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205-192
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. ~~~~- ~~ c~.., Well History File Identifier Organizing (done) o.~,aea iuimiiuiiuim Ae,~,~~eed~ iiiiuiiiumiui R SCAN Color Items: Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: BY: Maria Date: (J /s/ V Project Proofing III IIIIII II III II III BY: Maria Date: ~. /s/ d ~ ~ ~ ~ + x 30 = Scanning Preparation =TOT AL PAGES t[J (Count does not include cover sheet) BY: Maria Date: ~, /s/ Production Scanning III IIIIII IIIII II III Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) paration: Page Count Matches Number in Scan ~ng Pre YES NO -- BY: Maria Date: ~- V ~ lsl ~ r 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. III II'I II I II II I I III ReScanned BY: Maria Date: /s/ Comments about this file: Quality Checked !I) ~IIJ~I III I~'! ~II 10/6!2005 Well History File Cover Page.doc RE: FEX Sundry Application for Aklaq 2 • ~ Subject: EZE: FEX Sundry Applicat.ionfnr Aklaq From: "Buxton, John" <J i3UXTONra,talisman-ener~w.com Date: Fri, 17 Mar 2006 14:10:1 ~ -1)700 To: Thomas Maun~cr °~-tommaunder(ci?admin.state.ak.us==- CG "Quav, ~~'alter" ~"Walter.Quavlc~~asrcener~y.com-=, "13ellis, Chris" <CBELLIS(~i%talisman-cner~ry.coiT~>, "Quick, ti~lichael J." <-Michael.Quic.kia.asrcener~~y.com=~ Mr. Thomas Maunder, P.Eng., ~~ ~~ 1~~ FEX L. P. would wish AOGCC to be able to release documentation that is required to be posted at the rig site, for our current operations in the NPRA during the 2005/6 operating season, to Mr. Michael Quick in his capacity as the FEX Drilling Superintendent, c/o ASRC Building 3900C Street, Anchorage 99503 or by e-mail to michael.guick~asreenergy.com Please advise if further information is necessary to facilitate the information release. Best regards, John Buxton FEX Project Drifting Manager Office: (907) 339 7634 Blackberry: {907) 227 7254 -----Original Message----- From: Quick, Michael J. [mailto:Michael.Quick@asrcenergy.com] Sent: Friday, March 17, 2006 9:37 AM To: Thomas Maunder; Bellis, Chris; Buxton, John Cc: Quay, Walter Subject: RE: FEX Sundry Application for Aklaq 2 Importance: High Chris or John - We are using the Calgary address for FEX on all AOGCC paperwork. In order for the AOGCC to release a copy of the approved permit to us here in Anchorage, Chris or John will need to respond via email to Mr. Maunder giving him permission to release the approved permit paper work to me here in Anchorage. Please respond to Mr. Maunder as soon as you can. Thanks. Mike From: Thomas Maunder [mailto:tom_maunder@admin.state.ak.us] Sent: Friday, March 17, 2006 8:03 AM To: Quick, Michael J. Cc: Quay, Walter Subject: Re: FEX Sundry Application for Aklaq 2 Mike and Walter, 1 of 2 3/17/2006 12:17 PM RE: FEX Sundry Application for Aklaq 2 I left messages on your land lines and Walter's cell. Don't seem to have Mike's cell number. We will need the hard copies of the sundry. Thanks, Tom Maunder, PE AOGCC Quick, Michael J. wrote, On 3/16/2006 4:35 PM: Tom - Attached is a sundry application to sidetrack Aklaq #2. Please let me know if you have any questions or require more information. Also, if 1 need to bring printed copies of the application let me know and I will bring them over. Thanks, Michael Quick FEX Project Drilling Superintendent ASRC Energy Services, E&P Technology 907-339-6488 2 oft 3!17!2006 12:1? PM r ~ Subject: Permits to drill From: "Be11is, Chris" <CBELLIS@talisman-energy.com> Date: Thu. 151~ec ?SOS 13~b5~12 -~7~?p 'To: toi~~ iZ~aunderrc~:.admirl.s~ate.a}..us C'C; "~~'alter nua}',tE-l1~ai1)" ~=«alter.quay~lisrcct~er~y.can~-> Hi, Tom. Could you please provide a fax copy or other copy of FEX's Permits to Drill to Walter Quay of ASRC (Tel. 339-6341, fax 339-6758). Thanks and regards, Chris Bellis FEX 1-403-803-1660 ~~~' t ` ~v~~y~~ ~\~~~ ~Ci\l~ CQetCS ~~ ,~` ~~`~U~~~\~o~ W~.c~ ~~f ~~~~ I of 1 12/15/2005 1:07 PM ~ ~ s ~= ~~ ~~ ~ ~ a '~ ~ ~ ,~ ?: a~ ~ `~ ~~ FRANK H. MURKOWSKI, GOVERNOR .a ~ ~ ~ ~ ~~ ~~ OI~ ~ ~ g 333 W. 7"' AVENUE, SUITE 100 COIITSERQATI011T COMI~TISSIOIQ ~ ANCHORAGE, ALASKA 99501-3539 j` PHONE (907) 279-1433 FAX (907) 276-7542 Chris Bellis Drilling Manager FEX L. P. Suite 3400, 888-3rd St. SW. Calgary, AB Canada T2P 5C5 Re: Wildcat Aklaq # 1 FEX L. P. Permit No: 205-192 Surface Location: 715' FWL, 247' FNL, Sec. 15, T15N, R11W, UM Bottomhole Location: 715' FWL, 247' FNL, Sec. 29, T15N, R11W, UM Dear Mr. Bellis: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the 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. 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. Given the remote location of the well site, please provide a minimum of twenty-four (24) and preferably forty- eight (48) hours notice for a representative of the Commission to witness any 205-192 required test. Contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). DATED this,,~'day of December, 2005 cc: Department of Fish 8s Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Sincerely, STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION PERMIT TO DRILL 20 AAC 25.005 "' `fig 1a. Type of Work: Drill ~ Redrill Re-entry ~} 1b. Current Well Class: Exploratory ~ Development Oil Multiple Zone Stratigraphic Test [] Service ~ Development Gas ~ Single Zone 2. Operator Name: FEX L.P. 5. Bond: Blanket ~ Single Well Bond No. 09647820 11. Well Name and Number: Aklaq # 1 3. Address: Suite 3400, 888 - 3rd St SW, Calgary, AB Canada T2P 5C5 6. Proposed Depth: MD: 7920' ~ TVD: 7920' 12. Field/Pool(s): Wildcat 4a. Location of Well (Governmental Section): SurFace: 715' FWL, 247' FNL, Sec. 15, T15N, R11 W UM '~ 7. Property Designation: AA-085574 Top of Productive Horizon: 715' FWL, 247' FNL, Sec. 15, T15N, R11 W UM 8. Land Use Permit: LAS 25297 13. Approximate Spud Date: 1/15/2006 Total Depth: 715' FWL, 247' FNL, Sec. 15, T15N, R11 W UM '~ 9. Acres in Property: 14451 14. Distance to Nearest Property: 5033 South 4b. Location of Well (State Base Plane Coordinates): Surface:x- 414143.81 'y- 6091662.74 Zone- 5 10. KB Elevation (Height above GL): 29' feet 15. Distance to Nearest WeII Within Pool: 16.5 miles NE of E. Topagoruk 16. Deviated wells: Kickoff depth: N/A feet Maximum Hole Angle: N/A degrees 17. Maximum Antiapated Pressures in psig (see 20 AAC 25.035) Downhote: 4321 psi ' Surface: 1785 SI t 18. Casing Program: Size Specifications Setting Depth T Bottom op Quantity of Cement c.f. or sacks Hde Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 20" 16" 65# H-40 BTC 80' 0' 0' 80' ~ 80' Permafrost cement to surface 12-1/4" 9-5/8" 40# L-80 BTC 2500' 0' 0' 2500' - 2500' ~ 291 sx Permafrost Lead, 201 sx Class G tail 8-1/2" T' 261E L-80 BTC 7920' 0' 0' 7920' . 7920' 175 sx Class G 19. PRESENT IiVELL 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 Perfora6o~ Depth MD (ft): Perforation Depth TVD (ft}: 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ Time v. Depth Pbt ~ Shalbw Hazard Analysis ~ Property Plat Q Diverter Sketch 0 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 Chris Bellis Title Drilling Manager ~ / Signature Phone 403-231-2854 Date ~//B~d ~i ~~'~ Commission Use Only Pemrit to Drill Number. ~ "- I ~ APl Number. -7 / 50- Z / 9 "` ~.L~f ~ " ~(.:~ Permit Approval Date: Z; ,~. V ~ See cover letter for other requirements. Conditions o1 approval : ~ ~ ~~~-~Q` ~, ~ ~ L 'R ~ ~ Sam s requir Yes No ~ Mud log regwre Yes No []~ ,! y en u de me~asfu~res Yes No ~ Di ctional survey required [ Yes [] No Other. J ~ ~ ~ ~ ~ ~ ~..7~ ~ ~~ ~ ~~ ~~C'EC~'I'"a1r`~ j iZ ~'T'!9'Z'. -S~L ~ 1" 71~s,~ ~ ;~~ l.~s~ APPROVED BY "~ > ~~ z3 ~ Approv by: THE COMMISSION Date: f ~.~' ~ ~~ d J~.~~~C' ~~ JCL-,"" Form 10101 Revised 06/2004 O ~ ~ ~ l ~ A L Submit inDuplicate STATE OF ALASKA A SKA OIL AND GAS CONSERVATION COMMI ON PERMIT TO DRILL ~`~/ fr LU HHI; Lb.UUS 1a. Type of Work: Drill ., Redrill 1b. Current Well Ctass: Exploratory ~ Development Oil Multiple Zone Re-entry ~ Stratigraphic Test ~ Service ~ Development Gas ~ Single Zone 2. Operator Name: 5. Bond: Blanket ~ Single Well 11. Well Name and Number: FEX L.P. Bond No. 09647820 Aklaq # 1 3. Address: 6. Proposed Depth: 12. Field/Pool(s): Suite 3400, 888 - 3rd St. SW, Calgary, AB Canada T2P 5C5 MD: TVD: Wildcat 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 715' FWL, 247' FNL, Sec. 15, T15N, R11 W UM AA-085574 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 715' FWL, 247' FNL, Sec. 15, T15N, R11W UM LAS 25297 1/15/2006 Total Depth: 9. Acres in Property: 14. Distance to Nearest 715' FWL, 24T FNL, Sec. 15, T15N, R11W UM 14451 Property: 5033 SOUth 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x- 414143.81 y- 6091662.74 Zone- 5 (Height above GL): 29' feet Within Pool: 16.5 miles NE of E. Topagoruk 16. Deviated wells: Kickoff depth: N/A feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: N/A degrees Downhole: Surface: 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) (PUBLIC INFORMATION COPY I19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) I Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): T Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Liner Perforation Depth MD (ft): Perforation Depth TVD {ft): 20. Attachments: Filing Fee J BOP Sketch ~ Drilling Program ~ Time v. Depth Plot ~ Shallow Hazard Analysis ~ Property Plat 0 Diverter Sketch Q Seabed Report ~ Drilling Fluid Program 0 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Chris Bellis Title Drilling Manager 7 / Signature ;` ; w~%~ ~G ~ Phone 403-231-2854 Date ! Er ~ j ~_ , 2 t'P'-~~ Commission Use Only Permit to Drill ~ API Number: {{ Permit Approval See cover letter for other Number. ~~- g'~ 50-~~~ ~~~/~j "`~~~ Date: ~ 3 tZ ~ requirements. Conditions of approval : [~ ~~, ~r~~~Jy~ L. 1'l .Ci~~j Samples required Yes ~ Mud log required Yes ~ No ~ , Hydrogen sulfide measures Yes No ~ Directional curve required Yes ~ No ~~ i T~~ ~// c'2'zi' ~ ~ Other: jO~© f~5• ~,t\~~'ZC+~,1 ~~~ i_ ~~~ ~~~~~c~ ~ ~.l-/'~ r v~~770'a. -~ i c' [/ h2./~ r' ~ ~~, ;' ~,~~ .mss APPROVED BY ~•J C. Approved by: THE COMMISSION Date: .., -w ~, Form 10-401 Revised 06/2004 OR161NAL Submit inDuplicate • • FEX L.P. Application for Permit to Dri11 Aklaq #1 NW NPRA November 2005 • • November 16, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~` Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Permit to Drill: FEX L.P. Aklaq #1 Dear Mr. Norman: FEX L.P. hereby applies for a Permit to Drill an onshore exploratory well in the NW NPRA area of the North Slope. The well, called the Aklaq #1, will be located approximately 64 miles southeast of Barrow. FEX L.P. plans to spud the Aklaq #1 approximately January 15, 2006. Ice road/pad construction equipment has been mobilized via barge to the existing Cape Simpson staging area for this purpose. Upon receipt of all necessary permits and approvals (including tundra travel authorization), the ice road equipment will be mobilized from Cape Simpson to near the well location via approved tundra travel equipment. Construction of an ice runway and ice pad will occur concurrently, followed by the construction of ice road(s) connecting the runway to the well locations. Upon completion of the ice runway and ice drilling pad, a combination of approved tundra travel equipment and heavy lift aircraft (if required) will transport Nabors' Rig 14E from Cape Simpson and Deadhorse to the wellsite, the well drilled to TD and tested if applicable. At the completion of the drilling program, the drilling rig will be demobilized to Cape Simpson via approved tundra travel equipment. Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill (Public Information) -1 copy 2. Form 10-401 Application for Permit to Drill - 2 copies _ _ _ 3. Fee of $100.00 payable to the State of Alaska 4. Well Prognosis and discussion of operational considerations 5. Location Plat and Drill Pad Layouts 6. Days vs. Depth Drilling Curve 7. Drilling Procedure 8. Wellbore and Wellhead Schematics 9. Pressure information including pore pressure, mud weight and fracture gradient curves, offset well mud weight curves, maximum anticipated surface pressure calculations, FIT and LOT procedures, and casing properties and design factors. 10. Diverter, BOP and Choke manifold schematics 11. Cement Program 12. Drilling Fluid Program • ~ Mr. John Norman Page 2 As part of this application, FEX L.P. also requests approval for the annular disposal of drilling wastes as discussed in the attachments. Form 10-103RD will be completed and submitted at the time the required well information becomes available, if necessary. The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to FEX L.P. For your information, this permit request is being simultaneously submitted to the U.S. Bureau of Land Management. If you have any questions or require additional information, please contact me at 403- 231-2854. Sincerely. ;t ,~ ~-, ~. F L.P. Chris Bellis Drilling Manager STATE OF ALASKA ALA KA OIL AND GAS CONSERVATION COMMIS~N PERMIT TO DRILL 20 AAC 25.005 iV01/ 1 7 20D5 Alaska Oii & Gas Dons. Commission 1a. Type of Work: Drill ~ Redrill Re-entry ~ 1b. Current Well Class: Exploratory ~ Development Oil Multiple Zone $tratigraphic Test ~ Service ~ Development Gas ~ Single Zone 2. Operator Name: FEX L.P. 5. Bond: Blanket ~ Single Well Bond No. 09647820. 11. Well Name and Number: Aklaq # 1 3. Address: Suite 3400, 888 - 3rd St. SW, Calgary, AB Canada T2P 5C5 6. Proposed Depth: MD: 7920' ND: 7920' 12. Field/Pool(s): Wildcat 4a. Location of Welt (Governmental Section): Surface: 715' FWL, 247' FNL, Sec. 15, T15N, R11W UM 7. Property Designation: AA-085574 Top of Productive Horizon: 715' FWL, 247' FNL, Sec. 15, T15N, R11W UM 8. Land Use Permit: LAS 25297 13. Approximate Spud Date: 1/15/2006 Total Depth: 715' FWL, 247' FNL, Sec. 15, T15N, R11 W UM 9. Acres in Property: 14451 14. Distance to Nearest Property: 5033' SOUth 4b. Location of Well (State Base Plane Coordinates): Surface:x- 414143.81 y- 6091662.74 Zone- 5 10. KB Elevation (Height above GL): 29' feet 15. Distance to Nearest Well Within Pool: 16.5 mi{es NE of E. Topagoruk 16. Deviated wells: Kickoff depth: N/A feet Maximum Hole Angle: NIA degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: 4321 psi Surface: 1785 SI 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks Hole Casing Weight Grade Coupling Length MD ND MD ND (including stage data) 20" 16" 65# H-40 BTC 80' 0' 0' 80' 80' Permafrost cement to surface 12-1/4" 9-5/8" 40# L-80 BTC 2500' 0' 0' 2500' 2500' 291 sx Permafrost Lead, 201 sx Class G tail 8-1l2" 7" 26# L-80 BTC 7920' 0' 0' 7920' 7920' 175 sx Class G 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth ND (ft): Junk (measured): Casing Length Size Cement Volume MD ND Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ 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 Chris Bellis Title Drilling Manager -~ ~1~ ,/ Signature -'"~ % ;`sue Phone 403-231-2854 Date ~~~~ ~ ~~~C?~ ! Commission Use Only Permit to Drill y Number: API Number: 50- Permit Approval Date: See cover letter for other requirements. Conditions of approval Samples required Yes [] No ~ Mud log required Yes [] No Hydrogen sulfide measures Yes ~ No ~ Directional survey required Yes ~ No Other: APPROVED BY Approved by: THE COMMISSION Date: Form 10-401 Revised 06/2004 Submit inDuplipte • FEX L.P. Aklaq #1 Overview and Timetable FEX L.P. plans to drill an exploratory well, the Aklaq #1, in the NW NPRA this winter. Aklaq #1 will be located approximately 64 miles southeast of Barrow. The well will be drilled from a temporary ice pad with spudding estimated to occur approximately January 15, 2006. The well is planned as a vertical hole. The well will be accessible via aircraft to one of two potential ice runway locations, then via ice road across the frozen tundra and via tundra travel vehicles from the Meltwater 2P Pad. A map showing the details of the runway locations, ice road route, and tundra travel route as well as the drilling location are enclosed in this application. Ice road and pad construction will begin as soon as the necessary permits and approvals are available and the weather conditions allow. Ice road/pad construction equipment has been pre-mobilized via barge to the existing Cape Simpson staging area for this purpose. It is planned that the ice road equipment will be mobilized upon tundra travel opening from Cape Simpson to near the well location via approved tundra travel equipment. Construction of an ice runway and ice pad will occur concurrently, followed by the construction of ice road(s) from the runway to any additional well locations. Upon completion of the ice runway and ice drilling pad, a combination of approved tundra travel equipment and heavy lift aircraft (if required) will transport Nabors' Rig 14E from Cape Simpson and Deadhorse to the wellsite. The rig will be supported with personnel and supplies flown into the ice runway and transported to the wellsite via ice road. Some heavy supplies and equipment may be brought overland via approved tundra travel equipment. Well testing may be performed. Current plans are to plug and abandon the well prior to the end of the 2005/2006 winter drilling season; however, the well maybe temporarily shut in and secured if well evaluation cannot be completed prior to the closing of tundra travel in the spring of 2006. If the well proved to be a dry hole, it will be plugged and abandoned prior to the rig being released from the wellsite. If the well is to be tested, it will be completed, and tested with the rig on the well after a testing tree is installed. If the well test is promising, the well maybe shut in until a following winter season. If there is insufficient time for testing, the well will be shut in and tested during a subsequent winter season. In either case, if the well test is discouraging, the well will be plugged and abandoned at the conclusion of testing. Operational Considerations Permafrost Based on offset wells and seismic data, the permafrost is assumed to be present from the surface to approximately 1086': The permafrost is not expected to present any drilling difficulties as neither thawing nor gas hydrate problems were encountered in any of the offset wells. • • Surface Casing Shoe Depth The 2500' TVD setting depth for the 9-5/8" surface casing is located in a shale in the - Torok. The casing shoe will be set in competent shale within the Torok in order to yield a strong shoe test, yet leave some of the sands in the Middle Torok exposed between the casing shoe and the Lower Torok for later annular disposal of waste drilling fluids. Lost Circulation and Sloughin 5g hales Some of the wells in this general region encountered sloughing shales below the HRZ and lost circulation in and near their target horizons. The Aklaq #1 casing and mud programs have been designed to take these potential problems into account. Pressures Anticipated pore pressures are derived primarily from the histories of offsetting wells in conjunction with a pore pressure analysis completed using seismic velocities. As shown on the attached pore pressure plot and maximum anticipated surface pressure (MASP) calculations, the highest expected pressure is at 7920' feet and is 4321 psi (10.5 ppg '' EMW) and will result in a maximum pressure at the surface, with a full column of gas, of 1785 psi (see included calculations). A 5,000 psi WP BOP and wellhead system will therefore be used on this well. ~~51 ~,~~ s~oL t~ •\ ~ J ~ ~~ -~ ~ ~S~` ~a~ ~~~~ 'CC>. Abnormally pressured shallow gas is not anticipated. The pore pressure prediction section of this application contains an evaluation of the risk of drilling high pressure zones as potentially recognized after seismic processing. Drilling Within Annular Blowout Preventer Limitations As shown in the included pore pressure prediction study, the highest pressure expected above the surface casing setting depth (9.0 ppg equivalent mud weight at 2500' TVD less a 0.11 psi/ft gas gradient) is 895 psi; which is within the 2,000 psi working pressure rating of the diverter. Below the surface casing, BOPS will be used in lieu of a diverter. Again, the MASP calculations show that all the anticipated surface pressures are well below the 5,000 psi working pressure rating of the annular preventer. BOP System and BOPE Testing The BOP system of Nabors Rig #14E is rated at 5,000 psi working pressure and is described in the BOPE section of this application. Since the calculated maximum anticipated working pressure (at the surface) in this well is 1780 psi, it is planned to routinely test all BOPE to a minimum 80% of its rated working pressure (~ 4,000 psi) (except the annular BOP which will be tested to 50% of its rated working pressure (2500 psi) .The BOP system will be tested initially (before spudding the well) and weekly thereafter to a low pressure of 200 psi and a high pressure of 4,000 psi (80% of rated working pressure). Well Deviation The Aklaq #1 will be drilled as a vertical hole. Directional control will be monitored via MWD in all hole sections. ~~ Depending on the outcome of the target horizon penetration, at least one wellbore directional sidetrack may take place. ~~~ None of the offsetting wells encountered measurable amounts of H2S in the intervals to be drilled, and it is not expect that drilling the Aklaq #1 well will encounter measurable amounts of H2S. However, the drilling rig will be wired with operating sensors, enhanced by additional sensors ties into the mud logging system, to continuously monitor for the presence of H2S. Drillin,~ Waste Handling Waste drilling mud from the well will be pumped into subsurface formations at ' approximately 3000' TVD via the 9-5/8" surface casing by 7" intermediate casing annulus. Cuttings will be hauled to an approved disposal facility for processing and disposal. Prior to on-site disposal or hauling, the waste drilling mud will be temporarily stored within a bermed storage cell in heated tanks; while the drill cuttings will be temporarily stored within a bermed storage in LiftLiner soft sided containers. Diagrams are included with this application that shows the ice pad layouts with the proposed location of the storage cells. Additional Information Additional information on operations such as formation tops, logging, mud logging, etc. can be found on the attached Aklaq #1 Well Prognosis. Certified Location Plat An as-built location plat, certified by a Registered Land Surveyor, will be submitted shortly after construction of the drilling location is completed and the conductor pipe is set. Contacts The contacts within FEX L.P. for information are: Reporting and Technical Information: Michael Quick 907-339-6488 or Walter Quay 907-339-6341 Geological Data and Logs: Barb Rypien 403-237-4675 ,~ R C T 1 C o C c :i .v FEX L.P.- NORTHWEST NPR-A EXPLORATION DRILLING PROGRAM a E o~N '~ / R.hINC E dtiyt,,~,,,~""1r,..._ v~ _ ~' „~.,a...,e. .. :.,,. ._ ~r~o I ~ H~ ~w l T IrF 44.4 "t a ~ .. .... GI I I ~4/ ~ ~.. ~~~ j 1 ''~~ r tl ~Q V I r I ~ ~ I ~ s ~'\ - I x a~ ~ I .. r - Vii( ~ r I: ! ~ ~, \_ 3vrk CI'epk t L ~ ~ i _ - - ~ ~ AJmirulry In : I L n, L ~~ ,C ` d J~1 f:~li.i~m CE T1Nl ` , . ~4: w.r.. aU SEE _ 1\ r1 ' \ WIIALwG II , ,. K / .yf 1 1 ~ a s ~ J~. ..., . r.1 r' r ' ~! z ~ \ T..ahakPnA Luke ,2f I: ~ ~ YTU.wwr.r ~ -~ J`LO ~..a1~~{v fy ~ ~+% 4~ ~ till ~ ''tL dni: --~-- - ~.~y~. ~ __ ~ _~ .. .. c (/` I Yt<~~ l~ -I _. Kal kPlyQ. ~ 7` K H ~ l __ ( S ~ ~ .~ P K ~v ._. Vii.: tx 1'. ~ ~~7 _. ``s~ ~.~ O L^ ~ a• 1 -f. . ~ a' ,rokoC r M ~S _v~ Nui9sut'~ P 'L~` T~: _ ~_::. =rT ._ > ~~ ~ N A T I O N A L ~P E S R O L E U M R E S E R V E- A L A S K A ~ -'V ,~ D`1 e0' } "1 ~' \ j~ v ~T ~ T u~'W ti~7r '~.. fi ^ ~-~i LW ROAD DISTANCES --"MILES-.. -_ _.... -- _ '. (t 1 rN Yr`(4 ~J ~~1 `F.~ ~ ~ ,pp YT ~}~ 1 ~~ .}~~~~ ale,-~kr ~.... .. - ~. _ ., <S~ _ DFADHOR6E AIRPORT TO MELTWATER 6T J 1 ~;~ .f t t ~11 `'~' 1 A MELTWATER TO AKLAONI 144 I L ~ ~ ~ I ', I may, / ~,} ~ ~'t- ,+~jt, '~ 1 ~ T_ ~ ~ ~ T ~` ` A$ ~ ~ ~' c MELTWATER TO INIGOK 86 ii>~ ~ }3~ c INIGOK TO AKLAWt ]2 {{}},,y y AA i ~,}RYr~y i \'1i ~L / I, {NS y`-~{ ~ c CAMP LONELY TO ANI.AOe1 AA r A r fY~S~ .~ ~ ly 5 .K >t VT Jy~ ~ J >4r. ~ , 1 Ja~ ~~ r ~~I ~ -~~1 ~+- {~ -~ )^ ~ ~~& ~ CAPE SIMPSON TO AKLAOSt 31 Cpl r Y 1 t I r ~^k f ~~ <~ J ~ ~ ~., fT ~1y- 1 `° BARROW TO AKIAOYAAONt 69 j ICE ROAD DISTANCES ~ I ~ Y '!~ W e+~:~i'9 4 ~:.. ~ d.. ~" ~ ~'~ 113- .) J ~ 1 (7l~ I - ( I )(i ~N~T~~LI,. K~-~ ~ ;ri,{: ,, ~ ~ ? ~ ~ 'rj 1j ~ ~ -. Y v~:i r ~~~~r~~t~~z~'~ ~ 1-; ~ t ~ .-: R6 ~ ` {;' %,Y~ ~[^_j ~ el AKLAOp1 ~ AKUOaz ~ AKUOVaaoA1 ~ AhwcuDA1 . ~~ ~ #r, .t, ~ k§~ R~ ~vf't y'bgt~ f ""T=~r3 -.~w - jj 3. ~..~ :. ,~ ~ , 94MI 122MI 56MI ~ N ).T !; - ~ ~,F X ly ~ .1;4,1 ~2y~gkfDtO I ~~v 4 C I ~)- ~„ ~" - ~ ~ 1~.y( ljr~ RUNWAYft RUNWAY/! (Miles) .. yy'y i AKLAGNI d 3 16 B ~ s wN AKLAOS2 8.9 B.1 Ko9° AKUIOYAAOkt 16.4 4.1 - AMAGl1Qll1 23.5 9 3 ' • • ~ 1 ' _ a"~., i ~ S ~ ; .f ~._,~~: ~~ ~„ ~', -.;, ~ ~ CAPE S I M PSO N , *r'+i~' :~. ":~ i . re ~ ~ ~. ~ ~~ ~~. p ~ •< 1. ' ~ ` ~i f~`~ ' !- ~ '~' '.^.' ~ `~ :.{1- r~ ire ~ ~. . 4 , . ,~ t `'~ ~ ; ;'`~ ~'.•/.. ,. ~~ .rs 1 ~.~ it ~ C. _,' r ^ ~ .rte r ' ~ •., _ ^~.-c ~~_ .1'~..~5 -. ~ yam. ~ • ,`•'r ~'.-`"t fir ~ kx t L t / i_ ~.-.. • ~L ' s . ~ Aklagyaaq #1 % ~ v ~~ i r ~ r .~U~ .1 ~ -~ , ~` . ~ { a ra•« ,^' ~, J Al ~~ ~+ .i~r~' ~ ~~ ai,rlti ..,~ _ ~.~`~ • ra ~~t ~ .`yam L~ M- ~'~Y~ ~, ~~ ?S~ ~~~..ti~ (~ A,m-aguq~#1~ ! *-,~f' f~ st ~" y • •r'{~ -, .; + ' ~~~ f- 9- ~' ~, Projection: UTN Zone 5 (m) NAD 27. Umiat Meridian.lnfrared (2002) DOQ basemap provided by the Bureau of Land Management (BLM).Camp and cabin locations are approximated and were provided by the North Slope Borough. Native allotment data provided by the BLM. O Proposed Exploration Well F E X L. 1 Potential Ice Road Potential Ice Runway Potential Low Pressure Vehicle Route PROJECT LOCATION MAP ® Camp or Cabin (Approximate Location) ~---~ L_-_~ Native Allotment SCALE: FIGURE: O DEW Line Site r-T~ 0 2.5 5 Miles Lynx: 15047-199.mxd, 11/08/05, R00 • • FEX L.P. Aklaq #1 Well Prognosis Well Name: Aklaq #1 Surface Location: 715' FWL, 24T FNL, Sec. 15, T15N, R11W, UM ' Target Location: 715' FWL, 247' FNL, Sec. 15, T15N, R11W, UM Bottomhole Location: 715' FWL, 24T FNL, Sec. 15, T15N, R11W, UM Elevation: Ground Level 15' AMSL Drill Floor (DF) 29' AGL Planned TD: 7920' TVD Formation Tops: Tops Depth (TVD~ Base Permafrost 1086' Nanushuk 2001' Torok 2837' HRZ 6548' LCU 6723' BCU 6958' Kugrua Sand 7268' TD 7920' - Cores: One 90' core planned in the Kugrua Sand Planned Logs: Surface Hole: 80' to 2500'(+/- 200' LWD only: Gamma Ray / Resistivity Production Hole: 2500' to 7920' LWD: Gamma Ray / Resistivity, Density /Neutron Wireline: MDT, CMR, Sonic, Dipole Sonic, Optional SWC Mud Logging: Mud Logging will be in operation from the base of the conductor casing to well TD. Services will include sample collection; plotting of ROP, lithology, and drilling parameters; show description; gas analysis of cuttings; and gas chromatography. Samples will be collected every 30' from the base of surface casing to TD, and every 10' in zones of interest. The wellsite Geologist will adjust the ~' interval or sampling rates as required. CJ FEX L.P. GEOLOGICAL PROGNOSIS AKLAQ #1: -Version 6, Nov. 7, 2005 COMMENTS: The primary objective is to safely drill a vertical exploration well to test the presence of producible hydrocarbons reservoired in the Kugrua Sandstones of the Aklaq Prospect. This is a purely stratigraphic trap located 7 1/2 miles southwest of the CPAI Puviaq well. In the event of success, the well may be tested. If successful, it is planned that this well will be abandoned. There are possible secondary objectives in the Torok. However, it is possible that 1, if not 2, sidetracks from the same surface location could occur, depending on the results of the well. Prima Ob'ective Formation and Product Ku rua Sandstone Member, Oil, Gas ° Terminatin Formation Kin ak Shale Alaska Lahee Classification Explorato Confidential Status as defined b Lahee Classification Confidential Alaska State Required Samples As below From-to-formations and de the FEX Required Samples: Cuttings From Surface to HRZ in 30' intervals, 10' intervals from HRZ (From-to-formations and depths) to TD FEX Re uired Sam les: Biostrati rah Same as above FEX Required Samples: Mud At 1500' intervals through the well, 30' intervals through any h drocarbon zones Core: 90' conventional core in the Kugrua Sandstone. Depending on the results of the first core, additional core may be required. Start of Core to be picked based on a drilling break and a hard siltstone expected to be present above the Ku rua Sandstone. LOCATION: this is a vertical well. LATfLONG or SEISMIC UTM Co-ordinates (Alaska State Plane 5) IN LINE SHOT YEAR XLine POINT Vertical Surface Location 70° 39' 39.64" N 154° 42' 28.67" W x : 414,143.18ft y : 6,091,653.4ft Vertical Bottom Location 70° 39' 39.64" N 154° 42' 28.67" W x : 414,143.18ft : 6,091,653.4ft Sidetrack #1 Surface Location Sidetrack #1 Bottom Location Sidetrack #2 Surface Location Sidetrack #2 Bottom Location GL (ft): 14.797 RTE (ft): 29' KB (ft): 43.797' (GL+RTE) • • ANALOG WELLS: Ikpikpuk ,South Simpson 1, East Topogoruk Test Well #1, Caribou 26-11 FORMATION TOPS: Shallowly dipping beds are expected. Kb (ft) est= 43.797 Formation Drill Depth (ft) Base Permafrost 1086.7 Nanushuk 2000.7 Torok** 2837.7 HRZ 6548.7 LCU (Lower Cret. Unconformity) 6723.7 BCU (Base Cret.Unconformity) 6958.7 Kugrua Sandstone Mbr." 7268.7 Base Kugrua Sandstone 7338.7 Pliensbachian (J2) 7720.7 TD (Middle Jurassic) 7920.7 " Primary Objective: Error Bar Isopach rvD subsea Descriptions +/- ft TVD (ft) MDIrvD (ft) (see page 3 for more info.) 500 914 -1042.903 gravels, potential for permafrost gas 200 837 -1956.903 sandstone, thin coal, possible minor gas kicks' 200 3711 -2793.903 shale, siltstone, poss. Minor oil &/gas shows 150 175 -6504.903 shale, highly radioactive zone, pos. slight over pres. 150 235 -6679.903 sandstone, shale, siltstone 150 310 -6914.903 sandstone, shale, siltstone 200 72 -7224.903 sandstone 200 382 -7294.903 sandstone 200 200 -7676.903 siltstone 200 -7876.903 siltstone "`Secondary Objectives: Detailed Formation/Litholo Descri tions Nanushuk Interbedded sandstone, siltstone and claystone with some coal and marlstone beds. Coal is mostly likely to be high grade lignite or low sub- bituminous. Sandstone is friable, well sorted. siltstone and claystone are soft with low to moderate cohesion. There may be rare small gas kicks max. 200units over back round Torok Medium to dark grey carbonaceous shales, some light to medium gray claystones. Siltstones present throughout the formation. Sandstone intervals expected to be more abundant and thicker in the lower part of the formation. Sands expected to be fair to well sorted, subangular to angular, carbonaceous and silty. .The Torok can be divided into lower, middle and upper units as follows: Upper Torok consists predominantly of shale, claystone, and siltstone with 10-40' sandstone intervals throughout. Sands consist of very fine grained well sorted and easily friable grains. Middle Torok consists predominantly of moderately brittle shale with increased sand content towards the base. Lower Torok consists of shale and sand with some sandstone beds over 50' in thickness. Poor porosity, some fluorescence and small gas shows (up to 1500 units over back round ' HRZ Shale and claystone, non-fissile, soft shale, possible small amounts of siderite LCU Sandstone and shale interval. Sandstone intervals consist of subangular grains, some sample fluorescence. Shale is brittle with moderately well develo ed frssilit . Ma be some sma11 as kicks BCU Shale and siltstone. Brittle to firm shale, ma have a dusk red color. Kugrua Sand Sandstone is well sorted, fine grained, grains may have hydrocarbon staining, subrounded to rounded. Crystalline matrix may be some lauconite. Gas kick ossible. Pliensbachian Sandstone and siltstone. siltstone is brittle and crumbly, scattered v.fine sand grains, slightly calcareous. Sandstone is moderately well sorted with minor lithics, some lauconite, some sam le fluorescence. ~J EVALUATION PROGRAM: ~~ Logs Sonic (casing shoe to TD), Resistivity (casing shoe to TD), Density/Neutron (sandstone scale, casing shoe to TD), MWD (casing shoe to TD), NMR possible Mud Log From Surface to TD Tests 1 production test possilbe Geophysical : a rig sourced VSP will be required for this well. Personnel Wellsite geologist with gas detector from surface to TD. ` DRILLING/EVALUATION REQUIREMENTS: HZS: -none expected within this well. Potential Drilling Problems: a review of the public records of the analog wells (Ikpikpuk, South Simpson 1 and East Topogoruk) indicate that the formations to be drilled are normally pressured and H2S was not encountered at the depth - contemplated in this program. However, shallow gas pockets (from thin coal beds) may be present in the Nanushuk Formation. There may also be minor gas shows in the Torok Formation. Pore pressure work done on the Caribou 26-11 well, indicated a possible anomalous pressure increase below the base of the permafrost. As well, in the Caribou well there was the potential for slight over-pressure from the top of the HRZ to TD. Pore pressure work done on offset wells South Simpson and Ikpikpuk, show no apparent zones of high pressure. Shales from the HRZ have a tendency to wash out as is evident on caliper logs throughout the North Slope. The sloughing shales may cause hole stability problems that need to be appropriately addressed in the drilling program. AKLAQ # 1 Notional Well Tops Depth Age Stage Formation Lith TVD Potential Hazards Formation Description 500 Ceromanian ------ - -- ---- 1000 Base Permafrost ------------------- ----------------------------------------------- 1150' . =~5~-~. =. J;t Albian _= - _- - __ 1500 _ _ - Interbedded sandstone, siltstone and claystone with some coal and marlstone beds. Coal is mostly likely N8l1USf1Uk 'r - - - - to be high grade lignite or low subbitummous. Sandstone is friable, well sorted. siltstone and claystone - - - - ' 2000 are soft with low to moderate cohesion. There may be rare small gas kicks (max. 200units over . _ background) - - 2500 ' - - 2837 ----- 3000 Aptian = _ ------ ------_ = 3500 ~, Barremian - - - - = =____ 4000 3 o =__-_- - - -_ - a> cvo Torok - - - - --_ _ _ = Medium to dark grey carbonaceous shales, some light to medium gray claystones. Siltstones ~ --- _---= - - - 4500 present throughout the formation. Sandstone intervals expected to be more abundant and thicker t n lar f i t ll rt d b l i d d b h l f h f S U _ . _ . _ -_ _ _ _ - gu , r o we so , su angu ar o a ormat on. an s expecte to e a e m t ower part o t e e carbonaceous and silty. Poor porosity, some fluorescence and small as shows (up to 1500 units - _ _ _ - 5000 over background) __-_- 5500 ----- 6000 548' 6500 Hauternian HR _ _- -_-_- - - - - - an stone an c a stone, on- tssi e, so sae, ossi a sma amounts o st ente Valanginian 723 LCU ' Sandstone and shale interval. Sandstone intervals consist of sub angular grains, some sample OXfordian 6958 BCU _ - 7000 Shale and claystone, non-fissile, soft shale, possible small amounts of siderite U Ku ma 68d 9 - - - K~~ sana Shale an siltstone. Brittle to firms ale, may ave a dusky re color. N J2 = _ _ 7500 J2 Sandstone and siltstone. siltstone is brittle and crumbly, scattered v.fine sand grains, slightly calcareous. 7, __ _ n i rat I I ith i t lithi nit m m fl n ~ 776 _ ~ TD 7920' - - - - = 8000 • • ivy ~'~~ CASINO /'~ ,~ BASKETS ./~ __,y- t°'-0- .~ ././. a ~. ~ ~' ~ DRILL *~,,,,° .,~ -. - PIPE NORTH -~n !%i~M,gM ~ ~O , , .. ,. ~ BASKETS ~ ~ \ ,~ I~ ~ ~. PR~V A\uNG w ~ °~.• \ .~° ,~~ \ . • °° ~. ~, ~-0. ®i'~ \ ~~ \ ICE PAD ~ ~ ~'' ~"~ ~\ EXTENSION ; \; MUD \ ,\ ~, \ s~sTEM / \ 3a wIDE ~ la• 1 ~ -/~ \ \\ \ ~11 PIPE _R4' \ `,\ ~'~ LOADING RAMP 3~' \ \ SHED ~ FULL' \ ~/ ' ~ IC STORAGE ~a; TANKS ~ A1'-d ~. , \=p\ \ \ \ ~ \ ~~~ THICKENED p' ~ ~~ ICE PAD ~~ ~'-~' Irk, LIMITS nd aD'-o' ~ \ \ i ~ zo' ~ \ / . ~~- ~ \ dom. 'r .:rr ~ J .~- LD' zr / ' ~-r - -~ n -°' ~, m' TLLK[RMA ~..~. nAO [IAIMlKM1 6TDWDD 1 U ADDfD 1LWAC RNE t ON- RIO E70Om6 IA7EEDl) N U RR@D RID NlaBR 4 NABORS ALASKA RIG 14E '~E°0" ` ''` °00ED ~` Rr~ ~ YD1°` rms *~~~~ ~ "~ ar >m slDClw v u amm °Lwlmra smDl m wDlR~lr ~r~e~sir~~a. ~wr rm}m,. RIG PLACEMENT EXPLORATION CONFIGURATION azDCm~ c u ~ a°sx¢ sou a ov°o DRIP RID N19o~3 Au9u ~ t~E CONCEPTUAL PAD LAYOUT ~10C6' ° ,'` A0°FD R1D EA°B0M au~Dat c u s~xitn spu. ssPOlsc .w r IDw.1°ao rac PIACmaf EIwI.oRAipw ca~tarranav nlKmu e u nn~v~ IDE Rio ,~ CONL~PIU11. PAD UMUf zaKxo ~ u samm wan m mDIL RMI Df AISIDN ~t AIbI 1 sa 7~ "41` N~ ra mD~ 11LDDII i r I • FEX L.P. Aklaq #1 Days vs. Depth Days 5 10 15 20 25 30 1,000 2,000 3,000 D e a,ooo p t h s,ooo ~\ f t s,ooo v 7, 000 8,000 9,000 10,000 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - - - - - - - - - 1 - - - - - - - - - - - - -I- - - - - - - - - - - - -'- - - - - - - - - - - - - 1 - - - - - - - - - - - - J - - - - - - - - - - - - I I I I I I I I I I ~ I I I ~'I Drill 12-1/4" Hole 'I I I I I I I I I I I I I I I ------- - -----------------------------I-------------r------------, - II Run and cement 9-5/8" casing, ~~ I •-N/U BOPE, conduct LOT I~ I I I I I I I I I I I I _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ _ _I _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ _ _ _ _ _ J _ _ _ _ _ _ - _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ _ _ _ _ _ _ _ T _ _ _ _ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ _ _ _ _ _I _ _ _ _ _ _ _ T _ _ _ _ _ _ _ _ _ _ _ _ , _ _ _ _ _ _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I Drill 8-1/2" Hole II I I I I I I I _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ _ _,_ _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ - _ _ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - - - I I T------------- ------------i-------- r -----~------------ I I I I I I I I I I I I I I I I I I I I I I I I I I I I Core 90' Core sample ~I _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ J _ _ _ _ _ _ _ _ _ _ _ _ I I - - - - - - - - - - I Run Wireline Logs I' Complete Well I I I I I I I I I I I I I I ~ I I I I I I - T-------------I-------------r---------- r --~ -- I I I I I I I I 11 1 I ' Test Well I I I I I I Run and Cement I I I I I I ~ 7" casing _ _ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I i FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaq # 1 Drilling Procedure 1. MIRU Nabors rig 14E. Drill 20" hole to +/- 80', set 16", 64#, H-40 BTC conductor casing. Pump sufficient cement to bring cement returns to surface. 2. Attach landing ring to conductor. Install diverter and function test. Notify regulatory agencies 48 hours prior to test. 3. Drill 12-1/4" hole to the surface casing point of+/- 2500' MD/TVD. Run and utilize MWD and LWD tools throughout this hole section to monitor hole angle and to ensure the hole remains vertical, as well as collect logging data. 4. Condition hole for casing. POOH. 5. Run and cement 9-5/8", 40#, L-80 BTC casing to surface. Employ a lightweight permafrost cement lead slurry followed by a high strength Class G tail slurry. Pump adequate excess cement to ensure cement reaches the surface. 6. Nipple down diverter and nipple up BOPE. Test BOPE. Notify regulatory agencies 48 hours prior to test. 7. Make up 8-1/2" drilling BHA and RIH to the top of the 9-5/8" float equipment. Pressure test the casing to 3,000 psi for 30 minutes. Record the pressure test and fax t e results to Anchorage office. r--~'Yv~c ~'~ ~~ ~~ ~ ~ ~,~~ ~~ ~ ~~. `~(~ ilk. g 8. Drill the float equipment and 20' of new hole. Perform a LOT (or FIT if the gradient exceeds 16 ppg EMW). Record the results and fax to the Anchorage office. 9. Drill an 8-1/2" straight hole to TD at +/- 7}20' MD/TVD. Run.LWD logging tools in ' ~~ i•.z~ X73 , the drill string as required for formation dat~a~gatheri~n ft is planned to take one 90 core in this hole section. 10. Condition the hole for logging. POOH. 11. Rig up wireline. Run wireline formation evaluation logs per logging program.! Rig down wireline. 12. RIH with 8-1/2" BHA and condition hole for casing. POOH. 13. Run and cement 7", 26#, L-80 BTC-Mod casing. Pump sufficient cement to bring the top to +/- 6,700'. TOC should not be allowed to approach the 9-5/8" casing shoe because the 7"x 9-5/8" annulus will be used for annular injection of mud. 14. Make a clean out run with bit and scraper. 15. Displace well to brine. 16. Pressure test 7" casing to 3,000 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. 17. Run and land 3-1/2" tubing completion and tubing conveyed perforating guns under the packer. 18. Nipple down BOPE. Nipple up production tree and test to 5,000 psi. 19. MIRU well testing equipment and surface test tanks. Perform production tests as required. Produced fluids will be injected back into the formation. 20. Upon completion of testing or if the well is not completed, plug and abandon the well per applicable regulations. Aklaq #1 Exploration Well • Proposed Wellbore Schematic ~::= :: i I I f ~ 20" Hole 16" 65# L-80 BTC Conductor @ +/-80' MD /TVD 9-5/8" 40# L-80 BTC Casing @ +/-2500' MD ~ 8-'/Z" Hole TOC at +/- 6700' MD /TVD PKR set at +/- 7000' MD /TVD 7" 26# L-80 BTC-Mod Casing 3-'/z" 9.2# L-80 BTC-Mod Tubing TD @ +/-7921' MD /TVD i LANO1NC JOINT LANDING JOINT 15.00' (381.0 mml 13.50' 3 I/8-5000 (R-351 1342.9 mml X OTIS CONNECTOR I O I'I O 3 I/8-5000 M00 120 GV _ __- _+- -__ -_ 06.251' ~/R-5000 M00 120 GV 10158.9 mml 08.659' ^ O i O ~ 09.38' 10219.9 mml 10 (0238.2 mml 012.12' t030i.9 mm) • 1 ! y CdSING HANGER 6 TR ANp R TOOL 9%'CASING HANGER eo.ar ! O ~ O O ~ O i P1aosT1-oooD R AND R root (2043.9 mml P1005T3-0000 ~~ ~~ _- -I_- 1 9 1, 010.61 m~ ~102i4.6 OIO --- - - -- - 3 I/8-5000 ADJUSTABLE CHOxE 3 ve-saao moo Izo Ov OI1O 03.31' 1 IIOT4.6r mml I 38.00 28.31' 9 1965.2 mml $1.14' (i 19.1 mml ~ (0191.3 mm O 'i O 3 I/e-5000 M00 120 GV ~+ _ TOOL JOINT 9.~ O ,1 O - I 1~ (241. mml 3 I/8-5000 IR-351 B ' -- 8.6Y ~ 13.50• (218.9 mml ! 1342.9 mml 6 ~iEST POPT 1 'L to Locxoowrv scREws i scssv Exrt u-soon 1Rx-sm _ __ -_. 09.00' ~. 26.44' 16 i1.6 mml 1~ ~ (0228.6 mml 010.36' 010.31' l 263.1 mml --- _ _ ® - -_ _- _ _ _. 10261.9 mml 0 COMBINATION LOWER BOWL 13.31' 1 LONG BOgL PROTECTOR TEST PLUG ANO FOR %'LASINL PACKOFF RUNNING TOOL 61.16' (338.0 mml 48-260~T0 11461.6 mml 6 2%c -5000 MODEL 120 GV 98-289-003 ~iEST PORT ' - - - -- - - -- - lD EDCxpowrv scREws II-5000 IR-541 010.31 22.1)5' 19 15i r.8 mml 5 10262.91 ~~ ! ® TOOL JOINT-~ 1~ - -_- ~~' _ _ _ - _ _ - - - _ 010.81' m ® i 10219.6 m 9.13' I 1 1231.9 mml TEST PORT _ ~ 2~/s'5000 MODEL 120 Gv 6.00' ~3mm 12.~ Ii.00' :(524 mmi ~ 1309.8 mml (931.8 mm) 2 13 4.00' (101.6 mml iT.Sr' -F (946.13 1 I , ]~ I :104.00' ~.956.36~J .6 mm 101620 mml 0 m.~1, m1o.e4• 10261.9 mml t02r5.3 mm) 16'00 CA91NG SHORT BOWL PROTECTOq COMBINATION UPPER BOWL T•CASING TEST PLUG dN0 9%'00 LASING E40-280-402 BOWL PROTECTOR RUNNING TOOL 48-261-503 T•00 LASING 31/i 00 TURING 1fl-5000 THR®UGH ~®RE SYSTEM 16 X 9 5/8 ~ 7 ~L 3 1/2 i, I2z (ma.trmml 014.25 ~ 2s.o 1361.95mm1~ (641.35001 ITEM PART NUMBER pESCR1PTI0N LANDIrvc RI NL I P176068 LANpING RING P124006-0005 2 PIT6010 CSG HANGER 3 P116063 CASING HEAP ASSEMBLY 9 P116015 TBG HD ASSY 5 P1232TT-0002 CSG HGR ASSV 6 12-150-016 PACKOFF ASSY T PI]6120 TBG HGR ASSV 1 8 P120192-0002 ADAPTER ASSV 9 90-120-566 GV ASSY 16 C451NG 10 25-051-399 TEE dSSY DIVERTER HEAP ASSV, 16 SLIP-LOG BTM ~ II 02-698-11] ApAP TER ASSY W/ FS SEALS % 2!-I/4 2x 12 12-090-184 9f C-21 HGfl LLG'D. w/ONE 2•LP DUTLET - P125s18-0001 Q 13 P118334-0005 BELL NIPPLE 09j ~ 14 12-093-112 1 C-21 HGR 0 Q e _s_ ~ ~'~'SOOON COMPLETION °dA ~ar~^' O x 9% x T z 3'/z 6l s ~~ 0002 T60 ~ a • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaq #1 Pressure Calculations and Drilling Risks Maximum Anticipated Surface Pressure: The maximum anticipated surface pressure (MASP) for this well will be the lesser of the formation pore pressure (less a full gas column to the surface) at TD or the formation fracture pressure at the last casing shoe (less a full gas column to the surface). Based on the attached study "Pre-Drill Seismic Pore Pressure Prediction: Aklaq #1", the highest formation pressure expected in the final hole section is 4,321 psi at a depth of 7920' TVD (or 0.546 psilft). Maximum predicted fracture gradient data for this area based on seismic interpretation, at 2,500' TVD, the depth of the 9-5/8" casing shoe, is 0.824 psi/ft (15.84 ppg). Complete evacuation of the wellbore, except fora 0.11 psi/ft gas gradient, is assumed. 8-1/2" Hole Section - 2,500' to 7,920' MASP (pore pressure) _ (7920 ft)(0.546 - 0.11) = 3,453 psi MASP (form. breakdown) _ (2500 ft)(0.824 - 0.11) = 1,785 psi °' Therefore, MASP in the 8-1/2" hole section is 1,785 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximi - Risk: The nearest wellbore to the planned wellbore of the Aklaq #1, is the East Topagoruk test well located approximately 16.5 miles southwest. Therefore, there are no nearby wellbore proximity risks. Dnllin~ Area Risks: 12-1/4" Surface Hole - 9-5J8" Casing Interval EVENT RISK LEVEL Miti ation Broach of Conductor Low Monitor cellar continuousl durin drillin interval. Gas Hydrates Low ~ If observed: control drill, reduce pump rates, reduce drillin fluid tem eratures, additions of Lecithin. Gravel/Sand Sloughing to Moderate Increase mud weight/viscosity, pump high viscosity +/- 500' swee s. Monitor fill on connections. Hole Swabbing /Tight hole Moderate Circulate hole clean prior to trip. Proper hole fill on Tri s utilizin tri sheets, um in out of hole as needed. Possible Thaw Bulb / Low Watch return viscosity for signs of thinning. Water Flow Increased mud wei htlviscosi as needed. Lost Circulation Low Mitigation by good hole cleaning practices. Reduce mud weight if possible. If losses occur, reduce pump rates and lower mud rheolo ,use LCM material. • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaq #1 Pressure Calculations and Drilling Risks (cont.) 8-1/2" Production Hole - 7" Casing Interval EVENT RISK LEVEL Miti ation Shale stability in the Moderate Control with higher mud weight and proper drilling interval below HRZ ractices. Lost Circulation Moderate Monitor hole cleaning efficiency. Mitigation by good hole cleaning practices. Reduce mud weight if possible. If losses occur, reduce pump rates and lower mud rheolo ,use LCM material. Differential Sticking Low Periodic wiper trips as needed for hole conditions. Do not leave i e static for extended eriods. Abnormal Reservoir Low Follow programmed mud weights, monitor well, Pressure ~ increasing mud weights as needed. Ensure adequate kick tolerance rior to drillin a intervals . FEX L.P. Aklaq #1 Casino Properties and Design Internal Collapse Tensile Strength Size Weight Grade Connect. Yield Resistance Joint Body TVD MD Design Safety Factors* in I~ b/ft~ si si 1 000 Ibs ~ ~ T B C 9-5/8 40 L-80 BTC 5750 3090 979 916 2500 2500 10.62 3.22 2.64 7 26 L-80 BTC-Mod 7240 5410 667 604 7920 7920 3.53 4.06 1.38 * T = Tensile design safety factors are calculated using pipe weight less buoyancy. B = Burst design safety factors are calculated using Maximum Anticipated Surface Pressure. C = Collapse design safety factors are calculated assuming complete evacuation of the casing. C] :7 • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Note that the terms used in these procedures are defined as follows: Formation Integrity Test (FIT): Formation is tested to apre-determined equivalent mud weight. Leak-Off Test (LOT): Pressure is exerted against the formation until fluid begins to discernibly pump away. Pressure at which this first occurs is the leak off point. LOT Limit: 16 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak-offs. Open Hole LOTs (OH LOTs~: Leak-off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak- off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to support estimated mud weight. Procedure for FIT: 1. Drill 20' of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system. Pull back up into the shoe. 3. Close the BOP (ram or annular). 4. Pump down the drill stem at '/4 to '/2 barrel per minute. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) versus drillpipe pressure until the appropriate surface pressure is achieved for the FIT at the shoe. 6. Shut down at the required surface pressure. Hold for a minimum of 10 minutes or until the pressure stabilizes. Record time versus pressure in one- minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measure are required. C7 • Formation integrity tests are conducted on all casing shoes with the exception of some surface casing situations. Where annular disposal pumping is planned on a well, the formation below the surface shoe is taken to leak-off. This ensures that future disposal fluids can be pumped away without risk of damage to the surface shoe. If two attempts at establishing aleak-off at the shoe are unsuccessful (using 16.0 ppg EMW LOT Limit per above), then an open hole LOT is performed. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at apre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with a FIT. Since. this project will require the use of annular disposal once an annulus is available, our plan is to perform a LOT at the surface casing shoe, and then perform an OH LOT after drilling through a perspective sand zone below the casing shoe. • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Pre-Drill Seismic Pore Pressure Prediction: Aklaq #1 October 27, 2005 Summary Seismic velocity data was used to predict pore pressures likely to be encountered in the Aklaq #1 well location. A local compaction trend and a local velocity to pressure gradient translation trend model were established using control from the Ikpikpuk #1 and 5. Simpson #1 wells. The local compaction trend and the translation trend model were applied to velocities obtained from seismic data to predict pore and fracture pressures. The predictions show no ~-- apparent shallow hazards or large pressure anomalies at the proposed well location. Seismic Processing The accuracy of seismic geopressure analysis is dependent on the accuracy of the input seismic velocity field. The seismic velocities used for pressure prediction in this area were generated from 2D seismic data using a high resolution velocity analysis program which calculates a velocity field defined at every sample in time. Pressure Prediction Procedure Well Modeling -Ikpikpuk #1, S. Simpson #1 1) A local normal compaction trend line (NCTL) was calculated using gamma ray and sonic logs from the Ikpikpuk #1 and S. Simpson #1 wells. The compaction trend was calculated using a semilog methodology and was consistent in both slope and intercept at each well. 2) The difference in interval transit times (ITT) recorded by the wireline sonic logs and the calculated by the downward projection of the NCTL was measured. These values are the travel time differences, rrT. 3) A second-order polynomial translation trend model was developed which translates rrT to pore pressure gradients. This model was found to be consistent with other trend models in the area: PP = C2*rrT2 + C1*rrT + CO where: C2 = 2.57x10-4 C1 =.119231 CO = 8.94231 4) Interval transit times (ITT) were derived from high-resolution 2D seismic velocities recorded at each well location and compared to the NCTL calculated from gamma ray • • and sonic logs. The slope of the seismic NCTL was found to be an approximate match for the average NCTL measured in the wells below 1400 ft. The seismic NCTLs did not match the NCTL measured in the well above approximately 1400 ft; this is most likely due to low fold in the shallow seismic data. Seismic fold was sufficient and seismic data quality was reliable for pressure prediction below 1400 ft. Figure 1 and Figure 2 show the average NCTL measured from the sonic logs (brown line) plotted against the calculated interval transit times derived from the seismic velocities (green line) at the Ikpikpuk #1 and S. Simpson #1 wells. 5) Pressure gradients were calculated for the Ikpikpuk #1 and S. Simpson #1 using the translation trend model (Step 3 above). The predicted pressures were compared to mud weights and DST test results and found to be reasonable in value (Figure 1, Figure 2). Application of Model at Proposed Well Locations 1) A best-fit normal compaction trend line (NCTL) was estimated at the Aklaq #1 proposed well location using the available seismic data. The best-fit NCTL matched the average NCTL measured at the Ikpikpuk #1 and S. Simpson #1 wells below approximately 1400 ft. Above 1400 ft sstvd the seismic data is low-fold and the quality of velocity data declines. 2) The translation trend model developed at the Ikpikpuk #1 and S. Simpson #1 wells was used to estimate pore pressure directly from the NCTL trends measured from seismic data at Aklaq #1 (Figure 2). Fracture Gradient Prediction Fracture gradients were calculated for the proposed Aklaq #1 location using the Eaton Methodology. Overburden pressure, calculated pore pressure gradient profiles, and Poisson's Ratio profiles are the inputs. Conclusions 1) There are no apparent shallow hazards at the proposed Aklaq #1 well location. 2) There are no apparent zones of high pressure at depth in the proposed Aklaq #1 well ~ location. 3) The 2D seismic data used for the pressure prediction provided reliable pressure estimates below 1400 ft sstvd; low fold and poor data quality in the seismic data above 1400 ft sstvd limit the accuracy of shallow hazards prediction. • S. Simpson #1 • Seismic Pore Pressure Analysis .~ 40 50 60 ?0 80 90 100 200 230 µs/ft Figure 1 PPG Ikpikpuk # 1 Seismic Pore Pressure Analysis _ -- ~o - ~ -- - - ; I i - --- ~ ~-~ ~ _ __ _ j Interval Transit Time '800 ! - --- I ~ I from Seismic Vans i ~ - ~ --- . zoo ' i '608 ~ ~ ~ I ~ ~ zooo _ ---- - ' _ , -r- - - i _ __. - , r ~ ___ _ A ~ ~ I -- - -~ - -- ~ 1. i - ~ . - -- 0 50 60 TO 80 90100 200 Z40 .00 14.00 20.1 µs/ft PPG Figure 2 • C, Aklaq # 1 Seismic Pore Pressure Prediction o ~ - - - --~ _- _, ~ actur_s adient____ __' i4oo I - i --- -- i - --- - _ _ _- - zaoo ----~__ i _ __ Predicted Pore P essure A200 -- I -- -- i - i - - -_ i 5600 ~ ~ I i 7000 ; --- 8400 __ .. ~ I i i i ~ 60 ?0 80 90 100 :00 .00 13.00 18.0( bus/ft PPG Figure 3 ile Edit View Post Send Griddinp Tool `"'`"' ~~ W 55 5 ~ r"' ~ I I I I I I I I I I ~ Help 00 W 155 44 00 1 SS 3 90 W 155 1 6 09 W 1 S5 02 00 W 1 S4 4$ 00 W N 1 ~ 34 00 W 154 29 09 W 154 96 00 W 153 52 00 W rn 0 ~ ~ _ o _ l.x.] ~~ z - ~ - >~ _ r n `~ - ca ~ sulk NI ~ n~ ~; s p 4~ ° _-~ ~ , a z O r `r _ ~ rf u~y, #I r o o ,-, i ~ - O o ~~ r ~ 0 ~ "`~ ~ ~ - ~ , ., _ .. ' co ~... ~/ ti' Kano „z I Z _ 4 ~- ~ ("- ~ ! Puvi 1f ~ ~~~ ~ O ~~ r J - r ~ z - ca ~ (J ~ v - it ~ - ~ ~ C ~ ~ r, ~ ~ I ~ - o ~ + n r ~ 'mil - r~I~ - ~~'~-~~ ~ _ ~' _ ~, Ala ~ ~ ~ ~ - ~ ~ y~} ~, I ~ Z - ~? ~u _~~ am I a „~ !I ~ z - Q ~ ~t~" o f s ~. ~ Ik ~puk 1 l-~ 1~` W f - fD , \ ~ `r '. /f Z `~~ ~ -` ~ Feet ~• 00 260,000 2g4~ 000 ~ - 300,000 320,000 349,000 360,000 (i3$~,000 0 29,000 ~ - ~ - i I i I i I I I i I I I I i I I I i I I'~ i I I i I I I I I I I I I I I I I i I I i I I i I i i I i ~ I i i i I I i i I I i i i i ~1.f l, I i i l i ~~+-f i i ~OiOi ~ ~SI'i 41~0~400 i I i 44-0,004 460,000 4$0,000 500,000 520,090 00 ~- ~ooa ~.~, ,_ II~~~IL~III~I~IIIIIII~II~III~~~~~~I-~II~I~~I~I~°I Edit culture data Map apri12005 CDP ~, -~ Svy SP ~ ~ -_-... -~ H _. HZ F • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season BOP Control System The BOPE control system on Nabors Rig #14E is an NL Koomey Mode140200-35 blowout preventer control unit with a 202 gallon volume tank. Main energy is provided by a 40 HP electric motor driven triplex plunger pump rated at 20.2 gpm at 3,000 psi. The pump charges twenty (20) eleven gallon bladder-type separator accumulators. A second energy charging system consists of two Mode131-00103 air pumps rated at a combined volume of 11.0 gpm at 1,200 psi, or 7.2 gpm at 3,000 psi. The above two energy systems are backed up by six 220 cubic foot nitrogen bottles connected to the manifold system. All of the systems are controlled by a Model SU2KB7 series manifold with seven manual control stations at the unit. i. ar~txiar,vruw wrwir afx ~~~ ,w:~ DIVERTER CONRIGURATION ..ner..w.a.. ~wr. aaew-ao wieaes,u~u -ac ~~ '"~ a~rror u~ umur ~~ a~rr-m srs~u NABVRS ALASKA RIG 74E DIVERTER LINE LAYOUT KILL LINE #i 3" 5k GAIE VALVE 3" 5k HCR VALVE 3" 5k CHECK VALVE 3-1/16" 5k FLG x 2" 5k UNIBOLT fITRNG REFERENCE KILL LINE ~2 FOR ALIGNMENT 18' 4" 5k HCR VALVE DRI 5/BS~L BLIND FLANGE ~ ~~^-~ 4" CHOKE LINE 4-1/16" 5k (CHOKE SIDE) ~ ~ 4" 5k GATE VALVE HYDRIL 13-5/8" 5k PSI f0" OPERATOR -- ----~---- -- f0' OPERATOR HYDRAULIC RAM SINGLE GATE FLANGED CONNECTION 3" 5k GATE VALVE 36" LENGTH 3" 5k GATE VALVE DRIWNG SPOOL KILL LINE #2 2" 5k KlLL UNE~y~ -y- BLIND FLANGE 13-5/8" 10k \ ~ 3-1/16" 5k (KILL SIDE) 14" OPERATOR ~-- HYDRIL 13-5/8" 5k PSI GK ANNULAR BOP SCREW HEAD FLANGED BOTTOM CONNECTION 54-1/8` LENGTH HYDRIL 13-5/8" 5k PSI --- -- 14" OPERATOR HYDRAULIC RAM SINGLE GATE BLIND SHEARS FLANGED CONNECTION 36" LENGTH HYDRIL 13-5/8" 5k PSI f0" OPERATOR -- -----~----- -- 10" OPERATOR HYDRAULIC RAM SINGLE GATE 4" FLANGED CONNECTION PIPE RAMS 36" LENGTH 3-1/16" 5k FLG x 2" 5k UNIBOLT F11TIDk 3" 5k CHECK VALVE 3.1/2" x 6" VBR's NABORS ALASKA RIG 14E BLOWOUT PREVENTOR STACK CONFIGURATION ~1~IU Material List Item Description A 3 1/16" 10M Manual Choke B,C 2 9/16" 10M Remote Su er Choke 1,2,4,5,7,8,15-17 Type FC 3 1/16" 10M Gate Valve 13,14 Type FC 4 1/16" 10M Gate Valve 3,6,9-12 Type DM 3 1/8" 5M Gate Valve i Legend a~ White Handle Valves a ~ Normally Open Red Handle Valves Normally Closed I Date: 11-11-03 Rev. 2 I Fig, ~'J ~ ~ FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaq #1 Cementing Program 9-5/8" Surface Casing (set at 2500') PreFlush /Spacer: 10 bbl Water, 30 bbl 10.0 ppg Dual Spacer Lead Slurry: Top of slurry: Surface Permafrost type L cement, 10.7 ppg density 150% excess across Permafrost, 80' to 1200' 25% excess below Permafrost from 1200' to 2500' Yield: 4.15 cu ft/sk Volume: 215 bbls (291 sx) including excess Tail Slurry: Top of slurry: 2000' Premium class G + 1 % Calcium Chloride, 15.8 ppg density 25% excess for 500' of annulus volume Yield: 1.15 cu ft/sk Volume: 41 bbls (201 sx) including excess 7" Production Casing (set at 7920') " PreFlush /Spacer: 10 bbl Water, 20 bbl 11.5 ppg Dual Spacer Lead Slurry: Top of slurry: +/- 6700' Premium class G + 0.5% Halad-344, +0.23% CFR-3 +/- 0.3% HR-5 (retarder) as required, 15.8 ppg density 30% excess Yield: 1.15 cu ft/sk Volume: 36 bbls (175 sx) including excess ~~ ~~ ~ ~'~~ ~~ ~ ~~ ~~~ ~ ~ ,~ ~ ~ .~ ~~ ~~ .~ ~~~ R ~~ ~ ~ ~ ~~ ~~~ Er 4 ~' ° ` ~ t A :...8 C ~Er ~ ~ ~~ ~ ~~ x ~~ o t6~wmucmU pvMarxaarN ® ~ Q svvrco s smon snsnoo s amen ® a ~ ~ ~ E~ secs amn ~ a+ewa ~ Wass ~~ ~~ ~ ~ *'F'fZ GcNO mw ~ea1 ~~~ W ar amrm ~essma . E ~ x N 9 ~ .~~ - Q a +~ ~a_ ~ ~ af~RJW ~~~ N ~ m ~ ,sauan mss~o Q~ ~ ~ H m Z R a ~ R ~~~ ~a ~ ~~ ~s ~ ~~ sm sKSic a aaw one me or icw arn+ ~n as • • Halliburton BaROID FEX LP Mud Program Aklaq #1 General Discussion This exploration well will be drilled from an ice pad in the NPRA. Due to the extremely remote location, waste management is critical on this well. Storage tanks will be available but minimization will be key to a successful drilling operation. The well will be drilled as a straight hole, spudding with a 12 '/a" bit, and drilling to a surface hole TD of 2,500' TMD where 9 5/8" casing will be run and cemented. An 8 '/2" hole will then be drilled to 8,000' where 7" casing may be run and cemented. Spud the well with a 6% KCI/PHPA/Clayseal mud. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with several mechanisms to provide effective wellbore stabilization, ionic inhibition (KCI), polymer encapsulation (PHPA) and anionic bonding (Clayseal). The PHPA/Clayseal mud will be maintained through the lower interval. The weight will be adjusted to 9.6 ppg prior to drilling out of the surface casing. Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for shale instability. Special Considerations: i. Maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. ii. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). iii. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@1000 sxs barite on location at all times). iv. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. v. Reduce the potential for hole erosion/destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drillpipe in the 150-200 fpm range. vi. Possible shale instability issues in the Jurassic sequence (tight filtrate control/mud weight). Well Specifics: Casin Pro ram MD TVD Foota e 12 '/4" hole 9 5/8" Casin 2500 2500 2500 8 %2" Hole 7" Casin 8000 8000 5500 Estimated Formation Tops/Casing Program: Aklaq #1 v1.0 2 10/OS/OS r Halliburton BaROIn FEX LP Mud Program TMD Comments Spud 0 Base Permafrost 1050' Possible hydrates •~ 9 5/8" Casing Point 2500' Condition for casing Top of Torok 2840' H RZ 6550' LCU 6723' possible gas BCU 6958' possible gas ' Kugrua Sand 7270' Maintain tight HTHP. TD 8000 condition mud for logs/cement jobs Surface Interval: 12'/4" to 2,500'; 6% KCI/Clayseal/PHPA Mud Properties S ud to Base of Permafrost Base of Permafrost to Total De th Initial Value Final Value Initial Value Final Value Densit 8.7 9.0 9.0 9.5 Funnel Viscosity seconds g0-100 50-70 50-70 50-70 Yield Point cP 35-45 25-35 25-35 20-30 Plastic Viscostty Ib/100 s 10-21 10-23 13-23 13-23 10 second Gel Stren th Ib/100 s 10-15 10-15 10-15 10-15 10 minute Gel Stren th Ib/100 s 14-24 14-24 12-24 12-24 H 8.5-9.5 8.5-9.5 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 5-6 5-6 Solids % 6-12 6-12 6-12 6-12 Base Formulation: COLD Water KCI EZ Mud DP Clayseal Dextrid Barazan-D KOH Aldacide-G Baroid Baracor Barascav D - 0.905 bbl - 20 Ibs (30-32K ppm chlorides) - 0.75 Ibs (.15 ppb in initial mix) - 0.84 gal (.21 gal/bbl in initial mix) - 3 Ibs (APf filtrate of 6-12 cc's) - 1-2 Ibs (as required for an initial 35 YP) - 0.1-.25 Ibs (pH = 8.5-9) - 0.25 Ibs (X-cide 207 for rig maintenance) - as needed (9.3 ppg) - 1 ppb - 0.5 ppb (to be added at the rig when first circulating) ** Use Barite for any needed weight ups on this well. NOT drill solids. A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system, however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders/desilters, mud cleaners and centrifuge(s) to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. On an Aklaq #1 v1.0 3 10/OS/OS • • Halliburton BaROID FEX LP Mud Program example well, some of the centrifuge under-flow was returned to the mud system. This led to a fines build up and the resultant required dilution was excessive. The personnel were trying to reduce waste, but wound up causing additional waste. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud <75°F should be made. Normal surface hole viscosities should be adequate for the angle of hole being drilled. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well (no gravel is anticipated -mostly clays and sand). Reduce viscosity as allowed, previous wells in the area have TD'd the surface with a ~20-25 YP. However, do not hesitate to quickly raise the viscosity if hole-cleaning problems develop. Polymer viscosity in the form of Barazan D additions should be utilized to provide rheological support as needed. Utilize high viscosity or Barolift sweeps to supplement the hole cleaning capabilities of the system. Spud the well with a 8.7 ppg density mud. Expect the natural progression of the weight as drilling proceeds. Increase the mud weight as dictated by actual hole conditions. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. • A two pound per barrel treatment with Driltreat (Lecithin) could provide some inhibition of the hydrate break-out. • Keep the mud as cool as possible to minimize thawing of the hydrates. Mud up with cold water and dilute with cold water. • Milne Point and Tarn operations have reported benefit from treating with 1 % DriI-N-Slide. The mud engineers state that it acts to smooth out the rheology of the fluid which allows the hydrates to break out of the fluid more readily. If possible, use 6% KCI water (COLD) to maintain volume while drilling ahead. Maintain the mud chlorides - 28,000 - 34,000 ppm with KCI. Use Dextrid and PAC's for API filtration control. Target 6-12 cc's initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. Hold the pH in the 8.5-9.5 range with KOH. Mix 0.15 ppb of EZ Mud in the initial mix. Once the mud has sheared through the bit twice, slowly increase the EZ Mud concentration to the full 0.75 ppb. Initial Clayseal concentration should be .21 gal/bbl. Increase this to the full concentration while drilling ahead. By material balance, maintain the Clayseal concentration in the 2°1° by volume range. Keep penetration rates below 150'/hr for controlling clay "chunks" (as have been experienced on other NPRA wells). Daily additions of X-Cide 207 are needed to control bacterial action. Should bacteria become a problem, hold a safety meeting and add the desired amount of Aldacide G using all the proper PPE. High levels of corrosion have been seen when running KCI fluids in other areas on the North Slope. Daily sulfite and phosphonate checks will be run. Sulfite levels at 200-300 ppm and phosphonate levels between 600-800 ppm will be targeted. Barascav D and Baracor 700 levels will be maintained at programmed levels. Heavy amounts of clay will be present below the permafrost which will require additions of DriI-N-Slide and/or Condet to reduce BHA balling and screen blinding. Sweeping the hole with high viscosity or Barolift sweeps prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible, reduce the fluids rheology to those recommended in the cementers Aklaq #1 v1.0 4 10/OS/OS • Halliburton BaROiD FEX LP Mud Program program after the casing is on bottom. Dilution can be used as a lower weight will be desired to drill the initial 8 '/z" hole. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Production Interval: 8'/2" to 8,000'; 6% KCI/Clayseal/PHPA Mud Pro erties Initial Value Final Value Densit 9.5 - 9.6 9.5 - 10.7 Funnel Viscosity seconds 40-65 40-65 Yield Point cP 18-26 18-26 Plastic Viscostiy Ib/100 s 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <6 <6 HTHP filtrate <14 <10 Solids % 6-12 6-12 Treat the mud with bicarb and citric acid prior to driling out. After drilling out, maintain the mud as specified above in the surface section until reaching the top of the HRZ (6560'). The HTHP should be lowered to <10 cc at this depth. Maintain this tight filtration to TD of the well with N- Dril HT/Dextrid and Baranex. A 2 ppb treatment with Barotrol will be made while drilling once the HTHP has been lowered. Keep low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0-9.5 with KOH. Daily additions of Aldacide G/X-Cide 207 should be made to control bacterial action. Previous wells in the area have had mud weights of 9.6-9.7 ppg at this well's TD depth. The chloride level should be kept in the 28-34K range through additions of KCI. The Clayseal and EZ Mud concentrations will be maintained at their respective programmed concentrations. A 15-25 YP should be maintained using Barazan D+. Due to over balance, it may be advisable to have a 25 ppb LCM pill standing by before entering the zone of interest. Some losses were noted in prior years drilling programs when drilling this zone. Also consider stringing in 2-5 ppb Barofibre as the zone is drilled. Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. A decision will be made at TD as to running casing or not. If casing is run, pretreat the system with bicarb and citric acid to facilitate a better cement job. Recommended Drilling Parameters: Aklaq #1 v1.0 5 10105!05 • • Halliburton sAROIO FEX LP Mud Program Penetration Rates: Please see the following optimization chart for maximum allowable penetration rates. These rates are set for rotating not sliding. Penetration rates might need to be controlled to minimize overloading the annulus with cuttings. Close monitoring of PWD data will assist in diagnosing this potential problem and allow real- time, timely remedial actions. Due to the vertical profile of this well, rpm has little effect on hole cleaning. Hydraulics Optimization Chart Actual P rates will need adjusted to how well the surface equipment can handle the flow and cuttings. 12'/4" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 500 600 700 80r m 130 162 190 100r m 130 162 190 Do not drill at rates above 150'/hr on surface. RPM has no effect in this vertical well. 8'/2" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 350 450 550 80r m 171 246 324. 100r m 171 246 324 Hole Cleaning: Maintaining the programmed flow properties are essential to a successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (drag, torque, partial pack offs) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps. If these sweeps seem ineffective, other type sweeps (Barolift, weighted, etc.) should be tried. The returns at surface of all sweeps should be monitored at the shakers to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Waste Minimization: 1. Solids Control Equipment - for reduced dilution volume. Monitoring shaker screen mesh size and checking for screen damage (holes) is a primary responsibility of both the fluids engineer and rig contractor. The centrifuges must be run as much as possible to reduce dilution throughout all hole sections. 2. Gauge Hole -for reduced cuttings volume. • Inhibitive Mud System -Use of 6%+ KCI Polymer system as outlined in the mud program to reduce washout in clay/shale sections • Hydraulics and Rheology as recommended in the mud program to reduce washouts in unconsolidated formations, especially on surface hole. • Use of near freezing water for mud make-up and dilution to reduce thawing of Permafrost. Note: the close proximity of heat generating equipment (power plants) to the mud pits on some rigs can increase the surface mud temperatures by 10 to 15 deg F while drilling surface hole. • Drilling the surface hole and running casing as efficiently as possible to reduce time, thus thawing and washout of the Permafrost. 3. Re-cycling of Fluid -for reduced mud volume disposal An Inhibitive KCI Polymer system, as outlined in the mud program, allows for re-use from interval to interval and from well to well. Aklaq #1 v1.0 6 10/OS/OS • • Halliburton BaROIO FEX LP Mud Program Tracking and Reporting of Waste Streams and Costs: We consider this to be of vital importance. CFM reports will be completed daily. Interval and well summaries will also be done. Lubrication: Due to the vertical nature of this wellbore, lubricants should not be required. If required, 1-2% of EZ Glide or Torq Trim II and '/z% DriI-N-Slide can be added. Risks and Continaencies: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the production zone. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long way toward reducing the risk of lost returns. Should lost returns occur check with MWD personnel prior to pumping any pills to assure that no plugging will occur. Wellbore Instability: The lower shales can be problematic. Ensure the mud has the HTHP reduced to less than 10 cc. Should any signs of shale splintering be seen immediately raise the mud weight a minimum of 0.4 ppg. As much as 11.3 ppg has been needed in other areas of the NPRA. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning. Stuck pipe can occur if the hole isn't clean or if the wellbore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario in the first place, and if they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming is an invitation to packing off and resulting stuck pipe so backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Aklaq #1 v1.0 7 10/OS/OS FW: Same Questions / Requirements for Aklaq 1 Subject: FW: Same Questions / Requirements for Aklaq 1 From: "Quick, Michael J." <Michael.Quick@asrcenergy.com> Date: Tue, 29 Nov 2005 15:01:46 -0900 To: Stephen Davies <steve_davies@adrninstate.ak.us> CC: "Quay, Walter" <Walter.Quay@asrcenergy.com>, Tom Maunder <tom maunder@adminstate.ak.us> Hi Steve - Please see Kathy's comments on the shallow gas question for Aklaq #1. Please let me know if you have any questions.. Regards, Michael -----Original Message----- From: Heinlein, Kathy Sent: Tuesday, November 29, 2005 2:44 PM To: Quick, Michael J. Cc: Quay, Walter; Waters, Doug Subject: RE: Same Questions / Requirements for Aklaq 1 Hi Michael - I didn't see any indication of shallow gas observed on the seismic data in the vicinity of the Aklaq #1 proposed well location. Kathy -----Original Message----- From: Quick, Michael J. Sent: Tue 11/29/2005 1:13 PM To: Heinlein, Kathy Cc: Quay, Walter; Waters, Doug Subject: FW: Same Questions / Requirements for Aklaq 1 Hi Kathy - Can you send me a response to Steve's question for Aklaq #1? Thanks, Michael -----Original Message----- From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Sent: Wednesday, November 23, 2005 11:26 AM To: Quick, Michael J.; Quay, Walter Cc: Tom Maunder Subject: Same Questions / Requirements for Aklaq 1 Mike, Walter: Aklaq 1 Geoscience: 1) Did the project geophysicist see any indication of shallow gas on seismic data atop and surrounding the proposed well location (bright spots, signal losses, phase reversals, etc.)? If you have any questions, please call me at 793-1224. Thanks, Steve Davies Petroleum Geologist AOGCC 907-793-1224 1 of ~ 11/29/2005 3:14 PM ~' FRANK H. MURKOWSK/, GOVERNOR ~~ OIL ~ ~ ~ 333 W. 7'" AVENUE, SUITE 100 CO1~T5F.RQA7`IO1~T CODil-IISSI011T ~ ANCHORAGE, ALASKA 99501-3539 ~ PHONE (907) 279-1433 December 8, 2005 FAx (so7> 27sa542 Mr. Ian Golightly FEX L.P. c/o Talisman Energy Inc. Suite 3400 888 3rd Street S.W. Calgary, Alberta T2P SCS Dear Mr. Golightly: FEX L.P. submitted Letter of Credit number 09647820, issued by Citibank NA, to the Alaska Oil and Gas Conservation Commission ("AOGCC") in support of the permit to drill application for the Aklaq No. 2 exploration well. According to regulation 20 AAC 25.025(a)(2), a letter of credit filed to satisfy bonding requirements must be issued by a bank authorized to do business in the State of Alaska. According to records maintained by the State of Alaska's Division of Banking and Securities,- Citibank NA is not registered to do business in the state (see the attached listing of registered banks). AOGCC conditionally accepts Letter of Credit number 09647820 to satisfy the requirements of 20 AAC 25.025(a)(2) for a period of 90 days. During this period, you must submit evidence that Citibank NA is authorized to do business in the State of Alaska, or FEX L.P. must substitute a letter of credit from a bank that is authorized to business in the State of Alaska. S :T~}ah K. Norman Chairman cc: Kimberly Isobe, FEX L.P., with attachment Kaye Laughlin, ASRC Energy Services, with attachment Michael Quick, ASRC Energy Services, with attachment .- • • STATE OF ALASKA ___ _ _._-- - __-.- MODEL FOREIGN BANKS REGISTERED UNDER AS 06.10.030 Updated November 17, 2005 BANK OF ENGLAND (ENGLAND, ARKANSAS) 11-17-2005 BANK OF NOVA SCOTIA (ONTARIO) 2-20-80 BMW BANK OF NORTH AMERICA {UTAH) 10-10-00 BOSTON SAFE DEPOSIT AND TRUST COMPANY (BOSTON) 6-5-85 BRANCH BANKING AND TRUST COMPANY (NORTH CAROLINA) 7-20-98 CANADIAN IMPERIAL BANK OF COMMERCE (TORONTO) 6-29-71 CHARLES SCHWAB BANK, NATIONAL ASSOCIATION (RENO, NV) 4-13-OS CITY BANK, HAWAII (HONOLULU, HI) 12-1-00 CITIZENS BANK (FLINT, MICHIGAN) 4-8-98 COMMUNITY BANK OF THE BAY (OAKLAND, CA) 4-13-OS CRESCENT BANK & TRUST (NEW ORLEANS, LA} 10-10-03 CRESTAR BANK (RICHMOND, VIRGINIA) 10-21-97 COMPASS BANK (BIRMINGHAM, ALABAMA) 11-29-2005 DEVON BANK (CHICAGO, IL) 10-15-04 FIRST HAWAIIAN BANK (HONOLULU) 3-17-81 FIRST MARINER BANK (BALTIMORE, MD) 9-26-01 FIRST MUTUAL BANK (BELLEVUE, WA) 04-30-02 FIRST NATIONAL BANK OF OMAHA (OMAHA, NEBRASKA) 12-15-99 FREMONT INVESTMENT & LOAN (ANAHEIM, CALIFORNIA) 3-1-00 FRONTIER BANK (EVERETT, WA) 2-11-02 FRONTIER NATIONAL BANK (SYLACAUGA, AL) 5-14-01 ILLINOIS NATIONAL BANK (SPRINGFIELD, IL) 06-07-04 JOHNSON BANK ARIZONA, NATIONAL ASSOCIATION (PHOENIX, AZ) 8-10-2005 MACHINIST-BOILERMAKERS FEDERAL CREDIT UNION (PORTLAND, OREGON) 10-23-86 MANUFACTURERS & TRADERS TRUST COMPANY (NEW YORK) 11-25-94 MIDFIRST BANK, STATE SAVINGS BANK OF OKLAHOMA (OKLAHOMA CITY OK) 9-8-93 MID PENN BANK (MILLERSBURG, PA) 08-28-03 MORGAN GUARANTY TRUST COMPANY OF NEW YORK (NEW YORK) 4-26-75 OREGON PACIFIC BANKING COMPANY (FLORENCE, OR) 11-23-98 PNC BANK, DELAWARE 7-20-98 PNC BANK, NATIONAL ASSOCIATION 1-4-95 RNER CITY BANK (SACRAMENTO, CA) 10-03-00 SAN JOSE NATIONAL BANK (SAN JOSE, CA) 5-14-01 SOUTHERN NEW HAMPSHIRE BANK AND TRUST COMPANY (SALEM, NH) OS-25-2005 SUN TRUST BANK (ATLANTA, GEORGIA) OS-25-99 THE VINTAGE BANK (NAPA, CALIFORNIA) 10-28-97 UBS BANK USA (SALT LAKE CITY, UTAH) 10-10-03 USAA FEDERAL SAVINGS BANK (TEXAS) 10-28-97 U.S. BANK NATIONAL ASSOCIATION (MINNEAPOLIS, MINNESOTA) OS-18-2004 WASHINGTON MUTUAL BANK dba WESTERN BANK (BEAVERTON, OR) 08-06-98 WEBBANK (SALT LAKE CITY, UTAH) 06-29-01 WESTAMERICA BANK (SUISUN CITY, CA) 3-07-02 WHITNEY NATIONAL BANK (New Orleans, LA) 10-27-98 {Back to banking section home page) Same Questions /Requirements for Aklaq 1 ~ i Subject:' Same Questions l Requirements for Aklaq l From: Stephen Davies <steve_davies@admin.state.ak.us> Date: 'Wed,23 Nov 20~)> 11:26:14-0900 ~Co: tilichae{.Quick(uasrcener~w.com, ~~%alter.<<uay(~r`.asrce.ner~~,ti'.com CC: Tom til~iundcr <tom maun~ler~ci<ulmin.state.ak.us=° Mike, Walter: Aklaq 1 Geoscience: 1} Did the project geophysicist see any indication of shallow gas on seismic data atop and surrounding the proposed well location (bright spots, signal losses, phase reversals, etc.)? 2) 20 AAC 25.030 requires well casing and cementing programs that prevent contamination of fresh water. Has the project geologist calculated salinity distribution in the shallow aquifers from well logs available in offset wells in order to show that placing and cementing casing at 2500' depth will protect any potential fresh water aquifers? Could he or she provide this information to me? The method used by AOGCC to calculate such salinities is detailed in EPA TDS Calculation_Methods.pdf, which is available on our web site ft~;:/jpuboi'.G>transfer.state.ak.usf using the password alaska_oill. (In case your email font is unclear, the password is alaska underscore oil suffixed with the numeral one.) Aklaq 1 Ownership: Because FEX is proposing to conduct drilling operations on lease AA-085574 (Aklaq 1), FEX must file copies of AOGCC form 10-417 for this lease to conform with our regulation 20 AAC 25.022 and to complete our files. This form is available on our web site at http:Jjwww.aogcc.alaska.gov/forms/formsindex.htm. If FEX elects to allow another company to conduct drilling operations on this lease, FEX must also submit a Designation of Operator form 10-411 to conform with our regulation 20 AAC 25.020. This form is also available on our web site. If you have any questions, please call me at 793-1224. Thanks, Steve Davies Petroleum Geologist AOGCC 907-793-1224 1 of 1 11/23/2005 12:51 PM THE ATTACHED CHECK IS IN PAYMENT OF ITEMS BELOW. CORRECT ASRC Energy Services PLEASE NOTIFY ACCOUNTS PAYABLE PROMPTLY. NO REC SIRED. CK NO . 1173 72 07-NOV-05 STATE OF ALASKA 976 APD AKLAQ #1 06-NOV-05 APPLICATION FEE 100.00 ASRC Energy Services TOTALS o . oo loo . 00 Anchorage c Alaska 99503 Phone: (907) 339-6200 DETACH AND RETAIN THIS STATEMENT •• ~• • r ~ `% ~4~c~r~nts ~ay~le Chec W~LC~FAtCc,O-AL~,SKa: N A ~/j~ = ~ ~ ~ .ai~1~HOR('E,AL.ASK~ ~/~~ .. '~ ~ ., - 3y~-S' ~~ (~~ ASF~~ bier ~ Seruices ~ ~ i~~~ -D~rt' , 0 77 N~o~ ~- f ~~ j' 617372 ; ' ~ ~ ~ sutlsidlOrY ofArciic Sln ~e9PonN6 Cgo{SCraslon ~ ~ aF %iP :~ ~" ->E * at it $ ~ V.O. V~~ ~ ~~~ ~ V 3900 C STREET PAY ' :~~IEHORAGE AL.aSKA 99503 ~~~UN~ ONE fR ~~ COTSOT ~~ ~/" ;(907) 33. 6-OQ , ' V .. PAY~ONE`HUNDRED%DOT;DARS'-ANDOO:CEI~TS ~**~*~*~****~**~*****************~**~*~~***~~:~~*~**~***~**+~*+************~*****~~~**********~*. VOID OVER $100.00 STATE OF ALASKA To THE OIL & GAS CONSERVATION COMMISION ~ ORDER~OP `333 V~IEST 7TH AVE STE 100 ANCHORAGE, AK 99501 n'LL737211' ~:L25200057~: 37~~~7827LL11' • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/pARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME K (~ 1 C:~ p~~~~1 ~ ~ CHECK WHAT APPLIES ADD-ONS "CLUE" (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing well , ~ Permit No, API No. (If API number i Production should continue to be reported as 'last two (2) digits a function of .the original API number stated l are between 60-69) I above. ~ i PILOT HOLE ~ In accordance with 20 AAC 25.005(fj, all (per ;records, data and logs acquired for the pilot hole must be clearly differentiated in both i name (name on permit plus PH) j and API number (50 - 70/80) from records, data and logs acquired j i ~ for well (name on permit). SPACING i The permit is approved subject to full EXCEPTION I compliance with 20 AAC 25.055. Approval to i t ~ i ngen erforate and produce/infect is cont p i ;upon issuance of a conservation order approving a spacing exception. I~ ~ (Company Name) assumes ~ _ ~~ the liability of any protest to the spacing 'I exception that may occur. ' DRY DITCH le sets submitted to the A!I dry ditch samp SAMPLE Commission must be in no greater than 30' ~ I ~ sample intervals from below the permafrost r from where samples are first caught and j I o ~ 10' sample intervals through target zones. i ~ Rev: 04/01!05 C\j ody\trans m itta i_chec kt ist WELL PERMIT CHECKLIST Field & Pool_ _Well Name: AKLAQ 1 _ Program XP Well bore seg ^ PTD#:2051920 Company FEX L.P. Initial Class/Type EXP I PEND GeoArea 890 Unit _ OnlOff Shore 2~ Annular Disposal ^ Administration 1 Permit feeattached__--__ _----------- ---------------_ Yes_ _---_ 2 ~easenumberappropriate_-______-_,-__-.-__-_--_-__. Y_es_ _-___--._ --------------------------------------------------- 3 Uni_quewell_nameandnumber___________________-_,____.____.,_-_ Yes_ ___--____.___ 4 Well locatedin_a-definedpool_---_-------------------- - No_ _--__-Exloration well.--__ p - - 5 Well IQCated proper distance from drilling unit_boundary_ - . Yes - - _ - Statewide spacing rules apply. - - _ - - - - _ 6 Well located proper distance from other wells_ - - _ - _ - - - - _ Yes _ Statewide spacing rules apply. Nea_res# existingwell is_ Puviaq 1,_about 8 miles to-the NE._ - 7 Sufficient acreageayailablein-drillingunit.___- ____-_--__ Yes- -------------------- -- ~ 8 If deviated,is_wellboreplatincluded.-.__-_--_-- NA_- - ---------------- - - __-_--Vertical_well------------------------------ - - 9 Operator only affected party- - - - - - - - Yes - - - - 10 Operator has-appropriate-bond in force - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Yes _ - .. - . , 051123: Letter of Credit in transit._$FD. 12-7-05: _ Letter of Credit condifionally.appcoyed_ - _ _ _ _ . _ _ _ _ _ _ _ 11 Permit_can be issued without ~nservation order- _ _ - Yes - . for 90_days -see bond file. SFD- - - - - _ - - - - _ - - - Appr Date 12 Permit-can be issued without administrativeapproval - _ Yes _ - _ - - - SFD 12/7/2005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized by Injection 9rder # (put_10# in-comments)-(Fpr- NA_ - _ - - - _ - 15 All wells within 114_mile area of review identified (For service well only). _ _ _ _ . , _ - . , _ _ _ NA_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 16 Pre-produced injector; duration_of pre production less than- 3 months_(Forservice well only) - - NA- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------------------------------------ AC_M_P-Finding of Consistency-has been issued for_this p[oject- - , _ - - NA- - ACMP deter_mination_noJonggrhas an affect_on approval of-pem?it_to drill, - _ - - - Engineering 18 Conductor string_provided , - _ _ _ _ - , - - - Yes - Surface casing set at 2500'- & cemented to surface_will protect any potential USDWs, However, abundant su_rface- 19 Surface casing-protects all known U$DWs _ - - - , _ Yes . - water, presence of permafrSt and_ gas present in shallow section of nearby USGS wells indicates there is very- - . 20 CMT-vol_ adequate-to circulate_on conductor_& surf_csg _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes . . _ _ _ _ -little-possibility that any subsurface aquifer herewilleverb_e utilized for drinking water purposes, SFD_ - - - - - - - 21 CMT_vol adeguate_to tie-in Fong string fo surfcsg_ - - . - - .. No_ - AN hydrocarbon zones will_ be,covered. Annular disposal_ may be_proposed, , . ------------ 22 CMT-will coyer all know_n-productiyehorizons________--___--_-.__--- Yes_ _-_,_-______-__- 23 Casing designs adequatef9rC,_T,B&_permafrost-----..------------.- -- Yes- ------------------------.------------------- -- 24 Adequate tankage_or reserve pit - - - - - - - - _ _ Yes - _ - - - -Rig is_equippedwith steel_pits.-No reserve_pitplanned, Annu_lardisposal-planned-or waste will be hauled, - .. - 25 If a_re-drill, has-a 1.0-403 for abandonment been approved _ NA_ _ . 26 Adequatewellbotteseparation.proposed________________________,.__,-.. Yes_ ..__.-Nearestwell_is16.5miles away.-_._______________,_______ 27 Ifdiverterrequired,doesitmeetregulations------------------------------- Yes- __---___--__-_-._____-__-----___-_-- - -- Appr Date 28 Drilling fluid-program schematic $ equip listadequake- - _ - - - _ - - - - - - - Yes Maximum expected fo[matipn pressure 10,5 EMW._ MW-up to 10.7 planned__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ TEM 121812005' 29 BOPES,dotheymeet_regulation--------,-- ----------------- Yes- ------------------,------ --- - I'. 30 BOPE_press rating appropCia-te; test to_{put prig in comments)- _ - Yes - --- ------------ - - - - - - - . - MA$P without formation_breakdown-3532 psi. _4000 psi BOP1est planned.- I 31 Choke-man'rfoldcomplieswlAPI_RP-53 (May84)__-___--_---___--_, -_--_ Yes- ____-__-___-__--_----_.---__--_- 32 Work will occur without operation shutdown_ - _ . Y_es - - - If available-time_becomes limited, an o erational SD ma be needed. - - - , . p Y - 33 Is presence_of H2S gas probable , - - No- - _ H2S has notbeen reported ak the depfhs_plannetl, Mud should-preclude N2S on rig. -Rig has sensors_and alarms, 34 Mechanical condition of wells within AOR verified (For service well only.) NA- Geology 35 Permit can be issued w/o hydrogen, sulfide measures _ No_ Exploration well; H2S unlikely, butprecauhonary measures are warranted. 36 Data_presented on potential overpressure zones- - - - - - - - - - - - - - - Yes - . - Expected ceservoirp[essure is 10.5 ppg EMW; will be drilled with 1.0,7ppg mud._ - - - - Appr Date 37 Seismic analysis ofshallow gas_zones_ - _ - - - _ . - - - _ Yes _ Hydrates_may-be encountered as noted in Drillin -Hazards section, No shallow hazards pr_ ressure - - - 9 p - - SFD 11/23/2005 38 Seabed condition survey-(if off-shore) _ _ - _ - _ _ _ - . NA_ _ - _ - _ _ _ anomalies were_evident in seismic-pore_pressure prediction study_ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ , 39 Contact namelphone for weekly_progress reports [exploratory only] _ - - - - Yes _ - _ -Chris Bellis, _403-231-2854 or Mike Quick 907-339-8488, - . - _ - _ - Geologic mi C i Engineering u Date Date: C Date i i ' Vertical ex loration well in NPR-A. Inclination surve re wired. Well will be mud to ed from base of conductor to TD. SFD p Y q 99 m oner: o ss ss oner: omm o iss r pn , l ~J 1 ~ t ~ ~ J ~l~ ~~ ! Z ~~~ /2 'AS ~l V - D~ •
