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207-089
~ ~ Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~(~ ~- ~~~ Well History File Identifier Or anizin ~ao~e> ^ Two-sided IIIII'lllllllllllll ^ Rescan Needed (II II'IIIIIII II~I~I 9 9 RE AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ^ Diskettes, No. ^ Maps: ~reyscale Items: ^ Other, No/Type: ^ Other Items Scannable by a Large Scanner ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~ Q Q /sl Pro "ect Proofing I) I II ~) II I I III I I III ! BY: Maria Date: I~ b Q lsl ~ Scanning Preparation ~ x 30 = / ~ + ~~ = TOTAL PAGES ~ v s (Count does not include cover sheet) ~M~ ~ BY: Maria Date: ~ 11~~ ~C~ ~S~ 1' ~ Production Scanning Stage 1 Page Count from Scanned File: ~ U~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ___f~YES NO BY: Maria Date: I~ ~~ Q /sl ~~ ~ ~ , Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: ~S~ Scannin is complete at this point unless rescanning is required. NI I~~~II (IIII II III 9 ReScanned II I II'I (~ I I I~I ((~II BY: Maria Date: ~S~ Comments about this file: Quality Checked III II'll) III II'I III 10/6/2005 Well History File Cover Page.doc F STATE OF ALASKA ALA. OIL AND GAS CONSERVATION COM SION ' WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1 a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned El • Suspended 1b. Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory 0• GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test ❑ 2. Operator Name: 5. Date Comp., Susp., or 12. Permit to Drill Number: Teck Alaska Incorporated Aband.: 8/7/2012 • 207 - 089 ' / j/Z -Ll 7 3. Address: 6. Date Spudded: 13. API Number: 3105 Lakeshore Drive, Bldg A, Anchorage, AK 99517 7/16/2007 50 073 - 20007 - 00 • 4a. Location of Well (Governmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1088' FWL, 1501' FSL, Sec 17, T31 N, R18W, KRM • 8/16/2007 NB - 04A • Top of Productive Horizon: pl/43 X01 8. KB (ft above MSL): N/A 15. Field /Pool(s): t8 � As Above ,.1 GL (ft above MSL): N/A Field: Red Dog Total Depth: 9. Plug Back Depth(MD +TVD): Pool: Kivalina Undefined Gas' As Above Surface 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x- 584,439.38. y 5,150,962.60 - Zone- 7 • • 3035' MD, 3030' TVD NANA Regional Corp (FEE -NANA) TPI: x- As Above y- As Above Zone- 7 11. SSSV Depth (MD + TVD): 17. Land Use Permit: Total Depth: x - As Above y - As Above Zone 7 N/A NANA LOA 18. Directional Survey: Yes ❑ No Q 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 640' 21. Logs Obtained (List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re- drill /Lateral Top Window MD/I Array Induction, Comp Density Neutron, Caliper, Gamma Ray, Waveform Sonic N/A 23. CASING, LINER AND CEMENTING RECORD WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 13 -3/8" 61# J -55 Surface 95' Surface 95' 18" 95.5 cu ft Arctic Set II 0' 8 -5/8" 24# J -55 Surface 1029' Surface 1029' 12 -1/4" 457 sx Cold Set II 0' 5 -1/2" 15.5# K -55 Surface 3025' Surface 3020' 7 -7/8" 82 sx Cold Set III + 0' 387 sx Type 1 24. Open to production or injection? Yes ❑ No gi - If Yes, list each 25. TUBING RECORD interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET ( MD/TVD) No tbg in well ts) �� 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ' See previous 10-407 submitted c og 6 GC 27. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): See previous 10 submitted Date of Test: Hours Tested: Production for Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Test Period -♦ Flow Tubing Casing Press: Calculated Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity - API (corr): Press. 24 -Hour Rate 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No El Sidewall Cores Acquired? Yes ❑ No 0 If Yes to either question, list formations and intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. SCANNED MAR 2 p 2013 RRDMS SEP 0 7 2012 3 - Form 10 -407 Revised 12/2009 co4RicG+ � lts�1 L 2, Z S . �$, ubmit original only (1\.. ,19\ �j 6 • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ' No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, Permafrost - Top 4' 4' and submit detailed test information per 20 AAC 25.071. Permafrost - Base 640' 640' Mississippian Kuna Fm Kivalina Member Surface to TD Surface to TD Formation at total depth: Kivalina 31. List of Attachments: P &A Operational Summary, Final Wellbore Schematic, Photographic Documentation of P &A 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Bill Penrose 264 - 6114 Printed Name: Tom Farr Title: Chief Mining Engineer Signature: 7/0 .T / Phone: 907 - 426 - 9326 Date: AUGUST !s Zdt INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 b: Classification of Service wells: Gas Injection, Water Injection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. P Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10 -407 Revised 12/2009 • • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck August 15, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report, Plug and Abandonment Teck Alaska Incorporated, NB -04A (PTD 207 -089) Sundry No. 312 -217 Dear Ms. Foerster, Teck Alaska Inc. hereby submits its Well Completion Report for the plugging and abandonment of its NB- 04A well. The well has been filled with cement from surface to mid -perfs, cut off below ground level, a marker plate installed and the stub buried. Enclosed please find: • Form 10 -407 Well Completion or Recompletion Report and Log • As -P &A'd Wellbore Schematic • Summary of P &A Operations • Photographic Documentation of the Well's Surface Abandonment If you have any questions or require additional information, please contact me at (907) 426 -9326 or Bill Penrose of SolstenXP at (907) 264 -6114. Sincerely, Teck Alaska Incorporated Thomas J. Farr Chief Mining Engineer cc: Bill Penrose - SolstenXP Attachments Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck Red Dog Well NB -04A P &A Operations Summary August 03, 2012 Move all equipment From NB -02 to NB -04A and spot. Mix 10 bbls of 9.3 ppg brine and pump downhole at 2 bpm, 0 psi. Monitor well, well on slight vacuum. Mix and pump another 10 bbls of 9.3 ppg brine at 2 bpm, 0 psi. Shut well in with 10 psi and leave overnight. August 03, 2012 Check well, on vacuum. Mix another 10 bbls 9.3 ppg brine and pump downhole at 2 bpm, 0 psi. Monitor well, still on vacuum. Batch mix 30 bbls of 10.7 ppg permafrost cement and pump down well at 2 bpm, 100 psi. August 06, 2012 Batch mix 30 bbls of 10.7 ppg permafrost cement and pump into well. Well full with 27 bbls away. Total cementals. Clean and tear down equipment and sent to NB -01. August 07, 2012 Excavate around well to 5' below original ground level and cut 13 -3/8', 8 -5/8" and 5 -1/2" casings four feet below original ground level. Clean up cuts, take pictures, install marker plate. Backfill over stub, build up mound and take pictures. i • • NB - 04A As P & A'd Wellbore Diagram 13 - 3/8" Casing a.� � t 14.. , J - 55, 61 6 1 I / ft ..– ' t*' " ;., 18 Hole TD @ 95' ; i +M i q r pr, . 0.44 ,,.,•; f 12 -1/4" Hole •wo ..' s..' a\ .: -► Base of Permafrost 640' 8 -5/8 Casing ''•y�+� .,+�, J - 55, 24lbs /ft ' m .4 i 1 ;w , TD @ 1,029 : : :r + +s o ?0.441 r.e 's „' 4 .7 ? 7 - 7/8” Hole 0 , :•e , •% fie . ;si .— .-. 1,624' - 1,664', 1,810' - 1,820' e! : :, 0, 4. ,,4 1,844' i ' - ' , 20 : ., 1,844 1,854 , 1,970 1,980 . : 2,014' - 2,024', 2,104' - 2,124' 1410. L gl2,220' - 2,240', 2,300' - 2,320' z � +3 2,366' - 2,388', 2,406 - 2,426' BOO @ +/ 2,300' . 2,470' - 2,490', 2,530' - 2,550' , 2,640' - 2,660', 2,750' - 2,770' iit 2,796' - 2,806', 2,850 - 2,870 .. 2,940' - 2,950' tir$ 5 - 1/2" Casing %I K - 55, 15.5 lbs / ft G;�,. TD @ 3,025' • t4 • TD 3,035' REV 13 AUGUST 2012 r -. 7 0 " 4 t - "- - " ' •"' '' , I ' . • . - ^wi -,. . • ...... dif ..... ''. - • , ' - .. , ..,.. . . , ,It • e. , . i 4, Ili • _, . ., r . , - '-'• N . , .t,- . ,.. ' 46 .,....„. L. o. 4 ,, , . .... -. • , • ----- ---.....--..i.............. . ... :.. . 1 . ""irAtiliP . ... '•#t - ' 4A, . ,/: --- ".' . . . . . . • . < . of ir , . . . i : '..,-----. , .1,.: -• --.--.---''.*., - . 4 .,. '- „'-.P.,.... 1,... . ' „--.•.--• ..!...,... ... t 7.- : 7 - -. -i ,,...,.4.4# . : • • ..-: ro . t , ,.. Is....1#4 • .„. „... ,.. • , , or . .., . , • ..,. 41. • „ ...„. . . . . .. , a , , A _ '° t' . A T * { _ , r r t ' Ne t y , t , ', ............ , . ..„,,,,„, „, , ,,,,,, . , r.s.• t t 4 .40.7: ...I s F , $ , , .rs 1 f , } . " �. • / ',''i t ) r " i.. 0- i* . I r , t S 111 �r•z �► ♦ " " 3 , 0'" , ! 1,4 ,,, 4i 1 ' ` f L` i r f . + 1 11 .- ,�' w r ,, -s - ,;. . , 4 , fit` • y f j y S dr " dill r. s 0 i r ♦ , i s ,r.; " li t 4 ' . ' : I si a f • .k • + ,:y r�4 .4,tw4 F . . . 4 ,e 404,E t4„ 4 n s" #$ s°+ ra j 1. a . •i I r , 4 C 0' Y ,t „.„,,,,,„„,...„., ' , e . ' ' • - . _ ., ;Airy - . , i bi,„.?„. ,...-,„,,,.., ...... + , , . . , : r2c t , ! i ,. 4 ti. M 6 4 t t` w s .ea ,y ''' 41/4*. Oh *1"Th t .,.. , A t *, s" . :., , 4(1 . \ -- ----40•0 1 i . i ----) 4 4. k.....—. ;"-. ' .11 4000....„...\ , o i `t s '"•...........-- C3 ‘.., rt ` 4 ' + . 4. N,. e F ,,,,,, . , 110, . . I .1 9 , P4 * : ' ; - * 1' ; ql . {� 7 ' :' �T 4311 ...... . y r• i # t ,, 4 O t t ' u-l4 + a, # i 'it tiliW ' i' ' - ''' ..„.. '* - 2. '° �' _ _ • t • • TTIA9 SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Michael Harvie Senior Mining Engineer Teck Alaska Incorporated a. 0 / — 0 o 7 3105 Lakeshore Dr., Bldg A Anchorage, AK 99517 Re: Red Dog Field, Kivalina Undefined Gas Pool, NB -04A Sundry Number: 312 -217 Dear Mr. Harvie: SLf NEDJUN 2 9 2012 Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cat ■ P. oerster Chair DATED this f S day of June, 2012. Encl. 0 4 Itt (iiiV RECEIVED • STATE OF ALASKA JUN 1 3 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: : Abandon 0 • Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ ' Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 12 207 - 089 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50 073 - 20007 - 00 - 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: NB ' Spacing Exception Required? Yes El No 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) • Field: Red Dog / Pool: Kivalina Undefined Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3,035' . 3,035' • 3,025' 3,025' None None Casing Length Size MD TVD Burst Collapse Structural Conductor 95' 13 -3/8' 95' 95' 2,730 psi 1,130 psi Surface 1,029' 8 -5/8" 1,029' • 1,029' 2,950 psi 1,370 psi Intermediate 3,025' 5 -1/2" 3,025' 3,020' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,624' - 2,950' 1,624' - 2,945' N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): None : None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch ❑ Exploratory El ' Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug - 2012 Commencing Operations: Oil III Gas III WDSPL ❑ Suspended ❑ I 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned El . Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 - 6114 Printed Name . Title M icheal Harvie Senior Mining Engineer I Signature Phone Date 1,$)/S/ i Z 907 -426 -9233 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3i 7 - 2,, i i Plug Integrity U BOP Test ]. Mechanical Integrity Test ❑ Location Clearance Other: , f c s i 1 /5-e0 p 5t A/C2rr Al /1 ee /0 /--- e 5 iki el/cc % krcJ P6d h i/ c/,e m ri Cvf o ff (a 45i elr.� avi we/eir "l p el tt Subsequent Form Required: J APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: 6 -/8 -1 VHF \ II Form 10 -4 Revised 1/2010 t / i 5 / 2 OW° t, RBDAAS JUN 19 2 Sub it in Duplicate • r^, 4 k; • • June 8, 2012 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 0 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon Teck Alaska Incorporated, NB -04A (PTD 207 -089) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB — 04A well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. Teck plans to plug the well from 3,025' MD /TVD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed welibore schematic. . The abandonment of NB -04A will be accomplished as indicated in the attached P &A procedure. This work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9233, Thomas Farr at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated Micheal Harvie Sr. Mine Engineer cc: Bill Penrose - SolstenXP Attachments 1 • • P &A Procedure: NB — 04A 1. MIRU P &A equipment. Do not commence well operations until all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Remove the existing hammer union from the wellhead and set aside. Unscrew the wellhead from the casing and set aside. 4. Mix 10 bbls of 9.3 ppg brine. Fill well with brine. If additional brine is needed to fill well, mix and add in 10 -bbl batches until well is full. 5. Make up a 5 -1/2" casing x 1502 union crossover onto the casing stub sticking up. Install a 1502 union onto the crossover. Make up the crossover and union as tightly as possible. 6. Rig up pump and lines onto the 1502 union to pump down 5 -1/2" casing. Pressure test lines to 1,000 psi. 7. Mix an additional 10 bbls of brine and attempt to bullhead down well. Do not exceed 3,800 psi (80% of the burst rating of the 5 - 1/2" casing). 8. If fluid can be pumped into the well at less than 3,800 psi, mix and pump cement into the well per Step 9 below. If the well will not take fluid at less than 3,800 psi, skip to Step 10 below. 9. Mix 73 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 23 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 83 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence bullheading cement down the 5 -1/2" casing. Continue pumping cement until all cement in the batch mixer is pumped away. If the pumping pressure reaches 3,800 psi, divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. Skip to Step 17 below. 10. If bullheading cement into the well proves unfeasible, bleed off pressure, break the pumping line from the well and back off the crossover and 1502 connection. Notify AOGCC field inspector at Prudhoe Bay that BOPE are going to be rigged up and tested and obtain a witness waiver from the inspector. j ti 11. Reinstall the wellhead and install the wellhead x BOP flange fabricated for this purpose. tv b (r, 9 12. N/U 4- 1/16 ", 10K psi BOPs on BOP flange. RU choke manifold, associated piping and o p h 611 fluid return tank. Pressure test BOPE to 1,500 psi. 13. R/U work platform and false rotary assembly on top of BOPs. 14. Rill with 1" tubing to +3,025' TD or to any shallower obstruction. If an obstruction is found above 1,624' (top perf), attempt to work past it while circulating. If tubing cannot be run all the way to TD, call the Anchorage office which will coordinate with the AOGCC on the next step. 15. With the 1" tubing at TD, mix and pump cement as follows: 16. Mix 73 bbls of permafrost cement as: ' if -0Z3Y Density 10.70 ppg Jr / � i�+,SI h o .� f� Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk 302 5'( O 2 3 Si) 7Z bbls Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both batch mixer tanks to mix this volume. Place 23 bbls of warm water in each tank and establish circulation within the batch mixer. Mix 83 sacks of cement into each tank, continually mixing. Once the cement in both tanks is at the design density of 10.7 ppg WJP 05/25/12 • • (as determined by weighing samples using a mud balance), commence pumping cement down the 1" tubing using the triplex pump, taking returns out of the 1" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 17. Clear and clean lines and cementing equipment. 18. Rig down BOPE and all mixing, pumping and related equipment and prepare them for moving to the NB - 05 location. 19. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding ground level. 20. After at least 12 hours of WOC time, use a cutting torch to cut all casing/tubing strings off to leave well severed 4' below original, surrounding ground level. 21. Remove original guardrail, cellar, wellhead and severed casing/tubing. 22. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck representatives to witness. f yj a fc, CIO e 74,7 4 f ✓ a--► 23. Photographically document the condition of the top of the well before welding on the marker plate. 24. Weld a' /4" thick, 13%2" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Inc. NB — 04A API #50- 073 - 20007 -00 PTD #207 -089 25. Photographically document the welded -on marker plate. 26. Back -fill excavation with original soil. Top excavation with clean gravel recovered from elsewhere on the well location, mounding it over the well to a height of 4' to compensate for later settling. MP 05/25/12 • • 27. Clean location, obtain site clearance approval from AOGCC representative on location (if any) and transport all personnel, equipment and materials to NB — 05. Photographically document the final location condition. WJP 05/25/12 . • • NB -04A Current Welibore Diagram » K 13 - 3/8" Casing ,* +� �— 18" Hole J -55, 61 fbs /ft TD @ 95' '441 4 :64::::::,:i4:44,,,, otK 4 0 ■111 12-1/4" Hole Base of Permafrost 640' 8 - 5/8" Casing J - 55, 24 lbs / ft TD @ 1,029' Aiti it.: 0 4 K4 4 4 OS OS e 4 iiI:i 01 2 –.I-- 7 - 7/8" Hole igt O., f 444 0'44 0 IA 1.1 03 Xt 144 1,624' - 1,664', 1,810' - 1,820' 1,844' - 1,854', 1,970' - 1,980' 2,014' - 2,024', 2,104' - 2,124' 2,220' - 2,240', 2,300' - 2,320' t.tt; ` ' 2,366' - 2,388', 2,406 - 2,426' * l i ti s : 2,470' - 2,490', 2,530' - 2,550' w R' 2,640' - 2,660', 2,750' - 2,770' i$11 gi 2,796' - 2,806', 2,850 - 2,870 ,� 2,940' - 2,950' 5 - 1/2" Casing A K -55, 15.5Ibs /ft TD @ 3,025' As TD 3,035' REV 6 JUNE 2012 • • NB - 04A P & A Wellbore Diagram Cement Bullheaded In 13 - 3/8" Casing . ..: _,� 18" Hole J - 55, 61 lbs / ft �- TD @ 95' ' 4 4444 ; . to e VI '•" r '•' km Note; still 4 . . �, . -� 12 -1/4" Hole "'�'�* -- " I I Base of Permafrost 640' Mips. .: t 8 - 5/8" Casing J - 55, 24 Ibs / ft TD @ 1,029' ,A: r• • ; � 4 , 'k 3 '' -. 7 - 7/8" Hole Ilitt IO. r .� • •� 4 4 li !•'• , * :: 1,624' - 1,664', 1,810' - 1,820' y 1,844' - 1,854', 1,970' - 1,980' , • 4 2,014' - 2,024', 2,104' - 2,124' �� 2,220' - 2,240', 2,300' - 2,320' 2,366' - 2,388', 2,406 - 2,426' tAi ttit iii 2,470' - 2,490', 2,530' - 2,550' N 044 2,640' - 2,660', 2,750' - 2,770' vs. 04 2,796' - 2,806', 2,850 - 2,870 2,940' - 2,950' 5 - 1/2" Casing K -55, 15.5Ibs /ft TD @ 3,025' , TD 3,035' REV 6 JUNE 2012 • • NB - 04A P & A Wellbore Diagram Cement Circulated. In s + ti 00 eil it ty.,241:43 13 - 3/8" Casing R , -_-- 18" Hole J 55, 61 lbs / ft TD @ 95' 1/1 1.411:104 �- 12-1/4" Hole --al Base of Permafrost 640' 8 - 5/8" Casing J - 55, 24 lbs / ft TD @ 1,029' act „o p " � r o. 4A' f r�t 4„ ♦ � ' 4•. Poitosl hop g -.gm- 7 - 7/8" Hole 44$ eta ,, 1,624' - 1,664', 1,810' - 1,820' tr ` • 1,844' - 1,854', 1,970' - 1,980' oviV4 Kt) V ; 2,014' - 2,024', 2,104' - 2,124' 2,220' - 2,240' 2300' -2320' at No . :. 2,366' - 2,388', 2,406 - 2,426' PO 2,470' - 2,490', 2,530' - 2,550' • ` 2,640' - 2,660', 2,750' - 2,770' too 0 :• Xre .t.� mi � 2,796' - 2,806', 2,850 - 2,870 i ' 2,940' - 2,950' • . 5 - 1 /2" Casing ; *".• ;; ; • X .` K - 55, 15.5 Ibs / ft „ V , I IN © V" �_ 1" Tubing ' ti * TD @ 3,025' ' TD @ 3,000' TD 3,035' REV 6 JUNE 2012 • Page 1 of 1 S Schwartz, Guy L (DOA) From: Bill Penrose [bill @solstenxp.com] Sent: Thursday, June 14, 2012 8:57 AM To: Schwartz, Guy L (DOA) � (s Cc: Ferguson, Victoria L (DOA) Subject: RE: Red Dog P & A — 0 g -F Ji Thanks, Guy. ck O Please withdraw the sundries you list below and replace them with those submitted for those same wells dated June 8, 2012. Regards, P8cvt4de _. Drilling Manager FullColor_sma 310 K Street, Suite 700 * JUL 1 �� �� Anchorage, Alaska 99501 � Main 907 - 279 -6900 Direct 907 - 264 -6114 Cell 907 - 250 -3113 From: Schwartz, Guy L (DOA) [ mailto:guy.schwartz @alaska.gov] Sent: Thursday, June 14, 2012 8:52 AM To: Bill Penrose Cc: Ferguson, Victoria L (DOA) Subject: Red Dog P & A Bill, Since the sundries originally processed for the P & A are not going to be used (due to no production tubing being left in well and changing the procedure) you will need to officially ask them to be withdrawn.... Just respond to this email requesting that. The sundries impacted are listed below. We are working on the new sundries you submitted and should have them reviewed soon. Red Dog NB -01 205 -095 312 -151 �/ 4 Red Dog NB -02 205 -096 312 -152 - R d Do NB- -090 312 -153 Red Doa NB-04A 8 - Re Dog NB -05 20=97 312 -155 Guy Schwartz Senior Petroleum Engineer AOGCC 793 -1226 (office) 444 -3433 (cell) 6/14/2012 r % Lra,rE rff n[tAs jP h SEAN PARNELL, GOVERNOR LI Li ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 Tom Farr Chief Mining Engineer Teck Alaska Incorporated (� 3105 Lakeshore Drive, Bldg. A �} D — Q Anchorage, AK 99517 c7�, Re: Red Dog Field, Kivalina Pool, NB -04A Sundry Number: 312 -154 Dear Mr. Farr: tic 'MINED Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy . Foerster Chair DATED this in � day of April, 2012. Encl. Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax • 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck April 10, 2012 Ms. Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 AP;, • Anchorage, Alaska 99501 RE: Sundry Application to Plug and Abandon AOGCC Teck Alaska Incorporated, NB -04A (PTD 207 -089) Dear Ms. Foerster, Teck Alaska Inc. proposes to plug and abandon its NB — 04A well. It is intended to plug the well back to surface, install the required marker plate and bury the stub. Teck plans to plug the well from 2,837' MD to surface by pumping 10.7 ppg permafrost cement as indicated on the enclosed wellbore schematic. The abandonment of NB -04A will be accomplished as indicated in the attached P &A procedure. This work is expected to commence in August of this year. If you have any questions or require additional information, please contact me at (907)- 426 -9326 or Bill Penrose at 264 -6114. Sincerely, Teck Alaska Incorporated Thomas Farr Chief Engineer cc: Bill Penrose - SolstenXP Attachments it 0 to RECEIVED STATE OF ALASKA APR 16 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1. Type of Request: Abandon El . Plug for Redrill ❑ Perforate New Pool ❑ Repair Well ❑ Change Approved Program ❑ Suspend ❑ Plug Perforations ❑ Perforate ❑ Pull Tubing ❑ Time Extension ❑ Operations Shutdown ❑ Re -enter Susp. Well ❑ Stimulate ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Alaska Incorporated Development ❑ Exploratory 0 • 207 -089 • 3. Address: Stratigraphic ❑ Service ❑ 6. API Number: 3105 Lakeshore Dr., Bldg A, Anchorage, AK 99517 50- 073 - 20007 -00 • 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No El NB -04A . 9. Property Designation (Lease Number): 10. Field / Pool(s): NANA Regional Corporation (FEE -NANA) • Field: Red Dog / Pool: Kivalina Undefined Gas • 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3,035' . 3,030' . KB KB None None Casing Length Size MD TVD Burst Collapse Structural Conductor 95' 13 -3/8' 95' 95' 2,730 psi 1,130 psi Surface 1,029' 8 -5/8" 1,029' 1,029' 2,950 psi 1,370 psi Intermediate 3,025' 5 -1/2" 3,025' 3,020' 4,810 psi 4,040 psi Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 1,624' - 2,950' 1,624' - 2,945' 2 -7/8" J -55 2,837' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): None None 12. Attachments: Description Summary of Proposal ❑ 13. Well Class after proposed work: Detailed Operations Program El BOP Sketch ❑ Exploratory El • Development ❑ Service ❑ 14. Estimated Date for 15. Well Status after proposed work: Aug -2012 Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16. Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned 0 - Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Bill Penrose 907 - 264 -6114 Printed Name Tom Farr Title Chief Mining Engineer Signature / Phone Date �harycuaj _I, �_- 907 -426 -9326 April 9, 2012 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3 f 27 15C-i Plug Integrity ti BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance `[Z Other: 0 /i Al 1 A-t 5/2 (e„,7 a S i v die' a. Y 1 v 177 ci °C'. L Li tG .S ) 4 Subsequent Form Required: 1 0 --4 APPROVED BY Approved by: � / `�` 4-4? COMMISSIONER THE COMMISSION Date: q- � - / Z. 0 s APR V WO Form 10-403 Revised 1/2010 � l / j � , .1,, * S Ar R I- 9 2 Submit in Duplicate i� • - Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 888 900 1179 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck • P &A Procedure: NB — 04A 1. MIRU camp and equipment. Do not commence well operations until camp operations have been established, personnel are settled in and all equipment and materials required for this job are onsite. 2. Check all annuli for pressure. If any is found, document pressure and attempt to bleed it off. If it does not bleed off or if it re- builds, contact Anchorage office for plans to deal with it. 3. Rig up pump and lines to pump down 2 -3/8" tubing and take returns from the 2 -3/8" x 5 -1/2" annulus. Pressure test lines to 1,000 psi. 4. Fill one mixing tank with 10 -15 bbls of warm water. 5. Pump water down 2 -3/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. If no circulation established, RU wireline with pressure control equipment. 6. PT wireline equipment to 250 psi low /3,000 psi high. 7. RIH with 5'of 1- 11/16 ", 4 spf tubing puncher /CCL to 2,800' and punch 2 -3/8 "tubing. 8. POOH with wireline. Confirm shots fired. 9. Pump water down 2 -7/8" tubing with 0.5 bbls /min flow rate to establish circulation. Take returns to holding tanks provided by Teck. 10. Mix 65 bbls of permafrost cement as: Density 10.70 ppg Yield 2.47 cu ft/sk Mix Water 11.724 gal /sk Thickening Time 6.0 hrs Setting Time 30.0 hrs Use both Batch Mixer tanks to mix this volume. Have 20 bbls of warm water in each tank, establish circulation within the Batch Mixer. Add 4 super sacks (8,000 lbs) of cement into each tank, continue mixing. Once at designed density at 10.7 ppg (as determined by weighing samples using a mud balance), commence pumping cement • • Teck down the 2 -3/8" tubing using the triplex pump, taking returns out of the 2 -3/8" x 5 -1/2" annulus. Continue pumping cement until uncontaminated cement returns are observed at the surface then divert any remaining cement in the batch mixer to the well fluid return tank(s) and treat the pH to prevent the cement from setting up. Do not stop rotation of the paddles until tanks are empty. Note: The cement slurry is designed with a pumping time of 6 hours. 11. When the pump is shut down, immediately shut the annulus and tubing valves and disconnect lines. 12. Clear and clean lines and cementing equipment. 13. WOC at least 12 hours. 14. Rig down all mixing, pumping and related equipment and prepare them for moving to the NB — 05 location. 15. Using excavator, excavate around the wellhead to a depth of five feet below original, surrounding tundra level. 16. After WOC period is finished and using a cutting torch and hydraulic jack hammer (for cement), cut all casing and tubing strings off to leave well severed 4' — 5' below tundra level. 17. Remove original guardrail, cellar, wellhead and severed casing/tubing. 18. Top off all annuli and tubing in well with cement if necessary. AOGCC and Teck • representatives to witness. 19. Photographically document the condition of the top of the well before welding on the marker plate. 20. Weld a 1 /4" thick, 16" diameter steel marker plate over the top of the cut -off well casings. AOGCC and Teck representatives to witness. Marker plate to have the following information bead - welded onto it: Teck Alaska Incorporated NB -04a API #50- 073 - 20007 -00 PTD #207 -089 21. Photographically document the welded -on marker plate. 2 • • Teck 22. Back -fill excavation with original soil. Top excavation with fifteen yards of clean gravel brought out from Red Dog Mine, mounding it over the well to compensate for settling as soil thaws. 23. Clean location, obtain site clearance approval from AOGCC representative on location and transport all personnel, equipment and materials to NB — 05. Photographically document the final location condition. I 3 4 • . NB -4A Current Wellbore Diagram 13 - 3/8" Casing 18" Hole J -55, 61 Ibs /ft TD @95' a 12-1/4" Hole Base of Permafrost 640' 8 - 5/8" Casing ■ J - 55, 24 lbs / ft TD @ 1,029' 7 - 7/8" Hole 1,624' - 1,664', 1,810' - 1,820' 1,844' - 1,854', 1,970' - 1,980' 2,014' - 2,024', 2,104' - 2,124' I i /4v- v3 � , _ = 2,220' - 2,240', 2,300' - 2,320' f r / ' 8 l 2,366' - 2,388', 2,406 - 2,426' (.0/83b415) E 3 5 6-6- 5 2,470' - 2,490', 2,530' - 2,550' 2 - 3/8" Tubing 2,640' - 2,660', 2,750' - 2,770' TD @ 2,837' 2,796' - 2,806', 2,850 - 2,870 2,940' - 2,950' 5 - 1/2" Casing K -55, 15.5lbs /ft 4 TD @ 3,025' 1G' a21 1 %/ y if TD 3,035' REV 7 NOV 2011 • • NB -4A P & A Wellbore Diagram 13 - 3/8" Casing 18" Open Hole J -55, 61lbs /ft --► TD @ 95' 12-1/4" Open Hole Base of Permafrost 640' 8 - 5/8" Casing J -55, 24lbs /ft TD @ 1,029' —0-- 7 - 7/8" Open Hole 1,624' - 1,664', 1,810' - 1,820' 1,844' - 1,854', 1,970' - 1,980' 2,014' - 2,024', 2,104' - 2,124' 2,220' - 2,240', 2,300' - 2,320' 2,366' - 2,388', 2,406 - 2,426' 2,470' - 2,490', 2,530' - 2,550' 2 - 3/8" Tubing 2,640' - 2,660', 2,750' - 2,770' T D @ 2,837' _ = 2,796' - 2,806', 2,850 - 2,870 2,940' - 2,950' 5 - 1/2" Casing K -55, 15.5lbs /ft ► 4 TD @ 3,025' TD 3,035' 3 NOV 2011 Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 907 426 2177 Fax 3105 Lakeshore Drive www.teck.com , " Building A, Suite 101 • Anchorage, AK USA 99517 week January 4, 2010 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Suite 100 Anchorage, AK 99501 Attention: Mr. Dan Seamount, Chairman Re: Wells Nos. NB -01, NB -02, NB -03, NB-04A, NB -05 Teck Alaska Incorporated Dear Mr. Seamount, This is to advise the Commission that effective January 15, 2010, the Teck Alaska, Inc., Point of Contact for all AOGCC related matters is Mr. Thomas Farr, Chief Engineer. Please direct all future communications relating to such matters to Mr. Farr, as noted below: Mr. Thomas Farr, Chief Engineer Teck Alaska, Inc Red Dog Mine 3105 Lakeshore Drive Building A, Suite 101 Anchorage, AK 99517 Z01'I thomas.farrateck.com.- 1 p'p 907.426.9326 Red Dog Office phone Respectfully, Wallace Hendricks Teck Alaska Incorporated cc. Commissioner Cathy P. Foerster Commissioner John Norman °Mr. Tom Maunder, P.E. Petroleum Engineer, AOGCC Mr. Stephen McMains, Statistical Technician, AOGCC Mr. John Egan, Operations Manager, Red Dog Mine Mr. Warren Draper, Mine Superintendent, Red Dog Mine Mr. Mark Smith, Mine Superintendent, Red Dog Mine Mr. Thomas Farr, Chief Engineer, Red Dog Mine • • Page 1 of 1 Maunder, Thomas E (DOA) From: Hendricks Wallace RDOG [Wallace.Hendricks @teck.com] Sent: Wednesday, December 23, 2009 1:37 PM To: Maunder, Thomas E (DOA) Subject: RE: Completion Reports NB -04A NB -05 Red Dog I will send hard copy. I made a mistake anyway. For some reason I filled out a 10 -407 instead of a 10 -404 From: Maunder, Thomas E (DOA) [mailto:tom.maunder @alaska.gov] Sent: Wednesday, December 23, 2009 1:09 PM To: Hendricks Wallace RDOG Subject: RE: Completion Reports NB -04A NB -05 Red Dog Hi Wally, You probably got a return from me that I am out of the office. I am on vacation. These documents need to be submitted "hard copy ". The Commission has not established a protocol for operators to submit official documents via email. Thanks for your attention to this request. Best wishes for the holidays. Tom Maunder, PE AOGCC From: Hendricks Wallace RDOG [mailto:Wallace.Hendricks @teck.com] Sent: Wed 12/23/2009 10:37 AM To: Maunder, Thomas E (DOA) Subject: Completion Reports NB -04A NB -05 Red Dog Tom, Attached are reports we talked about. Wally 1/13/2010 • • Teck Alaska Incorporated +1 907 426 2170 Tel Red Dog Operations +1 907 426 2177 Fax 3105 Lakeshore Drive www.teck.com Building A, Suite 101 Anchorage, AK USA 99517 Teck December 22, 2009 Alaska Oil and Gas Conservation Commission R. VED 333 West 7'`' Avenub D E Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Report of Sundry Well Operations (Form 10 -404) Red Dog Shallow Gas Program Well No.NB -04A PTD No. 207 -089 API No. 50- 073 - 20007 -00 Dear Mr. Maunder, Please find attached the above referenced Sundry Well Operations Report which includes the following attachments: • Wellbore Diagram • Well Work History If you have any questions, please contact me at Wallace.hendricks(c�teck.com or by telephone at 907.426.9806. Respectfully, Wallace Hendricks Teck Alaska Incorporated Attachments • STATE OF ALASKA PPOVED ALASKA OIL AND GAS CONSERVATION COMMISSION > <° REPORT OF SUNDRY WELL OPERATIONS DEL X , 1. Operations Abandon U Repair Well U Plug Perforations U Stimulate U jr Oe Performed: Alter Casing 0 Pull Tubing a Perforate New Pool 0 Waiver 0 Time d :.: w' .F. COMMIS >nm Change Approved Program 0 Operat. Shutdown❑ Perforate D Re -enter Suspended Well a,,; ri 2. Operator Teck Alaska Inc 4. Well Class Before Work: `'§. Permit to Drill Number Name: Development [ Exploratory 207 -089 3. Address: 3105 Lakeshore Dr. Bldg A, Ste.101 Stratigraphic[J Service ( 8► API Number: Anchorage, AK 99517 50- 073 - 20007-00 \■. Property Designation (Lease Number): Well Name and Number. FEE -NANA NB-04A `9. Field/Pool(s): Red Dog Kivalina Undefined Gas 715550 10. Present Wen Condition Summary: Total Depth measu rd 3035 feet Plugs (measured) 2983 -3035 feet true vertic9l 3031 feet Junk (measured) None feet Effective Depth measured 2983 feet Packer (measured) None WA feet true vertical 2980 feet (true vertical) N/A feet Casing Length Size MD TVD Burst Collapse Structural Conductor 95 ft 133/8" 61 # J-55 95 ft 95 ft Surface 1033 ft 85/8" 24 # J-55 1033 ft 1033 ft 2950 1370 Intermediate Production 3025 ft 5 1/2" 15.5# J -55 3025 ft 3021 ft 4810 4040 Liner Perforation depth: Measured depth: 2950 ft True Vertical depth: 2946 ft Tubing (size, grade, measured and true vertical depth): 2 7/8" J -55 2895 ft 2891 ft Packers and SSSV (type, measured and true vertical depth): NONE 11. Stimulation or cement squeeze summary: N/A Intervals treated (measured): Treatment descriptions including volumes used and final pressure: 12. Representative Daily Average Production or injection Data Oil -Bbl Gas -Mcf Water -Bbl Casing Pressure Tubing Pressure Prior to well operation: 1.5 mcf 350 bbl 2 psi 0 Subsequent to operation: 1.0 mcf 350 bbl 0 psi 0 13. Attachments: Weilbore Diagram Well Class after work: Copies of Logs and Surveys Run !!! Exploratory Ig Development ❑ Service 0 Daily Report of Well Operations Attached Y. Well Status after work: Oil U Gas Q WDSPL U GSTOR Ei WAG 0 GINJ ❑ WINJ ❑ SPLUG 0 16. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 309 -317 Contact wallace.hendricksaa.teck.com Printed Name Wallace Hendricks Title Consulting Project Manager Signature! -"< " Phone 907.426.9806 Date 12.23.09 Form 10 -404 Revised 7/2009 RAIN a 1p1G11,9 Submit Original Only NB -04A ID W • ELLBORE DIAG DESCRIPT DEPTH Drive Motor and well head not shown Cmt top sfc : 0/ • CONDUCTOR • 133/8 ", # 80' III CMT Coldset 11 2 7/8 15.5 # J -55 tbg • • • • • • • • • Calc 5.5" CMT CSG SHOE hole 8 5/8 ", 24# © 1024' 12 1/4 CMT Coldset II • • • Zone 4 V•.4 1624-1644, ; 1810 -1820. i 1844 -1854, 1970 -1980, 2m4 2104 -2124, 1 mm perforate 2220 -2240, /r44 shot Zone 3 2300 -2320, •.4$p} om 2388 -2388, 2406 -2426, ��•:' perforate 2470.2490 , m. Stage II. 2530 - 2550. I, perforate 2640 - 2650. shot �. Stage 1. 2750 - 2770, , r jspf EOT and top of PC Pump @ 2895 2796-2806, 20 -20, j perforate 2940 -2250 122 ands PC Pump inlet @ 2928 CSG SHOE 5.5 ", 15.5# 3032' Inds 2987' • : PBTD J -55 CMT Coldset 11 7 718' • •3035' • TD • Well History (Workover Summary) NB -04A 9.06.09 MIRU W/O Rig, ND drive motor and well head begin POOH rods. 9.07.09 Finish POOH rods and tbg. One jt tbg has wear hole. Replace. RDMO rig move to NB -05 9.09.09 MIRU rig begin Rill tbg 9.10.09 Finish RIH tbg and rod string. NU well head and drive motor. Begin pumping water. RDMO rig. s ~ t ~ -_.~ .~ ti. .E., ~~;_. - b f ~ ',~° i. ~~»~ ' ~ r MIGRQFILMED 6/3012010 DO N OT P LAC E ANY N EW MATERIAL UNDER THIS PAGE C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc ! c~ N.,r ~wq DATA SUBMITTAL COMPLIANCE REPORT 9/23/2009 Permit to Drill 2070890 Well Name/No. NB 04A Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20007-00-00 MD 3035 ND 3030 Completion Date 10/10/2007 Completion Status 1-SBNG Current Status 1-SBNG UIC N REQUIRED INFORMATION Mud Log No Samples No Directional Survey No DATA INFORMATION Types Electric orOther Logs Run: Array Induction, Comp Density Neutron, Caliper, Gamma Ray, Wavefo (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / meairrmt rvumoer Name sca~e meaia No Start Stop cH Keceroed comments C Las 15722 Induction/Resistivity 953 3037 Open 12/3/2007 Precision Energy Services CBL(LAS), Full Waveform(LAS), Graphics Induction/Resistivity 25 Blu 950 3300 Open 12/3/2007 Weatherford Array Induction, Compensated Density/Neutron, Caliper, GR Sonic 5 Blu 1020 3020 Open 12/3/2007 Weatherford Waveform , Sonic ' Cement Evaluation 5 Blu 0 2980 Case 12/3/2007 WeatherFord Cement Bond Log Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Cuttings 80 3050 1179 ~ ADDITIONAL INFORMATION Well Cored? ~` Daily History Received? ~ Chips Received? ~11d--~ Formation Tops YI N Analysis Y7Ff' Received? ~ ~ DATA SUBMITTAL COMPLIANCE REPORT 9/23/2009 Permit to Drill 2070890 Well Name/No. NB 04A Operator TECK COMINCO ALASKA INCORPOR API No. 50-073-20007-00-00 MD 3035 ND 3030 Completion Date 10/10/2007 Completion Status 1-SBNG Current Status 1-SBNG UIC N Comments: Date: ~ • Compliance Reviewed By: ~ ~ ~ ~ ~~ ~ ~ ~ ~~- a s a ~_~ n~ ,fpg~ ~ q pg~~ ~ m s p~y ~ e- ~ ~v ~ ~ q ~ ~ ~r I ~~,\ ~ p ~~ f "y~ ~~ ~ ~ ~3¢~r_ ~ ~~ h ~ ~ ~ ~ ~ ~ ~ F ~--°, ~ ~ ~ ~ ~--~ h ~ ~ y ~* ~ ~ ~ ~ ~ F ~. ~ ~ # ,~ ~ ~ ~ ~ ~' ~ ~ ~ ~ ~ ~ ~~~ ~ ~ ~ ~ ~ ~ "~ ~ ~ ~ ~ ~ ~ SEAN PARNELL, GOVERNOR ~~Y`~ wG ,~~ ~~ ~~ ~i~ ; y ~'~° ~ ~~ ~, ~ ~~. ~.~ ~,p H ~ 1 ~ & : 4~:_ ~~ ~@ ~a.~_,° ~.~~,~ 3 ~ ~ ~t tii~t~-7~tf ~IL Ai~a/ t7rva7 ~~ 333 W. 7thAVENUE, SUITE 100 CD~s~IiRQAli~is C~~IIS'S'I~~ ~ ANCHORAGE,ALASKA 99501-3539 ~ PHONE (907) 279-1433 , FAX (907) 276-7542 Mr. Wallace Hendricks Consulting Project Manager Teck Alaska Inc. 3150 Lakeshore Dr., Bldg. A, Ste. 101 Anchorage, AK 99517 Re: Red Dog, Kivalina Undefined Gas, NB-04A Sundry Number: 309-317 Dear Mr. Hendricks: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Cathy P. Foerster Commissioner ~~~ ~b`~ DATED this ~ day of September, 2009 Encl. STATE OF ALASKA (~ ALAS~IL AND GAS CONSERVATlON COMMIS~ ~ ~~~ ~~~ ~ b ~~ <J s.,_ `t 'f ~ 1 . i'y ~ \~ APPLICATION FOR SUNDRY ~1PPRaVALS ~~~ -- ~ -~-~~-~ '~ ~ 2o aac 2~2so . . 1. Type of Request: Abandon ^ Suspend ^ Operational shutdovm ^ Perforate ^ f~e-eri~ei Su5p2nc18d WeN [~ ' After casing ~ Repair well ~• Plug Per(orations ^ Sfimulate ~ Elther ~• S~r: PC70H tbg Replace Change approved program ^ Pull Tubing ~ PerForate Mew Paol ~ Time Extenssirns ^ PC Pump R1H tbg 2. Operator Name: 4. Current Well Glass: 5. PermR to Orill Number: Teck Alaska Inc. DevebpmeM ~ Exploratory Q~ 2 8~ ~ ~~-~tS~ ~'l j ~ 3. Address: Siratigraphic ~ Service ~ fi. API Number: 3150 Lakeshore Dr., Bldg A, Ste 1d1, Anchorage AK 99517 50~073-20007-QO • 7. If pertorating, dosest approach in pool(s} opened Gy this operation ta nearest 8. Well Narr~e and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ^ NB-04A ~ 9. Property Designation: /' %-~-~-- ~ 10. FieldJPool{s)_ K; ~a. «~ C' , S ~ ~, NANA Re ional Cor oration ~/~Q•~'°~ Red D No 715550 ~~~/G> ~ ~ ~~ PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth NQ (ft}: EfFective Depth MD (ft}: Effective De~h ND (ft): Plugs (m~sured): Junk (measur~}: ~35 3Q31 2983 298Q `~ '~~ _ Casing Length Size MD ND Burst Collapse Structural Conductor 95 ft 13 3J8° S1# J-55 95 ft 95 8 Surface 1033 ft 8 5/8 ' 24 # J-55 1033 ft 1 ai3 ft ~. Intermediate Production 3025 ft 5 V2 15.5# J-55 3025 ft 3021 8 4810 4040 Liner Perforation Depth MD (ft): Perforation Depth ND (ff): Tubing Size: Tubing Grade: Tubing MD (ft): 2950 ft 2946 ft 2 718 J-55 2332 ft Packers and SSSV Type: Padcers and SSSV MD (ft) and ND (ft): 12. Attachments: p~ription Summary oi Proposal ~ 13_ Well Class after proposed worlc: Qetailed Operations Program ^ BOP Sk~ch ~ Exploratory Q' DevelopmeM ^ Service ^ 14. Estimated Date for 9/6l2009 15. Well Status after proposed work: Commencing Operations: Oil ~ Gas Q ' WDSPL ^ Plugged ~ 16. Verbal Approval: Date: WINJ ~ GlNJ ~ WAG ~ Abandoned ~ Commission Representative: GSTOR ^ SPLUG ~ 17. I hereby certiy that the foregoing is true and conect to the best of my kno+nAedge. Corrtact Printed Name Wallace Hendricks Title ConsuRing Project Manager SignaYure - "" 907.426.9806 Date 9l3/2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a represerrtative may witness Sundry Number ~/~ J/7 . ~, Plug Integrity ~ BOP Test ~ MechanicaE Ir~tegrity Test ~ Location Cfe~arance ^ Other: SubsequeM Form R~uired: ~"~~~ ~ Q~`~MN~~ ~t-~~ ~~ ~~~ p~~~ l`''~~~ / ~ ~ APPROVED BY Approved by: COMMISSlONER THE COMMISSION Date: g,~/G ~ / ~ t.J t \ ~ ~ I ~ ! 1 L.. ~"»~~}~~' ~r "i•: ~.~` y; ~. LU~9 Form 10-403 Revised 7/2009 ~~ ~~ ~~ ~~ ~~~< v Submit in Duplicate ~ • i Proposed Rod and Tubing Workovers ~I Y%~~ ~~ Red Dog Mine - 6-09 1~~~-~~~ C3O`~°-~~> Applications have been received to workover two shale gas wells drilled at the Red Dog Mine. The purpose of these wells was to attempt to access possible gas reserves by removing water and allowing gas to desorb due to the reduced hydrostatic head. Thus far the project has not been very successfuL ./ Some minor amounts of gas have been produced however with large volumes of water. It is intended to workover these 2 wells and install larger pumps that should allow the fluid level to be lowered and prompt greater desorbsion. When these wells were drilled, variances to AOGCC regulations were given that allowed the wells to be drilled without BOPE. This was based on the low permability of the shale. No issues were experienced drilling the wells. The wells were completed by perforating and fracing 3 or more intervals. Fracs were pumped to completion and some amount of load fluids flowed back over a 3- 4 hour period. After the wells died, PCP equipment and rods were run and pumping commenced. As noted previously, large amounts of water have been produced with not much gas. The production reports for the well is attached. The operator (Tech Cominco) is proposing to simply pull the rods and tubing, replace the pump and re- run the tubing and rods. They propose to not employ BOPE and will not have any pump or fluid tanks - on location. I ha~e spoken to the engineer and their only ability to have water on location would be to employ the lazge ta.nker they use for watering the road. He was uncertain if operations could make the tanker available. If these were any other than shale gas wells, the proposal would be unacceptable. In a conventional well, gas is present and hydrostatic overbalance is necessary to confine the free gas to the formation. In the shale (or coal) gas case, hydrostatic overbaiance prevents the gas from desorbing or forming in the first place. According to Red Dog's engineer, the fluid level is at ~ 600' below ground and static. Based on the 2-7/8" tubing and 5-1/2" casing in the wells, it is calculated that about 11' of tubing must be pulled to have the fluid level fall 1' in the casing. Pulling 1 joint of tubing will drop the fluid level ~ 3' and not filling pulling the roughly 80 joints of tubing could drop the fluid level ~ 240' assuming no water infli.ix. Water flowing into the casing will help keep the hole full. There are no pumping fluid level records available for the well. The production information for NB-OS for July 2009 indicates that gas production averaged 3.5 ft^3 per bbl of water produced or about 1500 ft^3 per day. This gas production was accomplished by moving over 400 bbls of water. Based on the need to move significant water volumes to realize even low gas production potential, recommend that Tech Alaska, Inc.'s proposal to workover NB-OS without BOPE be accepted. ~ e'~'~ om Maunder, PE Sr. Petroleum Engineer ~~'~ 5 G.:~c~.~~5 ~~'~ ~ e,~5 ~3 ~(~~~ ' September 4, 2009 ~Q ~ ~ ~ _~~ ~ ~-~~~~ P~ ~~,o-~~ Summary by Month: Individual Well Production Well Name: NB 04A API: 50-073-20007-00-00 Permit to Drill: 2070890 Operator: TECK COMINCO ALASKA INCORP Fietd/Pool: RED DOG, KIVALINA iJNDEF GAS Sales Cd: Acct Grp: Final Status: 1-SBNG Current Status: 1-SBNG 2007 Jan Feb Mar Apr May Jun Jul Au~ Sep Oct Nov Dec Meth Shut-In Shut-In Days 0 0 Oil 0 0 Wtr 0 0 Gas 0 0 2007 Totals: Oil 0 Water 0 Gas 0 Cum Oil 0 Cum Wtr 0 Cum Gas 0 N • 2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct ov Dec Meth Shut-In Shut-In Shut-In Flowing Shut-In Flowing Submersible Submersible Flowing Submersible Submersible Submersible Days 0 0 0 30 0 15 31 31 31 31 30 31 Oil 0 0 0 0 0 0 0 0 0 0 0 0 Wtr ~ 0 0 4,321 0 2,900 8,187 8,992 10,310 10,874 1 2,536 10,804 Gas 0 0 0 0 0 0 12 9 8 10 2 24 2008 Totals: Oil 0 Water 68,924 Gas 65 Cum Oil 0 Cum Wtr 68,924 Cum Gas 65 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Meth Submersible Flowing Flowing Su bmersible Submersible Submersible Submersible Days 31 21 31 30 31 30 31 Oil 0 0 0 0 0 0 0 Wtr 11,250 10,577 11,709 11,515 11,999 12,075 10,856 ~+ / ~ Gas 30 29 33 39 43 44 28 ~~~ }1 1 ~j~'j, 2009 Totals: Oil 0 Water 79,981 Gas 246 Cum Oil 0 Cum Wtr 148,905 Cum Gas 311 ~ ~b0 ~ C~~C~ ~ ~ ~~~/~~~ l ~ ~~o~ ~~~ ''~~eoc~/ti~,~~ _ "~ `~ ~ ~~ ~~~~ Friday, September 04, 2009 Page 1 ~ . Page 1 of 3 Maunder, Thomas E (DOA) From: Hendricks Wallace RDOG [Wallace.Hendricks@teck.com] Sent: Monday, September 07, 2009 3:58 PM To: Maunder, Thomas E (DOA) Subject: RE: Sundry Approval NB-05 To m, Update on NB-04A Shut-in since 8.27.09 Water level @ 450 ft No gas flow since 8.27.09 om: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] t: Friday, September 04, 2009 4:14 PM To: ndricks Wallace RDOG Subje • RE: Sundry Approval NB-05 Wallace, I have reviewe your information and the production information for the well. I have apprised Commissioners Seamount and rster of your request. Oral approval has en given for Tech Alaska to proceed with the workover of NB-05. We will be in touch next week regarding NB-0 Call or message with a questions. I believe you have my cell number. Tom Maunder, PE AOGCC From: Hendricks Wallace RDOG [ ilto:Wallace.Hendricks@teck.com] Sent: Friday, September 04, 2009 10. 6 AM To: Maunder, Thomas E (DOA) Subject: RE: Sundry Approval NB-05 Tom, Regarding your questions: 1. The rig is a 60,000 # winch truck mounted on a St ling chassis, picture attached. 2. There will be no BOP. There is no well head pressur Original drilling was accomplished with no BOP. 3. No test pressure proposed 4. Annular pressures when under production and the annulu is open range from 2-5 psi. Once the water production from the well head is stopped the reservoir fluid el raises rapidly and the annular gas pressure drops to zero as the rise in fluid level stops the desorp ' n of formation gas. We have never seen sustained 24 hour gas production from the reservoir. We ha yet to drop the fluid levels to the desired levels in any of the wells. 5. Current fluid level @ NB-05 is 612 KB, NB-04A is 821 KB. NB-04A is con ' uing to rise and will most likely stop around 650 feet KB. 6. No fluid will be employed. Formation fluids are very high in the well bore an killing all potential desorption and gas production from the formation. The fluid levels in the two Ils are static and will not drop unless dewatering occurs. I have also attached completion files for these ells. NB-05 currently has over 1000 feet of water over the top of the first perforations, NB-04A h over 800 feet of 9/10/2009 ~ ~ Page 1 of 2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Friday, September 04, 2009 4:14 PM To: 'Hendricks Wallace RDOG' Subject: RE: Sundry Approval NB-05 Wallace, I have reviewed your information and the production information for the well. I have apprised Commissioners Seamount and Foerster of your request. Oral approval has been given for Tech Alaska to proceed with the workover of NB-05. We will be in touch next week regarding NB-04A. Call or message with any questions. I believe you have my cell number. Tom Maunder, PE AOGCC From: Hendricks Wallace RDOG [mailto:Wallace.Hendricks@teck.com] Sent: Friday, September 04, 2009 10:26 AM To: Maunder, Thomas E (DOA) Subject: RE: Sundry Approval NB-05 To m, Regarding your questions: 1. The rig is a 60,000 # winch truck mounted on a Sterling chassis, picture attached. 2. There will be no BOP. There is no well head pressure. Original drilling was accomplished with no BOP. 3. No test pressure proposed 4. Annular pressures when under production and the annulus is open range from 2-5 psi. Once the water production from the well head is stopped the reservoir fluid level raises rapidly and the annular gas pressure drops to zero as the rise in fluid level stops the desorption of formation gas. We have never seen sustained 24 hour gas production from the reservoir. We have yet to drop the fluid levels to the desired levels in any of the wells. 5. Current fluid level ~a NB-05 is 612 KB, NB-04A is 821 KB. NB-04A is continuing to rise and will most likely stop around 650 feet KB. 6. No fluid will be employed. Formation fluids are very high in the well bore and killing all potential desorption and gas production from the formation. The fluid levefs in the two wells are static and will not drop unless dewatering occurs. I have also attached completion files for these wells. NB-05 currently has over 1000 feet of water over the top of the first perforations, NB-04A has over 800 feet of water over the top perforations. 7. I would like to start work on Sunday September 6, 2009 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Friday, September 04, 2009 9:32 AM To: Hendricks Wallace RDOG Cc: Regg, James B(DOA); Schwartz, Guy L(DOA); Aubert, Winton G(DOA) Subject: RE: Sundry Approval NB-05 Wallace, The information you have provided is very sparse. 1. What rig equipment are you employing? 9/10/2009 • . Page 2 of 2 2. What BOP equipment are you employing? 3. What test pressure do you propose? 4. When the wells are not producing, what is the surface pressure? 5. Do you know the liquid fluid level when the wells are not producing? 6. What fluid will be employed to maintain well control while accomplishing the work? 7. When do you anticipate actually expect to physically begin the work on the wells? Thanks in advance. Tom Maunder, PE AOGCC From: Regg, James B (DOA) Sent: Friday, September 04, 2009 8:53 AM To: Schwariz, Guy L(DOA); Maunder, Thomas E(DOA); Aubert, Winton G(DOA) Cc: Colombie, Jody J (DOA) Subject: FW: Sundry Approval NB-05 not sure which one of you is responsible for Red Dog ops; work is to start this weekend. This came up yesterday as I was discussing gas disposition issues with him; he indicated that they just got mgt approval to replace pumps and there is opportunity to fly the crew out so work can be done this weekend. His phone number is 907-426- 9806 Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 From: Hendricks Wallace RDOG [mailto:Wallace.Hendricks@teck.com] Sent: Thursday, September 03, 2009 4:30 PM To: Regg, James B (DOA) Subject: Sundry Approval NB-05 1im, I have attached Sundry, Form 10-403, for review. No Attachments. I will send signed form in duplicate. Very basic work-over. POOH 2 7/8 tbg, replace PC Pump, RIH 2 7/8 tbg Do you think I can get verbal approval? Wallace 9/10/2009 -04A Teck Go+++~ii¢a , ,.. ,.: . , 2E DIAGRAM WELL NUMBEF NE3-049 : LEASE NAME NANA: LEASE # DISTRICT R2E1:ROg QUAD DATE $/2.3%2407:: : COUNTY API # TARGET 3,000 , : ELEVATION 885 : ZONE(S) lkal :KivaE .: UNITS API I M API .. . ;! COMPLETION Descrip }(ayak:: :: Program ISIP Pad % #sand/perf Conc Rate, bpm Water, bbls Sand # HHP Pipe Y75Q 2770~ :~; . . ~ ~ 2798-28¢6, .: ~ ~ . . . 285U - 2870, : i: i . . ~ . .. . Stage 1 ~940, ~950 :i ~,135 11'%0 511 1 -6 -17.0 '871A ; 62,350 .. .55~; ~S~ ;; _.... ... p2FFS 122 50% perf balis pSi 95.0 so0 ...:; Pp9 25 aoP ~s b6a::; 2530 -: ,2550, : Calc 5.5" CMT CSG SHOE rro~e 8 5/8", 24# @ 1024' 121/4" CMT Coldset II 4 jspf 1624 - 1644. - 1810-1820. - 1844 - 1854. - 1970 - 1980, 2014 - 2024, - 2~oa-2iza. - zzzo - zzao. zaa sno~s - 2300 - 2320, 2&4 jspf 2366 - 2386, 2a06 - 2a26, _ 2470 - 2490 280 shots - 2530 - 2550, - 2640 - 2660, z lspf _ 80 shots 2750 - 2770, jspf 2796 - 2806, 2850 - 2870, 2940 - 2950 ~ yZ shots CSG SHOE 5.5", 15.5# @ 3032~ hole J-55 CMT Coldset II ~ ~is^ Stage 2 Y$9Q=Z660~ :i ~,050 28%0 617 ;1 -5 .:: 21.5 365.8 49,388 552: G5;~::; perfs 80j 50°/ perf balls pSl 103:5 500 PP9 25 se5 &o oo¢ ;. 415Pf Y304:23,20;: . 20' 4jspf 2368 .~3$6'. 2~' ' 'I,133 Ball out p erforat~ons w1:300 ba11s in 150 bbis water ~~~ .. ~: 4jspf 2496-:2d26~ ~~ 20 ..~.~. ~: ZONE(3) 2jspf ?470-2484 :;:~ 20' " Q~:~;: pe~ 28R: ::;: 105% perf balis pSi 2 ~SPf 1624.16+34, ! ' 20' 21SPf 1816-tS20, ;::: 10' Z 15Pf 184d 5854 :: 10' 4jspf 19,o xy~ ;; io~ 1,166 Ball out p erforations wtZ50 bali& in 15Q bbis water ;.: 41SPf P470-20$4,'~'~: ~0' . 2 jspf 2TO4 :212g, .!: 20' ZONE(4) 2jspf 2230-22A0, ;: 20' (`,$:(`j,.!' , perfs 24~}: . 105°/ perf balls Si DESIGN 99 500 25.o es5 iz5,ooo 5sa csG ` ACTUAL ' - TOTa~s 726 psi a/o pad #sd/hole bpm 436 111,738' 554 CSG AYGs ~ holes 26%0 &13 23 bbfs ! MAX HHP _ _ - Cmt. Yield #1 ~ ;:; .:i 4 d3. #2 .~:~ 1 43 ; :i #3 #4 3 #5 I 1 ~3 . :.~ #6 l,48 : Size Description ID Vol Vol Yield Column Volume # Sacks Bbls BBL CMT _ = inches inches bbls/ft cu ft/ft Cu ft/sk ft cu ft sk/ft xcess-. ;; ;~~ej 2987' ~PB 3U3S: ~::::: TD > !12.5t5 U04048 0.2273p 30Qn : 68.189 72.14 ! 0.14095 0.7914 l:id3 3bf~.U 237.435 A.55346 , 166.04 42.29 54.25' >. ~ .,'.:".".".- .... '-" 7.$75 ~:03794 """»~ 0213Q3 -"' :'1:43 15<b . `---..' '~-" 3.195 -'^ """" Q.14897 "~~'~" 2.23 0.57--- 55 4 b52 n 0159$ 0.08856 2,806.Q 232.854 41.47 0.03486 0.7733 9;33 2,2p0.4 ; . 381.160 0.12116 ' 266.55 67.88; 55.56 TOTAL Cmt R3 Sks m3 bbls 785.1 548.ti ' 22.23! 135.82 ~ • a ' . .'r ~ {, r` 4 , .' v ~ h , ~ .s ~~~ 'lE i? ' ~ ~ ~~~ ~ ~ ' F a~~ ~ T ~ ~ '' ~ ~ S ~ , >,:: ~^ Y~ ~~t '~~"36 ~= ~. ~: , ~~: ~~; _ . a ` ~ ~ \ µ k r 4r „ ~~ ~` - j ... ~, f~: ~. ~ }` r.~l,'-'' ~ ~--_.. r:~ ~~,;, ~- ~l----- - - .~ ~~~ ~ - _.r.~ ~ X ~ ~ ~F.. .. #~ t ~ 1 r Y ~ ... A~ iF . ~ . ' ~ ~ ~ ~ ~ ~ ~ , ~ ~ " ~ ~ ~ . ~ ~ ~ . , t~ •) . •~~. .A . - ' ~ . ~~ ' f .R' . ~ ~ i ~r ~ ~ I` ' { • ~' t ~ " ; ~ ~ ' ; '~ •. ' ~ ~k' . s: , ~y~ .~, ~ ~. _r ~~~ . , s ~' ~....~... r.~.....~ ai =.._.._~ : , r-----.~ ~~, : : ~ . . ,...., : r- ;: r----- -. _'`; . ~""' ___ -- ; -- ,~-,...-_...~. t , ^~ ~ ,,. : j~.~~' f Y'. '; . 1'_. ~ ! J a} ~ _ yw . ~ r .`,,~ d ~ ,~° ~. ~ q 1 ~ Y h e I t~F .: / ~ '~, '~"y W~ .'S ~ ~ +A},C' 1; P" ~' ~~~ 1 ~__ : IL~l~ ~ 'a~ ,i~' { r s ~ ~ ~~ ~*-t `~~ ~ -~ ~ ~ \ ~ SC~Mrc ~°~Q~.j~~-~f3 ~ `~o CL~, i~(~` ~ `~ Waiver Requested Regulation Recommendation aad DiscUSSion 1-Uaderbalaaced 25.b33(b) and Appraval of this waiver is recommended. This dr311iag 25.033(i) well is planned to be drilled using air. A similar air- drilling program has been previously employed drilling shallow wells for coalbed methane (CBM). Teck Cominco (TC) provided a core study performed at UAF designed to determine the porosity and permeability of cores obtained in nearby mineral exploration wells. The study deterrnined that the ~best" permeability in the samples examined was about 0.2 md. With such tow permeability, it is most unlikely that natural flow would occur while drilling with air. TC has provided a description of the equipment to be employed. In the unlikely event of a flow, TC plans to have 1500 bbls of water in tanks on site to allow the well to be killed. Based on the submitted information, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well control. Underbalanced operations are a roved r ZO AAC 25.033 i. 2-Employiag a 20.035(c) and Approval of thia waiver is recommended. In air "rotating head" rather 25.035 (h) (2) drilling operations, a rotating head is employed to thaa a diverter. direct return flow from the well away from the rig floor. A rotating head is a diverter whose design allows the annulus to be continuously sealed while drilling operations are being conducted. Ba.sed on the submitted information, it is determined that use of the proposed rota.ting head will provide an equally effective means of diverting flow away from the rig floor per 20 AAC 25.035 (h) 2. 3-Not to employ a 25.035 (e~ and Approval of this araiver is recosnmeaded. A BOP BOP 25.035 (h) (1) is employed to provide additional control ability if the hydrostatic pressure of the drilling fluid v~rere insuffzcient to contain any formation pressure. The porosity and permeability studies provided by TC have shown that the rock is very "tightA. Given the low permeabilities, determined, conventional flow is essentially imposs~ble. Based on the submitted information, it is determined that equipment planned to be used by TC is appropriate for the anticipated subsurface environment and that this equipment will pmvide an equallq effective means of well ~ontrol per 20 AAC 25.035 1 . 4-Itequiriag aear 25.061(a) and Agproval of this waiver is recommeaded. The surface seismic 25.061 (c) general area is a"hard rock'° mineral province. TC surveys has conducted an e~ctensive mineral core exploration effart in the area resulting in over 100 core holes. No shallAw gas or abnormal pressure haaards were encountered during this drilling ro am. ~ ~ Based on the submitted information, it is determined that the mineral exploration drilling program conducted by TC is an equally effective means of determining the likelihood of potential shallow gas ~r 20 AAC 25.051 (c). TEM with SFD 7/12/2005 ~ ~~ ~G~~~j~~ ~v~- - v ~y ~~~~~~~~~~ ~~~1 ~ ~ ;;,n.:; ~,; i _.ti~.a~ 3~~a~~,!~~~~' „ ~ 1 ~~~ ,,~ ~~ ; ~ ,~~~;~,~ ~; ~;~:M•~ ~r~ ~~ January 9, 2008 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska, 99501 Attention: John Norman, Chairman Re: Teck Cominco Alaska Incorporated Red Dog Shallow Gas Exploration Wells Nos. NB-Ol, NB-02, NB-03, NB-04A, and NB-O5. Dear Mr. Norman: This is to advise the Commission that effective this date, all monthly production and gas disposition reporting functions have been transferred to the operator, Teck Cominco Alaska Incorporated. The project is moving into a prolonged period of dewatering and production testing, and some efficiencies will be gained by having the reports originate directly from the project office at Red Dog Mine. The Teck Cominco point of contact for all AOGCC related matters is Wally Hendricks. Please direct all future communication relating to such matters to Mr. Hendricks as noted below: Mr. Wally Hendricks Teck Cominco Alaska Incorporated Red Dog Mine 3105 Lakeshore Drive, Building A Anchorage, AK 99517 E-mail: VVa1~a~e.~Ie~dr~cks(c~te~k~omir~c~.c~an Telephone: 907 426 9806 Red Dog Office Direct 907 426 9136 Red Dog PAC 307 232 9639 Wyoming Office Direct 307 267 1342 Cell 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~~ # • Fairweather E& P Services Inc will remain in the capacity of technical advisor to the project on an as-needed basis, but is no longer involved in matters related to day-to-day operations and AOGCC compliance issues. Sincerely, Fairweather E& P Services, Inc. . ~ ,. ~ -~ , /' ~" C"~'" y. ~`c~_.~..-p-~~~°_..~.- ~iyyy R. C. Gardner Sr. Technical Advisor cc: Commissioner Cathy P. Foerster Commissioner Dan Seamount Tom Maunder, AOGCC Steve McMains, AOGCC Dave Roby, AOGCC Wally Hendricks, Teck Cominco Alaska Incorporated Jerry Booth, G.G. Booth and Associates ~ Page 1 of 1 ~ Maunder, Thomas E (DOA) From: Booth Jerry SPOK [Jerry.Booth@teckcominco.com) Sent: Wednesday, January 09, 20081:28 PM To: bob@fairweather.com; Jessika Rusself (jessika.russell@fairweather.com); }kelafant a~adv-res.com; sbumgardner@adv-res.com; Maunder, Thamas E(DOA}; CopauEas, Arttyur E(DNR}; Michaef Jungreis; Biti Van Dyke (vandykpp@rogershsa.com}; Greene Marie NANA; Paul Gfavinovich (PauLGlavinovich@nana.cam}; kdawson@alaska.com; Clough, Jarrxes G(DF~R}; Live~y Jef~ VANM; Platt, Qudtey (DOR spansorec!}; ,lCabaHero@acEv-res.com Cc: Hendricks Waltace RD~G; Thomton George RDOG; Draper Warren RaOG; Kulas Jim R~OG; Tumer Kent SPOK; t7iLuzio Bruce SPOK Subject: Red dog Gas Pro~ect Afl Noted: Please note that Wafty Hendricks wfll k~ ttte new cantact for a(I gas retated issues far the Red Dog Praject. Please direet a!I questians and communication to Mr. Hendricks as noted betaw: Mr. Watly Hendricks Teck Comir~co Alaska Incarporated Red Dag Mine 3105 ~akeshore Drive, Btdg. A Anehorage, Ak 99517 Email: Wallace.Hendricks@teckcominco.com Phane: 907-426-9806 Red Uag dffice Direct 907-4~26-9136 Red [}og PAC 307-232-9639 Wyoming C)ffee Direet 3a7-267-1342 Celt Pho~re Thanks for aff your hefp on this new and innovative project. Jerry Booth 509.979.3620 - Cefl Pirone ~-~ S -~~,~..._. ~~5~ ~~~ ~~ v ~ ~~ ~ ~~~ ~~~ ~~~ ~ ~~ 1 /9/2008 f ~ ~ E & P SERVICES, INC. November 5, 2007 ~~~~~~M~~ NOV Q 7 ~~~~ Aiaska Oil ~ Gas Cons. ~~~~~~con Anchar~ge Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Completion Report, Form 10-407 Teck Cominco Alaska Incorporated Red Dog Shallow Shale Gas Exploration Program Well No. NB-04A PTD No. 207-089, API No. 50-073-20007-00 Dear Mr. Maunder: The above referenced Completion Report and supporting documentation is enclosed. The Completion Report includes the following attachments: • Lithologic log (Description of Drill Cuttings) • Wellbore Diagram • Well History • As-built Location Plat • Completion Summary (Perforation depths, hydraulic frac descriptions) • Array Induction, Comp Density/Neutron, Caliper/Gamma Ray Log • Waveform Sonic Log • Cement Bond Log • CD with TIFF, PDF, and LAS files • Single shot inclination survey data • One (1) set washed and dried drill cuttings samples (submitted in separate box due to size) Both the Operator (Teck Cominco Alaska Incorporated), and the landowner (NANA Regional Corporation) respectfully request that the Completion 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ Report with attachments, as well as previously submitted Requests for Sundry Approvals, and Weekly Operations Summary Reports for this well be held confidential for the period al~owed under 20 AAC 25.537 (b) and (d). Thank you for your attention to this request, and for your clarification on various regulatory issues during the drilling of the Red Dog shale gas exploration wells. Sincerely, ~` . ,.~'~~-~'' ,-l~.=-> . .,. ~~.~--' ~4 ~ .4----,~.~,~_ R. C. Gardner for Teck Cominco Alaska Incorporated Enclosures cc: Jerry Booth, Teck Cominco Alaska Incorporated " STATE OF ALASKA ALAS~OIL AND GAS CONSERVATION COMM ION 1a. Well Status: Oil~ Gas~ Plugged ~ Abandoned ~ Suspended ~ zoaac2s.~os zoancza~~o GINJ^ WINJ~ WDSPL~ WAG^ Other^ No.ofCompletions: 1 1b. Well Class: ~G p(ggg Development ^ Exploratory~ Service ~ StratigraphicTest~ 2. Operator Name: Teck Cominco Alaska Incorporated 5. Date Comp., Susp., or Aband.: 10/10/2007 12. Permit to Drill Number: 207-089 ~ 3. Address: 3105 Lakeshore Dr.Bldg A,Suite 101 Anchorage, AK 99517 6. Date Spudded: 7/16/2007 " 13. API Number: 50-073-20007-00 `~ 4a. Location of Well (Governmental Section): Surface: 1088.22 ft EWL, 1500.68 ft SNL, Sec 17, T.31N., R. 18 W., KRM -~` 7. Date TD Reached: 8/16/2007 14. Weil Name and IVumber: NB-04A ~ Top of Productive Horizon: 1088.22 ft EW~,1500.68 ft SNL, Sec 17, T31N., R. 18 W., KRM 8• KB (ft above MSL): 889 ' Ground (ft MSL): 884 15. Field/Pool(s): Exploratory Total Depth: 1088.22 ft fWL, 1500.68 ft SNL, Sec 17, T31N., R. 18 W., KRM 9• Plug Back Depth(MD+TVD): 2983 MD 2979 ND 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 584,439.81 y- 5,150,962.60 Zone- 7 10. Total Depth (MD + ND): ~ 3035MD 3030 ND 16. Property Designation: NANA Regional Corporation TPI: x- 584,439.81 y- 5,150,962.60 Zone- 7 Total Depth: x- 584,439.81 y- 5,150,962.60 Zone- 7 11. SSSV Depth (MD + ND): No SSSV 17. Land Use Permit: NANA Argreement 18. Directional Survey: Yes No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (ND): Est. 640 ft ' 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): Array Induction, Comp Density Neutron, Caliper, Gamma Ray, Waveform Sonic ~ 22. CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD A~OUNT FT TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 13 3/8 61# J-55 Surface 95' Surface 95' 18" 95.5 cu.ft Arctic Set II None 8 5/8 24# J-55 Surface 1029' Surface 1029' 12 1/4" 457 SKS Cold Set II None 5 1/2 15.5# K-55 Surface 3025' Surface 3020' 7 7/8" 82 SKS Coldset III and None 387 SKS Type I 23. Open to production or injection? Yes Q No~ If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) See Attached 2 7/8 2837 No packer ~ 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. ~ ,; ~? DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED ~ r~~ See Attached ~~ Completion Summary " / I • 26• PRODUCTION TEST Date First Production: Dewatering not started at time of report Method of Operation (Flowing, gas lift, etc.): PUm PCP Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate Oil-Bbl: Gas-MCF: Water-8b1: O+I Gravity- API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^~ Sidewall Cores Acquired? Yes ^ No 0 If Yes to either question, list formations and intervals cored (MD+ND of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. ~~ ~ ~~ ~ ~:: ~ ~~ 2oo"r ~ ~~~:,~;- ~ ~ ~_ar~ ~.LC o 0 v~=~~~i7 -.~ N~V 0 7 2pp7 WELL COMPLETION OR RECOMPLETION REPOi~~~~.C~'v ~Car~m~ssio~ Form 10-407 Revised 2/2007 /a~, CONTINUED ON REVERSE .~~` ~~`''~'~o~ g~ /CJl `"~~ /.~Z /(/~~(7T ~L7 ~ ~ 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD ND Well tested? Yes ~ No If yes list intervals and formations tested , , briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top 4 f t 4 f t / needed, and submit detailed test information per 20 AAC 25.071. Permafrost-Base 40ft (est ) 640ft ( st. ) Mississippian Kuna m Kivalina member Surface Surface Entire penetrated interval is in Kivalina member /1 0 . ~~~ ~~i ~ ~i '1 // ql Formation at total depth: Kivalina znember 30. List of Attachments: Wireline Logs, CD wlTIFF, PDF, and LAS, Lithologic Log, Completion Summary, Well History, Wellbore Diagram, As-built survey plot. 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: R.C. Gardner Title: Sr. Technical Advisor for Teck Cominco Alaska, Inc. ~~ ~ Signatur . _ .C Phone: 907-258-3446 Date: 11/5/2007 ;~,, ~ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Altemating-Gas Injection, Salt Water Disposal, Water Supply for /njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 ~ ~ ~ ~ d _ ~ 0 a ~ ~ ~rn.J ~ ~ ~ ~ ~ N m C ~ 7 V .` ~ ~ !6 ~ ~ O c a` c ~ Y d L ~ O O C k N = W do` E ~ ~ ~ m ~ h ~ ~ w `o w m ~ +~ 3 ~ d ° o Z mU N ro p~ ~ r c J z°o a z w c ~ j ~ Y E ? ° U o ] a ~ N C r N $ asueq U ~ ~enb e a3!~I~ ~ ~ M N ~ N o 0 o .~ snoaagis N '~ d ~i3u~(d X x c ~ snoa~e~~e~ X x x x x x x x x x x x x x x x x x d m t ay, u a3e6uo~a C 1° a ~(a~e~d x x X x x x x x x x x x ,(~oo~q x x x x x x ~ay~o e ` ~oel4 ~°c~ c°~ c°~ ~r°, o o V ~(p,~6 e ~ P ° m ° ~ °o °o °o 0 v~ 0 o~ °o 0 ao 0 u> °o °o 0 in 0 ~n 0 ~n 0 v 0 v /~a~6 •paw ~°y ,°~ ~r°, o ~°n u°~ <°o <°o ~(ei6 ~y6g 0 ~ W W W W W W J W W w W W J W J W J W J W J W J W J w J J J Q J Q J Q J Q J Q Q J Q J Q J Q J Q Q Q Q Q Q Q Q Q _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~a d u ; o 0 0 0 0 0 ~ o 0 0 0 0 0 0 0 0 0 0 0 C m 3 0 ~ ~ N ~ 0 O ~ 0 N t0 0 a W 0 tD O N 0 OD N N 0 O d' N 0 N c0 N 0 a W (V 0 t0 O M 0 W N M 0 O O % 0 N (O M 0 T OD M 0 f0 O 'Q 0 N (V ~ 0 O a a 0 N E n ~ N N N N N M P1 M M P') Y V t 0 H ~ ~I a a Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drflling Contractor: Major Drilling America, Inc. C~NFID ~.~ EI~~'~ ~~ Well No.: NB-04A Page 2 of Red Dog Mine, Alaska Sam le Interval Litholo Cob r % Partic le Sha e Miner alizati on % White Cons tltuen ts Comments (feet below surface) T ~ p~ °i ` ~ N E m ~ v Y N a ~ o Y ~ O S T N a ~ O a~ y _ ~ (p U ~ c~ .T °~ ~ V ~" u~ ~V `c4 ~ ~ 'o~ ~ ._ ~ 440-460 90 % SHALE 100 X X X 1 10k LS. TAN Limestone, ve fine rained 460-460 90°~ SHALE 100 X X 0 10% LS. TAN Limestone,ve fine rained 480-500 SHALE 70 30 X X 1 500-520 SHALE 80 20 X X 1 520-540 SHALE 80 20 X X 1 Trace limestone, tan,ve fine rained 540-560 SHALE SO 20 X X 1 560-580 SHALE 50 50 X X 1 580~00 90°~ SHALE 60 40 X X 2 10% LS. 100 Limestone,coarse rained 600-620 SHALE 60 40 X X 1 Trace limestone as above, ma be cavin s 620~40 SHALE 50 50 X X 1 Re laced hammer with tri-cone, cuttin s ve fine, for next 5 or 6 sam les 640-660 SHALE 80 20 X X 2 660-680 SHALE 50 50 X X 2 660-710 SHALE 70 30 X X 2 710-730 SHALE 50 50 X X 1 730-750 SHALE 50 50 X X 2 Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drilling Contractor: MaJor Drilling America, Inc. Well No.: NB-04A CQNF1 ~ ~~,~ ~ DE~~~~ ~~ Page 3 of Red Dog Mine, Alaska Sam le Interval Lithology Colo r °/ Part icle Sh a e Min eraliza tion % White Cons tituen ts Comments (feet below surface) >. ~ rn t °' ` a N E >. ~ ~ v Up S ~ ~ ~o >. ~ O S m a Y m O d N O ~ (p U ~ c.i - .>. ° a1 o ~ ~" y U 8 ~ 'v ~ a ~ 750-770 SHALE 50 50 X X 3 770-790 SHALE 50 50 X X X 3 790-810 SHALE 70 30 X X 3 810-830 SHALE 100 X X 1 830-870 SHALE 50 50 X X X 2 870-890 90% SHALE 50 50 X X 2 10% LS. Limestone, ra to tan, ve fine rained 890-910 90 % SHALE 50 50 X X X 4 10% LS. Limestone, ra totan,ve fine rained 910-930 SHALE 100 X X 2 930-950 SHALE 50 50 X X X 1 950-970 MISSING INTERVAL 970-990 SHALE SO 20 X X X 1 990-1010 SHALE 50 50 X X 1 1010-1030 SHALE 50 50 X X X 2 1030-1033 MISSING INTERVAL 1033-1053 SHALE 100 X X X 1 One fra ment oran e chert Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drllling Contractor: Major Drilling America, Inc. Well No.: NB-04A CONFI ~~~ 9 ~~~~~~ ~ ~~ Page 4 of Red Dog Mine, Alaska Sam le Interval Litholo Colo r% PaA icle Sh a e Min ereliza tion °/ White Cons tltuen ts Comments (feet below suAace) ~ ~ . ~ ~ ~-° r °~ ` rn a~Oi E T ~ '~ v Y m a i o ~ o S m a « ~ o m~ N O ~ ~ 8 ~ .~ n ul o -~~' 'w ~ y ~ c~ ~ v ~ ~. `~ ~ . 1053-1073 90% SHALE 100 X X X 1 10% LS. 100 Limestone, salt and e er a earance. 1073-1093 SHALE 50 50 X X X 1 1093-1113 SHALE 100 X X X 1 Trace of salt and e er limestone 1113-1133 SHALE 100 X X 1 Trace of salt and e er limestone 1133-1153 SHALE 100 X X X 1 1153-1173 SHALE 50 50 X X X 4 1173-1193 SHALE 50 50 X X 1 1193-1213 SHALE 70 30 X X 1 1213-1233 60% SHALE 100 X X X 1 40% LS. 100 Limestone; coarse rained, salt & e er a earance 1233-1253 70% SHALE 50 50 X X 0 Limestone, coarse rained, salt & e er a earance 30% LS. 100 1253-1273 90 % SHALE 50 50 X X X 3 Limestone, as above 10% LS. 100 1273-1293 SHALE 100 X X 2 1293-1313 80% SHALE 50 50 X X 2 1313-1333 20% LS. 100 Limestone, as above Log sheet for Gas Exploration Program drill cuttings North Basln Wells • Summer 2007 Drilling Contractor; Major Drilling America, Inc. Well No.: NB-04A p~~;~ ~ ~ON~'{ R~R fl y "x u~ Page 5 of Red Dog Mine, Alaska Sam le Interval Litholo Colo r% Part icle Sh a e Min eraliza tion % White Cons tltuen ts Comments (feet below surface) ~ . >, m ~ - ` ~ d ~ ~ T p~ ~ 'O Y N .C £ O ~U O a ~ T N a ~ Y ~ O d O ~ ;Q " V •T ~' N ~ U .y ~N, V~p U N ~ Q ~ ~ ~ ~ . . ~ . 1333-1353 70% SHALE 100 X X 3 30 % LS. 100 Limestone, coarse rained, salt & e er a earance 1353-1373 60% SHALE 50 50 X X 3 40% LS. 100 Limestone as above. One iece oran e chert 1373-1393 SHALE 40 60 X X 1 1393-1413 SHALE 1Q0 X X 1 Trace limestone as above, ma be cavin s 1413-1433 90% SHALE 80 20 X X 4 10% LS. 100 Limestone as above 1433-1453 SHALE 100 X X 1 1453-1473 SHALE 70 30 X X X t 1473-1493 SHALE 100 X X 1 1493-1513 70% SHALE 50 50 X X 3 30~o LS Limestone, tan to dark ra ; coarse rained 1513-1533 SHALE 50 50 X X 4 1533-1553 SHALE 30 70 X X 3 SHALE 50 50 X X X 7 1573-1593 SHALE 100 X X 0 1593-1613 SHALE 100 X X 0 Log sheet for Gas Exploration Program drill cuttings North Basin Wells • Summer 2007 Drilling Contractor: Major Drilling America, Inc. Well No.: NB-04A CON~I ~~~~ : ~ DEr~ . F ~ d~"'!~ Page 6 of Red Dog Mine, A[aska Sam le Interval Lithob Colo r % Part icle Sh a e Min eraliza tlon % White Cons tltuen ts Comments (feet below surface) ~ ~ T ~ L °i ` ~ ~ ~E >` ~ ~ Y ~p o U fp S d ~ >. U O a ~, .N. W n Y m C O d N O ~$Q " ~ u ~ T ° ~/! o V ~N Y ~U 8 ~ ~ Q = ~p a ~ . - 1613-1633 SHALE 100 X X 0 1633-1653 80% SHALE 20 80 X X X 1 Slickensides common 20 % LS. 100 Limestone, Coarse rained, salt 8 e er a earance 1653-1673 SHALE 20 80 x x x 3 Slickensides common 1673-1693 SHALE 20 80 x x x 2 Slickensides common 1693-1713 SHALE 100 X X X 25 1713-1733 SHALE 100 X X 0 1733-1753 SHALE 50 50 X X X 1 1753-1773 SHALE 50 50 X X 0 Di sam le, first one after bit tri , lot of cavin s 1773-1793 SHALE 50 50 X X X 1 1793-1813 SHALE 50 50 X X X 1 1813-1633 SHALE 100 X X X 3 1833-1853 SHALE 100 X X X 1 An 8' drillin break was re orted startin 1843', however, nothin unusual was observed in this sam le. 1853-1873 SHALE 100 X X 1 Gas in sam le ba , first time observed in this well 1873-1893 SHALE 100 X X X 12 1893-1913 SHALE 100 X X 3 1913-1933 SHALE 100 X X X 1 Log sheet for Gas Exploration Program drill cuttings North Basin Wells - Summer 2007 Drilling Contractor: Major Drilling America, Inc. Well No.: NB-04A Page 7 of ~ONF~ ~~ p~~ ~ D~,~~~~ ~L Red Dog Mine, Alaska Sam le Interval Litholo Colo r% Part icle Sh a e Min eraliza tion % White Cons tituen ts Comments (feet below surface) ~ ~ >. ~ °i ` o+ E >• ~rn v Y a £ b ~ a~ >, ~ a Y ~ ~a~i ~ ~ O ~$Q `+ c~ ~ 'C a v1 ~ U '~ a; 'V c~ ~ c y `t4 . ~ . 1933-1953 SHALE 50 50 X X X 1 1953-1973 90% SHALE 50 50 X X 2 Slickensides common 10% LS. 100 Limestone, coarse rained, salt & e er a earance 1973-1993 SHALE 50 50 x x 1 1993-2013 SHALE 50 50 x x x 10 20f3-2033 SHALE 30 70 x x 6 2033-2053 SHALE 100 x x x 8 2053-2073 SHALE 100 x x 5 2073-2093 SHALE 50 50 x x x 10 2093-2113 SHALE 100 x x x 8 2113-2133 SHALE 50 50 x x x 1 2733-2153 SHALE 100 x x 2 2153-2173 SHALE 50 50 x x x 3 2173-2193 SHALE 40 60 x x x 20 2193-2213 80 % SHALE 40 60 x x x 10 One metal sliver, looks like cs . 20% LS. Limestone, tan to dark ra , salt and e er a earance 2213-2233 SHALE 100 X X 4 One metal sliver, looks like cs . 2233-2253 SHALE 100 X X 2 Trace limestone, tan, fine rained ` Log sheet for Gas Exploration Program drill cuttings North Basin Wells • Summer 2007 Drilling Contractor: Major Drilling America, inc, Well No.: NB-04A Page S of ~~~~r',~&J.~' ~. ~~~~~~L Red Dog Mine, A[aska Sam le Interval Lithob Colo r % Part icle Sh a e Mtn eraNza tion % White Cons tituen ts Comments (feetbelowsurface) ~ . ~ . ~ T ~ L °i ` ~ N E >` m ~ v Y N n ~ o ~ O S ~, f6 n - Y ~ O d N O ~ ~ g .T °~ ~/1 ~ U ~ ~'~ a; V c~ ~ ~ 'o~ ~ a ~ ~ ~ ~ . 2253-2273 100% SHALE 50 50 X X X 3 2273-2293 80% SHALE 100 X X 10 20 % LS 100 Limestone, coarse rained, salt & e er a earance SIDETRACK WELL 2323-2345 95% SHALE 10 30 60 X X 5 E ui ment aint flakes 5°h SANDSTONE Ve fine rain, Calcateous, Dark Gra 2345-2365 95% SHALE 50 50 X X 2 E ui ment Paint Flakes 5% SANDSTONE Ve Fine Grain, Calcareous, Dark Gra 2365-2385 100% SHALE 30 70 X X 2 E ui ment aintflakes 2385 2405 95% SHALE 30 70 X X 5 E ui ment aintflakes 5% SANDSTONE Ve Fine Grain, Calcareous, Dark Gra 2405-2425 95Yo SHALE 20 SO X X 2 5% SANDSTONE Ve Fine Grain, Calcareous, Dark Gra 2425-2450 95% SHALE 20 80 X X 2 5% SANDSTONE Ve Fine Grain, Calcareous, Dark Gra 2450-2470 100 % SHALE 50 50 X X 2 Gas show in ba 2470-2490 100% SHALE 40 60 X X 5 Gas show in ba , Mica flakes 2490-2510 100% SHALE 40 60 X X 2 Gas show in ba ~ ~ ~ ~ d r ~ 0 a d a r '~-..,.,....~... )::t/ 0r.' ..:_.._.~ Nm:_~ ~ ~~ ~ ~ ~ ~ N ~ C 7'+ 3 V .` ~ ~ R L ~ Q a ~ R O G k W ~ J c V d~ o c 4 N m mo z E ° ^m N ~ y O ~ ~ C O mU m O m L c 2 ~ ~ - z°c 3 ~ ~ m <° a a ~ 0 ~; ' w C E a c ~ a c 3 ~ r ~ c 3 a c 3 ~ c 3 c 3 m t p d ~ E M L N J L Ul L Ul L N L N J . U 0 (~ tll Vl ~ ~ Ul Ul N N ~ > C U~ U~ ~ U U U U~ ~ N m w ~ C 7 N o alueq U d t ~enb 3 ° 'd3~'J~Q'J ~ N N N N N N N N ~ o ~R snoa~i~is N 'a m ~gu~(d c ~ snoaieo~e~ x x x x x x x x x x x x x x m R r m u aae6uo~a C a ~(a;e~d x x x x x x x x x x x x x ~(~~O~q X X X X ~ay~o ~ 0 ~I~eIQ 0 ~ 0 m 0 m 0 m 0 n 0 ~n 0 ~n 0 a 0 u~ 0 r 0 ~o 0 <o 0 r~ 0 m p o 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ ~(e~B ~eP M N N N P9 ~ ~ 1A N o') V V M N ~(a~6 ~paw ~(ei8 3y6i~ o ~ ~ 0 U V Z ~t" J J J -z Q w J w J w J w J w J w J w J w J z ~Q w Q w J w J o N ~ a a 2 a S ~ J a 2 a 2 a 2 a 2 a 2 a S a = a 2 v J 2 a S Q = ~ ~ u1 tn p tn N m tn m rn cn u~ O N ~n c~ Z > > N a° 0 0 o 0 0 0 ~ ~ a 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 a° 0 0 o ~ ~ o = o. o~ ~ o o o o ~ 0 ~ o A y ~i ~ O M O 1n O f~ O A O O th O ~ O f~ O ~ W O O M O N O f~ o W C d 3 o n ~n f`1 O ~n ~ri N O M ~n ~n N O ~ u~ v> N O 1~ ~n ~<o N O ~ ~n ac N O <o co N O M <o ~o N O ~tI <o ~ ao N O 1~ <o ~. 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W N ~ w N 1 ~ C C1 7 w O all~eQ V m ;~ ~enb 3 ° B3i'J~L~'J ~7 N N ~ N N N N N N N N N . o snoaai~is ~ 'a m ~guld X c ~ snoa~ea~p x x x x x x x x x x x x m m L m u ale8uo~a C a ~(ale~d x x x x x x x x x x x x ~(~~o~q ~aylo e ` ~I~eIQ o m 0 ao 0 ao 0 m 0 c~ 0 ~n 0 <c 0 u> 0 u> 0 v 0 in 0 r~ o p o 0 0 0 0 0 0 0 0 0 0 0 v le~6 ~ieP N N N N I~ ~ ~ ~ N tD ln 1~ ~(a~6 ~paw ,(e~6 ~y6g O ~ w W o w W o w w w w w w w w w w ~ J a = ~ ~n o J a x ~ u~ ° J a x J a x J a x J a = J a x J a x J a x J a x J a x J a x fn Z !n Z !A tn ~1 fn (n !n fn (n fA N N N 0 ~ 0 ~ 0 ~ 0 ~n 0 °o 0 °o 0 o 3° °o o° o o °o 0 °o 0 °o 0° °o o - °o N ~ C d ~ r , ~O a ~ aD N o ~ M N N 0 o ~N a0 N 0 ~ ~ N N o ~ ~ GO N d ~ ~ rn N o m M 01 N 0 N ~ N 0 rn ~ m N 0 rn O~i O) N 0 rn ~ ~O f7 ~ M O t7 o 0 ~ ~ ~ N ~ N N N w N N m N ~ N N N rn N o M fn ` 0 d N a ~ m 2 • ~ Red Dog Shallow Gas Exploration Project Well No. NB-04A Welibore Diagram PTD: 207-089 API No.: 50-073-20007-00 No Scale Le end ~ Cement ~,~,~,~ '~'~'~' Drilling Mud ~~~~ 12-1/4" hole 7-7/8" hole Wellhead, Motor and Drive Head not shown -- ~ ~- Sta tot~ ~ Sta per Sta per Sta per PC 5-1 @ Cement Plug 2983'-3025' PBTD 2983' MD 13-3/8", 61#, J-55 - Conductor @ 95' MD Base of Permafrost @ 640' MD 8-5/8" 24# J-55 Surface Casing @ 1029' MD ~e IV 1624'-2240' 223 perfs I in 7 zones ~e III 2300'-2490' MD, 280 s total in 4 zones ~e II 2530'-2660' MD, 80 s total in 2 zones ~e I 2750'-2950' MD, 122 s total in 4 zones ' Ca~. 2830' MD 2", 15.5#, K-55 Prod. Casing ~025' MD TD 3035' MD / Attachment to Completion Report dated November 5, 2007 i ! Red Dog Shallow Gas Exploration Project Well No. NB-04A ~ PTD No: 207-089 API No: 50-073-20007-00 ~~ ~ ~~ Well History ,,.~~ (Attachment to Completion Report Dated November 5, 2007) Svnopsis Well No. NB-04A was drilled as a replacement well for Well No. NB-04 which was prematurely plugged and abandoned during the 2006 drilling season due to a stuck drill string which had resulted from hole instability combined with high water influx rates. Due to drilling pad size limitations, NB-04A was located only approximately 15 feet from NB-04, and the possibility of drilling into the junked NB-04 hole was recognized as a potential hazard. Junk in the old hole was encountered briefly between 2090-2100 ft in the new hole, and drilling was suspended at 2323 ft for several days while options for dealing with the problem were evaluated. During this period, the rig was moved to the NB-OS location, and that hole was then drilled in order to get maximum utility out of the short Red Dog summer drilling season. The rig was moved back to NB-04A as soon as the NB-OS well was completed, and drilling was resumed, as it was ultimately deemed unnecessary to attempt to directionally drill away from the fish in NB-04 as only a short distance remained before the NB-04A hole would be past the NB-04 fish, and other than limited abnormal bit wear, the NB-04 fish had caused no severe problems. The NB-04A hole was then advanced to TD without incident. NB-04A Detailed Well Historv Date Description July 13, 2007 MIRU July 14, 2007 Picked up hammer and 18" bit. Drilled conductor hole to 100 ft with air. Blow hole clean and TOH. P/U 13 3/g" conductor with stab-in float shoe. Run conductor to 95 ft. Cement conductor to surface with 95.5 cu. ft. Arctic Set II. WOC ~ • July 15, 2007 Complete rig up. Install diverter and blooey line to cyclone. Function test diverter. Hold pre-spud safety meeting. July 16, 2007 P/iJ 12 1/4" bit and BHA. RIH to float shoe and test diverter. Spud well at 1800 hrs and drill to 490 ft with air. Ran single shot survey f-- -1 degree. July 17, 2007 Drilled 490 - 675 ft with air. Encountered 20 bpm water influx at 600 - 638 ft, with tight hole and running black shale. TOH to clean plugged bit. July 18, 2007 Drilled 675-1033 ft with air. Hole tight on connections. Water influx increasing. Elected to switch to mud and run surface casing. Made cleanout RT with mud. Circulated 20 ft of fill on bottom. Hole conditions much improved with mud. July 19, 2007 Ran 25 jts of 8 5/g" casing with no problems. Cemented casing with 294 sks Cold Set III, followed by 162.5 sks Cold Set II. Displaced cement with 58 bbls water. Bumped plug with 800 psi, floats held OK. Cement to surface. Rigged down cementers, WOC, and made up 7~/8" BHA and RIH to shoe. Condition mud. July 20, 2007 Drilled out float equipment and new hole to 1053 ft. Pulled into casing to condition mud for cement contamination. Drilled ahead to 1470 ft with single shot surveys every 100 ft. July 21, 2007 Drilled 1470-1640 ft. Formation very hard, with penetration rate as low as 5 fph in some intervals, but hole in good shape. July 22, 2007 Made RT for new bit. No tight spots on trip, and hole in gauge. Drilled ahead to 1723 ft. July 23, 2007 Drilled 1'723-1993 ft. ~ ~ Q July 24, 2007 Drilled 1993-2183 ft. ROP slowed. ~~ ~ ~ ~ • C4NFIDENTIAL July 25, 2007 Ran single shot survey and POH for new bit. Found bearings on 2 cones gone on bit No. 5, but bit in gauge. PU string stabilizer and RIH. No fill. Drilled 2183-2193 ft. July 26, 2007 Drilled 2193-2323 ft. Bit acted as if balling. Ran high vis sweep and found metal shards in cuttings. POH with bit No. 6 July 27, 2007 LD BHA. Wear on bit and stabilizers suggested metal-to-metal contact, which suggested that bit may be running along side of junk in NB-04. Rigged up Weatherford for wireline logs. Ran IDNS and wave form sonic. Logs went to bottom no problem. Logs showed contact with old hole at 2090-2100ft, and junk on bottom at 2323 ft. Operator elected to move rig to NB-OS location while evaluating options for drilling ahead at NB-04A. Prep for rig move to NB-O5. July 28-August 11, 2007 Rig drilling at NB-OS while working on options for NB-04A, in order to get maximum utility out of the short Red Dog summer drilling season. August 12, 2007 Moved rig back to NB-04A. Operator determined that it was unnecessary to attempt to directionally drill away from NB-04, as only a short distance remained before the NB-04A hole would be past the NB-04 fish, and the only contact point was 200 ft up hole. The NB-04A hole would be cautiously advanced without directional control. August 13, 2007 RIH with conventional BHA, fanned bottom to lift junk, Drilled 2323-2463 ft with no problems. August 14, 2007 Drilled 2463-2705 ft, with single shot survey at 2665 ft. Rig down 2 hrs to repair leak in discharge line. Hole in good shape. August 15, 2007 Rig was down 9 hrs for pump repairs. Drilled 2705-2910 ft. Single shot survey at 2910 ft. No drilling problem. August 16, 2007 Drilled 2910-3035 ft. Geologist elected to TD the hole at this ` depth CBU, pump sweep and POH for logs. . • C4N~IDENTIAI August 17, 2007 RU Weatherford and ran IDNS and wave form sonic 2323-3035 ft. Make tie-in with previous logs. Rig down loggers and prep to run production casing. Ran 82 jts, 5 1/2", 15.5 lb, K-55 casing without incident. FS @ 3032 ft, FC @ 2983 ft. Cemented casing w/ 30 bbl spacer ahead, followed by 82 sks Cold Set III, followed by 387 sks Type 1 cement. Bumped plug with 1300 psi, floats would not hold. Held pressure on plug for 8 hrs. Cement returns to surface. August 18, 2007 Started rig move to NB-03. NB-04A secured and awaiting perforating and hydraulic fracturing program. August 19-23, 2007 Developed 4 stage perforating and hydraulic fracturing program based on open hole logs. Well secure. August 24, 2007 Ran CBL. Good bond throughout. Rigged up to perforate and frac. Perforated and fracced Stage I, as described on attached Completion Summary. August 25-26, 2007 Perforated and fracced Stages II, III, and IV as per attached Completion Summary. All stages separated by composite bridges plugs (CBL). Heavy frac limited to bottom two stages due to proximity of junked NB-04 well bore. August 27-Sept. 16, 2007 Well shut-in. Installing surface facilities for dewatering and production testing during this period. September 17-21, 2007 Drilled out CBL's using power swivel on production hoist. Swivel was down for repairs 2.5 days during this period. September 22-Oct. 2, 2007 Well shut-in. Continuing with installation of surface facilities during this period. October 3, 2007 Ran 2 7/8" tubing with PCP stator at 2830 ft. , . , • ~ October 4-9, 2007 Well shut-in. Completed installation of surface facilities during this period. October 10, 2007 Ran PCP rotor and rods. Well completed as of this date and ready ~ to initiate dewatering pumping, pending resolution of electrical problem in main power line supplying GasEx project site. ~ R ~ C~ Teck Cominco Alaska Incorporated Well No. NB-04A (PTD No. 207-089) Completion Summary Stage I: 2750 ft - 2950 ft Zone 1: 2750 ft- 2770 ft (20ft net, w/2 ea 0.4" j sp fl Zone 2: 2796 ft- 2806 ft(10 ft net, w/2 ea 0.4" jsp fl Zone 3: 2850 ft- 2870 ft (20 ft net, w/2 ea 0.4" j sp fl Zone 4: 2940 ft- 2950 ft(10 ft net, w/2 ea 0.4" jsp fl Total formation open to production = 60 ft. Total shots = 122 Pump ball off to breakdown perfs. Pump 179 bbls water, perfs broke @ 2560 psig dropped 162 balls, shut down pressure 1592 psi. Frac w/ 218 bbls, 25# guar gel. During 3 ppa stage sprung casing leak between 5 1/2" x 8 5/8" annulus. Shutdown w/ 143 bbls gel & 6,000 # sand away. Left approximately 6,000 # sand in casing. Flow back, 1 hr. Rig up to frac again. Casing leak determined to be incorrectly torqued surface join in 5%2" casing string. Re-torqued surface joint. Tested ok. Pick up 5%2" Baker AD-1 tension packer & 621' of 2 7/8" tubing, set packer and frac. Frac #2 Pump 453 bbls, 25 ppa gel, displace 57,500# 20/40 Ottawa sand. ISIP 1,000 psi. Pavg. = 2329 psig. Dropped 10 perf balls, good ball action. Average rate 17.1 bpm. Flow back well: 2%z hrs. Stage II: 2530 ft - 2660 ft Zone 1: 2530 ft- 2550 ft (20 ft net w/2 ea 0.4" j sp fl Zone 2: 2640 ft- 2660 ft (20 ft net w/2 ea 0.4" jsp~ Total formation open to production = 40 ft. Total shots = 80 TIH, set AD-1 packer w/ 2 7/8" tubing at 651'. Frac w/ 240 bbls, 25# guar gel. Break formation down at 1685 psig. Drop 10 perf balls pump 1-5 ppa sand stages at 18 bpm. Ball action caused pressure to increase. Leak off in well was severe. Cut sand and flushed 610 gals water, screened out and SD @ 3094'. Pumped 17,6Q0# sand, left 13,700# in casing, 3860# in perfs. ~~ , „ ~ ~ Flow well back for 1 hour. Pump frac #2 w/ 342 bbls, 25 ppa guar gel , displace 18,000# 20/40 Ottawa frac sand. ISIP -150 psi, Pavg = 2045 psi, Rate 21 bpm, max density 4 ppa sand. SD flow back 1 hr, well died. RIH w/ CBP, tagged sand at 2374', POOH, rig down wireline. Pick up 2 7/8" tubing open ended. TIH and reverse circulate out to 2550'. Stage III: 2300 ft - 2490 ft Zone 1: 2300 ft - 2320 ft (20 ft net w/4 ea 0.4" jsp fl Zone 2: 2366 ft - 2386 ft (20 ft net w/4 ea 0.4" jsp fl Zone 3: 2406 ft- 2426 ft (20 ft net w/4 ea 0.4" jsp fl Zone 4: 2470 ft- 2490 ft (20 ft net w/2 ea 0.4" j sp fl Total formation open to production = 80 ft. Total shots = 280 TIH, set AD-1 pkr w/ 2 7/8" tbg at 600'. Break down perfs at 5 bpm & 1330 psi. Pump 287 bbls slick water and drop 250 perf balls. Little ball action, pressure dropped from 1260-1068 psi throughout job. ISIP = 1050 psig. Stage IV: 1624 ft - 2240 ft Zone 1: 1624 ft-1644 ft (20 ft net, w/2 ea 0.4" jsp~ Zone 2: 1810 ft-1820 ft (10 ft net, w/2 ea 0.4" j sp~ Zone 3: 1844 ft- 1854 ft (10 ft net, w/2 ea 0.4" jsp~ Zone 4: 1970 ft-1980 ft (10 ft net, w/ 2 ea 0.4" jsp fl Zone 5: 2014 ft- 2024 ft (10 ft net, w/ 2 ea 0.4" j sp fl Zone 6: 2104 ft- 2124 ft (20 ft net, w/ 2 ea 0.4" j sp~ Zone 7: 2220 ft- 2240 ft (20 ft net, w/ 2 ea 0.4" jsp~ Total formation open to production = 100 ft. Total shots = 223 TIH, set AD-1 pkr w/ 2 7/8" tbg at 372'. Break down perfs at 5 bpm & 1480 psi. Pump 236 bbls slick water and drop 300 perf balls. Pressure increased 950-1175 psi on ball action. ISIP = 850 psig. ~ . Red Dog Shallow Gas Exploration Project Well no. NB-04A PTD No: 207-0789 API No: 50-073-20007-00 Single Shot Inclination Survey Record Depth 250' 490' 530' 730' 930' 1000' 1253' 1350' 1450' 1713' 2183' 2665' 2910' Inclination An~le 1.0° 1.5° 3.0° 3.0° 3.5° 3.5° 4.0° 4.0° 4.5° 4.0° 4.5° 5.0° 5.5° i i ,~, _ _ i I ~ : : .~-----. f U3~oN ~~~ ~, ~' ~ I pu~ ~ ~ ~ I ~ ~ ~ ` ~ ~ ;~ ~p, - - M l ~ ~~ ~ ~~# ;L ~ j ~ ~ z I ~ ~i ~. ~I ~ ;s~ ~ . ~ c~ m w, , ~ ~ i r ~ ~ ~~ ~ , ' f _ ~ n ~ a ~ ~ `~ I ~ ~~ ~ N ~ f r;i~~ ~ ~~~~ I ] ~ N~~m 0 ~~ ~ -' ~ ~; .~~ ~ ~ ~ ~W ~ ~ 0~ ~ . .. . _.,~ . I .. ° N . P NO] 3z m111 . 0- 'y?Np C N ° m~ ~ . O ~ ~ oo~ ~~g°W ~ I ui o ~ m .~ I I " ~ l ~ C.J = I ~ ' ~ ~ u ~~~~CJ ~ ~ ' ~ . . . ~ . . ~ ~ ~ T ~ ~ . . I . . . .. .., ~ ~ I . , ~ . ~ ~ . . . .. . . . ~ ~ .. . . . ~ ..., ~ : I ~ ~ V ~ ~. I . . ~. I. . . . ~ . , ~ ~ Q ~ . .. . . . ~ ~ . . .. . . . . . .. : .. ~ . . ~,. ~ . . . I ,~~ _ - _ _ 6I1~}'OBC` - - - . . ~~._ . . . . _ _ . ~ ~ I .. .. .~ I . ' _ _ ~ _ _ _ . _ ~ . , . , ~ . . . , ~ . . . . .. ..: U ^ ` W ~ e I 'o a ~ a I o ~ c ! ~ oZ ~ c ~' ~ ~ o ~ ~ ~ - i ~~ E o °wQ ~ ,f ~ ~ ~ ~ ~. ~ ~ ~~ • ~ . . ~ .. . : I ` LL V ~ f' Z , ~ ~ ~ ~ mm ~ ~ I f ro ~ ~~, . ~ ` m ~ ~ Q ~ , ~ ~ ~ ~ .` I ; '~ ~ ~,~ ~. ~ ~~ ~ N ~ ~ ~ I ~ o~ I ~ ~ ; .., o ~N t 4 i . P _ ~~ ~. ~ ~ ~ . ~ ~ ~ N N ~ ~ o ? ~: ~ m O u. .y ~ a ~ U 0 0 0 N N o LL O C ~ N ~ O O tC) O~ . i a~~ i vl y~ '~ ~,"~ I~~ Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 29, 2007 8:56 AM To: 'Bob Gardner' Cc: Booth Jerry SPOK Subject: RE: Teck Cominco Alaska Ineorporated, Red Dog Shale Gas Expforation Project, Wells Nos. NB- aOS-O~s 01, NB-02, NB-03, NB-04A, and NB-05 --~ a0~-,~r,~ L ao6-ogt~ Bob and Jerry, a4S-C75(o c~Ot"t-0~5~ I confirm our call. Haiting the weekly reports is appropriate. As proposed, please keep the Commission advised regarding the resumption of pumping operations. Call or message with any questions. Tom Maunder, PE AOGCC From: Bob Gardner [mailto:bob@fairweather.com] Sent: Monday, October 29, 2007 8:22 AM To: Maunder, Thomas E (DOA) Cc: Booth Jerry SPOK Subject: Teck Cominco Alaska Incorporated, Red Dog Shale GasExploration Project, Wells Nos. NB-01, NB-02, NB-03, NB-04A, and NB-05 Tom: As per our recent telephone conversation, and the last Weekly Operations Summary Reports covering the above referenced wells, the Red Dog Shale Gas Exploration Project will be shut-in for an indefinite period due to eleetricaf probfems with the power fine between the mitl at Red Dog mine, and the project site. This line suppties 100% of the power required to operate the wells during the planned extended dewatering period. We are still uncertain about the exact duration of the shut-rn period, as the Rec4 Dog Engineering and Electrical Departments are still trying to make a determination on whether a mill shutdown wilf be required to install an isolation switch and ancillary equipment. This extended shut-in period is caused by an electrical malfunction that has nathing to do with the condition of the wells or surface facilities at the GasEx project site. The problem is being addressed by the aforementioned Red Dog Mine Departments with an eye toward both maintaining the productivity of the mine/rnill comptex, and getting the dewatering pumping resumed as soon as reasonably possible. The equipment and materials necessary to correct the electrical problem have been ordered, and installation will occur at the most opportune time after they are delivered to Red Dog. We are told that under the most optimistic scenario, a restart of dewatering pumping could occur in the December 2007-January 2008 time frame. !f a mill shutdown is required in order to install the equipment, the shut-in period could extend into April 2008 when the next regularly scheduled mill shutdown will occuc We will keep the AOGCC advised on developments as they are made known to us. Now that al! wells in the initial ftve-spot pattem are completed, we respectFully request that the requirement for Weekly Operations Summary Reports be suspended. Monthly Production Reports (Form 10-405) will be filed both during the shut-in period, and for so lang thereafter as there are ongoing productions operations at the GasEx project site. Thank you for your consideration of #t-is req~~s#, ~-~d vp~r i~n~ar~~n~iinr~ nf t~a c(cCtn~l r~;r~i~;;;§ ~~~~ ~,.~ a; ~ currently experiencing. Sincerely, R. C. Gardner 10l29/2007 • i E& P SERVICES, INC. OCtober 24, 2007 Alaska Oil and Gas Conservation Commission 333 West 7t'' Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~a ~;~~ ~. ~~~ ,`;~~~~~~ f~` ~' ~ ~° ~'~- ; ~ ~J~' ~~~~ qn~.h '~''°% C' ol a~~ o~'ss~on Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 14-October 20, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 20, 2007: Completed installation of surface facilities at NB-04A during this report period. Well is ready for dewatering pumping start-up, but is shut-in due to electrical problems in the main power line supplying the GasEx project site. Red Dog Engineering Department advises that pumping cannot be started at this well until an isolation switch is installed in this power line. This equipment has been ordered, but it remains to be determined if it can be installed without shutting down the mill. A preliminary estimate for a best- case start-up at NB-04A is in the December 2007-January 2008 time frame. It is also possible that the start-up could be delayed until the next regularly scheduled mill shutdown in April 2008, if a mill shutdown is required before the switch can be installed. As a precautionary measure, the tubing and pump stator were pulled from NB-04A on October 18, 2007, and the well will be freeze protected during the shut-in period. The surface facilities at the NB-04A well site are fluid free, as dewatering pumping at this well has never been started. Sincer~e~yl ~~~ `°'~ ~~~~; _ ~~~~~,~ rt...w , . C. a dner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. '~~~ October 17, 2007 ~,~a~~ ~~, ~~~ ~O'~` Alaska Oil and Gas Conservation Commission ~~~~~ ~~~ ~ 333 West 7th Avenue, Suite 100 9~~,~Q ~'4,,~, ~~0~ Anchorage, AK 99501 '~~~~ c ~'~o Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~ Re: V~eekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: October 7-October 13, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 13, 2007: Finished downhole work for well completion on October 10, 2007. Well completion date will be carried as that date. Continuing with installation of surface facilites, with completion of these tasks anticipated during the next report period. Well is shut-in at close of this report period. Sincerely, ;~,.--~ ,~~ . . x : ~= ~.~`~~ _ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 . • E & P SERVICES, INC. October 1 l, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas ~ ~ C'U .~ , Exploration Program. Report Period: September 30-October 6, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, October 6, 2007: Started installation of surface facilities for dewatering phase during this report period. Installed pump stator, and ran 2 7/8" tubing. Stator at 2830 ft. Continuing with work on completion at close of report period. Sincer , ;:"~~r~~j~ ,- ~ ~ °~~ ~ ~ ~ ~ ~ ~ ~ ~~ . . R. ~.~ Gardner For Teck Cominco Alaska Incorporated Cc: Jerty Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. October 2, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 23-29, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 29, 2007: Well shut-in while awaiting installation of surface facilities, and running of tubing, pump, and rods. Sincerely, ~° .~.~ ~.~~~ . . ~,~~~ _. ; ~~~ ~~~ ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. September 25, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 16-22, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 22, 2007: Used power swivel on production hoist and tubing to drill out composite bridge plugs. Circulated hole clean, and shut in well, awaiting installation of tubing, pump, and rods. Preparing to install surface facilities to handle produced water during dewatering phase. Moved production hoist to NB-O5, and cleaned up location. Sincere ~~~ Y,+ ~ •4 ~ ~.. ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. September 20, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 9-15, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 15, 2007: No change from previous report period. Well secured and awaiting drill-out of composite bridge plugs after work at NB-03 is completed. Perforating and hydraulic fracturing work completed at NB-04A. Since y, .. ~,... ~'` ~~- ~------~--~~'..,.~.... ~' ` ~! R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. September 13, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer ~~4,r~~~~9~ SEP 1 3 20Q7 ,~ias~a ~il ~a ~as C~a~~~. C~tmmissio~ Arecht~r~~~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: September 2-September 8, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER 8, 2007: Well secured and awaiting drill-out of composite bridge plugs after work at NB-03 is completed. Perforating and hydraulic fracturing work completed at NB-04A. Sincere y, ,,,,,r-°° m~~ , ~ ~ ~ _.,~_._ ,~i~,~~',~`~ ~ ~ ~.... R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ E & P SERVICES, INC. September 5, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P.E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 26-September l, 2007 VVell No: NB-04A (FTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, SEPTEMBER l, 2007: Continued with perforating and hydraulic fracturing program. Stage 1 (2750'-2950'): Perfed in 4 intervals with 122 shots total. Fracced with 218 bbls, 25# guar gel, and 63,300# Ottawa sand. Stage 2(2530'-2660'): Perfed in 2 intervals with 80 shots total. Fraced with 240 bbls, 25# guar gel, and 17,6001bs Ottawa sand. Stage 3(2300-2490"): Perfed in 4 intervals with 280 shots total. Broke down perfs @ 5 bpm and 1330 psi. Pumped 287 bbls slick water. Stage 4(1624'-2240'): Perfed in 7 intervals with 233 shots total. Broke down perfs @ 5 bpm and 1480 psi. Pumped 236 bbls slick water. All sta.ges isolated by composite bridge plugs. Perforating and frac details to follow with Completion Report. Secured well. Awaiting drill-out of bridge plugs after work at well No NB-03 completed. Sinc rely, - ~- ~~~~ . . f R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth: Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ • E & P SERVICES, INC. August 28, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P. E., Petroleum Engineer §~~~~~ ~E~ ~i'as~ra A4 U~ 2 ~ 2007 C~~l ~r ~as C°r~s. C~mmission An~l~or~~~ Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 19-August 25, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 25, 2007: Developed supplementary perforating and hydraulic fracturing program, and submitted program to AOGCC for approval. Program includes five stages of perforations, but with hydraulic fracturing limited to the bottom two stages due to the proximity of the abandoned NB-04 welibore to the upper three stages. Perforated first (lowest) stage (2750 ft-2950 ft), and fraccing that stage at end of report period. Sincerely, r~ ;~. ~: , ~ s-~ ~ ~ -~ .. ~ ~ ~ ~~ ~ ~_y_________~...... R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ • ~ o ~ a 0 SARAH PALIN, GOVERNOR i~T ~-~t~~t~~ ~+~ ~~-7 333 W. 7th AVENUE, SUITE 100 CDa`S~RQ~ii~is CD~II5S10~ ANCHORAGE, ALAStCA 995013539 PHONE (907) 279-1433 FAX (907) 276-7542 R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Incorporated 3105 Lakeshore Dr. Bldg A, Ste 101 Anchorage, AK 99517 Re: F~ploration Wildcat, NB-04A Sundry Number: 307-276 Dear Mr. Gardner: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it ma.y file with the Commissian an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Dan T. Seamount Commissioner DATED thi~ / day of August, 2007 Encl. 0~0'~ -C7~5~ ~ • E & P SERVICES, INC. August 22, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Tom Maunder, P.E., Petroleum Engineer ~E~~1~~~~ AUG 2 2 2~~~? Aisska Oil & Gas Cor~~. ~~~a~a~~~s~~~= An~t~ora~~ Re: Application for Sundry Approvals (Form 10-403), Teck Cominco Alaska Incorporated, Red Dog Shallow Shale Gas Exploration Project. Well No. NB-04A, PTD No. 207-089 Perforating and Hydraulic Fracturing Program Dear Mr. Maunder: The above referenced Application for Sundry Approvals is attached in duplicate. We would appreciate an expedited review of this application and a verbal approval if at all possible, so the work can go forward as scheduled on Saturday, August 25, 2007. Thank you for your consideration of this application. Sincerely, ~ ~ ~- . ,. , ~~ :~..~~_______~-_-~.__ .._ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~' $'u"°~ `~'~ o~ RECE~'1/EI~ ~ STATE OF ALASKA • ~~~ ALASI~A OIL AND GAS CONSERVATION COMMISSION _ AUG 2~ 2Q ~~-~,,~ 07 APPLICATION FOR SUNDRY APPROVALS q~~sk& pi~ & Gas Cons. Commission 20 AAC 25.280 1. Type of Request: Abandon ^ Suspend ^ Operational shutdown ^ PerFo~ate Q Waiver orage Other ^ Alter casing ~ Repair well ~ Plug Perforations ~ Stimulate Q Time Extension ~ Change approved program ~ Pull Tubing ~ Perforate New Pool ~ Re-enter Suspended Well ~ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Teck Cominco Alaska Incorporated Development ~ Exploratory ~ 207-089 ~ 3. Address: Stratigraphic ~ Service ~ 6. API Number: 3105 Lakeshore Dr.Bldg. A,Ste 101 Anchorage, AK 99517 50-073-20007-00 , 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: 6870 ft . Spacing Exception Required? Yes 0 No ^ NB-04A ~ 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): NANA Re ional Cor oration 890 ft Expiorato ~ 12• PRESEN7 WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft}: Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 3035 ft 3031 2983 2980 2983-3035 None Casing Length Size MD ND Burst Collapse Structural Conductor 95 13 3/8 95 95 Surface 1033 8 5/8 1033 1033 2950 1370 Intermediate Production 3025 51/2 3025 3021 4810 4040 Liner Perforation Depth MD (ft): PerForation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): See Attached See Attached None None N/A Packers and SSSV Type: No Packers or SSSV Packers and SSSV MD (ft): N/A 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program Q BOP Sketch ~ Exploratory Q Development ^ Service ^ 15. Estimated Date for 25-Aug-07 16. Well Status after proposed work: Commencing Operations: Oil ~ Gas ~ Plugged ^ Abandoned ^ 17. Verbal Approval: Date: WAG ^ GINJ ~ WINJ ^ WDSPL ~ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor for Teck Cominco Alaska Signature , Phone 907-258-3446 Date 21 Aug. 2007 ! COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity ~ BOP Test ~ Mechanical Integrity Test ^ location Clearance ~ Other: .~~'~.~~U~~~ O~~ sy t~ O`l ~. ~QG ~1 \ ~ hrc~~ ~ ~l i~ ~ ~i~T~'C~ `n, O ~ ~C~i19~~{.C~ G U~~~1 ' ~ Y ~~t~i~ ~~ ~o~- 5 0~~ e ~-~~~~~:~ ~ dQ~.~.~.~~~~ ~~ ~.,~~.~-~~~ o ~~ ~~~~~ Subsequent Form Required: ~~ APPROVED BY ~ ~1 Approved by: COMMISSIONER THE COMMISSION Date: g~~`~ ~ Form 10-403 Revised 06/2006 O~~~~~~~ L~' ~~ AUG +~ ~' ~~~7 Submit in Dupficate ~ ~ Teck Cominco Alaska Incorporated Red Dog Shale Gas Exploration Program Well No. NB-04A (PTD 207-089) Application for Sundry Approval Perforation and Fraccing Program Summary of Proposal Well No NB-04A is the second well in the 2007 exploration drilling program to be drilled and cased to TD in preparation for perforating and hydraulic fracturing. The atta.ched operations program describes these proposed activities. The well will be perforated in five stages, but only the bottom two stages will be fracced due to the proximity of the abandoned NB-04 wellbore adjacent to the upper three stages. The fracced stages will be isolated by composite bridge plugs (CBP's) as the stages are completed. The CBP's will be drilled out, and the well cleaned out to the effective depth in preparation for running a progressive cavity pump and the initiation of dewatering operations. . ' ~, ~ Teck Cominco ~laska Incorpora~ed 12ed Do~ Shale Gas Exploration Program ~'ell No. l~~-04~ (PTI) 207-089) Application for Sundry Approval Perforation and ~raccin~ Program Detailed Operations Progr~m ~ (See Attached) DEPTI DESCRIPTION FT. hole 100 16" 200 400 500 CSG SHOE hole 950 CMT, Coldset 121/4" 1000 ~~ J 13 3/8". 61# 1024' ~,,~ 8 5/8", 24i1 Staae 1200 Zone 0 S 40 a fl 1400 Zone U 1600 s 40 teu•-twa• n 1800 Zone 18f0'-1820', 181!' 5 63 18~' H 1900 Zone ~ 2000 1970 -1980, 2014' - 63 zou•, u2a - zua n 3 2400 2one 2470'-2{90', :530'' rts ~20 =s~o•. 2810' - 2880' 2 2700 rreo' • zno•~ z~as' - zea•, zew~-ze~o•, perfs 122 zeto'-zssu' r, CSG SHOE 5.5", 15.5#, J-55 hole 3000 CMT, Coldset 7 7/S" M l ~ 61 f22 152 Teck Cominco WELL NUMBEF NB-04a LEASE NAME NANA LEASE # DISTRICT Red Dog QUAD DATE 8/79/2007 COUNTY API # TARGET 3,035 ELEVATION 890' 7_oNErsl yd~n.~t. K:w~~ uNITS API I M API COMPLETION Descri Ka ak Pr ram ISIP Pad °~ #sand/perf onc Rate, bpm Water, bbl~ Sand # HHP Pi 2760'-2770', 2788'- xaos', zaso• • ze~a, Stagel ~'-~so' 24% 608 1-6 24.6 505.6 74,199 554 CSG perfs t22 50% perf ball: p3i 121.5 soo ppg 25 5ao ~s,ooo u~o~-saso~~ ssao~- Stage 2 zssu', ze~o' - 2esu' 24% 618 1- 5 24.6 505.6 74,199 552 CSG perfs 120 50% perf ball: pSl 121.5 50o ppg 25 soo ~s,0oo ~s7o-teeo, 2ota~- ZONE (3) sats~, uzo~ -2uo• Break davn perfs w/ water by dropping 80 perf balls in 100 bbls of water (2x hole volume). Maximum pump rate 5 bpm, pe~fs 63 maximum pressure 4,000 psi for break, 3,000 psi after breakdown. 40 perf balls will be dropped immediately and displaced to 7810'- 7820', 1844' ZONE (4) ~88~' t 25 bbls displecement 40 perf balls will be dropped. Job will end at +/-100 bbls or 3,000 psi. rfs 22 ZONE (5) ~s24'-teu• perfs 40 rfs DESIGN 2s.o t,ooo ~so.o~ ~ ~ ToTaLS 3s~ psi % pad #sdlhole bpm 506 148,399 55a CsG AvGs ho~es 24% 613 25 bbls # MAX HHP f Cmt Yield #1 ~ 1.43 ~ ~ #2 1.43 #3 I #4 ~ #5 1.43 #6 1.43 Size Descriptlon ID Vol Vol Yield Coiumn Volume # Sacks Bbls BBL CMT inches inches bblslft cu ftlft Cu ft/Sk ft cu ft sWft xcess-. 25% Mole 18 18.000 0.0~437 0.41759 1.43 15.0 6.264 0.29202 4.38 1.12 Csg 13 3/8 61#, Jd5 12.b1b 0.04048 0.22730 300.0 68.189 12.14 M 13 3/8" x 18" 0.74095 0.7914 1.43 300.0 237.435 0.55346 166.04 42.29 54.25 Hole 121/4 Csg 8 B/S 24#, J-55 M ---°°°° 8 5l8" x 121f4'• ----°----•-----... .-'----------°°-.°-- -----------°-----°------------ ----•--------- °--'----°--- ------------- -------------- --°---°-°° °---------°- -----------°- Hole I 77/8 7.878 0.03794 0.21303 1.43 1b.0 3.195 0.14897 2.23 0.57 Csg S 1/2 16.5 #, J-BB 4.082 0.01685 0.08956 2,600.0 232.854 41.47 M 51/2" x 7 7l8" 0.03086 0.1733 1.43 2,200.0 381.180 0.12116 266.55 67.88 85.56 TOTAL Cmt ~ Sks m bbls 785.1 549.0 22.23 139.82 z9o ~os aes a27 oae 54B 579 810 732 823 854 ~ • 3,035 TD B LOG Teck Cominco - NB-04a Stage 1 2~so~ - 2t~o•, 2~9s~ - ssos•, 2sso - 2s~o•, zsao~ . perfs z9so~ ft 122 Ikalukrok, Kivalina PR~=SSURES IN P.S.I. FRAC GRAD 0.63 psi/ft VOLUMES IN BBLS BRAKD(~WN 1240 MAXIIIAUM LOAD AND BREAKDOWN 5 PAD 121.5 AVERAGE DISPLACEMENT psi TREATMENT 384.1 DISPL 67 ISIP 5 MIN 10 MIN TOTAL VOLUME 510.6 Chemicals Gel load #i~ooo ~~~i ~ HYDRAULIC HORSEPOWER AO/ERAGE RATE IN B.P.M Fluid Loss USED 637 TREATING DISPL OVERALL SurFactant gaU1000 gal BIOCId@ 1#/1000 gal Time Cumul Rate Vol Cum Vol Sand Conc Sand Cum Sand Pressure DESCRIPTION OF STAGE Breaker q/1000 gal min min b m bbl bbl p # # CSG OR EVENT CHEMICALS Concen 4.51N GUAR 536.1 # 25 ~ 0.0 0 0.0 0.0 0 0 0 Fill Wellbore FLUID LOSS #DIV/0! # 2 0.0 29.0 5.0 5.0 0 0 0 Bkdn, est. Rate TRANSFOAM 80.7 gal s 3 4.5 4.5 27.0 121.5 126.5 0 0 0 838 PUMP PAD BIOCIDE 21.4 # ~ a o 4.5 0.0 126.5 0.5 0 0 814 START SAND BREAKER 3.2 ts o.2 5 1 75 6.3 25.8 45.2 171.7 1 1,899 1,899 791 SAND ON BOTTOM ~° ~ r . ~ 7.3 24.8 24.8 196.5 2 2,080 3,978 748 I START SAND ~o , see,~ sm,,,~ .~ ~ ~ 8.3 23.8 23.8 220.2 3 2,995 6,974 708 FINNISH SAND „~o `-`~ ~ a ~ 9.3 22.9 17.1 237.4 4 2,881 9,854 673 ~ FLUSH ~ o :~ 9 3.5 12.8 22.0 77.1 314.4 5 16,184 26,038 . ' ' ~ =~ ~o s 21.8 21.2 191.1 505.6 6 48,161 74,199 ~° ~ ~ ~~ 11 0 21.8 0.0 505.6 0 0 74,199 '°°° ~ '` '' i2 0 21.8 0.0 505.6 0 0 74,199 ' 3~~ j ~ ~ ' ~ ,~ II ~.o ioo.o o o ~ ~~ .~i,, ~i~ ~ ~~~ ~ .~ "« -' ~T~'= e I ; o 2~.a 24.6 505.6 5 74,199 838 . r -~-~-r - $ - -9 10 , _ ~._ ;~r - ~~ _ _ _. ~2 13 ~ ~S~P ~ p$I ~ ~~Cum Vol bbl -~-Pres,ure "' Rate bpm ~-~Santl Conc ppg 1 $ -- TOTAL SAND 742.0 sx sand ~ 900.0 ~ ~ ! ! 1 ~ soo.o -~ 700.0 ~~ 600.0 ' ~ I ~ ; 500.0 -~ 400.0 -I I I 300.0 i ~ ~ 200.0 100.0 ; •~0.0 ~-- i °' 0.0 0.0 ;m ;m 4.5 SEB 1-6 Stg 1 frac 35 I - 30 I - 25 - 20 -15~ -10 -5 ~-~- -~ --~ 0 4.5 6.3 7.3 8.3 9.3 12.8 21.8 21.8 21.8 ~ ~-- Cum Vol bbl -- Pressure • Rate bpm -- Sand Conc ppgJ m I 1 U ~ 'AETFRAC - P.tlvanced Re~curr,e> Int ernafional, Inc. In f'arar7eiers ure Gradierh 0.~3 PF,I(ft oeptn 2050 ft viecasity P,,3 cp ~anY 9pec~o 6rAViry 2.65 ific Density 22.101 lum/gal )IaineEer O.~ If7. )[;Y (~P.f~E ~I'-IO fl.?093 ~ Rate 27 b~7m ure Moi~~Nt F00 ft ure 7reaCment 9chetlule Glean San~l Slurry Time Rat~; Conc. ~ate : (min) (bnm) (~sa) (~t~m? a.~ z7 a z7 ; 0 26.4026813 O.a 27 ~1.75 25.83121943 1 27 ;1 24.75542907 2 2i ~'I 23.77'03683 3 2i ~ 0.75 22.66:?2275 4 27 ~ 3.5 23.018634 5 2~ ~9 29.2360808 6 27 ~0 27 0 2~ 2i 0 ~7 Formation Properties E 355000 Ipsi Ic 1.5 md 0 0,015 dec Frac Mult 1 Pres. Grad 0.433 psi.ft Displacement TbID/Cs0[f[ Tbg Depth 2.441 0 Frm Depth 4.95 2390 Total Stage t;um Stage CGim Water Water Slurry Slurry (Fibi) (bbq (bbi) (bbp 1t1.5 1s'1.5 121.5 121.5 0 121.5 0 121.5 ~35.204634 166.7046 47.25 168.75 2~1.75942~J 191.4649 27 1~J5J5 23.i73037 2152371 27 222.75 17.146671 232.3838 20.25 243 77.Q&521~J 309.449 94.5 337.5 131.1157u 500.5647 243 580.5 0 500.564~ 0 580.5 0 G00.5647 0 580.5 500.5647~ 580.5 Sand per Foot 371 Ib/ft Targe4 Sand 75000 Ibs Macros Cntrl a~ I= Calculate Length Cntrl + f = Fracture Optimization Factor bbl Equations 0.018013 0 Cv = 0.0469[({c~pe)!~]0.5 0.023801 67 x=2C(rrt)0.5/W 67 A=(V'ef~/(7,48W) Calculated Values Stage Cum Surf. Hyd Sand Sand Press. HP Lhl Lf ~p Qb) (Ib) (psi) ft fit ft psi 0 0 837.99 554.2642 90.90148 90.90148 470.83 0 0 813.61 538.2058 90.901A8 90.90148 470.83 1898.595 1898.595 790.52 522.9269 115.3853 115.3849 470.83 2079.792 3978.387 747.56 494.5113 928.5283 128.5279 470.83 2995.403 6973.789 708.49 468.6631 141.2609 141.2608 470.83 2880.641 9854.43 672.84 445.0808 150.6078 150.6075 470.83 16183.7 26038.13 640.22 423.5069 191.6635 191.6634 470.83 A8161.16 74199.29 610.31 403.7202 282.3226 282.3225 470.83 0 74199.29 837.89 554.2642 282.3226 282.3225 470.83 0 74199.29 837.89 554.2642 282.3226 282.3225 470.83 74199.29 21.5 P/aD Pad Sfagei Sfage2 Stage3 Stage4 StageS Stage6 Stage7 StageB To4al 0 0 0 0 Fluid Leak Ofi 0 196.07 -74.57175 Vol. oi Sand 6n Fraciwre (bbl) 132.14 5and VoIJFrac.Vol. Ratio 0.3437 Fract~ire Volume (bbl) 384.43 Est. SanU Cona pb/I`t2) 0.657 Fracture Half 8.389C172883 0 9.1'f06966 7.7803489 9.729465 8.91285 48.00348 189.8046 0 282.32 Created Widf10.172780643 0.1728 0.1833961 0.9884092 0.192911 0.196026 0.208203 0.229371 0.229371 D.2294 Est. Closure \ 0 0 t1.1250351 0.1603881 0.184874 0.19392 0.202282 0.152244 0 0.0786 frac Total Notch ~rac Tota~ WaYer Water Sand Sand Sand Gel Breaker 5urf. Biocide bbl bbl Ibs Ibs Ik~s Ibs qt gal Ibs 500.56~F95 500.5~d715 0 7~1199.289 74199.28G 630.7115 4.204744 21.02372 21.02372 30 Ibf1000ga1 Yme ereaker 0.2 qt/1000ga1 sctant 1 gaU1000g21 uim eicaruonate Depends on chemistry ~mic acid Depends on chiemistry tiricide 1 Ib/1 tltlpgal ireat each zone Prom one taN<, top ofF with secona tanlc as neces~ary. ~ will save ~el in the event tiie~ iracjob taltes Ic~nger than planned. N cv t cp ftlmin0.5 min 33 0.00084 4.5 33 0.00084 4,5 33.69854 0.000832 ~.25 34.29041 0.000824 7.25 35.0412 0.000815 8.25 35.7027 0.000806 9 38.43866 0.000779 12.5 42.42802 0.000741 21.5 42.42802 0.000741 21.5 42.42802 0.000741 29.5 W x Eff V A A in dim gal ft2 ft2 0.172781 0.438971 0.767398 2551.5 13480.3 22957 0.172781 0.438871 0.767398 2551.5 18180.3 28;~~?.7.; 0.183386 D.4822 0.744434 3543.75 2307G.9S 33<}09.; 0.188409 0.501145 0.734393 4110.75 25705.57 38230' 0.192919 0.516491 0.72626 4677.75 28252.11 4286~ 0.196026 0.525944 0.72125 5103 30921.51 4735 0.208203 0.582427 0.701913 7087.5 38332.67 52yD0.1 0228371 0.63729 0.662236 12190.5 56464.5 584~.5.2 0229371 0.63729 0.662236 12190.5 56464.5 637~7.0 0.229371 0.63729 0.662236 12190.5 564645 G37?F.C Weighted Average Viscosity Calculation x x 33 121.5 121.5 4009.5 4009.5 33 0 C 34.24~4 0 121.5 0 4009.5 93 1 1 35.4948 47.25 168.75 1677.129 5686.629 33.69854 2 i 37.9896 27 195,75 1025.719 6712.349 34.29041 4 ~ 40.4844 27 222.75 1093.079 7805A27 35.0412 6 E 42.9792 2025 243 870.3288 8875756 357027 10 9G 45.474 94.5 337.5 4297.293 12973.05 38.43866 20 2C 47.9688 243 580.5 11656.42 24629.47 42.42802 30 3a 33 0 580.5 0 24629.47 42.42802 40 ~fC 33 0 580.5 0 24629.47 42.42802 110 11 C ~ LQG Teck Gominco NB-( Sta e 2 2470' - 490'. 2530' - 2550', perfs 2640' - 2660' ~ 120 Ikalukrok, Kivalina BRAKDOWN 1100 MAXIMUM LOAD AND BREAKDOWN 5 PAD 121.5 ~ AVERAGE DISPLACEMENT psi TREATMENT 384.1 DISPL 60 ISIP 5 AAIN 10 MIN TOTAL VOLUME 510.6 Chemicais ', , • Gel load , #i~ooo gai , , HYDRAULIC HORSEPOWER AVERAGE RATE IN B.P.M Fluid Loss i USED 637 TREATING DISPL OVERALL Surfactant gal/1000 gal BIOCId@ 1#/1000 gal rme Cumul Rate Vol Cum Vol Sand Conc Sand Cum Sand Pressure DESCRIPTION OF STAGE Breaker q/1000 gal min min b m bbl bbl # # CSG OR EVENT CHEMICALS Concen 4.51N GUAR 536.1 # 25 ~ 0.0 0 0.0 0.0 0 0 0 Fill Welibore FLUID LOSS #DIV/0! # 2 0.0 29.0 5.0 5.0 0 0 0 Bkdn, est. Rate TRANSFOAM 80.7 gal s 3 4.5 4.5 27.0 121.5 126.5 0 0 0 838 PUMP PAD BIOCIDE 21.4 # ~ a o 4.5 0.0 126.5 0.5 0 0 814 START SAND BREAKER 3.2 ts o.2 5 1.75 6.3 25.8 45.2 171J 1 1,899 1,899 791 SANDONBOTTOM ~. -~ s ~ 7.3 24.8 24.8 196.5 2 2,080 3,978 748 START SAND ~.o ; SEB 18 Sfo 2 hae ~ ~ ~ 8.3 23.8 23.8 220.2 3 2,995 6,974 708 FINNISH SAND ~ ~~ ° ~° s 1 9.3 22.9 17.1 237.4 4 2,881 9,854 673 FLUSH ~ soo o ; ~ 9 3.5 12.8 22.0 77.1 314.4 5 16,184 26,038 . ; ~o ~ s 0 21.$ 21 8 21.2 191.1 0 0 505.6 505 6 6 0 48,161 0 74,199 74 199 500° t ^°°° + ~ i p ~,5 ~ ~2 0 . 21 8 . 0 0 . 505 6 0 0 , 74 199 ~o i . . . , zoo.o / ~'"~ ,o : im.a I / i ~ ~ ~~ - ~ ~ ~ ~i s 24.6 505.6 6 74,199 838 o.o ; - ~ T~- ~ ` , - --~ ~ ~ -~----~= o . ISIP 0 psi _ ~ Z 3 a 5 s _ ~ s s ~o ~~ t2 ~s g ~ ~ ~,,,,,,,o~~,~ ~r~Preswre o R~a~--S~~~ ,,,~ g TOTAL SAND 742.0 sx sand ~- - i __.__ _ _. . _- i 900.0 -~ i ~ i 800.0 - ~ ~ I i 1700.0 ; ~ ', ~ 600.0 ~ ~ 500.0 ~ ~ , I ~ ~ ~ 400.0 -' I , I i 300.0 = ~ ~ i 200.0 100.0 ~ i ~ •w 0.0 -~--- ' °' 0.0 m m SEB 1-6 Stg 2 frac 0.0 4.5 4.5 6.3 7.3 8.3 9.3 1 2.8 21.8 21 ~-- Cum VoB bbl -- Pressure ° Rate bpm -- Sand Conc ppg -~- 35 ! ~ -';- 30 25 I ~ =, 20 I t15! 10 5 - , ---~ 0 21.8 ~ a m ~ ~ ~ ~ ?ASTFRFlC-Advancetl Resouroes Internatiuml, Inc. D2SCflPtlOf1 Formation Properties 3n Param~ters H 355000 /pSi tur~ ~radienr 9.63 psi/fl k 1.5 md : ~epth 2550 ft (8 0.015 deC v~3cosity 3~ cp Frac Mu14 1 p~nt specific i,ravit y 2.65 P7GS. Grad 0.433 psi.ft ;ific Densi4V 22.901 Ibm/gel biameter 0.4 in. pisplacement ner Perfs 140 TbID/CsC~C ft 02033 Tbg Depth 2.441 0 ~ Raee 27 bpm Frm Depth 4.95 2390 !ure Height 20Q ft TOiel ;ura Troatmen°t Sohedule Clean Sand Sluny Stac~e Cum Stage Cum "(ime Rake Conc. Reie Water Water Slurry Slurry : (min) (bpm) (~sa) (bpm) (bbp (bbf) (bbl) (bbp 4.5 ~ ?_7 0 27 121.5 121.5 121.5 121.5 a 0 26.4026H13 0.5 27 0 121.5 0 121.5 ~ 1.75 25.83121945 1 27 45.204534 166.7046 47.25 168.75 ~ 1 2475942907 2 27 24.759429 191.4641 27 195J5 ; 1 23.77303693 3 27 23.773037 215.2371 27 22275 ~ 0.75 ~2.8622275 4 27 17.1q6679 232.3838 2025 243 ~ 3.5 32.018634 5 27 77.Or5219 309.449 94.5 337.5 ;~ 21.2350H06 6 27 191.11573 500.5847 243 580.5 ~ 0 27 0 27 D 500.5647 0 580.5 27 0 27 0 500.5847 0 580.5 21.5 500.58~?72 580.5 I'A.D !'ad Stagp1 Stage2 Staqe3 Stage4 Stage5 Stage6 Sand perFoot 371 lbHt TargetSand 75000 Ibs Macros ~ Cntrl + ~ = Calculate Length Cntrl + f = Fracture Optimization Faetor bbl Equations 0.018013 0 Cv = 0.0469[(k~pm)/u]0.5 0.023801 52 x=2C(nt)0.5/W 52 A=(V"ef~/(7.48W) Calculated Values Stage Cum Surt. Hyd Sand Sand Press. HP Lhl Lf 6p N Cv t W x Eff V A A (Ib) (Ib) (psi) ft ft R psi cp ftlmin0.5 min in dim gal ft2 fi2 0 0 837.89 5542642 90.90148 90.90148 470.83 33 0.00084 4.5 0.172781 0.43887T 0.767398 2551.5 15180.3 22957.2 0 0 813.61 538.2058 90.90148 90.90148 470.83 33 0.00084 4.5 0.172781 0.438871 0.767398 2551.5 18180.3 28' 1898.595 1898.595 790.52 522.9269 195.3853 115.3849 470.83 33.69854 O.Q00832 C.25 0.183396 0.4522 0.744434 3543.75 2307G.98 3~ 2079.792 3978.387 747.56 494.5113 128.5283 128.5279 470.83 34.29041 0.000824 7.25 0.188409 0.501145 0.734393 4110.75 25705.57 382 . 2995.403 6973.789 708.49 468.6631 141.2609 141.2806 470.83 35.0412 0.000815 825 0.192911 0.516G91 0.72626 4677.75 28252.11 42E65.13 2880.841 9854.43 672.8A 445.0808 150.6078 150.6075 470.83 35.7027 0.000808 9 0.196026 0.52594A 0.72125 5103 3012~1.51 4~050.21 16183.7 28038,13 640.22 423.5069 191.6635 191.6634 470.83 38.43866 0.000779 12.5 0.208203 0.562427 0.701913 7087.5 38332.67 5~Q90,18 d8161.16 74199.29 610.31 403,7202 282.3226 282.3225 470.83 42.42802 0.000749 21.5 0.229371 0.63729 0.662236 12190.5 56464.5 5844a.22 0 7419929 837.89 554.2642 282.3226 282.3225 470.83 42.42802 0.000741 21,5 0.229371 0.83729 0.662236 12190.5 5646~.6 C37a7.08 0 7419~J29 837.89 5542642 292.3226 282.3225 470.83 42.42802 0.000741 21.5 0.229371 0.63729 0.662236 12190.5 5646~.5 Ci37nr.08 74199.29 Stage7 StageB Total 0 0 0 0 ~luid Leak Off r? 998.07 -74.5718 Vol. of Sand In Fracture (bbl) 132.14 Sand Vol.lFrac.Vol. Ra4in 0.3437 Fracture Vnlume (bbl) 384.43 Est. Sand Cana (ib/ft2) 0.657 Fracture Half 1 H.989072883 0 9.110698fi 7.7803469 9721465 9.91285 48.00348 189.8046 0 282.32 Created WidtY0.17278QG43 0.1728 0.1833961 0.1884092 0.192911 0.196026 0208203 0.229371 0229371 0.2294 Est. Closure V s? 0 0.1250351 0.1603881 0.184874 0.19392 0202282 0.152244 0 0.0788 31e 5ummary Frac iotal Notch Frac iotal Water Water Sand Sand Sand Gel Breaker Surt. Biocide bbl f~bi Ibs Ibs Ibs Ibs qt gal Ibs 500.564795 500.5647'15 0 74199.289 741~9289 6307'115 4.204744 27.02372 21.02372 30 Ib/1000ga1 ~me Breaker 0.2 qU1000ga1 actant 1 gal/9000ga1 uim e~o,rpon,te DPpends on chemistry amic ncid Depends en chemistry iricicie 1 Ib/1000ga1 treai each zone irom c~ne tank, top oi( with eecortl tank as ner,essary. will :ave gel in ihe ee-ent the frec joA takes longer than planned. Weighted Average Viscosity Calcula4ion r, x 33 121.5 121.5 4009.5 4009.5 33 0 Q 34.2474 0 121.5 0 4009.5 33 1 1 35.4948 47.25 168.75 1677.129 5686.629 33.69854 2 2 37.9896 27 195.75 1025.719 6712.34~J 34.29041 4 4 40.4844 27 222.75 1093.079 7805.427 35.0412 6 6 42.9792 2025 243 870,3288 887b.756 35.7027 10 10 45.474 94.5 337.5 4297.293 12973.05 38.43866 20 20 47.9888 243 580.5 11656.42 24629.47 42.42802 30 30 33 0 580.5 0 24629.47 42.42802 40 ~p 33 D 580.5 0 24629.47 42.42902 110 110 ~ i E & P SERVICES, INC. August 20, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ~~~~ Attention: Mr. Tom Maunder, P. E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 12-August 18, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 18, 2007: Completed rig move back to NB-04A. Operator decided to attempt to pass fish in NB-04 by cautiously conventionally drilling ahead, since wireline logs in NB-04A showed that only a very limited section of the NB-04 fish had been exposed in the NB-04A hole (2080-2090 ft). RIH with 7 7/8" bit and washed to bottom from 2319 ft. Fanned bottom to lift junk, and drilled ahead to 3035 ft without incident. Circulated hole clean, pumped sweep, and POH. Ran wireline logs 2323 ft to 3035 ft, and tied into previous logs. Ran and cemented 5 1/2" production casing from 3032 ft to surface. Cemented casing to surface as per program with good returns throughout job. 30 bbls cement returns to surface. Bumped plug, but floats would not hold. Shut in well with pressure on plug for 8 hrs. Started rig move to NB-03. Sincerely, ~.~ t ( ~~~~'>""~~ ~ -..__..~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ • E & P SERVICES, INC. August 15, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P. E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: August 5-August 1 l, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 11, 2007: NB-04A well options being evaluated while rig moved to NB-OS to successfully drill that well during report period. Decided to cautiously attempt to advance NB-04A past NB-04 fish, as using mud motor to change well path not an options due to the limited capacity of Major Drilling's mud pumps. Rig moving back to NB-04A at close of report period. Sincerely, ~' ~~ E-~--"`..._ ~` R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ • E & P SERVICES, INC. August 11, 2007 Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P. E., Petroleum Engineer ~~~E~~~~ A U G.~ 7 2007 Alaska Oit & Gas Cons, Ancharage C~m~ssion Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 29-August 4, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, August 4, 2007: Ran intermediate log suite 1024-2323 ft. Logs confirmed that old NB-04 fish was encountered at 2090-2100 ft, but NB-04A well path appears to have moved away from NB-04 for the remainder of the hole. Junk also logged on bottom of hole, amount uncertain, but last bit run showed evidence of running on junk. Operator decided to temporarily secure well while evaluating options, as well as the advisability of drilling NB-04A deeper, as the NB-04 BHA which was left in the hole lies only a short distance below, and at an unknown distance away from the projected NB-04A well path. Operator will move to NB-OS while this evaluation is being made. Secured well, closed wellhead valves and started move to NB-O5. Sincerely, ., ~~~~,~ , . .. ,~ ~` -~=y---------"'y , R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 . E & P SERVICES, INC. ~ C~ ~~~~~~v~~ z.iU~. ~ ~ ?Q~~ S'~~Reb€Yt7 ldt4 ~;F S~C,~'vu~ i:4Y~ix. 3q~~~~~,a3~U99 ~[~ ~ ~~ti July 30, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Attention: Mr. Tom Maunder, P. E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 22-28, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 28, 2007: Drilled 7 7/8" hole to 2323 ft at end of report period. Rotary-mud system maintaining hole in good condition with no drag or tight spots on trips, and minimal torque while drilling. ROP ranging between 5-25 ft/hour, but with some abnormal bit wear noted. Replacement single shot survey instrument has not arrived yet, and surveys with the old instrument are all over the map, and inconsistent with the hole conditions observed while drilling and on trips. Trip for bit at 2323 ft showed wear pattern on bit that appeared that it had been running against steel. Due to the proximity of the old NB-04 hole (plugged and abandoned in 2006), and to the excessive amount of explosives used in the attempts to sever the drilling string in that hole, there is a reasonable possibility that the NB-04A hole has occasionally encountered the drill string remaining in the NB-04 hole, and basically drilled along side it for short periods. Since the NB-04A hole is in e~remely good shape, but is approaching the depth of the stabilizers in the NB-04 BHA, it was decided 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ . to run an intermediate log and gyro survey in the NB-04A hole before proceeding further. Prep for logs and survey at close of report period. Sincerely, ~rv~ ~ ~, r ~~~ ~ ~~,~ ~ R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated . ~ ~ E & P SERVICES, INC. July 30, 2007 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 ~~~~R~~~ JU~ ~ ~~ ?~~~,' :~iaska ~it ~ ;x>.;~ ~~~s~~. ~~~nm~sse~~ ~:; ~:~x~; ~;~~~ Attention: Mr. Tom Maunder, P. E., Petroleum Engineer Re: Weekly Operations Status Report Teck Cominco Alaska Incorporated, Red Dog Shallow Gas Exploration Program. Report Period: July 14-21, 2007 Well No: NB-04A (PTD No. 207-089) Dear Mr. Maunder: FOR THE PERIOD ENDING SATURDAY, July 21, 2007: Drilled conductor hole. Ran and cemented 100 ft of 13 3/8" conductor. WOC and cleaned up after conductor job. Moved in and rigged up ancillary drilling equipment. Spudded well on 7/16/2007. Hammer drilled 12 1/4" hole to 1029 ft. Encountered 20 bpm water influx at 600-63 8 ft and severely fractured formation (may be related to attempts to explosively sever the drill string in nearby NB-04, which was plugged and abandoned in 2006). Increase in water flows and formation condition precluded drilling below 1029 ft with air. Elected to set surface casing at this point and use rotary-mud system for remainder of hole. Ran 25 jts of 8 5/8", J-55, 241b, ST&C casing with shoe at 1029 ft, and FC at 944 ft. Cemented casing with 29 sx Cold Set III, followed by 162.5 sx Cold Set II. Displaced cement with 58 bbls water, bumped plug with 800 psi. Floats OK. Good returns throughout job with cement to surface. No top job required. WOC 12 hrs. Surveys: 490 ft= 1 degree; 930 ft=6 degrees. Single shot surveys not correlating on repeat runs. Ordered new single shot instrument, and will gyro at end of well for final confirmation. 2000 East 88th Avenue, Suite 200 • Anchorage, Afaska 99507 •(907) 258-3446 •(907) 279-5740 . • ~ Drilled out FC and FS with 7 7/8"bit, and drilled to 1470 ft at end of report period. Sincere , t ~...~+ ~ ~.Y_~~.,.. R. C. Gardner For Teck Cominco Alaska Incorporated Cc: Jerry Booth, Teck Cominco Alaska Incorporated r • ~ ~ ,~ °~ ~~ ~ ,~ ~ ~' ~ ~ ~ 1 1 ~ ~ ~ ~ ~ ' ~, : ~ 3 ~ t 4 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ j~ ~ ~ ~~~ ~ ~ 9 ~ ~ ~ ~ ~ ~ ~ a ~ z ~ i ~ r ~ i~~ ' q~ i ~ ~ ~ ~ ~ { ~y; J 3 1 ~~ ~ Y ~ ~ * 1~\ ' '~~: 'r I ~ *~~ ~ , ~,.~, ~ ~ j ~ v ~ t { ~,"~, a... r 3, :; ~~ ~ ~ ,~ ~'' ^ d ' ' { ~ ~ ~j ~~ ~ ~ ~ ~LA58A ~u ~11~D GA5 C011TSERQATIOI~T COM1~II551OR R.C. Gardner Sr. Technical Advisor Teck Cominco Alaska Inc. 3105 Lakeshore Dr. Bldg A, Suite 101 Anchorage, AK 99517 SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE,ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Exploratory, NB-04A Teck Cominco Alaska Inc. Permit No: 207-089 Surface Location: 1078' EWL, 1494' SNL, SEC. 17, T.31 N, R.18W, KRM Bottomhole Location: 1078' EWL, 1494' SNL, SEC. 17, T.31 N, R.18W, KRM Dear Mr. Gardner: 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. In the application, reference is made to the waiver of four Commission requirements granted for the NB-O1 and NB-02 ~.~ells drilled in 2005. The waivers are applicable for NB-04A. A weekly status report is required from the time the well is spudded until it is suspended or plizgged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate, test and produce is contingent upon issuance of a conservation order approving a spacing exception. Teck Cominco Alaska, Inc. assumes the liability of any protest to the spacing exception that may occur. Please note the following special condition of this permit: production or production testing of coal bed methane is not allowe~ for NB-04A. Operati~ns must be conducted in accordance wit~ 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 ~ ~ ~ • Teck Cominco Alaska Inc. Permit No. 207-089 NB-04A 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum ~eld inspector at (907) 659-3607 (pager). Sincerely, Dan T. Seamount Commissioner DATED this! 4- day of July, 2007 cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. I~E~EfVED STATE OF ALASKA ~ ~~ ,~~~ 2 1 2007 ALASKA OIL AND GAS CONSERVATION COMM jION 1~,~ PERMIT TO DRILL 20 AAC 25.005 Alaska Oil & Gas Cons. Commission Anrknr~nn 1a. Type of Work: 1b. Current Well Class: Exploratory 0 Development Oil ~ 1c. Specify if well is proposed for: Drill ~ Redrill ~ Stratigraphic Test ~ Service ~ Development Gas ~ Coalbed Methane ~ Gas Hydrates ~ Re-entry ~ Multiple Zone ~ Single Zone ~ Shale Gas Q 2. Operator Name: 5. Bond: Blanket ~ Single Well ~ 11. Weli Name and Number: TeckCominco Alaska Incorporated Bond No. 6218218 NB-04A 3. Address: 6. Proposed Depth: 12. Field/Pool(s): 3105 Lakeshore Dr.,Bidg A,Ste 101 Anchorage, AK 99517 MD: 3000 ~ N~~ 3000 Exploratory 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: ~ 1078ft EWL,1494ft SNL, SEC. 17, T.31 N, R.18W, KRM NANA Regional Corporation Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: N/A NANA A reement Total Depth: 9. Acres in Property: 14. Distance to Nearest Same as SurFace 66000 Property: 6870 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well SurFace: x- 584449 ~ y- 5,150,969 Zoi 7` (Height above GL): 890 feet Within Pool: 1199 16. Deviated welis: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) N~A Maximum HoleAngle: degrees Downhole: 560 Surface: 110 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 18" 13 3/8" 61# J-55 ST+C 75' Surface Surface 75' ° 75' ~ 101 cu.ft. permafrost 12 1/4" 8 5/8" 24# J-55 ST+C 1500' Surface Surface 1500' ~ 1500' ~ 1061 cu.ft. permafrost 7 7/8" 5 1/2' 15.51 Ib J-55 LT-C 3000' SurFace Surface 3000' , 3000' 250 cu.ft. permafrost plus 569 cu.ft. Type 1 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) N/A Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD ND Cond uctor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): 20. Attachments: Filing Fee ~ BOP Sketch 0 Drilling Program ~ Time v. Depth Plot ~ Shallow Hazard Analysis ~ Property Plat ~ Diverter Sketch ~ Seabed Report ~ Drilling Fluid Program ~ 20 AAC 25.050 requirements ~ 21. Verbal Approval: Commission Representative: Date 17-Jun-07 22. I hereby certify that the foregoing is true and correct. Contact Printed Name R.C. Gardner Title Sr. Technical Advisor Signature .`` , - l~ Phone 907-258-3446 Date 6/17/2007 Commission Use Only Permit to Drill ~~"~gq API Number: 7' ^ 2~ -~7 Permit Approval D See cover letter for other Number: 50-~ 7 ate: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales:^ Other: ~ t ('~ ~_,, ` Q~~~''1 ~~~~( T~ E~e10~`~c `r0~' ~nST Samples req'd: Yes^ No~ Mud log req'd: Yes~ No ~ Or HZS measures: Yes^ No[~. Directional svy req'd: Yes^ No p~ vcS f `~' ° c ~i t ~ lt•~rs ~:~ ~ ~.Z ,°!`s~r~.~r ~`+~ 6~a7 c mm ~ ,~ co~ c ~ ~S cs. ~S J ~ ' ~ j , r ' r~4e,rr+c.1 ~ir'r- arvc altn ~t ~ ~h ~~~ Ii3`~~ ~ . . APPROVED BY THE COMMISSION DATE: , COMMISSIONER Form 10-401 Revised 12/2005 ,f/~yy( r / Submit in uplicate ~ Y ~ ~ ~. ~~ ~~~~ a~~~s -~~j ~ E & P SERVICES, INC. June 19, 2007 Alaska Oil and Gas Conservation Commission 333 West 7~' Ave, Suite 100 Anchorage, AK 99501 Attention: John Norman, Chairman Alaska qil & ~~s Co~rs. C~+nmiss~an Anchorage Re: Application for Permit to Drill: Teck Cominco Alaska Incorporated, Red Dog Shale Gas Exploration Well No. NB-04A Gentlemen: Teck Cominco Alaska Incorporated (Teck Cominco) submits herewith in duplicate the above referenced Application for Permit to Drill (APD), and the requisite filing fee. ~,. Well No. NB-04A is the replacement well for well No. NB-04, which was prematurely abandoned during the 2006 drilling reason due to mechanical problems associated with high fresh water influx rates, and unstable hole conditions that were incompatible with the air drilling techniques that were used at that time. The surface location of NB-04A is located on the same pad as NB-04, and at a distance of approximately 15ft. from the original well. ~ Three (3) significant changes in drilling procedures are proposed for the NB-04A well which are directed at avoiding a repeat of the problems encountered last year: 1) Only the surface hole will be drilled with air as experience has shown that air drilling with a downhole hammer down to approximately 1500ft. in the Red Dog area is fast, efficient, and maintains a straight hole. The surface hole will be extended to approximately 1500ft from the 700ft used previously. 2) Surface casing will be set at 1500ft. which will cover the air drilled section and the permafrost zone. It will also isolate the first major fresh water influx zone which caused problems from the time it was first penetrated in ~ well No. NB-04. 3) The hole below surface pipe will be advanced using a rotary-mud system. ~ The drilling fluid will be a simple non-dispersed extended bentonite system which will be maintained in the 8.6-8.8 ppg range. This will ~ ~ ~~~,~+~' V ~~ ~ -~. JIJN ~ ~.2007~'" 2000 East 88th Avenue, Suite 200 • Anchorage, Alaska 99507 •(907) 258-3446 •(907) 279-5740 ~ ~ provide a low hydrostatic head against the formation, and will eliminate the surging effects of unloading the hole with air after each connection and/or round trip. Because air drilling is still a part of the program, the same waivers from the AOGCC that have been granted on previous Red Dog wells are requested: AAC 25.033(b) - requiring drilling fluid of sufficient density for over-balance AAC 25.035 - blowout prevention equipment requirements AAC 25.061(a) - Requiring seismic seismic surveys of near surface strata. When APD's were submitted for well No. NB-01 and NB-02 in 2005, AOGCC staff requested clarifications on a number of issues relating to our proposed drilling approach and the waivers of certain regulations that were requested. Since Well NB-04A is nearly identical to the previous wells in geometry, and formations penetrated , it is hoped that our responses to the questions submitted by Commission staff in 2005 will prove r adequate to support the current APD. A copy of our responses (letter to Mr. Tom Maunder, P.E., dated July 5, 2005) is also attached. Well No. NB-04A will require a spacing exemption due to the proximity of other wells in the initial five-spot pattern. Since well NB-04A is a replacement for well NB-04 which had a spacing exemption granted, it may be that NB-04A is already covered. The rationale for the requested exemption is enclosed with the submitted document. Thank you for your consideration of this application. If you have questions, please contact the undersigned at (907) 258-3446, or by email at bob@fairweather.com. Sincerely, ..~-- . ~ : -----~... ~ .~'~ -- . RC. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures Cc: Jerry Booth, Teck Cominco Alaska Incorporated. a~ o~ o ~- > 0 N ~ ~ ~ L~ ~ ~ ~ ~ ~ O Uz ~ ~` o P C/) ~ j Z '`o~ ~ ~ , , ~ °~~~ N~ ~ ° ° F"' ~d ~O~ N~~c,~ ~ ~CpP ~~~ II ~~ ~ >' ~ ~' Z II ~ w ax ~ J J ~~~~ ~ Q ~ M ~ O i ~ 2 ~ o 00 z . '~ ti6bL ~ ~ ' ~ N O ~ ti o ~ ~ ~ ~ , ~ O , ~ 2 t z ~ ~ ~ O ~ 1 ~ Q p ~ ~ = O ; ~ UZ _ ~ ~ v m Z f~ j ~ ~ Q y (j J ~ C ~ ~- ~ ~ = =Z ~ ~ ~ ~~ ' ~ ~ a ~ ~ ~fll~~~fl1~~~R Red Dog Shallow Gas Exploration Project: Hole Geometry Well No: NB - 04A 13 3/8" 61# K-55 conductor installed @ 75' MD . 12 1/4" Hole Base of Permafrost @ 640' MD ~ Cement 8 5/8" 24# K-55 Surface Casing @ 1500' MD ~ ~ 7 7/8" Hole Perforated Intervals to be determined from open-hole logs. NOTE: Exact depths and set points to be determined when drilled and casing tallieaL 5%2", 15.5# J-55 Production Casing @ 3000' MD & TVD . Fairweather E&P Services, Inc. Rev. 1.0 6/19/2006 Drawin Not To Scale bjb ~. ~ ~ Red Dog Shallow Gas Project Background and Operations Summary Teck Cominco Alaska Incorporated (Teck Cominco) plans to drill 2 shale gas exploration wells (wells Nos. NB-04A and NB-OS) and complete the sidetrack of well No. NB-03 during the 2007 summer season. All of these wells are located in the North Basin area, north of the Red Dog zinc mine in northwestern Alaska. NB-04A is a replacement well ~ for well No. NB-04 which was prematurely abandoned during the 2006 drilling season due to hole instability problems and high water influx rates. Well No. NB-OS is currently permitted, and well No. NB-03 was suspended in 2006 with a cement plug on top of a fish, in preparation for a sidetrack in 2007. The work in 2007 will complete a five-spot pattern of wells designed to evaluate the potential for natural gas production from the organic-rich shales of the Kivalina formation. The concept of de-sorbing natural gas from this formation was developed by Advanced Resources International, under contract to Teck Cominco, following extensive analyes of Kivalina cores taken from numerous exploration borings across the North Basin area. If commercial gas production can be established, the environmental and economic benefits gained from the development of these resources would be significant, as Red Dog mine operations currently consume approximately 18,000,000 gallons of diesel fuel annually. The first phase of this exploration project was accomplished in 2005 with the drilling and completion of the first two (2) wells in the five-spot pattern (wells No. NB-O1 and NB- ~ 02). These wells demonstrated encouraging, but inconsistent results, as dewatering operations were pre-maturely suspended due to the on-set of winter conditions. An attempt was made to complete the five spot pattern in 2006 so that all five wells could have been dewatered and tested simultaneously during the 2006-2007 winter season. This did not occur as high water influx rates and hole instability problems prevented completing the five-spot pattern during the 2006 season, and surface facilities necessary to handle produced water were not yet completed. Drilling procedures have been modified to address the hole problems encountered in 2006, and the water handling facilities will be completed in the 2007 season as well. It is now planned to dewater and test all five wells through the 2007-2008 winter season. It is believed that this extended test period will adequately evaluate the feasibility of the desorbtion process. The attached map shows the location of the wells in the five-spot pattern. 9 • ~ ~ __ _._._ ~._ ~.m_.___. .r ., ti . __.. _. ,~ _~ __ _... i ~ r er ~~ ~ .w r :~~ '~ NB-o~ NB-05 1 1~ed D+~g Min~ ~ ~-r~~ , ~"",~ ``` ~:,~ `~~', ~ ~'~~ "`~.~~~~ Gas Exploration Pr~j~ct `_1 cofit;. ~- ~ at t~ .<..,~ s lf. .' ~~,'I~ ~,~kli.ll~~ ~G~Q~'3 S~~ie m ~~~k _. ~~.~. . ... ~ ___._._ ~ SGC~' 9~4t~' ~~UQ" R~vacion. f} ~S~al~. 1" =~C?~~.__ NB-oaA ~ ~ ~ ~' ' ~ ~ ~ ~ --°~~.. ' ~ ~ ~ ~ ~.:_E. ,;r ~ , NB-D2 ~ ~,..~t .~ ~_:~, ~,, ~ ~ . ~~ ~ ~ ~ ~~. ~ ~ ~ ~. ~, ~ f ~ ' 1 ~ ; ~ ~ ' " , NB-~3 ~ ~`~°,I I~ ~; ~1~ i `' ~ i" ~ ~..I ~ _:.. ~~ Dra~~vn i~~y: SQH C7ate:9r"1hlt7ki C~~~~artr3e~r± ~~~ ~~ ~s~~~vt.~~ r3p~ iw,sas~ __ . . ~ ~ __._ _ .._ _ -- _. ,_~ ~ r"h~; k Hv- .~:icrr a~~. M F~f ~~i r a; . ~ ~ ~,n, ~~.~E:~ ~ ~, '""~ ~,.'t"}t"s. ~.~-` . ~ _,~ _...,_. ~ .__ _._~,~.__ _~_._ $ ''' /"~~„~ ~.~: }~ ~ ~ , ,~~ ~~. ~' ~ ~, ~ ~ ~~~~ „ ~ E ~~~ ~, _. ,_....__..~__.____.. _,_~._ _ __~~_..._~__.,__. . . _ .._.~_. A}>~rUU~c-~9 „G C)cMft.- C~ne~utFri`t;i 1 b9us~.'~,ch In~ ii .:olnri 71W~i~i[~i~~ir ,.ii~;Wa~1t ~l~li.;~•,~~s f A ~ ~ Teck Cominco Alaska Incorporated Summary Drilling Program Exploration Well No. NB-04A Surface Location: 1078ft. EWL, 1494ft. SNL, Sec. 17, T.31N., R. 18W., KRM y x= 584,449ft., y= 5,150,969ft ASPC Zone 7 Synopsis: This well will be drilled to a total measured depth of 3000ft. to test selected zones in the Kivalina formation for natural gas. The well is programmed as straight hole. The drilling contractor is Major Drilling America, Inc, of Salt Lake City, Utah. A Schramm T130XD rig will be used on this well. Drilling Fluid: This well will be drilled with air using a downhole haminer through the surface casing Section (0-1500ft.), and a non-dispersed extended bentonite mud system will be used below 1500ft. w `"" Drilling Hazards: No abnormal pressures are anticipated. High fresh water infl~ rates and unstable hole conditions can be expected below 1500ft. The mud program should adequately address these conditions. Wells No. NB-O1 and NB-02, both drilled in 2005, and located 2204ft northwest, and 1199ftVsoutheast respectively, successfully penetrated the same Kivalina interval, that will be encountered in the NB-04A well. Well No. NB-04 was drilled to 2413ft in 2006, and prematurely abandoned due to mechanical problems associated with high water influx rates and unstable hole conditions. This well was drilled with air, and this approach could not successfully advance the hole under the aforementioned water and instability conditions. Completion reports for the NB-O1, NB- 02 and NB-04 wells are on file with the AOGCC. Casing Program: Conductor: A 13 3/8" conductor will be pre-set and cemented at 75' in an 18" ~ hole before the start of drilling. The conductor will be cemented to the surface. ~ Surface Casing: Hole size - 12 '/4"; Casing - 8 5/8" 24# J-55, ST+C; Depth -1500' (Base of permafrost @~ 640' MD); ~ Collapse: 1370psi; Burst: 2950psi Cement: 1061 cu.ft. Coldset II Production Casing: Hole size - 7 7/8"; Casing 5%2", 15.5#, J-55, LT+C; . ~ ~ Depth 3000' to surface; Collapse: 4040psi; Burst 4810psi; Cement: Lead - 250 cu.ft.Coldset III, Tail - 569 cu.ft. sx Type I Cementing Program: See Attached Well Control: A Washington Series 2000 Rotating Control Head (Diverter) wi11 be used from surface to TD. See attached data sheet. Shallow Gas: Shallow gas as considered in 20AAC 25.061 (a) is not a factor in this well, as evidenced by numerous core hole penetrations in the North Basin drilled as part of an extensive mineral exploration program in the area, and by the drilling of Wells No. NB-O1 and NB-02. The North Basin is not a typical petroleum province, in that the Kivalina formation overlies a mineralized zone. The gas that is the target of the well is absorbed within a dense shale body of extremely low porosity and permeability and will at a minimum require extensive hydraulic fracturing to liberate. ~- - Drill Cuttings and Water Disposal: Drilling wastes, and waste water from fracturing and production testing will be disposed of in the Red Dog Mine tailings pond.w Approval for this disposal was granted by the EPA by letter dated October 27, 2004. Drill cuttings recovered from the hole section drilled with air will be trucked to the Red Dog solid waste disposal site, as has been the established practice in previous seasons. ~.,,a ..,, v.,., ~~..,.w~~~.f-y vvaa~ava iac.uus ~ 1 V~.1 L!11VG ~al~j~J ~ ~ t-~i ~~~~~~~~~`~'~`~~,~ ~~~~~~'~~~~ ~ ~~~~~'~~~ s~~~`~~~~ ~A~~~;~ ~~ ~~. 4 ~n~9 ia'~9 ~i fEfS 7'~ R 7t7r`a~~ NS:~N~ '+~sM ~.t'~f~'r:fS ' ; F.r d_3 C~s;, a 3 r i;~~t. :~rn ~+ Ur, i.s3;; ~ACK TO PRODUCTS ~ag~ 1 Of 1 ~ SERIES 2000 ROTATING CONTROL HEADS (Top Drive Rigs) The Washington Series 2000 is a low profile rotating control head designed for "top-drive ~igs" or "work-over rigs." The frictional engagement betweer the drill string and stripp~r rubber rotates the control head with the drill string, sealing off the well bor~ r~~ continuously, while diverting all cuttings and debris. This unit is designed to be used with our Part #2010 Stripper Rubbers, and can seal ofF from 2" to 5" drill steel. Whether you are drilling gas, oil, o geothermal wells, Washington Rotating can accommodate all you diverter needs. Call or send us your inquiry for pricing. ~ ~.vn-KV Iq11ry(~ GVNTROL HEADS ~~ ROTATING C~NTROL WEADS OVERALL ~ gp~y~ ~ OVERAII. BODY SLEEVE BOWL SIZE FLANGE HEIGHT BODY BORE S~E FLANGE HE'IGNT BOR~' BORE 7-1/16" 6"- 900 17-3/4" 7-1/16" 7-1/16" 6"- 900 26" 7-1/16" 5-5/8" 8~~ 8"- 400 17-1/2" ~] 8" 8" - 400 25-3/4" 8" 5-5/8" il" 10"- 400 17-1/2" 11-1/8" 11" 10"- 400 23-1/2" il-1/8" 5-5/8" 11" 10"- 900 15-1/2" 11-1/8" 11" 10" - 900 23/3/4" il-1/8" 5-5/8" ----- ----- L -'~J~-"~--_ 14~~ 12" - 900 22" 14" 5-5/8" ~INE Ce4N MANUFACTURE ANY SIZE BOWL TO MEET YAUR SPECIFTC iVEED9 [N2M~] [ABdUT US~ [OUR PRODUCTS] [C~NTACTING US] [SEND US YOUR IP 1TRV Q~~] [EVEtVTS] http://www.washingtonrotating. com/2000.htm1 4/25/2005 ~i ~~t . li ~ irt: ..I I ~ • Teck Cominco Alaska Incorporated Well Number NB-04A Procedure 1. Hold pre-operations safety meeting, as per established Fairweather Procedures. 2. Move-in and rig-up Major Drilling America Schramm T130XD rig and ancillary equipment. 3. Hammer drill 18" conductor hole to 75ft. Run 13 3/8" conductor with stab-in float shoe to 75ft and cement to surface with permafrost cement. WOC, and complete MIRU of drilling equipment while WOC. 4. Nipple up diverter on 13 3/g" 3M x 13 3/8" S.O.W. diverter head. Function test diverter on single joint of drill pipe. 5. RIH with hammer and drilling assembly to bottom of conductor. Function test diverter. 6. Hammer drill 12 1/4" hole to 1500' M.D. Sample cuttings as directed by ARI geologist. At 1500ft M.D. blow hole clean and P.O.O.H. for surface casing. 7. Make up float shoe and float collar on 8 5/8" surface casing shoe joint. Run surface casing as directed. Rig up BJ cementers and cement surface casing as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement out of conductor/surface casing annulus to bottom of cellar. W.O.C. as directed. 8. Cut off conductor at base of cellar install 11" 3M x 8 5/8" S.O.W. diverter head on surface casing. Function test diverter on single joint of drill pipe. 9. Mix non-dispersed extended bentonite mud system as directed by on-site engineer. Maintain viscosity sufficient to clean hole, but keep mud weight in 8.6-8.8 ppg range ~° during drilling of next hole section. Periodic additions of LCM may be necessary to control fresh water influx and tendency of hole to take fluid in heavily fractured zones. 10. RIH with drilling assembly to float collar. Close diverter and pressure test casing to SOOpsi for 15 minutes. Drill out float collar, shoe joint and float shoe, and drill 7~/g" hole to 3000ft. M.D. Sample drill cuttings as directed by ARI geologist. At 3000' M.D., circulate hole clean and P.O.O.H. for logs. ~ , 11. Rig up Weatherford Precision Energy Services wire line unit. Make single attempt at open hole wireline logs. Objective is to obtain array induction, compensated sonic, compensated neutron, photo density, sonic waveform, gamma ray, caliper, and / directional data in open hole section. If not successful due to deteriorating hole conditions make cleanout run and prepare to run 5%2" production casing. A cased hole logging program will be developed in the event the open hole logging run is prematurely aborted. 12. Make up float shoe and float collar on 5%2" production casing shoe joint. Run production casing as directed. Rig up BJ Services cementers and cement production casing to surface as per cementing program. If cement does not circulate to surface, do top job as directed. Drain cement slurry out of 8 5/8" x 5%2" annulus to base of cellar. W.O.C. as directed. 13. Cut off surface casing at base of cellar and recover 8 5/8" diverter head and cut off casing. Install7 1/16" 3M w. lock screws x 5 1/2" S.O.W. tubing head and 7 1/16" 3M x 7 1/16" bore drilling valve. 14. Rig up Weatherford Precision Energy Services wire line unit and run cement bond = log from T.D. to 1500" M.D. If necessary to achieve zonal isolation, squeeze production casing as per supplementary program to be prepared after analysis of bond log. 15. Zones to be perforated and fraced will be selected by ARI geologists after analysis of open hole logs. Perforate selected zones and frac as per supplemental program to be prepared after analysis of open hole logs. Form 10-403 will be submitted in advance of this work. 16. Completion and testing program will be prepared following analysis of open hole logs. 5 ~ Teck Cominco Alaska Incorporatec! NANA FEE NB 04A APl # 50-073-20005-0000 UNIdAMED Field 17-31 N-18W Alaska March 19, 2007 Well Recommendation Prepared for: Mr. ~ob Gardner Project Manager Fainiveather E& P Services, Inc Bus Phone: (907) 258-3446 , AAobile: (907) 360-3000 Prepared by: Edwin Post Senior Dist Operations Supv Kenai, Alaska Bus Phone: 907.776.4084 Mobile: 907.252.1863 ~"'' ~+C~W~R~I~~~I~~ [' e7 u ~~ u {' Ex c~Y + (' cr it° r [t ~ C ~z ~1 ~ + ~' e~ ~s r~: ~ l , B ~ ~ Service Painto S~rvec~ R~presentatives: Kenai, AK Rod Edwards Bus Phone: (907) 776-4084 Account Manager (907) 659-2329 Kenai, Alaska Fax: (907) 776-4087 ~us Phone: 907-349-6518 Mobile: 907-229-6536 ~rd905 JO~ AT A~- t3LA9VCE Depth (TVD) ~ept~ (~w~) liole Size Casing Size/VHeight : Pump Via Cement Slurry Cold Set II Cement , Density Yield Dispiacement Water Density 75 ft 75 ft 18 in 13 3/8 in, 68 Ibs/ft 13 3!8" O.D. (12.415" .I.D) 68 107 sacks 14.95 ppg .94 cf/sack 11 bbls 8.4 ppg Report Prinf2d on: Maroh 2?, 2007 f 1:53 Pft9 ~~~~ A Gr41G9 B STIP/IULATION e CEMENTING o GOMPLETION SERVICES o SERVICE YOOLS o COILED TUBING FR06UCTIpN CHEMICRLS e CASING RRD YUBING RUNMING SER~6ICES ~ PIPELINE SERVICES o V~LL CONTROL oAIELL ~~-TA ANNULAR GEOMETRY SUSPENDED PIPES Mud Density 8.50 ppg i/OLUME CALCULATIONS 75 ft x 0.7914 Cf/ft with 70 % exCess = 100.9 Cf TOTAL SLURRY VOLUME = 100.9 cf = 18 bbls Conductor Casing will be a"Stab In" for the cement job. No 13 3/8" Plug is required. P.cparf Printed on: 4ularch 24, 2007 11:53 PM p~~~~ aa Gr4115 P" ~ Sl'IMUI.ATIOfV o CEMENTING o COMPLETION SERVICES e SEFdVICE TOOLS e COILED TU81NC ~RODUCTIOPd Ci-IERAICALS o CASfNG AND TUBIPdG RUNNING SERVICES e PIPELIf~E SERVICES o~LL CONTROL SLURRY NO. 1 Slurry Weight (ppg) 14.95 ~lurry Yield (cf/sack) .94 Amount of Mix Water (gps) 3.64 Amount of Mix Fluid (gps) 3.64 ?~taoii t'inted cn: i~,~arch 24.2007 ~17:54 Phrt % Gr4129 ~~~~ 7 S"tlPnI~LATIOfV o CGMENTIRlG e COMPLETIOfV SERVICES a SERViGE TQQLS o GOILED i UFIPJG i~RODUCTION CHEMICA~S o GASBNG AND TUBING RUPINING SF_RVICES o PIPELINE SERVICES o VVE4L CON i ROL JOB ~4T A- C~~RICE Depth (TVD) Depth (nAD) Hole Size Casing Size/Weight : Pump Via Spacer Fresh Water Spacer , Density ~ Lead Slurry Coid Set 111 Density Yield Tail Slurry Cold Set II Der+sity Yield Displacement Cement Displacement Density SurFace String will be air drilled Production String wilt be drilled with mud 1, 500 ft 1,500 ft 12.25 in 8 5/8in, 24 Ibs/ft 8 5/8" O. D. (8.097°' .1. D) 24 15 bbls 8.3 ppg 366 sacks 12.2 pP9 1.87 cf/sack 400 sacks 14.95 ppg 0.94 cf/sack 90 bbls 8-6 pP9 Report Prinfed on: Ptarch 34, 200i 11:5? PM ~~~~ P_ Gr4109 V STIMULATION o CE~AENTING o COAAPLETION SERVICES e SERVICE TOOLS o COILED TUBING PRO~UCYION CHEfu11CAL5 o CASIPIG AND TUBIFIG RUfVNING SERVICES o PIPELINE SERVICES e WELL GONTRQL WELL D~4Ti4 ANNIJLAR GEOMETR1f SUSPENDED PIPES Float Collar set ~ 9,420 ft Est. Static Temp. 34 ° F i/OLUAAE CALCULA~IONS 75 ft x 0.4349 cf/ft 925 ft x 0.4127 cf/ft 500 ft x 0.4127 cf/ft 80 ft x 0.3576 cf/ft ~rith 0 % excess - with 70 % excess = with 70 % excess = with 0 °~ excess = TOTAL SLURRY VOLUME _ 32.6 cf 649.0 cf 350.8 cf 28.6 cf (inside pipe) 1061.1 cf Surface String will be air drilled Production string will be drilled with mud 189 bbls Repurt Frinted on: h7arch ~?, 2007 19:a4 PM ~~~~ ~ Gr4115 STIMULATION o CEMENY~NG o COAflPLETIONSERVICES e SERVICETQOLS a COILEEITUBING PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL , ~ ~ 4~erator {~arne: T~ck G~rninca Alaska Ir~carparat !~ ~i! ~J~s~~: ~3,41~A ~EE B~~ 04A ~ J~b ~~~~riptiar~a ~ 5/~"° ~urface ~~t~a March 19, 2007 ~ro~a~~l ~f~: 'i ~C1~ 10150`1 ~ FL411D SRECIFICATifJIdS Spacer 15.0 bbls Fresh Water Spacer @ 8.34 ppg VOLUME VOLUME ~LUID CU-FT FACTOR AMOUNT AND TYPE OF CEMENT Lead Slurry 6~2 / 1.87 = 366 sacks Cold Set III + 0.05% bwoc Static Free + 91.6% Fresh Water Tail Slurry 379 /.94 = 400 sacks Cold Set II + 0.05% bwoc Static Free + 43.3% Fresh Water Displacement 90.4 bbls Cement Displacement @ 8.6 ppg CEMENT PROPERTIES SLURRY SLURR1f NO. 1 NO. 2 Slurry Weight (ppg) 1220 14.95 Slurry Yield (cf/sack) 1.87 0.94 ' Amount of Mix Water (gps) 10.99 3.64 TO BE PROVIDED BY OPERATOR: , Flush is to be provided by operator. Additive loadings wrill be tested and verified by lab work based on well conditions P.epori I'rinteb crc. MareB 24, 2007 71 t4 Pte7 ~ Gr492P Pag~ ~ uTIMULF,TfCtPd ~ GEP~E6dTi6VG ~~CAt~2PLETl~Fil SERV6CCS o SER~lICE T4`iOLS o CE5ILED ~L`~66JCs t'~ODU~TIOtJ CNEt~IGALS o ~ASING Af~~ FU~lR4G F~UNNING SERVIICES e E~BPELIfUE SEPVIGES , VJELL CQPJTRf3L JO~ A°P A G1~-N~~ Depth (11/D) 3,000 ft D~pth (MD) 3,000 ft Fiole Size 7.875 in Casing SizeNVeight : 5 1/2in, 15.5 Ibs/ft Pump Via 5 1/2" O.D. (4.950" .I.D) 15.5 Spacer Weighted Spacer 30 bbls , Density 9.5 ppg Lead Slurry Cold Set III 135 sacks Density 12.2 ppg Yield 1.87 cflsack Tail Slurry Type I 296 sacks Density 14.5 ppg Yield 1.48 cf/sack Displacement Dispiacement 70 bbls Reecu[ Printed on: ~dsmh 2S, 2Q0719:54 PM ~~~~, ~ o' Gr41Q9 STIRAULATION a CEMEtVTING o COMPLETION SERV~CES a SERVICE TOOLS o COILED TUBING PRODUCTION CHEMICALS o CASING AND TUBItJG RUNNING SEfdVICES e PIPELINE SERVICES o WELL CONTROL iAfELL DAT~4 ANNULAR GEOMETRY SUSPENDED PIPES Float Collar set ~ 2,920 ft Mud Density 9.00 ppg Est. Static Temp. 63 ° F \/~LUME CALCULATIONS 1, 300 ft x 0.1926 cf/ft with 0% excess ~ 250.4 ~ff 200 ft x 0.1926 cf/ft with 0°k excess = 38.5 cf 1, 500 ft x 0.1733 cf/ft with 50 % excess = 389.8 cf 80 ft x 0.1336 cffft with 0% excess = 10.7 cf (inside pipe) TOTAL SLURRY VOLUME = 689.4 cf = 123 bbls Production string will be driiled with mud Re~~eR Printed en: p4arch 24, 2067 19:84 Phfl ~g ,@ Gr4115 Y ~ ~S 0~ STlPAULATION e CEMENTING e COdAPLE710N SERVICES e SERVICE TOOLS o COILED TUEING PRODUC i ION CHEMICALS a CASING AND TUBING RUNNING SERVICES o PIPELINE SER~fICES a WELL CONTROL Lead Sl~arr~ 250 / 1.87 = 135 sacks Cold Set IBI + 0.05°/a bwooc Static Free + 96.8% Fresh Water Tail Slurry 439 / 1.48 = 296 sacks Type I Cerrient + 8% bwoc BA-90 + 0.05% bwoc Static Free + 0.5% bwoc CD-32 + 1 gals/100 sack FP-6L + 0.4°k bwoc BA-10A + 62.1 % Fresh Water Displacement 69.5 bbls Displacement CEAAENT PROPERTIES SLURRY SLURRY , NO. 1 NO. 2 Slurry Weight (ppg) 12.20 14.50 Slurry Yield (cf/sack) 1.87 1.48 Amount of Mix Water (gps) 8.85 7.00 Amount of Mix Fluid (gps) 8.85 7.01 TO BE PI~OVIDED BY OPERATOR: L~ase water or 2% KCL water for flush is to be provided by operator. Additive loadings will be tested and verified by lab work based on well conditions , ~^-nie~Frln;cd ~n: Palarr.h 2?.200711:54I~Dfl Gr4729 ~~~~ ~ ~ STIfs9ULATIOF! , CGMEPITIP~G a COMGLETI~hdSERVICFS a~Ei?VICETOOLS a GOILEDTU~ING Ct?ODUCTION CNEMICALS ~ CASlPJG ?.PdD TU2ii~G RUNNING BERVICES e PtPELINE SERVIG~S o WELL COPJTROL • ~~~rat~r ~~~~e ~ii ~~r~~a Dat~: Teck Cominco Al~ska Incorparat (~F~hl,~ F~~ ~[~ C-4A ~tlar~h 19, 20Q7 • !~ ~ ~r~~~~~~ ~~0 1 ~011 Q1 ~431 ~ PRODIJCT DES~~IP°fIt~IVS ~A~10/~ lmproves eement bonding and acts as a matrix flow control agent. BA-10A is effective in a wide variety of slurries. BA-90 An non-compacted silica fume that produces high compressive strength, low den~ity cement sBurries which prevent annular gas migration by reducing slurry permeability. It can be used in the low to high temperature ranges. Barite - Sacked A naturally occuring mineral (Barium SuPfate). It is widely used as a weighting material in cement spacers and occasionally in cement slurries. if can yield a slurry density in excess of 19 Ibs/gal. Bentonite Commonly called gel, it is a clay material used as a cement extender and to control excessive free water. CD-32 A patented, free-flowing, water soluble polymer that is an efficient and effective dispersant for primary and remedial cementing. Cold Set II Cold Set II is specially designed to meet the demands of cementing through the permafrost. It provides a high ea~iy compressive strength and also is an effective insulator. Cold 5et III Cold Set III is specially designed to meet the demands of cementing through the permafrost. It provides a high early compressive strength and also is an efFective insulator. FP-6L A clear liquid that decreases foaming in slurries during mixing. Static Free An anti-static additive used to prevent air entrainment due to agglomerated particles. Can be used in Cementing and Fracturing operations to aid in the flow of dry materials. Type I Cement A Portland cement designed for use to 6,000 Ft. Type I cement can be modified for use at greater depths. ~YPe P,epart Printed on: g~ ,g GrRi 63 fFarch 24. 20Q7 i i:5~°- FPh E"' ~~~ 1~ STIMULATION o CEMEN i ING o COMPLETION SERVICES o SERVICE TOOLS o COILED TUBIRG PRODUCTION CHEMICALS o CASING AND TUBING RUNNING SERVICES o PIPELINE SERVICES o WELL CONTROL .' ~°:::~,\ ~~~ ap~ ~~ '~.\\ ~~ ~ ~ ~ July, 5, 2005 Mr. Tom Maunder, P. E. Petroleum Engineer Alaska Oil and Ga.s Conservation Commission 333 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Teck Cominco Alaska Incorporated, Wells Nos. NB-O1 and NB-02 Dear Mr. Maunder: Thank you for your e-mail of June 28, 2005 which lists several questions and comments regarding the procedures for drilling the above referenced wells, as well as the authority by which Teck Cominco Alaska Incorporated will operate these wells. I believe we satisfactorily addressed these issues during our meeting on July 1, 2005, subject to the written responses to your questions presented herein. The points listed below follow the same numbering system used in your original e-mail: 1. Need bond or letter of credit in pdace before permit applications can be approved (20 AAC 2S. 025): The blanket bond was electronically transmitted to your oi~ice this date, with the haxd copy following by overnight mail. 2. Need a lease map showing affected dease and those immediately surrounding it. Need ownership/land ownership information for the affected lease and adl ~' adjoining leases: The requested map is attached. The NANA lands are not subject to a traditional oil and gas lease, but rather to a confidential exploration agreement between NANA and Teck Cominco, and also to a specific Letter of Intent between the parties referencing the subject gas e~loration project, which is also confidential. 3. Need Designation of Operator Form (20 AAC 25. 020)------: The completed Designation of Operator form (10-411) is attached. 4. Need Notice of Change of Ownership-------: It was determined during our aforementioned meeting that this form is not required. 5. 20 AAC 25. 033 (i) allows the Commission to approve under balanced drilling. The request for under balancea' drilling tnust include-------: The subject wells will be drilled with air using a Washington Control Head as described in the APD's. The Washington Control Head is basically a rotating head, with all 2000 East 88th Avenue • Anchorage, Alaska 99507 •(907) 258-3446 e FAX (907) 279-5740 650 iVorth Sam Houston Parkway East, Suite 505 • Houston, Texas 77060 •(281) 445-5711 m FAX (281) 445-3388 ~. ~ I • cuttings and return air diverted through a"blooie" line to a cuttings bin and sampling cyclone located a minimum of 30 ft away from the wellbore. 1500 bbls of water will be stored on location during drilling and will be available to fill the wellbore as a well control contingency. The extremely low porosity and permeability of the shales being penetrated limit gas flows during drilling to what gas is absorbed within the shale that is pulverized during drilling. Air flows during drilling (1000 cfm or more) will keep any gas in the wellbore below the LEL. The Commission has approved an almost identical drilling procedure during the Evergreen CBM program (PTD's Nos_ 202-178 and 202-179). 6, 20 AAC 25. 035 (h) (1) allows the Commission to approve a varia~ace from the BOP requirements----------: See No. 5, above. 7. 20 AAC 25. 035 (h) (2) addows the Commission to approve a variance from the diverter requirements if an equally effective means is provided to divert fZaw cxwcry from the rig"----: The Washington Control Head accomplished thi,s function. A sepaxate diverter, as used in conventional mud/rotary drilling operations is not planned for this drilling program. In the subject case, the "diverter" is the Washington Control Head. 8. A diagram of the diverter and rotating head crrrangements shoudd be provided. A plan of the rig and support equipment should be provided.• These diagrams are attached. 9. 20 AAC 25. 061 (c) allows the Commission to waive the shallow site survey if other effective means can identify the dikelihood of encountering shallow gas: We submit that the density of mineral exploration core holes in the area adequately addresses this issue. None of these core holes (all of which were drilled without any means of well control under mineral exploration regulations) encountered any shallow gas. 10. 20 AAC 2S. 066 covers gas detection requirements. There is no waiver clause for gas detection equipment absent a hearing, etc.--------: Teck Cominco will provide gas detection equipment during the drilling of NB-O 1 and NB-02. If the results of this pilot shale gas project are encouraging, and subsequent wells are proposed, we reserve the right to make a formal waiver request for all subsequent wells, recognizing that a hearing will be required. 11. Inclination survey--------: Surveys will be run every 500 ft. 12. Mud log or lithologic log---------: A geologist will be on site to construct a continuous lithologic log as the wells are drilled. A conventional mud log will not be possible, as the wells are being drilled with air. Your e-mail addressed the need for a spacing exemption for Well No. NB-02. This application is being submitted under separate cover. Your e-mail also listed 14 "Questions and Comments", which are addressed in the same format below: We presume that gas detection will be pcrrt of the mud logging equipment: See Nos. 10 and 12 above. ~ C J 2. We presume there is not any seismic data in the area--------: There is no seismic data in the area, neither is there any velocity information available. We submit that the e~ensive mineral core hole data that has been accumulated in the area adequately addresses shallow gas concerns that would otherwise be addressed by the seismic data. 3. Have there been any observed over pressured gas or fZuids in any boring or core holes within the area?: No 4. Can you provide more detail on previous drilling operations in the area? How maizy core oY test holes have been drilled in the area, etc. ---: One hundred twenty three mineral exploratioa holes have been drilled in the area. A map is attached that shows the locations of these core holes. 5. Is Core Hole 1107 plugged?: The hole is plugged by ice through the perma,fi-ost zone. Mineral exploration regulations do not require the plugging ( in the conventional oil field sense) of core holes. See No. 4, above. 6. Has significant shallow gas ever been encountered in the at•ea?: No 7. Has and H2S ever been demonstrated in this area? A stronger case must 8e made before the Commission can waiveH2S requirements in 20 AAC 25. 065: There has never been H2S encountered in any of the core holes in the area, ar in any of the extens~ve mining operations at Red Dog. I don't know how to make a"stronger case". 8. What is the basis for carlculating the BHP and surface pressure listed in Block 17 on Form 401 ?: The pressures shown on Forms 401 are not locally based, but rather are based on Barnett Shale experience in Texas. We used the Barnett shale case, a lithologically it represents some similarity to the Kivalina formation at Red Dog, is organic-rich, and when fractured and de-watered, produces gas in commercial quanties. 9. When the various hode sections are compdeted wrll logging be accompdished with fluid in the hole?: It will be necessary to fill the hole with water to achieve the logging products desired. 10. Widl casing be run and cemented with fluid in the hole?: The production string will be run and cemented with fluid in the hole, since the hole will be filled with water in order to obtain the desired logs (See No. 9, above). Surface casing will be run through the permafrost zone without fluid in the hole, except that which occurs from natural seepage. 11. Barsis for not requiring BOP equipment and request for additional porosity/permeability data-- : During our aforementioned meeting we have provided you with a Scoping Study developed by Advanced Resources International, and P&P report from the University of Alaska which addresses this request. 12. The request tv be under balanced wtll also be supported by the `arnswers" to the questions above: Understood 13. Elimination of gas detection equipment: Previously addressed. Gas detection equipment will be provided. 14. Are theYe arry drinking or industrial water wells within the area--------?: No. . ~ ~ I hope this information adequately addresses your concerns. Please call or e-mail at any time should you have further questions or comments. Sincerely, a ~~~~~ R. C. Gardner Sr. Technical Advisor For Teck Cominco Alaska Incorporated Enclosures • ~ NB-04A Conformance to AS 31.05.030(j) NB-04A is a shale-gas (non-conventional gas) exploratory well. (j) For exploration and development operations involving nonconventional gas, the commission (1) may not (A) issue a permit to drill under this chapter if the well would be used to produce gas from an aquifer that serves as a source of water for human consumption or agricultural purposes unless the commission determines that the well will not adversely affect the aquifer as a source of water for human consumption or agricultural purposes; or The NB-04A rvell is located on private property (NANA Corporation lands) on the side of a hill, about 1-1/2 miles north of the Red Dog Mine. This area has been extensively drilled for mineral exploration purposes to sima.lar depths. The Red Dog Mine obtains water for industrial and domestic use from the Bons Creek Reservoir, which is located in a separate drainage basin about 5 miles away. The nearest native villages are Noatak, located more than 40 miles away, and Kivalina, located about 60 miles aroay. NB-04A is located on a 4 percent grade hillside, about 60 feet higher than and 1,700 feet away from, a 50-foot wide creek that meanders through a 400-foot-wide valley. The location of this well and the abundant surface s~ater nearby make it highly unlikely that any potential aquifers affected by the well will ever be used to pronide r,~ater for human consumption or agricultural purposes. (B) allow injection of produced water except at depths below known sources of water for human consumption or aqricultural purposes; Produced water is not injected. Any water resulting from production testing or dewatering operations is disposed in the Red Dog Mine tailings pond. The operator reports that EPA granted appronal for this disposal by letter dated October 27, 2004. (2) shall (A) regulate hydraulic fracturing in nonconventional gas wells to assure protection of drinking water quality; 8-5/8" surface casing will be set about 1,500 feet below the surface and cemented to surface. The well will be drilled to a total depth of 3,000 feet, logged, and then 5- ~ • NB-04A Conformance to AS 31.05.030(j) Page 2 of 2 June 26, 2007 1/2" casing will be run to total depth and cemented to surface. A cement bond log will be run to indicate good cement bond through and above all zones of interest. Zones to be perforated aud fractured will be selected after analysis of open hole logs. Applications for Sundry Approvals will be submitted for Commission approval prior to perforating, fracturing and testing operations. These operations will not affect dsinking water quality because: the site is remotely located; the shallowest perforation will lie at least 1,500 feet below the ground surface; the we11 wi1Z be cased and adequateSy cemented from TD to surface; and the well will be located at least 1,700 feet from the nearest stream. (B) regulate the disposal of wastes produced from the operations unless the disposal is otherwise subject to regulation by the Department of Environmental Conservation or the United States Environmental Protection Agency; Wastewater from drilling operations, fracturing and production testing was disposed in the Red Dog Mine tailings pond. The EPA reportedly granted approval for this disposal by letter dated October 27, 2004. Drill cuttings recovered from the well will be trucked to the Red Dog solid waste disposal site. (C) [Repealed, Sec. 6 ch 79 SLA 2005]. (D) as a condition of approval of a permit production or production testing of coal bed operator to design and implement a water we] provide baseline data on water quality commission shall make the results of the program available to the public. to drill a well for methane, require the 1 testing program to and quantity; the water well testing Not applicable to this remotely located, shale-gas exploration we11. The closest A*ater source for domestic use is Bons Creek Reservoir, which is located in a separate drainage basin about 5 miles away. The nearest village is located more than 40 miles away. ~ ~~26•n7 Steve Davies AOGCC June 26, 2007 ~ ~ NB-04A: Regulatory Waiver Analysis Waiver Requested Regulation Recommendation and Discussion 1-Underbalanced 25.033(b) and Approval of this waiver is recommended. drilling 25.033(i) This well is planned to be drilled using air to 1,500' depth, then to TD using 8.6 to 8.8 ppg non-dispersed bentonite mud. A similar air-drilling program has been previously employed drilling shallow wel(s for coal bed methane (CBM). Tech Cominco (TC) provided a core study performed at University of Alaska, Fairbanks designed to determine the porosity and permeability of cores obtained in nearby mineral exploration wells. The study determined that the "best" permeability in the samples examined measured about 0.2 millidarcies. With such low permeability, it is most unlikely that significant natura! gas flow could occur while drilling with air. TC has provided a description of the equipment to be employed. No abnormal pressures of shallow gas were encountered during drilling of offset wells NB-01 and NB-02 during 2005. Rotary drilling using bentonite mud below the surface casing shoe at 1,500' depth will control high freshwater influx and unstable hole conditions that caused nearby well NB-04 to be prematurely abandoned before TD was reached. Based on the submitted information, it is determined that the proposed underbalanced drilling operations can be conducted without loss of well control. Underbalanced operations are approved per 20 AAC 25.033 (i). 2-Employing a 20.035(c) and Approval of this waiver is recommended. In "rotating head" rather 25.035 (h) (2) air drilling operations, a rotating head is than a diverter during employed to direct return flow from the well air-drilling operations, away from the rig floor. A rotating head is a diverter whose design allows the annulus to be continuously sealed while drilling operations are being conducted. Based on the submitted information, it is determined that use of the proposed rotating head will provide an equally effective r~eans of diverting flow away from the rig floo~ per 20 AAC 25.035 (h) (2). ' AOGCC June 26, 2007 I Pag~e 1 of 2 I~ ~ ~ u NB-04A: Regulatory Waiver Analysis Waiver Requested Regulation Recommendation and Discussion 3-Not to employ a 25.035 (e) Approval of this waiver is recommended. A BOP and BOP is employed to provide additional control 25.035 (h) (1) ability if the hydrostatic pressure of the drilling fluid were insufficient to contain any formation pressure. The porosity and permeability studies provided by TC have shown that the rock is very "tight". Given the low permeabilities determined, conventional flow is essentially impossible. Based on the submitted information, it is determined that equipment planned to be used by TC is appropriate for the anticipated subsurface environment and that this equipment will provide an equally effective means of well control per 20 AAC 25.035 (h) (1). 4-Requiring near 25.061(a) and Approval of this waiver is recommended. surface seismic 25.061 (c) The general area is a"hard rock" mineral surveys province. TC has conducted an e~ensive mineral core exploration effort in the area resulting in over 100 core holes. Nearby wells NB-01 and NB-02 were drilled without incident. No shallow gas or abnormal pressure hazards were encountered during drilling of any core hole or well. Based on the submitted information, it is determined that previous drilling programs conducted by TC are an equally effective means of determining the likelihood of potential shallow gas per 20 AAC 25.061 (c). ~•~-lo•d7 AOGCC June 26, 2007 Page 2 of 2 FAIRWEATH~R ~~NL4RAT1 F~~3STNAT~ BANKALASKA 89-6 ``& PR~dUCT1QN SER~/l+~E~ ~. ~ ,252 2 0 0 f 9$ (3~IHERIIL ACCtStJNT 2000 ^E. $8th;AV~., SUITE 2p0 ~ ~ ~IRWEATHER EXPLORATION & PRODUCTION SERVICES INC. • ANCHORAGE, AK 9s507-3804 Z O O~ d7 S 3TAK.AOGCC STATE OF ALASKA AOGCC (OIL & G Account #: DATE INV ICE NO. ' pESCRIPTIQN INVOIC AM UNT OEDUCTION BALAN E 6-20-07 070620*GARDNER APPLICATION FEE 100.00 .00 100.00 ATEK 6-20-07 NuMB~R 200698 TOTALS 100.00 .00 100.00 ~ Development Service / E~ (oraro iYoR-Conveationa! P ~` Stratigrapl~~c Z'est Circle Appropriate Letter / P$~graphs to be Incfud~d in Traasmittal Letter ' Cf-~CK ~ V~'HAT ; aPPLtES ,` =----- ~ ; \J ~I'RAiYSIe~tI~'T'AI. C.,~~"I'ER C'~iECiCLIST ~~ a. rc-cC~-~/I 'WELL ~i A:~(E / - ~ ~,l~ ~ j~cs~f ak uk ~~- ~.,~.. ~~- ~ aq~. PTD# Z~~ - ~~~ ~ ~ ~ ~r 6•z~•o~ ADD-Oi~IS (OPTION S) ~ MliLTI LATERAL j (If last two degits ~ ~PI number ; between 60-69) PILOT E[OLE ' ~ ~ SPACING ~ ' EXCEPTION ~ i ~ i ~ ; DRY DITCH ' i SA!1~IPLE ~ ~ ~ ! ~ ~ , i i~on-Conventio~at ~ j VVetl i i I ~ ~ ~ ~ i ~ i fn accordance with 20 AAC 2~.OU5(~, a!! record;, data and fo~s ; acquired for the pilot hole must be clearly differentiated in both ; wett name ( Pf-n and API ~umber ~~~" _} from records, data and logs ~ acquered for wet! The perrnit is approved subject to fult cocnp(iarice H,~th Zp qpC ~ 25.055. Apprqva! to perforate and oroduce / inject is contingent J I upoa issuance af a conservatio order a provin a~ a ing j ~ exception. ~~~. / i liabi[i ofan ~~N ° [kSG4 ~+~ ~~~~e i tY y protest [o the spacing exceptio~t that may occur. ~ ~ Atl dry ditch samp(e sets subrnitted to the-Eommission must be in ; i no greacer than 30' samp(e intecvals &om betow che pecmafirost or ; f from wbere samp[es are frst caught and IO' sample interv~ats ; ! through target aones. i ~ Ptease note the following specia! condition of thi; permit; , pro ' a o~oductioa ce~ _ thane is not atlow~ ~ Fn l~~..,e c ..._~rJ _~•~ ~~ ~~~~ Rev: I '2~i06 C:~ jody~transmittal_checklist T'EXT FOR APPROVAL LETTER i The permit i; for a new wetl6ore segment of exi~tino ~ we(! 1II I Permit Yo. are , API No. 50- _ _ ! Production shou[d continue to be repocted as a function of the i ~ origina! 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