0.00E BC-13 299_90 299.90 31.09S 112.27W -105.5 116.49 115.68 400.00 400.00 O.OON 0.00E BC-13 399.67 _ 399.66 _ 31.11S 112.31W __ -105.5 116.54 115.59 500.00 500.00 O.OON 0.00E BC-13 500.38 500.38 30.76S 112.37W -105.3 116.50 115.18 557.14 557.13 0.84S 0.18E BC-13 557.00 556.99 30.50S 112.32W 87.5 116.35 114.88 600.00 599.95 2.56S 0.55E BC-13 599.39 599.39 30.41S 112.55W 88.4 116.49 114.90 688.98 688.67 9.13S 1.98E BC-13 688.88 688.87 30.13S 112.62W 91.8 116.51 114.70 700.00 699.63 10.23S 2.21E BC-13 I 699.84 699.83 30.08S 112.61 W 92.4 116.53 114.71 800.00 798.77 22.98S 4.98E BC-13 798.80 798.79 29.76S 112.60W 98.8 117.77 115.58 900.00 897.08 40.79S 8.83E BC-13 896.31 896.30 29.26S 112.94W 107.2 122.32 119.86 1000.00 994.31 63.60S 13.77E BC-13 __ 993.05 993.04 28.95S 113.77W _ 116.5 132.17 129.42 _ 1100.00 _ 1090.18._ 91.36S 19.78E BC-13 1089.54 1089.52 28.40S 114.22W 125.9 148.05 144.71 1164.70 1151.36 111.91S 24.23E BC-13 1149.77 1149.75 28.34S 114.70W 131.3 162.15 158.41 1200.00 1184.43 123.98S 26.84E BC-13 1182.77 1182.75 28.37S 115.11 W 134.1 171.16 167.24 1300.00 1276.81 161.38S 34.94E BC-13 _ 1274.54 1274.51 28.50S 116.17W 140.9 201.23 196.92 1400.00 1367.06 203.45S 44.05E __ BC-13 _ 1365.46 _ 1365.42 27.99S 116.94W ._ 146.6 238.13 233.33 1500.00 _ 1454.93 250.08S 54.15E BC-13 1453.77 1453.74 27.99S 117.60W 151.1 280.75 275.40 1600.00 1540.18 __ 301.14S _ 65.21E _ BC-13 1538.98 1538.94 28.20S _ 118.47W 154.5 328.99 __ 323.21 1628.01 1563.56 316.22S 68.47E BC-13 1561.47 1561.43 28.25S 118.72W 155.3 343.47 337.60 1700.00 1623.36 355.40S 76.95E BC-13 1619.52 1619.47 28.16S 119.52W 157.6 381.70 375.68 1800.00 1706.42 409.82S 88.74E ___ BC-13 1704.34 1704.29 28.04S 120.45W 160.3 _ 435.34 _ 428.89 1900.00 1789.48 464.25S 100.53E BC-13 1786.04 1785.98 27.67S 121.38W 162.4 489.75 482.90 All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated MARATHON MARATHON Oil Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 • CLEARANCE LISTING Page 7 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska ~.r INTEQ Clearance Data Reference MD[ft} Reference TVD[ft] Reference North[ftJ - Reference East[ft] Offset Well --- Offset MD[ft] Offset TVD(ftJ Offset North(ft] Offset East[ft] Angle From Highside de Closest Approach Distance ft Ellipse Separation [ftJ _ 0.00 0.00 O.OON 0.00E BC-10 --- 0.46 0.46 --- 174.10N 46.44W -14.9 180.19 180.18 100.00 100.00 O.OON 0.00E BC-10 _ 101.38 _ 101.37 ~ __ 173.74N 46.07W -14.9 179.75 179.35 200.00 200.00 O.OON 0.00E BC-10 202.90 202.88 172.79N 45.09W -14.6 178.60 177.88 300.00 300.00 O.OON 0.00E BC-10 303.20 303.17 171.37N 43.75W -14.3 176.90 175.76 400.00 400.00 O.OON 0.00E BC-10 403.07 403.02 169.85N 42.45W -14.0 175.10 173.53 500.00 500.00 O.OON 0.00E BC-10 501.96 501.90 168.68N 41.23W -13.7 173.66 171.70 513.08 513.08 0.06S 0.01E BC-10 514.67 514.60 168.57N 41.07W 178.5 173.57 171.58 524.93 524.93 0.16S 0.03E BC-10 526.22 526.15 168.53N 40.92W 178.6 173.59 171.56 600.00 599.95 2.56S 0.55E BC-10 601.02 600.95 168.29N 39.95W 178.9 175.58 173.33 700.00 699.63 10.23S 2.21E BC-10 700.87 700.79 167.84N 38.96W 179.2 182.77 180.16 800.00 798.77 22.98S 4.98E BC-10 799.61 799.53 167.53N 38.23W 179.4 195.35 192.34 900.00 897.08 40.79S 8.83E BC-10 898.56 898.47 167.16N 37.61 W 179.6 213.08 209.63 1000.00 994.31 63.60S 13.77E BC-10 __ 997.80 997.71 166.26N 37.12W __ 179.7 235.45 231.52 1082.68 1073.68 86.20S 18.66E BC-10 1077.16 1077.05 165.16N 36.96W 179.7 257.47 253.12 1100.00 1090.18 91.36S 19.78E BC-10 1091.86 1091.75 164.98N 36.95W 179.7 262.54 258.12 1131.89 1120.42 101.24S 21.92E BC-10 __ 1122.16 _ 1122.06 _ 164.79N _ 36.97W 179.7 272.47 267.87 1200.00 _1184.43 123.98S 26.84E BC-10 1186.34 1186.23 164.55N 36.58W 179.8 295.42 290.51 1300.00 1276.81 161.38S 34.94E BC-10 1281.26 1281.09 164.31 N 33.27W -179.6 332.78 327.38 1400.00 1367.06 203.45S 44.05E BC-10 13 74.51 1374.17 163.88N 27.71 W -178.7 374.34 368.43 1500.00 1454.93 250.08S _ _ 54.15E __ BC-10 _ 1464.52 1463.83 163.46N _ 19.94W _ -177.7 420.21 413.77 1600.00 1540.18 301.14S 65.21E BC-10 1549.32 1547.98 163.63N 9.45W -176.3 470.78 463.79 _ 1628.0 1563.56 316.22S 68.47E BC-10 1571.98 1570.39 163.82N 6.12W -176.0 485.84 478.69 Offset WelFbore Surve Tool Pro rams Well Welibore Surve Name MD ft Surve Tool Error Model BC-10 BC-10 MWD <0 - 8854> 8854.00 Navi Trak Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated • MARATHON MARATHON O[I Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 C] CLEARANCE LISTING Page 8 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska ~;t~~. . 1x11 i :- INTEQ Clearance Data Reference MD[ft] Reference TVD[ftJ Reference North[ftJ - Reference East[ftJ OffsefWell Offset MD[ftJ Offset TVD[ftJ Offset North[ftJ Offset East[ftJ Angle From Highside de Cbsesf Approach Distance ft Ellipse Separation [ftJ 0.00 0.00 _O.OON _ 0.00E BC-11 _ 0.00 0.00 -- 145.75N 107.24W -36.3 180.95 180.95 0.00 _ 0.00 O.OON 0.00E BC-11 0.00 0.00 _ 145.75N 107.24W -36.3 180.95 180.95 16.40 16.40 O.OON 0.00E BC-11 16.36 16.36 145.75N 107.25W -36.4 180.95 180.74 100.00 100.00 O.OON 0.00E BC-11 99.95 99.95 145.73N 107.31 W -.36.4 180.98 180.45 200.00 200.00 O.OON 0.00E BC-11 199.85 _ 199.85 145.69N 107.49W -36.4 181.05 180.19 300.00 300.00 O.OON 0.00E BC-11 299.66 299.66 145.62N 107.86W -36.5 181.22 179.93 400.00 400.00 O.OON 0.00E BC-11 399.36 399.36 145.52N 108.55W -36.7 181.54 179.86 426.51 426.51 O.OON 0.00E BC-11 425.67 425.66 145.49N 108.77W -36.8 181.66 179.86 500.00 500.00 O.OON 0.00E BC-11 499.04 499.03 145.43N 109.44W -37.0 182.01 179.89 600.00 599.95 2.56S 0.55E BC-11 598.72 598.70 145.39N 110.40W 155.3 184.93 182.50 700.00 699.63 10.23S 2.21E BC-11 697.94 697.92 145.41 N 111.68W 155.9 192.86 190.13 800.00 798.77 22.98S 4.98E BC-11 796.11 796.08 145.47N 113.49W 156.8 205.95 202.89 900.00 897.08 40.79S 8.83E BC-11 893.31 893.24 145.47N 116.02W 157.9 224.27 220.81 1000.00 994.31 63.60S 13.77E BC-11 990.01 989.88 145.38N 119.36W 159.0 247.83 243.95 1066.27 1058.01 81.45S 17.64E B C-11 1054.54 1054.37 ~145.18N 121.63W __ 159.8 266.02 261.83 1100.00 1090.18 91.36S _ 19.78E _ BC-11 1087.65 1087_46 14501N 122.64W 160.2 275.97 271.63 1148.29 1135.92 106.51 S 23.06E BC-11 1133.80 1133.60 _ 144.71 N 123.94W 160.8 291.08 286.49 1200.00 1184.43 123.98S 26.84E BC-11 1182.32 1182.09 144.38N 125.27W 161.5 308.48 303.65 1300.00 1276.81 161.38S 34.94E BC-11 1274.52 1274.26 143.76N 127.85W 162.7 345.86 340.53 1400.00 1367.06 203.45S 44.05E _ BC-11 1361.77 1361.48 _ _ 143.67N 129.82W 163.8 388.27 382.44 1500.00 1454.93 250.08S 54.15E BC-11 1447.18 1446.87 145.13N 130.09W 165.2 436.11 429.77 1600.00 1540.18 301.14S 65.21E BC-11 1531.97 1531.65 146.96N 129.74W 166.4 488.74 481.87 1628.01 1563.56 316.22S 68.47E BC-11 ___ 1555.04 1554.71 147.46N 129.62W 166.8 504.29 , 497.27 Offset Welibore Surve Tool Rro rams Well Wellbore Surve Name MD ft Surve Tool Errar Model _ BC-11 ___ BC-11 __ MWD <0-8931> ___ 8931.00 __. fVav Trak Standard___ _ All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated MARATHON MARATHON Oil Company BC-16 Ver 1, BC-16 Ver 1 slot #16, Pad #3 • CLEARANCE LISTING Page 9 Date Printed: 26-Ju1-2005 Beaver Creek Unit, Kenai Peninsula, Alaska ~~~ INTEQ Clearance Data ..Reference MD[ft] Reference TVD[ft] Reference North[ft] Reference East[ft] Offset Well Offset MD[ft] Offset TVD[ft] Offset North[ft] Offset East[ft] Angle From Highside d Closest Approach .Distance ft Ellipse Separation [ft] 0.00 0.00 O.OON __ 0.00E _. BC-5 _ _ 0.00 _ 1.00 -- ~ 67.28N 85.68W -51.9 108.94 108.94 16.40 16.40 _ O.OON 0.00E BC-5 _ 15.48 __ 16.48 67.28N 85.67W -51.9 108.93 108.66 100.00 100.00 O.OON 0.00E BC-5 99.07 100.07 ____ 67.27N _ 85.61W __ -51.8 108.87 108.21 200.00 200.00_. O.OON 0.00E BC-5 199.15 200.15 67.22N 85.47W -51.8 108.74 107.41 300.00 300.00 O.OON 0.00E BC-5 299.21 300.21 67.18N _ 85.26W -51.8 108.55 106.56 400.00 400.00 O.OON 0.00E BC-5 399.20 400.20 67.17N 85.04W -51.7 108.36 105.71 451.00 451.00 O.OON 0.00E BC-5 ~ 450.00 451.00 67.18N 85.OOW -51.7 108.34 105.33 500.00 500.0 O.OON 0.00E BC-5 498.91 499.91 67.21N 85.02W -51.7 108.38 105.06 508.53 508.53 0.02S 0.00E BC-5 507.32 508.32 67.22N 85.03W 140.6 108.41 105.04 600.00 599.95 2.56S 0.55E BC-5 598.64 599.64 67.26N 85.28W 141.3 110.65 106.75 700.00 699.63 10.23S 2.21E BC-5 698.78 699.78 67.02N 85.61 W 143.4 116.97 112.73 800.00 798.77 22.98S 4.98E BC-5 798.37 799.36 66.36N 85.66W 146.5 127.27 122.44 900.00 897.08 40.79S 8.83E BC-5 __ 895.80 896.79 66.10N 85.96W _ 150.1 142.87 137.25 1000.00 994.31_ 63.60S 13.77E BC-5 993.07 994.07 65.96N 86.40W 153.7 163.77 157.21 1017.06 1010.77 67.99S _ 14.72E BC-5 _ 1009.80 __ 1010.79 _ 65.89N 86.50W 154.3 167.84 __ 161.10 1033.46 1026.55 72.34S 15.66E __ BC-5 1025.6 0 1026.59 65.82N _ 86.59W ___ 154.8 ~ 171.89 _ 164.98 1100.00 1090.18 91.36S __ _ . 19.78E BC-5 _ 1089.63 1090.62 65.44N 86.95W 157.0 189.67 182.07 1200.00 1184.43 123.98S 26.84E __ BC-5 1184.00 1184.99 ,_ 64.78N 87.33W 159.8 220.61 _ 211.92 1300.00 1276.81 161.38S 34.94E BC -5 1275.12 1276.11 64.69N 87.91 W 162.2 257.29 247.51 1400.00 1367.06 203.45S 44.05E _ BC-5 1366.08 1367.07 64.77N 87.75W 164.4 298.85 _ 287.94 1500.00 1454.93 250.08S 54.15E BC-5 1452.85 1453.84 65.05N 87.72W 166.2 345.59 333.56 1600.00 _ 1540.18 _ 301.14S 65.21E BC-5 1539.63 1540.61 65.11 N 87.73W 167.6 396.90 383.73 1628.01 1563.56 316.22S 68.47E __ BC-5 1563.92 1564.90 65.08N 87.72W 168.0 412.05 398.56 1700.00 1623.36 355.40S 76.95E BC-5 1624.29 1625.27 64.87N 87.67W 169.0 451.36 437.07 1800.00 1706.42 409.82S 88.74E BC-5 1707.55 1708.53 64.51 N 87.61 W 170.2 506.06 490.65 Offset Welibore Surve Tool Pro rams W II Ilbore Surve Nam MD ft Surve Tool r Model BC-5 _ BC-5 GMS <0-600' 600.00 Level Rotor G ro Standard _ BC-5 ___ _ BC-5 MMS <668-7960'> _ 7960.00 ____ Photomechanical Ma netic Standard BC-5 BC-5 __ GMS <8000-16247'> __ 16247.00 Level Rotor G ro _ Standard All data is in Feet unless otherwise stated Coordinates are from Slot and TVD's are from Rig (Glacier 1 179.Oft above mean sea level ) Reference MD's are from Rig, Offset MD's are from Rig Calculation method uses Minimum Curvature method Confidence Limit of 95.45 (1 D) Prepared by Baker Hughes Incorporated File Edit Profiles Table Tools Offset Data lkuts Window Help l~ I ~ ~ ~~ ~ l2D 12D 1208 l~ ~ 1 SD _18J X1 ~LJgJI S E ~J._J ~~JJ _. Wellbore Details! Offset Data WeApath (Targets) Comments) Errors) Hole Sections/Casirgs - _ _-- _ __ Name BC•16Ver1 ~ ID 778308 -- -- ft Section C: DefauR t, Speaaised r '! ' ~ E ast ~- Azimuth North ~ ~' ' ~ -' ~ Arbitrary tie ~ ~i [deg] TVD [ft] North [ft] ~ East [It] ! DLS Tface j [degl100ft] [deg] VS [ft] _ --____ ~~»Q~-` -~ ~~ ~ ~ ~~ ~ r~~ a.oo • • ~ _1: EI - r ~-. ,,,~-• =,~r- ~ ~ qtr r ~,_,~_ - - - - MD - ----- -_ TVD Coordinates - C Field !' Installation (" Slot I C' Slot C. Rig Datum ~' Field C' Installation C' Sbt C: Rig Datum Datum P: Glacier 1 [179.0] 19-Oct-199 © Paradigm Geophysical Ltd- 2003 - - • • FE Marathon Oil Company ~' Well Name: Beaver Creek #16 Location: Kenai, Alaska. INTEGRATED FLUIDS ENGINEERING PROJECT PLAN _.. _=1FE Prepared For: MARATHON OIL COMPANY Well Beaver Creek #16 Kenai Peninsula, Alaska Prepared by: Tony Tykalsky Reviewed by: Mark Fairbanks Presented to: Will Tank July 27, 2005 ~~ r: ~~ Marathon Oil Company PO Box 190168 Anchorage, Alaska 99519 ATTN: Will Tank Will: • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Enclosed is the recommended drilling fluid program for the Beaver Creek #16 Well to be drilled this year. The following is a brief synopsis of the program. Overview: BC #15 is a development well targeting the Beluga formation at the Beaver Creek field. Flo-Pro fluid will be used for the production interval. After logging the production interval, the well will be completed with a 3-1/2" excape system cemented in place. Surface Interval: The surface interval will be drilled with the standard GeUGelex spud mud. No problems were noted in this interval while drilling Beaver Creek # 12 & #14. Production Interval: This interval will be drilled with the standard F1oPro fluid with bridging material. Seepage losses as high as 10 barrels per hour have been noted in previous wells. Therefore an adequate blend of SafeCarb must be maintained in the sustem. Fluid loss should be kept below 6 cc's API and mud weight run as low as possible. Lubetex may be required for directional work. Completion: After the 9-5/8" casing is cemented, aclean-out run will be made. At this time the well will be displaced to 6% KCl brine. The completion string (3-1/2" tubing) will be run to 5500' MD and just prior to setting the packer, the annulus will be treated for corrosion. If completion is delayed, then the wellbore fluid will be treated with Sodium Meta Bisulfate before laying down the drillstring. Tony Tykalsky Project Engineer /M-I SWACO Reference Wells: BC #11, BC #12, BC #13, BC #14 NOTE: This program is provided as a guide only. Well conditions will always dictate fluid properties reauired. • • ~'~~ Marathon Oil Company - Well Name: Beaver Creek #16 Location: Kenai, Alaska. EXECUTIVE SUMMARY M Fp Our overall goal is no spills and no incidents while providing fluids and solids ''~ ~, control services to Marathon Oil Company. ~HSE ~.; - `: Our goal for Beaver Creek # 16 is to remove drill solids from the mud system at a cost of less than $0.24 per pound. This has been the average for the last three * ~ years of centrifuge van operations With the production fluid formula being used in a 12-1/4" interval, we expect to drill this well for a product cost of less than $30.47 per foot. Use of the MI Swaco centrifuge van for the last five years has provided an estimated savings in dilution and disposal costs to Marathon Oil of over $900,000. I~ With continued usage of our equipment, we expect to provide more savings to you during future operations. ~~ ~~ • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Interval Benchmarks and Targets Drilling Intervals Depth Benchmark 1 Benchmark 2 Benchmark 3 Benchmark 4 Interval eft) Fluid cost per foot Volume Usage Solids Removal 0 - 2515' < $5.46 ft < 2902 bbls 2515 - < $47.57 ft < 2651 bbls 6193' Total Avg. Max. Project < $30.47 ft <5653 bbls < $0.24 Ib No Spills from Targets for Centrifuge Van Drilling Operation Interval ~~ • • '~ Marathon Oil Company Well Name: Beaver Creek #16 _ Location: Kenai, Alaska. Project Summary Casing Hole Casing. Depth ND Mud Mud Sum Interval Size Size Program System Weight Days Mud Gost (in) (in) (ft) (ft) Solids Control (PPg) 13 3/8" 16" ~,~ ~~ 2515' -2300' GeUGelex Spud ~~ '~~ Mud 8.6 - 9.4 5 .$17,635 ~~ Screens 150/180 r~.~ ~ ~ mesh ~ a~ ~ ' ~~ Desilter ~~ ~ :~* r ~ 4 Centrifuge Van 9 5/8" 12-1/4" ~~'~, 6193'. 5639' Flo-Pro w/SafeCarb 9.0 - 7 $.180,433 Screens .180 - 210 < 9.5 ~` '~ mesh to ~ Desilter ~~, Centrifuge Van `~` 3 1/2" 8-1/2" Completion 6193' 5639' 6% KCl 8.55 3 $8,697 - Utilize all solids control equipment to minimize the build up of drill solids in the system (if possible, centrifuge the surface mud during trips to reduce drill solids). - Condition the mud prior to running casing for all intervals. - Cost estimates include 2% Lubetex concentration in production interval. - Cost estimates do not include major losses to the formation. lis • • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Estimated Product Usage Summary PRODUCT Surface 16" Production 12-1/4" Completion 3-1/2" Total Usage % of Total Cost M-I Bar 0 265 0 265 1.03 M-I Gel 871 0 0 871 3.85 Gelex 36 0 0 36 0.18 Soda Ash 15 27 0 42 0.33 Caustic Soda 15 27 0 42 0.75 Conqor 404 0 9 0 9 5.86 Sodium Meta Bisulfate 29 27 5 61 2.06 Bicarb 15 13 0 28 0.26 Conqor 303 0 0 5 5 1.24 F1oVis 0 212 5 217 22.09 Desco CF 15 0 0 15 0.36 Polypac UL 15 0 0 15 1.21 DualFlo 0 212 0 212 8.98 KCl 0 1113 210 1323 8.60 Safecarb 0 1060 0 1060 10.45 K1aGard 0 36 0 36 12.93 Lubetex 0 42 0 42 15.93 Citric Acid 0 13 0 13 0.66 Defoam X 0 15 0 15 0.68 Engineer Service 5 10 2 24 ~~ ~ ~ ~~ • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Offset Well Information Well Hole Size Depth PPG PV YP FL Comments BC #11 17.5 400 8.75 15 25 14 Spud in 1520 8.95 17 26 12.2 Drlg ahead, wiper trip ok, drig ahead 2202 9.4 16 18 10.4 Drlg to csg point, lower yield point, run 13-3/8" casing 12.25 2242 9.2 7 19 14.8 Drlg out, displace to FloPro mud drlg ahead 3697 9.35 10 18 18.6 NOTE. No fluid loss control in fluid 4656 9.35 8 20 19.6 Drlg ahead 5714 9.35 9 22 18.4 Short trip OK, drtg ahead 5910 9.5 9 20 18.4 Adding SafeCarb to lower mud losses to formation 6620 9.4 10 20 15.4 Trip out, OK, RIH wash to bottom, drlg ahead 6825 9.5 11 28 17.8 Drtg ahead, add lubetex, cond mud, short trip, ream as needed, drlg ahead 7120 9.5 11 29 7 Drlq ahead, pump hi vis sweep, short trip OK, reduce FL with Pac 7260 9.5 11 27 7.2 Drlg to TD, condition mud, run 9-5/8" cag & cement BC #12 16 107 8.6 8 6 18 Spud in 1045 8.75 10 32 12 Drlg ahead 2100 9.4 13 17 9.6 Drlg to csg point, lower fluid loss, run 13-3/8" casing 12.25 2615 8.9 8 21 9.4 Drlg out, displace to FloPro mud drtg ahead 3941 9.1 10 22 7.6 Drlg to 3498, short trip OK, drlg ahead 5772 9.2 10 23 7.4 Drlg ahead, short tirp OK, drlg ahead 6408 9.25 12 23 6.2 Drlg ahead, trip for bit, trip OK 6848 9.25 14 20 6.8 Drlg ahead 7183 9.25 13 18 7.6 Drly to csg point, short trip, work tight spots, 2' fill, POH, rung 9-5/8" csg BC #13 16 1013 8.75 8 25 20 Spud in, abundant clay @ 1400' 2301 9.05 10 28 9.6 Drlg ahead 2303 9.15 12 20 9.2 Drlg to crag point, run csg, stopped @ 220', mill junk?, run & cmt casing 12.25 2360 8.95 12 21 7.2 Drlg out, displace to FloPro mud, LOT = 15.4 PPG, drlg ahead 3456 9.25 12 19 7.4 Drlg ahead, shakers plugging, thin mud, drlg ahead 4353 9.2 11 23 6.9 Glean out flowline, drlg ahed, wiper trip OK, drlg ahead 5486 9.2 11 21 6.6 Drlg ahead, wiper trip OK, drlg ahead 6360 9.2 10 25 7.2 Orlg ahead, maintain PPG with solids van, repair #1 shaker, drlg ahead 6477 9.3 11 25 7.4 POH for bit, some tight spots, RIH, ream last 250' to bottom 6861 9.2 11 23 6.6 Drlg ahead, repair MWD, wiper trip, tight -backream, RIH to drlg 7255 9.3 14 24 5.4 Drlg ahead, repair elevators, drlg ahead, hole taknit 3 - 10 bbls per hour 7308 9.3 12 26 8 Drlg to csg point, condition mud, losing 3 - 5 BPH, POH to run csg 7308 9.4 16 29 7.8 Run & cmt 9-5/8" casing BC #14 16 145 8.65 15 23 18 Spud in 1292 8.9 16 27 16 Drlg ahead, short trip OK, drlg ahead 2130 9.3 21 23 8.4 Drlg to csg point, trip OK, run 13-3/8" casing 12.25 2649 9 11 14 8.4 Drlg out, displace to FloPro mud drlg ahead 3441 9.25 11 14 8.4 Drill ahead 4534 9.15 10 19 7.6 Drlg ahead, run van for clay buildup, short trip OK 5672 9.45 10 '19 8.8 Drlg ahead 6838 9.45 13 '19 6.4 Drlg ahead, short tirp OK, drag ahead 7203 9.5 12 22 6.6 Drlg to 7203' slow, POH for new bit 7610 9.8 13 22 6 Drlg to csg point, short trip, tight, backream, re-trip, OK, POH for casing 1~ • ~~ • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Plans & Procedures ~ COMMUNICATION -The Field Mud Engineer will communicate daily with the In-Town Project Engineer. The Project Engineer will then communicate daily with the rig Drilling Engineer. Communications should be about, but not limited to, fluid properties, hole difficulties, possible changes to the mud program, and proposals to use products not included in the mud program. ~ Whole Mud Losses to the Stering B2 8~ B3 Sands - Refer to fluid formulas and the Optibridge charts for maintaining proper bridging material concentration in the mud system while drilling the intermediate and production intervals. ~ FLUID LOSS CONTROL - In the production interval the API fluid loss will be maintained below 6 cc's at all times. In addition to sufficient fluid loss agent additions, this may require adequate dilution of the mud system in order to keep reactive drill solids to a minimum . ~ MIXING CONDITIONS -Whenever possible all treatments to the mud system should be made as pre-mix additions. Polymers and KCI should first be mixed in fresh water in that order and then blended into the active system over one or two circulations as needed. ~ CORROSION - Congor 404 additions should be made daily when drilling with FloPro fluid in order to maintain a Congor 404 concentration of +/- 2000 PPM. ~ CORRISION - Sodium Meta Bisulfate additions should be made daily as needed with any fluid in the hole. Maintain a DO reading of less than 3 ppm ~ SOLIDS VAN USAGE -The Solids Van should be used whenever drill solids become un- acceptably high and reduction of drill solids in the mud can be more economically done with centrifuging and dilution then just with dumping and diluting. The weight of the drilling fluid alone should not be the determining condition for when to use the Solids Van. ~ WEIGHTING UP -All increases in mud weight should be accomplished with barite additions. In the production interval, insure chloride concentration is maintained at 30,000 to minimize the need for barite additions. ~~ DRILL SOLIDS -MBT -The MBT should be kept at less than 10.0 ppb in the production intervals through .aggressive use of solids equipment and dilution as needed. A 6 ppb Klagard concentration is recommended in the production interval to minimize MBT buildup and dilution requirements. • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Interval Summary --16" hole 0 - 2515' Drilling Fluid System Gel/Gelex Spud Mud Key Products MI Gel / Gelex /Soda Ash /Caustic Soda / MI Bar / PolyPac Supreme UL /Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended shaker screens - 150 - 180 mesh Potential .Problems Lost circulation, coal sloughing, drill solids build-up, gas kick, tight hole conditions nterval Drilling Fluid Properties Depth Mud Funnel Yield API Drill Interval Weight Viscosity Point Fluid Loss: pH ,Solids (ft) (ppg) (sec./qt) ' (lb./IOOft2) (ml/30min) (%) 0-2515' 8.6-9.4 60-100 25-35 NC-12 +/-9.5 <7.5% - Treat drill water with Soda Ash to reduce hardness. - Build spud mud with 20 - 25 PPB M-I Gel to +/- 75 seconds/quart funnel viscosity. - Add Gelex as needed to maintain sufficient viscosity for hole cleaning. - Increase funnel viscosity if fill on connections begins to occur. - Reduce fluid loss with additions of Polypac Supreme UL prior to running surface casing. - Add Sodium Meta Bisulfate to maintain a DO of < 3 PPM. - Condition mud prior to cementing casing to reduce yield point and gel strengths. - Estimated volume usage for interval - 2902 barrels. - Estimated haul off volume - 5003 barrels. 1~ ~ ~ ~~ • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Interval Summary -12-1/4" hole 2515- 6193' Drilling Fluid System Flo-Pro Fluid Key Products Flo-Vis / DualFlo / KCl / SafeCarb 10 & 40/ K1aGard / Caustic Soda / Conqor 404 /Sodium Meta Bisulfate Solids Control Shale Shakers / Desilter /Centrifuge Van Recommended initial shaker screens -180/180/150 mesh Potential. Problems Lost circulation, coal sloughing, drill solids build-up, gas kick nterval Drilling Fluid Properties Depth Mud Plastic LSRV API Drill Interval Weight Viscosity l min Fluid Loss MBT Solids fft) (PPg) (cp.) (cps) (ml/30mn) (%) 2515 - 6193' 9.0- < 9.5 8 -12 30,000+ < 6 < 10.0 +/- 5% - Use one rig pit to drill out surface casing. In other rig pits, build new Flo-Pro fluid using the enclosed fluid formula. Pre-heat makeup water with steam hoses as much as possible. - After drilling out surface casing, displace hole to Flo-Pro fluid prior to running leak off test - As mud heats up, increase FloVis concentration to 2 PPB and install 180 mesh shaker screens on end panel. - If running coals become a problem, treat with a 2 PPB addition of Asphasol D. - If torque or sliding problems occur, add 1 - 3% Lubetex. - Estimated volume usage for interval - 2651 barrels. - Estimated haul off volume - 4290 barrels. - Condition mud prior to running 9-5/8" casing. NOTE: Follow BOSCO guidelines when adding biocide, oxygen scavenger and corrosion inhibitor. ~~ ~~V~ • ~~ Fluid Formula - • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. 12-1/4" Interval 12-1/4" Interval. from 2515 - 6193' Descri tion Mud Wei ht Wei ht Material Code Wei ht Material SG In ut Beaver Creek #16 9.0 - 9.5 Preh drated Gel MI BaR Preh drated Gel Conc. 4.2 KCI Wt% Out ut -1 bbl No 6 Order of Products Concentration Volume Product Addition Field, Ib Lab, m Field, bbl Lab, ml Usa e 1 Water 325.19 325.19 0.929 325.19 2 Soda Ash 0.25 0.25 0.000 0.10 Reduce Hardness 3 FloVis Plus 1.50 1.50 0.004 1.05 Viscosit 4 Dual Flo 4.00 4.00 0.008 2.66 Fluid Loss Control 5a SafeCarb 10 5.00 7.50 0.006 1.89 Brid in A ent 5b SafeCarb 40 15.00 22.50 0.017 5.67 Brid in A ent 6 Potassium Chloride 20.76 20.76 0.025 8.68 Inhibition 7 CONQOR 404 2.00 2.00 0.004 1.43 Corrosion Control 8 KlaGard 6.00 6.00 0.012 4.30 Inhibition 9 Caustic Soda 0.50 0.50 0.001 0.23 H Control 10 Sodium Meta Bisulfate 0.50 0.25 0.001 0.25 Ox en Scaven er If directional problems occur add 1 - 3% of the follow in 11 Lubetex 10.50 10.50 0.021 6.99 Lubricit Mix fluid in the order listed above. Total 380.1 380.1 Estimated Volume Usa a 2651 Barrels :Calculated Mud Wei ht Tatat Chloride 9.050 29600 ~~ • Marathon Oil Company ~ IFE Well Name: Beaver Creek #16 - Location: Kenai, Alaska. Brid in Formula - 12-1/4" Interval g g __ _ ___ _ --- -- ~ - - 1000 mDarcy _ - -- -~--- Max Permeability: --- -- - Operator: Marathon Oil Company ~ Sand Control Device ~ PTI B RIDGET"" well Name: BC #16 Mi SWpC9!i Location: Beaver Creek ®1999-2006 Ma L.L.C.•All Rights Ressrwd Comments: Sterling 82883 Sands Optimum Bridging Agent Blend c 0 a w 0 d N of u r A a i m 7 E U Particle Size (mlcrons) D10 - D50 - D90 D70 Target I Blend: 1.3 1 2.0 microns D50 Target 1 Blend: 31.6 1 27.2 microns I D90 Target l Blend: 102.5 I 173.7 mlcrons Optimum Blend for 0 to 100 %CPS Range Brand Name Bddaina Aaentllblbbll Vol Y. B=Safe~arb 10 (F) 4.7 23.30 ~ D=Safe-Garb 40 (M) 15'3 78.70 E=Safe-Garb 250 (C) 0.0 0.00 B T3.3 D 76.7 % Simulation Accuracy Calcium Carbonate added : 20 Iblbbl Avg Error 0 -100 %CPS Range : 2.53 Max Error 0 - 100 %CPS Range : 15.50 % - Zone of interest -Sterling B-2 & B-3 sands - Pore Pressure - 4.4 -Maximum Porosity - 1000 mD - Measured Depth - +/- 5603' (5049' TVD) - Build additional volume as needed usin the blend listed above. • • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Interval Summary -Completion Procedures Corrosion Control Additive in Casing x Tubing Annulus Well Beaver Creek #16 Volumes: Tubing Volume 3-112" Tubing 47.85 barrels Annular Volume casing x Tubing 337.32 barrels 3.50 x 2.992 x 5500 ft Total Annular Volume 337.32 Tubing Volume 47.s5 Total Hole Volume 385.17 x 8.681 @ 5500 ft M D F Treatment Procedures. 1. After the 3-1/2" tubing is but before setting the packer, pump corrosion control in the annulus. Circulate a total of 385 barrels of 6% KCI brine. 2. Add 1 drum of Conqor 303A and 1 sack of Sodium Meta Bisulfate for each 84 barrels of drilling fluid pumped (4 drums 8 4 sacks total). 3. Stop adding product and continue pumping an additonal 48 barrels clear the tubing. This procedure will place corrosion control in the 3-1 /2" x 9-518" annulus. ~~ ~ , • • t~ Marathon Oil Company Well Name: Beaver Creek #16 _ Location: Kenai, Alaska. HSE Issues HANDLING OF DRILLING FLUID PRODUCTS HEALTH AND SAFETY 1. Drilling crews should be instructed in the proper procedures for handling fluid products. 2. Personal Protective Equipment (PPE) charts should be posted in the pit room, the mud lab, and the office of the Drilling Forman. 3. PPE must be in good working order and be utilized as recommended by the PPE charts. 4. Product additions should be made with the intent to use complete unit amounts of products (sacks, drums, cans) as much as possible in order to minimize inventory of partial units. 5. Insure all MSDS sheets are up to date and readily available for workers to access for information. ENVIRONMENTAL 1. Insure that all product stored outside is protected from the weather. 2. Do not store partial units (sacks, etc) outside if possible. 3. Properly secure all products for shipment between job sites. 4. When transferring fluid and or cuttings from the rig to trucks, insure all hoses are properly secured. 5. When utilizing the centrifuge solids van, insure all hoses and connections between the van and the rig are secure. • • ~'~ Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS Product Function Health Flammabilit Reactivit PPE M-I BAR Weighting Agent *1 0 0 E M-I GEL Viscosity control *1 1 0 E GELEX Bentonite Extender 1 1 0 E FLOVIS Viscosifier 1 1 0 E DUAL-FLO Modified Starch 1 1 0 E POLYPAC Fluid Loss Reducer *1 1 0 E HEC Loss Circulation Material 1 1 0 E Safe-Garb F,M,C Bridging and weighting agent *1 0 0 E Nut Plug Loss Circulation Material *1 1 0 E M-I Seal F, M, C Loss circulation Material *1 1 0 E Mix II F,M,C Loss circulation Material *1 1 0 E DESCO CF Dispersant 1 1 0 E SALT (Solar) Densifier 1 0 0 E POTASSIUM CHLORIDE Shale Inhibitor 1 0 0 E CAUSTIC SODA Alkalinity control 3 0 1 X BORAX Inorganic Borate 1 0 0 E SAPP Sodium Pyrophosphate *1 0 0 E SODA ASH Alkalinity control 1 1 0 E SODIUM BICARBONATE Alkalinity control 1 0 0 E CITRIC ACID pH Adjuster 1 0 0 E BIOBAN BP-PLUS Biocide *2 0 0 J GREEN CIDE 25G - Biocide 3 0 0 J DEFOAM X- Defoamer 1 1 0 J G-SEAL Sized graphite LCM 1 1 0 E EM1920 Lubricant 1 1 0 J LUBE TEX Lubricant 1 1 0 J D-D CWT Detergent 2 1 0 J Concor 404 Corrosion Inhibitor 1 1 0 J SAFEKLEEN Drilling fluid additive 1 1 0 J Asphasol Supreme Shale Inhibitor 1 1 0 J Sodium Meta Bisulfate Oxygen Scavenger 1 1 0 J ~~ • ~~ • Marathon Oil Company Well Name: Beaver Creek #16 Location: Kenai, Alaska. Product Health and Safety Reference HMIS HAZARD RATINGS HAZARDOUS MATERIALS IDENTIFICATION SYSTEM (HMIS) HAZARD RATINGS 4 -Severe hazard 3 -Serious hazard 2 -Moderate hazard 1 -Slight hazard 0 -Minimal hazard * An asterisk next to the health rating indicates that a chronic hazard is associated with the material. HMIS PERSONAL PROTECTIVE EQUIPMENT INDEX A -Safety Glasses B -Safety Glasses, Gloves C -Safety Glasses, Gloves, Synthetic Apron D -Face Shield, Gloves, Synthetic Apron E -Safety Glasses, Gloves, Dust Respirator F -Safety Glasses, Gloves, Synthetic Apron, Dust Respirator G -Safety Glasses, Gloves, Vapor Respirator H -Splash Goggles, Gloves, Synthetic Apron, Vapor Respirator I -Safety Glasses, Gloves, Dust and Vapor Respirator J -Splash Goggles, Gloves, Synthetic Apron, Dust and Vapor Respirator K -Air Lirie Hood or Mask, Gloves, Full Suit, Boots X -Consult your supervisor for special handling directions ~~ ~ • '~ r{ Marathon Oil Company Well Name: Beaver Creek #16 _ Location: Kenai, Alaska. Contacts Contact Title a-mail Work Cellular Pete Berga Drilling pkberga@marathonoil.com 907 565-3032 907 231-0663 Marathon Superintendent Will Tank Drilling Engineer wjtank@marathonoil.com 713 296-3273 713 203-8398 Marathon Tony Tykalsky Project Engineer ttykalsky@miswaco.com 907 274-5011 907 227-2412 MI SWACO Bob Myles Warehouse Manager rmyles@miswaco.com 907 776-8680 907 252-4218 MI SWACO Michael Barry Senior Field barry.michael@att.net 907 260-4666 907 590-3636 MI SWACO Engineer (home) Locke Rooney Field Engineer rooneyl@alaska.net 907 235-0598 907 590-3636 MI SWACO (home) Roland Lawson / Drilling Foremen RCLawson@ 907 283-1312 Larry Myers /Dave marathonoil.com Morris/ John aaska_drilling Nicholson @marathonoil.com Marathon Responsibilities - MI Project Engineer and will coordinate daily between the Marathon office, rig, warehouse, and the M-I field engineers. - Well progress will be monitored to look for any changes, which will improve the efficiency of the operation or avert trouble. - Field Engineers will monitor and supervise product inventory to include re-palletizing any products for shipment to other locations at the end of the well. - Field Engineers will communicate with office personnel (Marathon & MI SWACO) for approval of any changes in the mud program (including introduction of new products). - Field Engineers will produce a recap at the end of the well based on daily activities. Recap should include any lessons learned that may be used to provide better service on future wells. Lessons learned can include changes in procedures, product additions, equipment usage, and/or utilization of any third party service. ~~ FCU 1~ Jocation and Sterling production Subject: BCU16 location and Sterling~~production From: "Enos. Jennifer S." <}eno,~u'm~~rathonoil.com> Date: Tue, 2:~ .~~~„ 2(ii); 1 %:Oti: ; ; O~l)(j To: bob cran~ialliu!a~lmin.state.ak.us CC: "Riddle, .1 Brocl:" <-jbriddle~~~?marathonoil.com ~, "Zeman. Ka~~ncil J." =kj~emanru;marathonoil.com-'- "Ozcan, John" ~~-liocan~u;~Tlaraihonoil.com% Dear Bob, Marathon, as operator of the Beaver Creek Unit, would like to resume production from the Sterling reservoirs in the field. We currently have plans to drill well BCU 16 this year, which targets dry gas in the upper Sterling B2, B3, and B3A sands, and hope to initiate a reverse coning project in the B4 sand in 2006. The B2 sand has never produced in the field (completed in well BCU 7, but indications are it did not flow gas), and the B3 and B3A sands have not produced since the perforations in BCU 6 were squeezed in March, 2003. The latest Sterling production was from the B4 sand where we coned water in well BCU 9; the short string of that well was shut in in June, 2004. I have attached a map with all wells completed in the Sterling highlighted; none of these wells are producing today. BCU 9 was drilled in 1994, with the long string completed in the Beluga and the short string an annular completion in Sterling B4. The B4 sand produced 18.8 Bcf of gas and was eventually shut in in 2004 after it started coning water. The reverse coning project being designed will target the B4 sand where we have gas on water and will be located on the northern part of the structure. Please let me know if you have any questions or need additional information. I will put a hard copy of this letter and a map in the mail for you, as requested. «BCU Sterling map.ZlP» Regards, Jennifer Enos Jennifer Enos Geologist Alaska Asset Team Marathon Oil Co. 713-296-3319 jenos@marathonoil.com Content-Description: BCU Sterling map.ZIP BCU Sterling map.ZIP Content-Type: application/x-zip-compressed Content-Encoding: base64 1 of 2 8/24/2005 10:16 AM • ~ -s:. .z 6~~ - ~q q t q O t q q >r t~ / J r ytp 9 1 1 _~ q to y l r J t 6 q 1J 1 t f r $ l q q ~ {P I O t O r ys0 A r i J rdrr y ~~ ' - rr a~.Yn .c ~_ J f ~ ~ 6 Ft I Q / f BCU 16PTD = r '. ;...~.,, ::., -5320` SSTVD ? d ~~_ ~ . __. r TM~~ ~<~ d - ~ I t F : J .~ f d ~ d O ! ~i ~~i.m7 ''a:~: ,, rr s f r ~ l V$.Q ~q}~ ~ ~ F t d ' ^' r i l d I 1 F f 7 b --~nq ~ ~~V_ t t i -O , ~, / ~fl ~, Top Sterling B3 Sand Beaver Creek Field, Alaska Sterling completion C1=25ft 1 mi A I `. Check No Check Date Bank Bank No Vendo Marathon Oil Company P 0 B 22164 Direct Inquiries to: ACCOUNTS PAYABLE DEPARTMENT HnCll g 1183952 07/25/2005 NCBAS 7780 5001123 . . ox Tulsa, OK 741 21-21 64 Accts PayableCantactCenter Phone: 918-925-6097 HS s:. 111X41CE N:,Wti6er Invblce IJata gocument NO Retllif Cpmmeni Coss ArrArtnl Discount InvaiesJP3Y Amount L100.00 07/25/2005 1900037783 100.00 100.0 TOTAL: 100-00 100.0 ~~ ~ - ~~~ ~+~y9 ye~ :?9.1~ yq p q ~a?&S x!47 "~5S°YB k4341 6d'g4HW3.AY p ~~® (FOLD ON PERFORATION BELOW AND DETACH CHECK STUB BEFORE DEPOSITING) •• s • • -• • • • • ••• '~, 'ORM 2501 REV. 5/00 ~ '~ 778D Marathon Oil Company ACCOUNTS PAYABLE CI-4ECK P. O Box 22'164 Tulsa, OK 74121-2164 i9 '„4 F.aY~.TGI,~THE ORDER OF_ I~'~ -.- MATCH AMOUNTMNORDS WfTH NUMBERS - ~.. ~.- :~.: : ~ ---- - - - - .m ,., ,... .,. ... Ned Re [.. '7t~b ~ ~ "~ ~~ 3 .`NAT{ONAL CITY .BANkC e ~ZUndred and ©#3II OQ ~olEarts Ashland, OMia ; ~ ~ ~- `` e.~ ..,,, ,:~ ~ ~~ N e, e :°~, ,,. e -- -- • - • ~ •• 563 8 9/4 1 2 CNcCKDAPE GHECKNUMBcR ~' 07/25/2005 115395 Z VOID A~iER 190 DAYS ii'000 i L8395 2ii' x:04 L 203895: 0 L83484ii' ~ • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER ~~~~ WELL NAME ~~~ ~livY ` ~~ 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 (pig records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING The permit is approved subject to full. EXCEPTION compliance with 20 AAC 25.055. Approval to 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. Rev: 04/01/05 C\jody\transmittal_checklist WELL PERMIT CHECKLIST Field & Pool BEAVER CREEK, STERLING GAS - 80525 Well Name: BEAVER CK UNIT 16 Program DEV Well bore seg ^ PTD#:2051160 Company MARATHON OIL CO Initial Class/Type DEV / 1-GAS GeoArea Unit On/Off Shore On Annular Disposal ^ Administration 1 Permit-fee.attached_-------------------_ --"_ Yes -------------------------------,------,---------------,---- ---- 2 Lease num4er appropriate- - - - - - Yes - - - - - - - 3 Uniquewell,nameandnumber -- ----- -- --- ~- - -- --- - Yes ------- -- -- --- - - ------- - - - ------------------------------------ 4 Well located in a_defned_poo!-______-__-______-__ _____,_-_Yes ___-_______"___--_-_. - - " 5 Well located proper distance from- drilling unit_boundary_ _ _ - Yes .... - - . - . - - .. - - - - - 6 Well located proper distance f[om other wells- _ - _ _ - _ " _ - _ Yes . - - - co_237 rule 3 (a)'Well spacing in_the Sterling and Beluga Gas Pools_shall be-160 acres, No wellb_o[e_may"be_ " 7 Sufficient acreage available in_drillingunit- _ " _ - _ " _ . - - - _ - _ _ , - Yes , _ - Opened-nearer than 13.20 feet from the nearest wellbore,..,-BC 9 is 930'-away .Contacted P Berga - _ . - 8" If_deviated,is_wellboreplat_included_____-_____-__-.____-__ _.-__._Yes ___._$$5-3.032811-RPCLetter and map attached_____-_-_"__-__.._-______- 9 Operator onlyaff_ectedparty_________________________-___ ____,_"Yes ,__._$/24 explain that theBC_16hasno__--_________-__-___-__"________ 10 Ope[atorhas_appropriate_bondinf4rce________________________ ____.-__Yes .___.-_spacingconflict,_-.-.---_-.-.-.____---_- --------------------------------- 11 Permit can be issued without conservation order Yes Appr Date 12 Permit.canbeissuedwithoutadministratiye_approval________________ _-"__-_-Yes __"__-_,_-______-_____-_-___-__-_____,___-____-___-_--_,,_____-__---_- RPC 8124/2005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and-strata authorizedpy_InjectionOrder#(put1O#in-comments)-(For_KA_ __________________-___-___"___-____--___"_____________-_-"-__-__--_---_ 15 All wells within 1/4_mile area of review identified (For service well only) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ NA, _ _ _ _ _ - - _ 16 Pre-produced injector; duration of preproduction Less than3- months-(For service well only) . NA_ _ - _ _ _ - - - - 17 ACMP_FindingofCCnsistency_hasbeenissued-forthisproJect___________ _________ NA- ___-_____-___,_____"._-_._-_-___"_______-__-_-_-_-_,-.-_--"_-__--_---_ Engineering 18 Condu_cto[string_provided________________________ _______ _______"_Yes _____--20"X104'.____,_-_-______-___-_,_-_,____._-_-_-_-_- ---_, 19 Surface,casing_protectsall known_lJ$l)Ws______________ "-_-___ _______Yes ____--_-_-______-___,______-_______-___-_- 20 CMT_v_ol.adequate_t4 circulate_on cgnductor& su_rf_csg _ - - _ - _ _ _ Yes - _ _ _ -Adequate excess, , _ . _ - _ . - _ _ _ _ 21 CMT_vol-adequate-t4 tie-in long string to surfcsg______,_"_____"___ ____ __-_Yes __________________________.______ --------------------------------------- 22 CMT-will coyer all known_ptoductiyehorizons_____-_______ -_-_.__--Yes --_._____-_____ - - - 23 Casing designs adequate forC,T6&_permafrost__-__--------- ---" _--Yes --------------------------------------- --------------------- _-. 24 Adequate tankage_or reserve pit - - - - - _ Yes - - - - . _ Glacier Rig 1. _ _ _ - _ _ 25 Ifa_re-drill,has_a-1.0.403 for abandonment been approved_.___--__.__ -__-_-_.NA_ ___-__NewweN:_-___-___._"__-____-_- "_-_________________ 26 Adequatewellboreseparation,proposed_---------------------- ---------Yes ._________..________--__-.______-_ ---------------------------------------- 27 Ifdive[terrequired,doesitmeetregulations-__-_______"__________ ________" Yes ________.___-____- Appr Date 28 Drillingfluid_programschematic&equiplistadequate_._-__-__-_- ___-__Yes ______MaxMW-9,5ppg.__,____"____-___.____-_________________"__-_- -__- WGA 8124/2005 29 BOPEs,_dotheymeetregulation___-__-___-__,__-_-_.___"__ -__-_-_,Yes ,-_________,____"._____________- 30 BOPE_press rating appropriate; test to_(put prig in comments)- - - _ _ _ _ - _ .Yes - - _ - - Test to 2000_ psi. _MSP 1261 psi., _ - _ _ - _ _ - - - _ 31 Choke_manifoldcompliesw/APl_RP-53 (May 84)-,___-_-_-_._-___ -__,___ Yes _,______________________ - - - - - - 32 Work will occur without operation shutdown__-__________ ______ _______ Yes -__._______-_______,___"_________-___.____-___,_- "__-_--- "-.----__.-_ 33 Is presence-of H2S gas_probable - - - No - - - - - - - - - - 34 Mechanical condition of wells withinAORyerified(Forservicewellonly)_____ __-__-. NA_ _____________________"__ "____-_-_-_-_-___-_-"-_--___- ----------------- Geology 35 Permit-can be issued wlohvdrogen-sulfide measures _ - _ - " . _ _ _ _ - .Yes - - - - - - - 36 Data.presentedon_potentialoverpressurezones__-____-__-_ __--._-_,NA_ -_-___-__-"___________________._ Appr Date 37 Seismic-analysis-of shallowgas_zones-_-___-_________________ __-_-_--NA_ __-_-._-_---_-__-._---__-.-___-_--_---_. - - RPC 811/2005 38 Seabed condjtionsurvey-(if off-shore) _ _ _ _ _ _ _ _ _ _ _ _ _ - NA_ - - - - - - - - - 39 Contact na_melphpne for weekly progress_reports (exploratory only]- _ _ _ - _ _ _ - NA_ Geologic Engineering Public Commissioner: ' Date: Commissioner: Date Com r er ' Date ~ b~ ~~ ~-a~-~.s g1 ~s/s C~ ~~ ~ o s •