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Home My WebLink About205-189Image 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. ,~ ~~ - ~ ~ 7 Well History File Identifier nizin done ^ Two-sided III IIIIIIIIIII VIII ^ Rescan Needed III IIIIIIIII) III III Orga g c ~ RESC N olor Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: BY: aria Project Proofing gY; aria Scanning Preparation gY; Maria Production Scanning Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~ YES ~ ^N^O BY: ~Mari~a ~~ Date: ~ / ~ lsl -,J ~'' ~~C' ~ rr YY Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s II I II X111 I II II I I I I Scanning is complete at this point unless rescanning is required. nned IIIIIIIIIIIIII VIII ReSca BY: Maria Date: /s/ about this file: Quality Checked III II~IIIIIIII'III Comments DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: Date: Date: /s/ /~ iiiuiiiiimiiiii ~~ _~ x 30 =~ + Date: = TOTAL PAGES ~~ (Count does not include cover sheet) /s/ 10/6/2005 Well History File Cover Page doc • ty~ ~_ "b} 't i v( ~~ Y~ l~ ,~ v £ ~ - MICROFILMED 6130/201.0 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE. C:\temp\Temporary Internet Files\OLK9\Microfilm_Marker.doc Aklaqyaaq #1Permit to Dri1120S-f1R9 Davies, Stephen F (DOA) Page 1 of 1 From: Mazzolini, Paul [PMAZZOLINI@talisman-energy.com] Sent: Wednesday, August 22, 2007 10:14 AM To: Davies, Stephen F (DOA) Cc: Amanda Dial (Amanda Dial); Warrick, Bruni Subject: Aklagyaaq #1 Permit to Drill 205-189 Steve, Thank you for the reminder on Aklaqyaaq #1 permit to drill # 205-189. This well was not drilled during the winter of 2005-06 and FEX requests that permit # 205-189 be cancelled. Thank you for your assistance in this matter. Regards, Paul Mazzolini FEX Operations Manager 8/24/2007 ~ ~ Davies, Stephen F (DOA) From: Davies, Stephen F (DOA} Sent: Monday, August 13, 2007 2:35 PM To: 'PMAZZOLINI@talisman-energy.com' Subject: Original Aklaqyaaq Paul, Could you or someone on your staff please help AOGCC with a paperwork matter"? Page 1 of 1 On December 13, 2005, FEX was issued permit to drill number 205-189 for the Aklaqyaaq #1 well at a surface location of 2570' FWL and 1309' FNL, Section 23, T14N, R 14 W, Umiat Meridian. On November 22, 2006, the Commission received a second application far Aklaqyaaq #1 at a surface location of 2238' FEL and 1270' FNL, Section 23, T14N, R 14 W, Umiat Meridian. This application was intended to supersede 205-189. My work notes from 11/30/206 say in part "...Aklaqyaaq 1... Review drilling permit application. Call Paul Mazzolini: this permit replaces 205-189. He will send an email that closes out [cancels] 205-189." In checking through file 205-189, the staff here noted that the email cancelling the permit was not in the file. I checked my past correspondence, and didn't see a copy either. Could you please provide us with an email or letter cancelling permit to drill 205-189? It will properly close the file. Thanks for your help, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 New Email Address: steve_.davies aaska gov_ 8/13/2007 RE: FEX Sundry Application for Aklaq 2 • • Subject: EZE: FEX Sundry Application for Aklaq From: "Buxton, .Iof1n" <JBUXTON@talism~~n-energy.eom> Date: Fri, 17 1~~1ar ?006 ] x:10:13 -0700 I'o: ~hhorl~as Mz~under atom_nlaunder(c?admin.state.ak.us> CC: "Quay, Walter" <Walter.Quaylccasre.ener~y.com%, 'Bellis, Chris" <CBELLTS(ci'talisman-energy.coin?, "Quick, Ntichael J." ~Nlichae~l.Qui~k~a!asrcener~y.con~% Mr. Thomas Maunder, P.Eng., ~o s-~~5 FEX L.P. would wish AOGCC to be able to release documentation that is required to be posted at the rig site, for our current operations in the NPRA during the 2005/6 operating season, to Mr. Michael Quick in his capacity as the FEX Drilling Superintendent, c/o ASRC Building 3900C Street, Anchorage 99503 ar by e-mail to michael.guick(a?asrcenergy.com Please advise if further information is necessary to facilitate the information release. Best regards, John Buxton FEX Project Drilling Manager Office: {907) 339 7634 Blackberry: (907) 227 7254 -----Original Message----- From: Quick, Michael J. [mailto:Michael.Quick@asrcenergy.com] Sent: Friday, March 17, 2006 9:37 AM To: Thomas Maunder; Bellis, Chris; Buxton, John Cc: Quay, Walter Subject: RE: FEX Sundry Application for Aklaq 2 Importance: High Chris or John - We are using the Calgary address for FEX on all AOGCC paperwork. In order for the AOGCC to release a copy of the approved permit to us here in Anchorage, Chris or John will need to respond via email to Mr. Maunder giving him permission to release the approved permit paper work to me here in Anchorage. Please respond to Mr. Maunder as soon as you can. Thanks. Mike From: Thomas Maunder [mailto:tom_maunder@admin.state.ak.us] Sent: Friday, March 17, 2006 8:03 AM To: Quick, Michael J. Cc: Quay, Walter Subject: Re: FEX Sundry Application for Aklaq 2 Mike and Walter, 1 of 2 3/17/2006 12:17 PM RE: FEX Sundry Application for Aklaq 2 I left mesa es on ur~ ~ 11 n g yo and lines and Walter s cell. Don t seem to ha e Mike s ce umber. We will need the hard copies of the sundry. Thanks, Tom Maunder, PE AOGCC Quick, Michael J. wrote, On 3/16/2006 4:35 PM: Tom - Attached is a sundry application to sidetrack Aklaq #2. Please let me know if you have any questions or require more information. Also, if I need to bring printed copies of the application let me know and I will bring them over. Thanks, Michael Quick FEX Project Drilling Superintendent ASRC Energy Services, E&P Technology 907-339-6488 2 of 2 3/17/2006 12:17 PM • r Subject: Permits to dri11 From::,"Bellis, Chris" <CBELLIS~talisman-energy.com> Date: Thu. 1 ~ llec 21}5 1 ;:15:12 -0?~(1' ~'o: toi~~ maunder(~~admir~.state.ak.us CC: "~~~altor Qua}~~ (E-mail)" ~_w~llier.~tu~y~asrccner~~}-.coal== Hi, Tom. Could you please provide a fax copy or other copy of FEX's Permits to Drill to Walter Quay of ASRC (Tel. 339-6341, fax 339-6758). Thanks and regards, Chris Bellis FEX 1-403-803-1660 C~~ ~~~~yoJ ~`c~~ ~~~~ ~oe«~ ~-~~ ~ ~c~ ~~~ ~~~~~~o~ w~~~ ~~~~ ~ ~f ~~~~ 1 of 1 12/15/2005 1:07 PM ~~ ~ ~ ; ~ ~ j ~ ~ ~ AI.ASSA OIL A1QD rirAS COI~TSERQATIOIQ CODII-IISSIOIQ Chris Bellis Drilling Manager FEX L. P. Suite 3400, 888-3rd St. SW. Calgary, AB Canada T2P 5C5 Re: Wildcat Aklagyaaq # 1 FRANK H. MURKOWSKI, GOVERNOR 333 W. T" AVENUE, SUITE. 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 FEX L. P. Permit No: 205-189 Surface Location: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM Bottomhole Location: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM Dear Mr. Bellis: Enclosed is the approved application for permit to drill the above referenced exploration well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week`s activities and is exclusively for the Commission's internal use. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Given the remote location of the well site, please provide a minimum of twenty-four (24) and preferably forty- eight (48) hours notice for a representative of the Commission to witness any 205-189 required test. Contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). DATED this /~ day of December, 2005 cc: Department of Fish 8~ Game, Habitat Section w/o encl. Department of Environmental Conservation w/ o encl. Chairman STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMIS~N PERMIT TO DRILL 20 AAC 25.005 'F~E~~'` Nov ~ ~ ~~~~ _ n:~ ~. r,~~ tons. COmmiSSidtt 1a. Type of Work: Drill ~ Redrill 1b. Current Well Class: Exploratory ~ Development Oil a one ~ Re-entry ^ C Stratigraphic Test ^ Service ^ Development Gas ^ Single Zo age 2. Operator Name: 5. Bond: Blanket ~ Single Well 11. Well Name and Number: FEX L. P. Bond No. 09647820 Aklaqyaaq # 1 3. Address: 6. Proposed Depth: , 12. Field/Pool(s): Suite 3400, 888 - 3rd St. SW, Calgary, AB T2P 5C5 MD: 10,570 / TVD 10,570 Wildcat 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM AA-085494 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM LAS 25297 1/15/2005 Total Depth: 9. Acres in Property: 14. Distance to Nearest 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM 11458 Property: $060' East 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 15. Distance to Nearest Well Surface:x- 326478.89 y- 6055171.59 Zone- 5 (Height above GL): 29' feet Within Pool: 1.7 miles SE of E. Topagoruk ' 16. Deviated wells: Kickoff depth: N/A feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: N/A degrees Downhole: 5606 SI ~ Surface: 1922 SI ~ 18. Casing Program: Setting Depth Quantity of Cement Size Specifiptions Top Bottom c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 20" 16" 65# H-40 BTC 80' 0' 0' 80' 80' Permafrost cement to surface 12-1/4" 9-5/8" 40# L-80 BTC 2700' 0' 0' 2700' 2700' 358 sx Permafrost Lead, 201 sx Class G tail 8-1/2" 7" 29# L-80 BTC 10570' 0' 0' 10570' 10570' 435 sx Class G 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ Time v. Depth Plot ~ Shallow Hazard Analysis ~ Property Plat 0 Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date - 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Chris Bellis Title Drilling Manager / Signature .Phone 403-231-2854 Date ~„~', ~ ,~`~~' S _ Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: ~?S ~- ~~ 50- Z~ - ~ ~"~ ~~ Date: ® requirements. - Conditions of approval: ~S Z~~~-~~ •~_R - y S S pl required Yes o ^ Mud log required Yes ~ No ^ ~ dro n sulfide measures Yes No r^ Directional survey required Yes ^ No ~ ~ ~i u:./r ~ <~~ic>r~ 5- iW/ ~,-y~( f . ~ /I • Lt G ~ ' , ~ . ~ r ~2u ~~ Other: ~ e ` 6l~ ~p ~S~ ~~® ~~I~~C1T'\E~ L/ ` APPROVED BY Approv THE COMMISSION Date: ~ ~ ~~~ is ~~ Form 10-401 Revised 06/2004 Submit inDuplicate STATE OF ALASKA Al~ OIL AND GAS CONSERVATION COMMI ~JN PERMIT TO DRILL 20 AAC 25.005 1a. Type of Work: Drill ~ Redrill Re-entry ~ 1b. Current Well Class: Exploratory ~ Development Oil Multiple Zone ~ Stratigraphic Test ~ Service ~ Development Gas ~ Single Zone 2. Operator Name: FEX L. P. 5. Bond: Blanket ~ Single Well Bond No. ~Q~7820 11. Well Name and Number: Aklaqyaaq # 1 3. Address: Suite 3400, 888 - 3rd St. SW, Calgary, AB T2P 5C5 6. Proposed Depth: MD: ND: 12. Field/Pool(s): Wildcat 4a. Location of Well (Governmental Section): Surface: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM 7. Property Designation: AA-085494 Top of Productive Horizon: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM 8. Land Use Permit: LAS 25297 13. Approximate Spud Date: 1/15/2005 Total Depth: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM 9. Acres in Property: 11458 14. Distance to Nearest Property: $060' East 4b. Location of Well (State Base Plane Coordinates): Surface:x- 326478.89 y- 6055171.59 Zone- rj 10. KB Elevation (Height above GL): 29' feet 15. Distance to Nearest Well Within Pool: 1.7 miles SE of E. Topagoruk 16. Deviated wells: Kickoff depth: N/A feet Maximum Hole Angle: N/A degrees 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Downhole: Surface: 18. Casing Program: Size Specifications Setting Depth Top Bottom Quantity of Cement c.f. or sacks Hole Casing Weight Grade Coupling Length MD ND MD ND (including stage data) PU BLIC IN FORMA TION C OPY 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry Operations) Total Depth MD (ft): Total Depth ND (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth ND (ft): Junk (measured): Casing Length Size Cement Volume MD ND Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth ND (ft): 20. Attachments: Filing Fee ~ BOP Sketch ~ Drilling Program ~ Time v. Depth Plot ~ Shallow Hazard Analysis ~ Property Plat Q Diverter Sketch Q Seabed Report ~ Drilling Fluid Program Q 20 AAC 25.050 requirements 21. Verbal Approval: Commission Representative: Date - - 22. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Printed Name Chris Bellis Title Drilling Manager i ,-- Signature ~, ~' ~'Y '~/~ Phone 403-231-2854 Date ~G' °'~' f ~ ~ ~? ~' Commission Use Only Permit to Drill Number: API Number: 50- Permit Approval Date: See cover letter for other requirements. Conditions of approval Samples required Yes ~ No ~ Mud log required Yes ~ No Hydrogen sulfide measures Yes ~ No ~ Directional survey required Yes ~ No Other: APPROVED BY Approved by: THE COMMISSION Date: Form 10-401 Revised 06/2004 Submit inDuplicate • • FEX L.P. Application for Permit to Drill Aklagyaaq #1 NW NPRA November 2005 • November 16, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Permit to Drill: FEX L.P. Aklagyaaq #1 Dear Mr. Norman: • FEX L.P. hereby applies for a Permit to Drill an onshore exploratory well in the NW NPRA area of the North Slope. The well, called the Aklagyaaq #1, will be located approximately 47 miles ENE of the village of Atqasuk. FEX L.P. plans to spud the Aklaqyaaq # 1 approximately January 15, 2006. Ice road/pad construction equipment has been mobilized via barge to the existing Cape Simpson staging area for this purpose. Upon receipt of all necessary permits and approvals (including tundra travel authorization), the ice road equipment will be mobilized from Cape Simpson to near the well location via approved tundra travel equipment. Construction of an ice runway and ice pad will occur concurrently, followed by the construction of ice road(s) connecting the runway to the well locations. Upon completion of the ice runway and ice drilling pad, a combination of approved tundra travel equipment and heavy lift aircraft (if required) will transport Nabors' Rig 14E from Cape Simpson and Deadhorse to the wellsite, the well drilled to TD and tested if applicable. At the completion of the drilling program, the drilling rig will be demobilized to Cape Simpson via approved tundra travel equipment. Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill (Public Information) - 1 copy 2. Form 10-.401 Application for Permit to Drill - 2 copies 3. Fee of $100.00 payable to the State of Alaska - - 4. Well Prognosis and discussion of operational considerations 5. Location Plat and Drill Pad Layouts 6. Days vs. Depth Drilling Curve 7. Drilling Procedure 8. Wellbore and Wellhead Schematics 9. Pressure information including pore pressure,"mud weight and fracture gradient curves, offset well mud weight curves, maximum anticipated surface pressure calculations, -FIT and LOT procedures, and casing properties and design factors. 10. Diverter, BOP and Choke manifold schematics 11. Cement Program 12. Drilling Fluid Program • Mr. John Norman Page 2 • As part of this application, FEX L.P. also requests approval for the annular disposal of drilling wastes as discussed in the attachments. Form 10-103RD will be completed and submitted at the time the required well information becomes available, if necessary. The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to FEX L.P. For your information, this permit request is being simultaneously submitted to the U.S. Bureau of Land Management. If you have any questions or require additional information, please contact me at 403- 231-2854. Sincerely, ,.~ FEX L.P. Chris Bellis Drilling Manager FEX L.P. Aklaqyaaq #1 Overview and Timetable FEX L.P. plans to drill an exploratory well, the Aklagyaaq #1, in the NW NPRA this winter. Aklaqyaaq #1 will be located approximately 47 miles east northeast of Atqasuk. The well will be drilled from a temporary ice pad with spudding estimated to occur approximately January 15, 2006. The well is planned as a vertical hole. The well will be accessible via aircraft to one of two potential ice runway locations, then via ice road across the frozen tundra and via tundra travel vehicles from the Meltwater 2P Pad. A map showing the details of the runway locations, ice road route, and tundra travel route as well as the drilling location are enclosed in this application. Ice road and pad construction will begin as soon as the necessary permits and approvals are available and the weather conditions allow. Ice road/pad construction equipment has been pre-mobilized via barge to the existing Cape Simpson staging area for this purpose. It is planned that the ice road equipment will be mobilized upon tundra travel opening from Cape Simpson to near the well location via approved tundra travel equipment. Construction of an ice runway and ice pad will occur concurrently, followed by the construction of ice road(s) from the runway to any additional well locations. Upon completion of the ice runway and ice drilling pad, a combination of approved tundra travel equipment and heavy lift aircraft (if required) will transport Nabors' Rig 14E from Cape Simpson and Deadhorse to the wellsite. The rig will be supported with personnel and supplies flown into the ice runway and transported to the wellsite via ice road. Some heavy supplies and equipment may be brought overland via approved tundra travel equipment. Well testing may be performed. Current plans are to plug and abandon the well prior to the end of the 2005/2006 winter drilling season; however, the well maybe temporarily shut in and secured if well evaluation cannot be completed prior to the closing of tundra travel in the spring of 2006. If the well proved to be a dry hole, it will be plugged and abandoned prior to the rig being released from the wellsite. If the well is to be tested, it will be completed, and tested with the rig on the well after a testing tree is installed. If the well test is promising, the well may be shut in until a following winter season. If there is insufficient time for testing, the well will be shut in and tested during a subsequent winter season. In either case, if the well test is discouraging, the well will be plugged and abandoned at the conclusion of testing. • • Operational Considerations Permafrost Based on offset wells and seismic data, the permafrost is assumed to be present from the surface to approximately 1069'. The permafrost is not expected to present any drilling difficulties as neither thawing nor gas hydrate problems were encountered in any of the offset wells. Surface Casing Shoe Depth The 2700' TVD setting depth for the 9-5/8" surface casing is located in a shale in the Torok. The casing shoe will be set incompetent shale within the Torok in order to yield a strong shoe test, yet leave some of the sands in the Middle Torok exposed between the casing shoe and the Lower Torok for later annular disposal of waste drilling fluids. Lost Circulation and Sloughin S Some of the wells in this general region encountered sloughing shales below the HRZ and lost circulation in and near their target horizons. The Aklaqyaaq #1 casing and mud programs have been designed to take these potential problems into account. The preferred well design for this well is a long string of 7" casing to be set at TD, a contingency design is included in this application. The contingency design sets intermediate casing just above the target horizon to isolate sloughing shales, and allows for the mud weight to be cut to minimize lost circulation potential within the target zone. When TD is reached, the target interval(s) will be evaluated as an open hole, and if conditions are favorable, cased with a production liner. Pressures Anticipated pore pressures are derived primarily from the histories of offsetting wells in conjunction with a pore pressure analysis completed using seismic velocities. As shown on the attached pore pressure plot and maximum anticipated surface pressure (MASP) calculations, the highest expected pressure is at 10,570' feet and is 5606 psi (10.2 ppg " EMW) and will result in a maximum pressure at the surface, with a full column of gas, of 1922 psi (see included calculations). A 5,000 psi WP BOP and wellhead system will therefore be used on this well. Abnormally pressured shallow gas is not anticipated. The pore pressure prediction section of this application contains an evaluation of the risk of drilling high pressure zones as potentially recognized after seismic processing. Drilling Within Annular Blowout Preventer Limitations As shown in the included pore pressure prediction study, the highest pressure expected above the surface casing setting depth (9.0 ppg equivalent mud weight at 2700' TVD less a 0.11 psi/ft gas gradient) is 967 psi; which is within the 2,000 psi working pressure rating of the diverter. Below the surface casing, BOPS will be used in lieu of a diverter. Again, the MASP calculations show that all the anticipated surface pressures are well below the 5,000 psi working pressure rating of the annular preventer. • • BOP System and BOPE Testing The BOP system of Nabors Rig #14E is rated at 5,000 psi working pressure and is described in the BOPE section of this application. Since the calculated maximum anticipated working pressure (at the surface) in this well is 1922 psi, it is planned to routinely test all BOPE to a minimum 80% of its rated working pressure (~ 4,000 psi) (except the annular BOP which will be tested to 50% of its rated working pressure (2500 psi) .The BOP system will be tested initially (before spudding the well) and weekly thereafter to a low pressure of 200 psi and a high pressure of 4,000 psi (80% of rated working pressure). Well Deviation The Aklagyaaq #1 will be drilled as a vertical hole. Directional control will be monitored via MWD in all hole sections. Depending on the outcome of the target horizon penetration, at least one wellbore directional sidetrack may take place. H2S None of the offsetting wells encountered measurable amounts of H2S in the intervals to be drilled, and it is not expect that drilling the Aklaqyaaq # 1 well will encounter measurable amounts of H2S. However, the drilling rig will be wired with operating sensors, enhanced by additional sensors ties into the mud logging system, to continuously monitor for the presence of H2S. Drilling Waste Handling Waste drilling mud from the well will be pumped into subsurface formations at approximately 3200' TVD via the 9-5/8" surface casing by 7" intermediate casing annulus. Cuttings will be hauled to an approved disposal facility for processing and disposal. " Prior to on-site disposal or hauling, the waste drilling mud will be temporarily stored within a bermed storage cell in heated tanks; while the drill cuttings will be temporarily stored within a bermed storage in LiftLiner soft sided containers. Diagrams are included with this application that shows the ice pad layouts with the proposed location of the storage cells. Additional Information Additional information on operations such as formation tops, logging, mud logging, etc. can be found on the attached Aklagyaaq #1 Well Prognosis. • • Certified Location Plat An as-built location plat, certified by a Registered Land Surveyor, will be submitted shortly after construction of the drilling location is completed and the conductor pipe is set. Contacts The contacts within FEX L.P. for information are: Reporting and Technical Information: Michael Quick 907-339-6488 or Walter Quay 907-339-6341 Geological Data and Logs: Barb Rypien 403-237-4675 .'"' xa~f-df Cdr ".~:. ry((Pp /~ nt~ -+~'1T SJ `~~i i ~I~ ra ~ ~ ~~ ~~~~ ~~ ~;.n ` . ~ ~sy~ t`I ~: I . :+ :'I" r' 1 ~ rulq~` „.5~ f~ `° FEX L.P.- NORTHWEST NPR-A EXPLORATION DRILLING PROGRAM +-- ~ - ~ m ate. _ "" ' ~ AAA.`// ~ ~ ~ ~.... ~~~-.. ae ~ ~ °~~ -- _~ A ism o -- i , ~ ~ ~ .. it .- •,~r~~ f~ i p 2 iwu ~~ ~. e ~ - - ~~b , ~ ~, ' , __~ .,. ; ~~ ~ ~ -- r~ ~ m ~ _}- ' ~ ~ '~j' Te rhekp A [ ,A ~• - 1k I I 1 1 . •. ~ ~~, I I K v. - - L ~ ~ l/' ~ I '. y j~ ` c "~ ~ yi T + r°°`I .. '~": ` ;ib-ikt x•` -.., -; : ~'v.r- _ w - •~ 3 ...4_ .y isca0 y kT * (-_~~ ~,~. ~~ In~e.P':~c$. r r t.i a C.v~~ ra;,l ~ j ..= ~ r o -~.~. A ,xroka 4~ f I ~,~` E I I Ll I~ G Nul9sulrl ~- +- ,t.Sri ul N A T I O N A L F P E T R O L E U a ,~ ~_ ,. _. a w ) L.: ..' _. _ _.. 5 LPV ROAD DISTANCES MILES DEADHORSE AIRPORT TO MELTWATER fil ~ A~ j~ MELTWATER TO AKLAONI 144 ~ r~~ r ~~- MELTWATERTOINIGOK 86 _.~ INIGOK TO AKLAOp1 72 ~ . CAMP LONELY TO AKIAp#1 d4 ~ I p CAPE SIMPSON TO AKLApAt 31 e~ BARROW TO AKLAOYAAOMi 69 ICE ROAD DISTANCES AKLAppt ~ AKLAO#2~ AKLAOYAAOpi ~ AMAGUQNI J if~,~ 1L~' ~~. 94M1 12.2MI 5.6MI ~~' ,j, , RUNWAYYt RUNWAYNI (Mlles) T ~Ir AKLAOpt 4.3 16.8 - 'j AKLApM2 6.9 8.1 I AKLAOVMp1t1 184 4.1 AMAGUOkt 23.5 9.3 ~W vw , L A 5 K A o, ¢ ` 3~a9 T ~. J3s~ ~ ,I I { ~; h ~ ~ ~~ ~ . Y gt 'R PVt J-' JL~ l .Q~ q.Yj';~fr `tlbkY` ~ ~~~ "' i R6 R (r A t ~ ,. I- ~i =t~C. )L( .• '(~ i yYdklD~'I# 4T ~. ' ~ ~,°` ;art ~`„~~~' ~'k:f_ ~ 4' II~ h ~l 'ti _r_ T -• ~' I_ ~i =~ r.. 3 ~° ,~'r ,4 K -. yI - f'y _ SJµw ' Ko9° _ '. ~ ' VI n ,y[ ,~ncT~c occ.~.~- L ~., - I ~ ~ - ~r, ~ ~~~~ • CAPE SIMPSON r ,~~ ` • • i~ ~ ~ , ~~~ i 1' ~' i s [~qi. ~ '~ L~ rSj~~~ .~,~ ~ ,:v i,r; J it ~ r- ~,~ ~ - ~ ~~ -r `~} 1. ,_~ _ I ~ w _ ~.'4. ~ ~: }/ } +~'1 ~? • ;~ "~7 ~~. r rl ~A ~:: ~ ~ ~ ~ * b, iAklaq#1 ~i ~ C~;-tip ~' ~ ~-^.._ '~ a. ~^ ~r~!'~lY/'. 1 ~ ~~ ~ :yam. • r .. ' ~. .~ x ~ .ri ,-~; Rl .J~ -, t '~ ~`~ ,'4 Y L- Zia '~ ' ~ ". ~ ~ ~~ w. I ~ ~~' (• ~ y E , ` •~ ~ r a r : ~t 'Ys ~ 1 , 1y t w' :yam x., , ~~ `~ •. ~ '~ k Aklagyaaq-#1~i ~rr~i ~ ..:,;yam ~ ~~~~~~~`. '.~ y ~ ~~ ~ ~ v+f , iJ •~tif"i,•~ 1fi QAm~-aguq"#1~ I~ ~* ~~ }s~1 ` r t'" a ~ f ^g .'mil' ~_ ~= ~' ,~ ~ #G fir; '~ 1 4~~.. ~~. ; 7'' ~ ~ ~ b • ! Projection: UTN Zone 5 (m) NAD 27. Umiat Meridian.lnfrared (2002) DOQ basemap provided by the Bureau of Land Management (BLM).Camp and cabin locations are approximated and were provided by the North Slope Borough. Native allotment data provided by the BLM. O Proposed Exploration Well F E X L. P. Potential Ice Road Potential Ice Runway Potential Low Pressure Vehicle Route PROJECT LOCATION MAP ® Camp or Cabin (Approximate Location) ,---~ L___~ Native Allotment SCALE: FIGURE: O DEW Line Site ~~ 0 2.5 5 Miles Lynx: 15047-199.mxd, 11/08/05, R00 • FEX L.P. Aklagyaaq #1 Well Prognosis Well Name: Aklagyaaq #1 • Surface Location: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM Target Location: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM Bottomhole Location: 2570' FWL, 1309' FNL, Sec. 23, T14N, R14W, UM Elevation: Ground Leve140.5' AMSL Drill Floor (DF) 29' AGL Planned TD: 10,570' TVD ' Formation Tops: TOpS Depth (TVD~ Base Permafrost 1069' Nanushuk 1219' Torok 2274' HRZ 7094' LCU 7242' BCU 7948' Kugrua Sand 8302' Shublik 9285' Sadlerochit 9987' Ivishak Sand 10121' TD 10570' ' Cores: 90' core planned in the Kugrua and Ivishak Sands " Planned Logs: Surface Hole: 80' to 2700'(+/- 200') LWD only: Gamma Ray / Resistivity " Production Hole: 2700' to 10,570' LWD: Gamma Ray / Resistivity, Density /Neutron ' Wireline: MDT, CMR, Sonic, Dipole Sonic, Optional SWC Mud Logging: Mud Logging will be in operation from the base of the ~" conductor casing to well TD. Services will include sample collection; plotting of ROP, lithology, and drilling parameters; show description; gas analysis of cuttings; and gas chromatography. Samples will be collected every 30' from the base of surface casing to TD, and every 10' in zones of interest. The wellsite Geologist will adjust the - interval or sampling rates as required. • • FEX L.P. GEOLOGICAL PROGNOSIS AKLAQYAAQ #1: -Version 6, Nov. 7, 2005 COMMENTS: The primary objective is to safely drill a vertical exploration well to test the presence of producible hydrocarbons reservoired in the Ivishak Sandstone. This is a purely stratigraphic trap located 15 miles southwest of the CPAI Puviaq well. In the event of success, this well will be tested and abandoned. There is an additional objective in the Kugrua sandstone of the Aklaq prospect. No sidetracks are planned for this well. Objectives (Formation and Product) Kugrua Sandstone Member, Oil/gas &Ivishak Sandstone, Oil/Gas Terminatin Formation Lisburne Alaska Lahee Classification Explorato Confidential Status as defined b Lahee Classification Confidential Alaska State Required Samples As below From-to-formations and de the FEX Required Samples: Cuttings From Surface to HRZ in 30' ihtervals, 10' intervals from HRZ (From-to-formations and depths) to TD FEX Re uired Sam les: Biostrati rah Same as above FEX Required Samples: Mud At 1500' intervals through the well, 30' intervals through any h drocarbon zones Core: 90' conventional core in the Kugrua Sandstone. Depending on the results of the first core, additional core may be required. Start of Core to be picked based on a drilling break and a hard siltstone expected to be present above the Kugrua Sandstone. 90' conventional core in the Ivishak Sandstone, LOCATION: this is a vertical well LAT/LONG or SEISMIC UTM Co-ordinates (Alaska State Plane 5) IN LINE SHOT YEAR XLine POINT Vertical Surface location 70° 33' 23.505"N 155° 25' 23.505"W x : 326,483.02ft y : 6,055,177.25ft Vertical Bottom location 70° 33' 23.505"N 155° 25' 23.505"W x : 326,483.02ft : 6,055,177.25ft Sidetrack #1 Surface Location Sidetrack #1 Bottom Location Sidetrack #2 Surface Location Sidetrack #2 Bottom Location GL (ft): 40.507 RTE (ft): 29' KB (ft): 69.507' (GL+RTE) ANALOG WELLS: Ikpikpuk 1, South Simpson 1, East Topogoruk Test Well 1, Caribou 26-11 FORMATION TOPS; Shallowly dipping beds are expected. • KB ft 69.507' Formation Drill De th Error Bar Iso ach TVD Subsea Descri tion ft +/- ft TVD ft TVD ft Base Permafrost 1069.5 500 150 -1000 Nanushuk 1219.5 150 1055 -1150 Sandstone, thin coal Torok 2274.5 200 3171 -2205 Shale, siltstone Torok Sand 5445.5 150 1649 -5376 Sand, siltstone HRZ 7094.5 150 148 -7025 Shale, siltstone LCU 7242.5 150 706 -7173 Sandstone, shale, siltstone BCU 7948.5 150 354 -7879 Sandstone, shale, siltstone Ku rua Sand** 8302.5 200 70 -8233 Sandstone Base Ku rua Sand 8372.5 200 343 -8303 Sandstone Pliensbachian J2 8715.5 200 570 -8646 siltstone, sandstone Shublik 9285.5 200 702 -9216 Sandstone, siltstone, limestone Sadlerochit 9987.5 250 134 -9918 Sandstone, siltstone Main Ivishak Sand* 10121.5 250 448 -10052 Sandstone, con lomerate Lisburne TD 10569.50 250 -10500 Limestone, shale " Primary Objective: "'Secondary Objectives: Detailed Formation/Litholo Descri tions Nanushuk Interbedded sandstone, siltstone and claystone with some coal and marlstone beds. Coal is mostly likely to be high grade lignite or low sub- bituminous. Sandstone is friable, well sorted. siltstone and claystone are soft with low to moderate cohesion. There may be rare small gas kicks max. 200units over back round Torok Medium to dark grey carbonaceous shales, some light to medium gray claystones. Siltstones present throughout the formation. Sandstone intervals expected to be more abundant and thicker in the lower part of the formation. Sands expected to be fair to well sorted, subangular to angular, carbonaceous and silty. .The Torok can be divided into lower, middle and upper units as follows: Upper Torok consists predominantly of shale, claystone, and siltstone with 10-40' sandstone intervals throughout. Sands consist of very fine grained well sorted and easily friable grains. Middle Torok consists predominantly of moderately brittle shale with increased sand content towards the base. Lower Torok consists of shale and sand with some sandstone beds over 50' in thickness. Poor porosity, some fluorescence and small gas shows (up to 1500 units over back round - HRZ Shale and claystone, non-fissile, soft shale, possible small amounts of siderite LCU Sandstone and shale interval. Sandstone intervals consist of subangular grains, some sample fluorescence. Shale is brittle with moderately well develo ed fissili Ma be some small as kicks BCU Shale and siltstone. Brittle to firm shale, ma have a dusk red color. Kugrua Sand Sandstone is well sorted, fine grained, grains may have hydrocarbon staining, subrounded to rounded. Crystalline matrix may be some lauconite. Gas kick ossible. Pliensbachian Sandstone and siltstone. siltstone is brittle and crumbly, scattered v.fine sand grains, slightly calcareous. Sandstone is moderately well sorted with minor lithics, some lauconite, some sam le fluorescence. Shublik Interbedded shales, limestones, sandstones. Upper sand could be part of the Sag River which is fine grained, with glauconite. Small gas kicks ma be resent throu h various intervals. Sadlerochit/Ivishak Sand Conglomeratic sandstone, with coal partings, shale interbeds and carbonaceous sandstone interbeds. • • Lisburne Interbedded limestones, silt and shale. Limestones contain crinoids, bryozoans, foraminifera, brachiopods. Rare dolomite. Increasing elastics near the base EVALUATION PROGRAM: Logs Sonic (casing shoe to TD), Resistivity (casing shoe to TD), Density/Neutron (sandstone scale, casing shoe to TD), MWD (casing shoe to TD), NMR possible Mud Log From Surface to TD ' Tests possible production tests Geophysical : a rig sourced VSP will be required for this well. Personnel Wellsite geologist from surface to TD. DRILLING/EVALUATION REQUIREMENTS: HZS: -none expected within this well. Potential Drilling Problems: a review of the public records of the analog wells (Ikpikpuk, South Simpson 1 and East Topogoruk) indicate that the formations to be drilled are normally pressured and H2S was not encountered at the depth contemplated in this program. However, shallow gas pockets (from thin coal beds) may be present in the Nanushuk Formation. There may also be minor gas shows in the Torok Formation. Pore pressure work done on the Caribou 26-11 well, indicated a possible anomalous pressure increase below the base of the permafrost. As well, in the Caribou well there was the potential for slight over-pressure from the top of the HRZ to TD. Shales from the HRZ have a tendency to wash out as is evident on caliper logs throughout the North Slope. The sloughing shales may cause hole stability problems that need to be appropriately addressed in the drilling program. AKLAQYAAQ #1 Notional Well Tops Age Stage Formation Lith ~ VD Potential Hazards Ceromanian Base Permafrost _ _ _ = Interbedded sandstone, siltstone and claystone with some coal and marlstone beds. Coal is mostly Albian NanUShuk - - - - Potential back round as from g g likely to be high grade lignite or low subbituminous. Sandstone is friable, well sorted. siltstone and claystone are soft with low to moderate cohesion. There may be rare small gas kicks max. 200units _ _ _ - 2000 sands over background) 2274' - - - - N =___-_ 3000 __ ___ ___ -_____ ~ ~. -_____ ~ -_ -"_ _ _ _ _ _ _ _ _ L V Aptlan = _ _ _ _ _ = -_ _ --_ 4000 Medium to dark grey carbonaceous shales, some light to medium gray clays[ones. Siltstones present throughout the formation. Sandstone intervals expected to be more abundant and thicker in the lower TOrOk = _ _ - = part of the formation. Sands expected to be fair to well sorted, subangular to angular, carbonaceous and --_ _ - _-- silty. Poor porosity, some fluorescence and small as shows (up to 1500 units over background) Barremian -----= = -- 5000 Potential background gas or oil shows from sands ----_- 6000 Hau ernian HRZ = _ _ _ _ = Potential washouts, shale Shale and cla stone, non-fissile, soft shale, ossible small amounts of siderite y p 7094 _ _ _ _ _ instability ----- 7242 Valanginian LCU Sandstone and shale interval. Sandstone intervals consist of subangular grains, some sample fluorescence. Shale is brittle with moderately well developed fissility .Maybe some small as kicks 7948' Oxfordian BCU - _ 8000 Shale and siltstone. Brittle to firm shale may have a dusk red color 8233 _ _ , Kugrua _ _ Potential background gas from K Sand Sandstone is well sorted, fine grained, grains may have hydrocarbon staining, subrounded to - ugrua sands rounded. Crystalline matrix may be some glauconite. Gas kick possible. U Piliensbachian `-_ __ - - - 9000 Pili b hi Sandstone and siltstone. siltstone is brittle and crumbly, scattered v.fine sand grains, slightly calcareous. N ' _. ens ac an Sandstone is moderately well sorted with minor lithics, some glauconite, some sample fluorescence. ca 9285 _ N Shubllk - _ _ - - _ _ = Interbedded shales, limestones, sandstones. Upper sand could be part of the Sag River which is fine ~ grained, with glauconite. Small gas kicks may be present through various intervals. Sadlerochit ' _ _ - 10iZ1 Ivishak Sand ... ., . ,,.. `;~:::~:`:.:::':~:`: Potential ack round as from g g Conglomeratic sandstone, with Coal partings, shale interbeds and carbonaceous sandstone interbeds. 10570' sands LISbUrne Interbedded limestones, silt and shale. Limestones contain crinoids, bryozoans, foraminifera, brachiopods. Rare dolomite. Increasing clastics near the base • • 1pTN0 lLN1~ SAO aTe~nwN RUEL ~ sronwoc TANKS ~ e pu..N.NC^ ONLY) ~ ~ JA' .\ J TNICKENED ••N IC! PAD LIMITS .-~ zo'-a~ / CASINO /•~ ` BASKETS ,/~ ~~ 9B~ ,w•~~ ~. ~ •/~ ~- ~ 1 s/ 's• I I/L /O orv~Nr~N LINK ' _ ~\ uW '~• ~ ~ \ ~' . ~~~ S STEM \ /\,y~ / ~ \\ ~ ~ PIPE ~` ~\ ~! \ ~ ~\ SHED ~~/ VVV"' / /'. ~[ a\ ~Y y ~f / TLLNEEfN~ CAMP SAD [YilN]iON NABORS ALASKA RIG 14E RIG PLACEMENT EXPLORATION CONFIGURATION CONCEPTUAL PAD LAYOUT DNILL PIPE BASKETS t ,,\ ICE PAD ~ EXTENSION \ ~. ~, xx •tl ,\ ~ ~w; ~~ X30' WIDE x 8' HIGH LOADING RAMP 2,000 4, 000 D e p t h s,ooo /~ f t .~ a,ooo 10,000 12,000 0 • FEX L.P. Aklaqyaaq #1 Days vs. Depth Days 10 15 20 25 30 35 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I III Drill 12-1/4" Hole I I I I I I r I I I I I I I I I I I I I I I I I I I I I I I I I I I - - - - - - - -- - - - - - - - - - - -,- - - - - - - - - - - ~ - - - - - - - - - - -,- - - - - - - - - - - I I I II I Run and cement 9-5/8" casing, I I ~~ N/U BOPE, conduct LOT I I II II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I III t~ Drill 8-1 /2" Hole II ~ II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ _ _ _ . _ J _ _ _ _ _ _ _ _ _ _ I_ _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ _ _ _ L _ _ _ _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ----------~-----------I- ---------+-----------I-----------~----------~---------- f-=, Core 90' Core sample I I I I I I I I I I I I I I I I I I ~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Complete Well I I Run Wireline Logs I _ .. _ _ _ _ _ _ _ Y _ _ _ _ _ _ _ _ _ - _I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Y _ _ _ _ _ _ _ _ _ _ I I 1 I I- I I I I 1 I I I I I I I I I I I I I I I I I I I I I I ~ I ~ I I I I I I I I I I I I I I I II Run and Cement Test Well I II 7" casing I I I I I I I I • ~ FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaqyaaq #1 Drilling Procedure -Base Case 1. MIRU Nabors rig 14E. Dri1120" hole to +/- 80', set 16", 64#, H-40 BTC conductor casing. Pump sufficient cement to bring cement returns to surface. 2. Attach landing ring to conductor. Install diverter and function test. Notify regulatory agencies 48 hours prior to test. ~ 3. Drill 12-1/4" hole to the surface casing point of+/- 2700' MD/TVD. Run and utilize MWD and LWD tools throughout this hole section to monitor hole angle and to ensure the hole remains vertical, as well as collect logging data. 4. Condition hole for casing. POOH. 5. Run and cement 9-5/8", 40#, L-80 BTC casing to surface. Employ a lightweight permafrost cement lead slurry followed by a high strength Class G tail slurry. Pump adequate excess cement to ensure cement reaches the surface. 6. Nipple down diverter and nipple up BOPE. Test BOPE. Notify regulatory agencies 48 hours prior to test. 7. Make up 8-1/2" drilling BHA and RIH to the top of the 9-5/8" float equipment. Pressure test the casing to 3,000 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. 8. Drill the float equipment and 20' of new hole. Perform a LOT (or FIT if the gradient exceeds 16 ppg EMW). Record the results and fax to the Anchorage office. 9. Drill an 8-1/2" straight hole to TD at +/- 10,570' MD/TVD. Run LWD logging tools in the drill string as required for formation data gathering. It is planned to take two 90' cores in different formations within this hole section. 10. Condition the hole for logging. POOH. 11. Rig up wireline. Run wireline formation evaluation logs per logging program. Rig down wireline. 12. RIH with 8-1/2" BHA and condition hole for casing. POOH. 13. Run and cement 7", 29#, L-80 BTC-Mod casing. Pump sufficient cement to bring the top to +/- 7,600'. TOC should not be allowed to approach the 9-5/8" casing shoe because the 7"x 9-5/8" annulus will be used for annular injection of mud. 14. Make a clean out run with bit and scraper. 15. Displace well to brine. 16. Pressure test 7" casing to 3,000 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. 17. Run and land 3-1/2" tubing completion and tubing conveyed perforating guns under the packer. 18. Nipple down BOPE. Nipple up production tree and test to 5,000 psi. 19. MIRU well testing equipment and surface test tanks. Perform production tests as required. Produced fluids will be injected back into the formation. 20. Upon completion of testing or if the well is not completed, plug and abandon the well per applicable regulations. Aklagyaaq #1 Wellbore Schematic K. F.._ F. K. F i~: r-~:;: r: r:::: r::~ i :::: r: i=:_:_ i:: ~~: ~: c: i ::;. r.: ~ 20" Hole i i i 16" 65# L-80 BTC Conductor @ i ~`~ ~' 9-5/8" 40# L-80 BTC Casing @ +/-2700' MD i i i i i 8-1/2" Hole i i i i i i i i i i i ! TOC at +/- 7600' MD /TVD PKR set at +/- 8000' MD /TVD 7" 29# L-80 BTC-Mod Casing 3 1/~" 9.2# L-80 BTC-Mod Tubing TD @ +/-10570' MD /TVD • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaqyaaq #1 Drilling Procedure -Contingency Case 1. MIRU Nabors rig 14E. Dri1120" hole to +/- 80', set 16", 64#, H-40 BTC conductor casing. Pump sufficient cement to bring cement returns to surface. 2. Attach landing ring to conductor. Install diverter and function test. Notify regulatory agencies 48 hours prior to test. 3. Drill 12-1/4" hole to the surface casing point of +/- 2700' MD/TVD. Run and utilize MWD and LWD tools throughout this hole section to monitor hole angle and to ensure the hole remains vertical, as well as collect logging data. 4. Condition hole for casing. POOH. , 5. Run and cement 9-5/8", 40#, L-80 BTC casing to surface. Employ a lightweight permafrost cement lead slurry followed by a high strength Class G tail slurry. Pump adequate excess cement to ensure cement reaches the surface. 6. Nipple down diverter and nipple up BOPE. Test BOPS. Notify regulatory agencies 48 hours prior to test. 7. Make up an 8-1/2" drilling BHA and RIH to the top of the 9-5/8" float equipment. Pressure test the casing to 3,000 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. 8. Drill the float equipment and 20' of new hole. Perform a LOT (or FIT if the gradient exceeds 16 ppg EMW). Record the results and fax to the Anchorage office. 9. Drill an 8-1/2" straight hole into a shale member of the BCU at +/- 8100' MD/TVD. Run LWD logging tools in the drill string as required for formation data gathering. 10. Condition hole for casing. POOH. 11. Run and cement 7", 29#, L-80 BTC-Mod casing. Pump sufficient cement to bring the top to +/- 7,600'. TOC should not be allowed to approach the 9-5/8" casing shoe because the 7"x 9-5/8" annulus will be used for annular injection of mud. 12. Make up a 6" drilling BHA and RIH to top of 7" float equipment. Pressure test 7" casing to 3,000 psi for 30 minutes. Record the pressure test and fax the results to Anchorage office. 13. Drill a 6" straight hole to TD at +/- 10,570' MD/TVD. Run LWD logging tools in the drill string as required for formation data gathering. It is planned to take two 90' cores in different formations within this hole section. 14. Condition the hole for logging. POOH. 15. Rig up wireline. Run wireline formation evaluation logs per logging program. Rig down wireline. 16. RIH with 6" BHA and condition hole for casing. POOH 17. Run and cement 4-1/2", 12.6#, L-80 IBT-Mod liner. Pump sufficient cement to bring the cement 100' above liner top. 18. Run and land the tapered string of 2-7/8" and 3-1/2" tubing completion and tubing conveyed perforating guns under the packer. 19. Nipple down BOPE. Nipple up production tree and test to 5,000 psi. 20. MIRU well testing equipment and surface test tanks. Perform production tests as required. Produced fluids will be injected back into the formation. 21. Upon completion of testing or if the well is not completed, plug and abandon the well per applicable regulations. Aklaqyaaq #1 Wellbore Schematic -Contingency Case ~; ~ ~ 20" Hole F: ~ i; ::: ~ i ! : ~ ~ 16" 65# L-80 BTC Conductor @ i ~ : ~ - a +/-80' MD /TVD r:_: ~::a r:: .~:: r : ~: ~~~` ~ -~ ~ ~---12 1/4" Hole r:: .:~i r:::: a ~~:::: :i i- :: ~i r a i , 9-5/8" 40# L-80 BTC Casing @ ~ +/-2700' MD i i i i i i i i i i ~ i 8-1/~" Hole i i i i i i i i i i ~ 7" 29# L-80 BTC-Mod Casing @ +/-8100' MD i i r ,:`~~ ~ ~ TOC at +/- 7600' MD /TVD i ::: :;: r::: :::, i:: ~:a ~.::. ~ I ~ I I I ~ ~ 6" Hole i i 4-I/~" 12.6# L-80 IBT-Mod Liner 2-7/8" x 3 '/Z" Tapered Tubing String TD @ +/-10570' MD /TVD LArvo1NC Jmur LANDING JOINT , 15.00' !381.0 mml 13.50' 3 I/8-5000 IR-35l (342.9 mml % OTIS CONNECTOR ~ O O 3 1/6-5000 M00 120 GV 1 E--~~~-+- --- 06.25)' I/9-5000 M00 120 GV 0158.9 mml 00.659• O ; O ~ 09a0' (0219.9 mml 10 10230.2 mml 012. 10307.92 mm1 ~ ~ 7' LASING HANGER R ANO R TOOL 94/a'CASING HANGED P10051i-0000 R AND R TpOL (2 ml O O O- O P100573-0000 -_-_-_ - -_ O _-~- O _ - O _-~- O _ _ __ }-_ __-_- 9~ 8 g 010.81' 10274.6 mml~ O10 - _ - - - -- - 3 I/O-5000 ADJUSTABLE CHOKE ~ Oi0 I 3 I/O-5000 MOD 120 GV 43.31' IlOi4.67 mml 38.00' 28.31' 9 1 (965.2 mml 0).14' (119.1 mml !0181.3 mm ~~~~~vv~7O i O 3 I/8-5000 M00 120 GV 1~ TOOL JOINT 129.50'ml Oi0 ~ 3 I/8-5000 tR-351 1 0 I 13.50' 8.62' ~ 1 1218.9 mml TEST POP) 1~ (3g2.9 mml 10 LOCKDOWN SCREWS SCSSV E%IT ---- -- --- - II-5000 IRX-54l 1 26.a4' T 1671.6 mm) 09.00' 1~ ! (0228.6 mml 010.1 6' C 010.31' (0263. mml -- - - - ® _ - - - - 10261.9 mml COMBINATION LOWER BOWL 13.31' 1 LONG BOWL PROTECTOR TEST PLUG ANO 1338.0 mm) FOR 94/6'LASING PALKOFF RUNNING TOOL Si.iB' qB-209-003 40-260-5]0 11461.6 mml 6 21/IC -5000 MODEL 120 GV TEST POP) - _ - _ - _ - - - _ - - 10 LOCK00WN SCREWS II-5000 (P-541 010.31 B 10262.91 22.15' 14 (s a m) ~ i ~ Tool JOINT ~ ~_ -_ I - - _ _ __ _ _ 01o.erm 1 I ® i 10279.6 m 1 (231~.93mm1 ' 2%16-5000 MODEL 120 Gv TEST PORT - - 6.00' S'{3m IZ~ - Ii.00' 1431.0 m 052.4 m 1145.5 c304.0 mm) 1 ml z 13 .00' 1 1101.6 mm 17.07' { 1446.3 1 mml 12 1 9.00' 06.38' (101.6 mml (0162.0 mml 010.31' 010.84' 10261.9 mm) 10275.3 mml 16'00 CASING SHORT BOWL PROTECTOR COMBINATION UPPER BOWL FOR i'CASING TEST PLUG dN0 48-200-402 BOWL PROTECTOR RUNNING TOOL 94/6'00 CASING 48-261-503 i'OD CASING 3y•oo TuBINc 11-5000 THR®UGH E®RE SYSTEM 16 X 9 5/8 X 7 X 3 1/2 Izz s1 e.77mm) Bw.zs ~ zs.o 1361.95mm1 1691.35mm1 ITEM PART NUMBER DESCRIPTION LANDING RING I P176068 LANDING RING P124000-0005 2 P1760T0 CSG HANGER 3 P176063 CASING HEAD ASSEMBLY 9 P176075 rBG Hp ASSY ~1 5 P12327T-0002 CSG HGR ASSY 6 12-150-016 PACKOFF ASSY I T PIi6120 iBC HGR ASSY 8 P120192-0002 ADAPTER ASSY 9 90-120-566 GV ASSV ~ 16 CASING 10 25-051-394 TEE ASSV DIVERTER HEAD ASST, 16 SLIP-LOG BTM ~ II 02-698-177 ADAPTER ASSY W/ FS SEdLS % 21-I/4 2K 12 12-090-104 9 % C-21 HGR FLG F120s70-0001 UTLET Q 13 P118334-0005 BELL NIPPLE q97 O 14 12-093-112 7 C-21 HGR ° O "`~° u 1HEAO O m 1 - NCOMPLETION O°~11~1y1Fy J o _ e 161 % 9 ~ % T % 3'/z 61 a Cd SING P O • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season • Aklaqyaaq #1 Pressure Calculations and Drilling Risks Maximum Anticipated Surface Pressure: The maximum anticipated surface pressure (MASP) for this well will be the lesser of the formation pore pressure (less a full gas column to the surface) at TD or the formation fracture pressure at the last casing shoe (less a full gas column to the surface). Based on the attached study "Pre-Drill Seismic Pore Pressure Prediction: Aklaqyaaq #1", the highest formation pressure expected in the final hole section is 5,606 psi at a depth of '' 10,570' TVD (or 0.530 psi/ft). Maximum predicted fracture gradient data for this area based on seismic interpretation, at 2,700' TVD, the depth of the 9-5/8" casing shoe, is 0.822 psi/ft (15.8 ppg). Complete evacuation of the wellbore, except fora 0.11 psi/ft gas gradient, is assumed. 8-1/2" Hole Section - 2,700' to 10,570' 't'"r' ~-i~3~ -l 0 S`l. = MASP (pore pressure) _ (10570 ft)(0.530 - 0.11) = 4,439 psi MASP (form. breakdown) _ (2700 ft)(0.822 - 0.11) = 1,922 psi Therefore, MASP in the 8-1/2" hole section is 1,922 psi and the 5,000 psi BOPE system to be used will be adequate. Well Proximity Risk: The nearest wellbore to the planned wellbore of the Aklaqyaaq #1, is the East Topagoruk test well located approximately 1.7 miles northeast. Therefore, there are no nearby wellbore proximity risks. Drilling Area Risks: 12-1/4" Surface Hole - 9-5/8" Casing Interval EVENT RISK LEVEL Miti ation Broach of Conductor Low Monitor cellar continuousl durin drillin interval. Gas Hydrates Low If observed: control drill, reduce pump rates, reduce drillin fluid tem eratures, additions of Lecithin. Gravel/Sand Sloughing to Moderate Increase mud weight/viscosity, pump high viscosity +/- 500' swee s. Monitor fill on connections. Hole Swabbing /Tight hole Moderate Circulate hole clean prior to trip. Proper hole fill on Tri s utilizin tri sheets, um in out of hole as needed. Possible Thaw Bulb / Low Watch return viscosity for signs of thinning. Water Flow Increased mud wei ht/viscosi as needed. Lost Circulation Low Mitigation by good hole cleaning practices. Reduce mud weight if possible. If losses occur, reduce pump rates and lower mud rheolo ,use LCM material. ~rr~~'~ ~5 6~-~ 't tl ~a3 • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season • Aklaqyaaq #1 Pressure Calculations and Drilling Risks (cont.) 8-1/2" Production Hole - 7" Casing Interval EVENT RISK LEVEL Miti ation Shale stability in the Moderate Control with higher mud weight and proper drilling interval below HRZ ~ ractices. Lost Circulation Moderate Monitor hole cleaning efficiency. Mitigation by ' good hole cleaning practices. Reduce mud weight if possible. If losses occur, reduce pump rates and lower mud rheolo ,use LCM material. Differential Sticking Low Periodic wiper trips as needed for hole conditions. Do not leave i e static for extended eriods. Abnormal Reservoir Low Follow programmed mud weights, monitor well, Pressure ~ increasing mud weights as needed. Ensure adequate kick tolerance rior to drillin a intervals . FEX L.P. Aklagyaaq #1 Casing Properties and Design Internal Collapse Tensile Strength Size Weight Grade Connect. Yield Resistance Joint Body TVD MD Design Safety Factors* in Ib/ft si si 10001bs ~ ~ T B C 9-5/8 40 L-80 BTC 5750 3090 979 916 2700 2700 9.83 2.99 2.45 7 29 L-80 BTC-Mod 8160 7020 718 676 10570 10570 2.65 4.25 1.34 * T = Tensile design safety factors are calculated using pipe weight less buoyancy. B = Burst design safety factors are calculated using Maximum Anticipated Surface Pressure. C = Collapse design safety factors are calculated assuming complete evacuation of the casing. • • • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Formation Integrity Test (FIT) and Leak-Off Test (LOT) Procedures Note that the terms used in these procedures are defined as follows: Formation Integri Test (FITS: Formation is tested to apre-determined equivalent mud weight. Leak-Off Test (LOT): Pressure is exerted against the formation until fluid begins to discernibly pump away. Pressure at which this first occurs is the leak off point. LOT Limit: 16 ppg EMW for all surface casing shoe tests; determined from previous experience with formation breakdown problems by attempting higher leak-offs. Open Hole LOTS (OH LOTs): Leak-off tests performed with open hole from the casing shoe to some point above the target reservoir. Generally done when leak- off is required but could not be achieved just below the casing shoe; or where weaker formations are suspected above the target reservoir but below the casing shoe, and assurance is required of being able to support estimated mud weight. Procedure for FIT: ' ~ a~ 1. Dri1120' of new hole below the casing shoe. 2. Circulate the hole to establish a uniform mud density throughout the system. Pull back up into the shoe. 3. Close the BOP (ram or annular). 4. Pump down the drill stem at '/4 to '/z barrel per minute. 5. On a graph with the recent casing test already shown, plot the fluid pumped (volume or strokes) versus drillpipe pressure until the appropriate surface pressure is achieved for the FIT at the shoe. 6. Shut down at the required surface pressure. Hold for a minimum of 10 minutes or until the pressure stabilizes. Record time versus pressure in one- minute intervals. 7. Bleed the pressure off and record the fluid volume recovered. The pre-determined surface pressure for each formation integrity test is based on achieving an EMW at least 1.0 ppg higher than the estimated reservoir pressure, and allowing for an appropriate amount of kick tolerance in case well control measure are required. • • Formation integrity tests are conducted on all casing shoes with the exception of some surface casing situations. Where annular disposal pumping is planned on a well, the formation below the surface shoe is taken to leak-off. This ensures that future disposal fluids can be pumped away without risk of damage to the surface shoe. If two attempts at establishing aleak-off at the shoe are unsuccessful (using 16.0 ppg EMW LOT Limit per above), then an open hole LOT is performed. Where required, the LOT is performed in the same fashion as the formation integrity test. Instead of stopping at apre-determined point, surface pressure is increased until the formation begins to take fluid; at this point the pressure will continue to rise, but at a slower rate. The system is shut in and pressure monitored as with a FIT. Since this project will require the use of annular disposal once an annulus is available, our plan is to perform a LOT at the surface casing shoe, and then perform an OH LOT after drilling through a perspective sand zone below the casing shoe. • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Pre-Drill Seismic Pore Pressure Prediction: Aklagyaaq #1 October 27, 2005 Summary Seismic velocity data was used to predict pore pressures likely to be encountered in the Aklaqyaaq #1 well location. A local compaction trend and a local velocity to pressure gradient translation trend model were established using control from the Ikpikpuk #1 and S. Simpson #1 wells. The local compaction trend and the translation trend model were applied to velocities obtained from seismic data to predict pore and fracture pressures. The predictions show no apparent shallow hazards or large pressure anomalies at the proposed well location. Seismic Processing The accuracy of seismic geopressure analysis is dependent on the accuracy of the input seismic velocity field. The seismic velocities used for pressure prediction in this area were generated from detailed interpretation of velocity semblance plots calculated from 3D seismic data. Pressure Prediction Procedure Well Modeling -Ikpikpuk #1, S. Simpson #1 1) A local normal compaction trend line (NCTL) was calculated using gamma ray and sonic logs from the Ikpikpuk #1 and S. Simpson #1 wells. The compaction trend was calculated using a semilog methodology and was consistent in both slope and intercept at each well. 2) The difference in interval transit times (ITT) recorded by the wireline sonic logs and the calculated by the downward projection of the NCTL was measured. These values are the travel time differences, rrT. 3) A second-order polynomial translation trend model was developed which translates rrT to pore pressure gradients. This model was found to be consistent with other trend models in the area: PP = C2*rrT2 + C 1 *rrT + CO where: C2 = 2.57x10-4 C1 =.119231 CO = 8.94231 4) Interval transit times (ITT) were derived from high-resolution 2D seismic velocities recorded at each well location and compared to the NCTL calculated from gamma ray and sonic logs. The slope of the seismic NCTL was found to be an approximate match for the average NCTL measured in the wells below 1400 ft. The seismic NCTLs did not match the NCTL measured in the well above approximately 1400 ft; this is most likely • • due to low fold in the shallow seismic data. Seismic fold was sufficient and seismic data quality was reliable for pressure prediction below 1400 ft. `" Figure 1 and Figure 2 show the average NCTL measured from the sonic logs (brown line) plotted against the calculated interval transit times derived from the seismic velocities (green line) at the Ikpikpuk #1 and S. Simpson #1 wells. 5) Pressure gradients were calculated for the Ikpikpuk #1 and S. Simpson #1 using the translation trend model (Step 3 above). The predicted pressures were compared to mud weights and DST test results and found to be reasonable in value (Figure 1, Figure 2). Application of Model at Proposed Well Locations 1) A best-fit normal compaction trend line (NCTL) was estimated at the Aklaqyaaq #1 proposed well location using the available seismic data. The slope of the best-fit NCTL matched the slope of the average NCTL measured at the Ikpikpuk #1 and S. Simpson #1 wells; the intercepts were slightly but not significantly different. This difference in intercept is frequently observed when comparing seismic velocity data vs. sonic log data and is attributed to the difference in the way velocities are measured in seismic data (large horizontal component) vs. sonic logs (primarily a vertical measure). Although the seismic velocity data above 1300 ft sstvd matched the NCTL trend, the seismic data is low-fold and has a high uncertainty associated with pressure prediction. 2) The translation trend model developed at the Ikpikpuk #1 and S. Simpson #1 wells was used to estimate pore pressure directly from the NCTL trends measured from seismic data at Aklaqyaaq #1 (Figure 3). Fracture Gradient Prediction Fractare gradients were calculated for the proposed Aklaqyaaq #1 location using the Eaton Methodology. Overburden pressure, calculated pore pressure gradient profiles, and Poisson's Ratio profiles are the inputs. Conclusions 1) There are no apparent shallow hazards at the proposed Aklaqyaaq #1 well location. 2) There are no apparent zones of high pressure at depth in the proposed Aklaqyaaq #1 well location. 3) The 3D seismic data used for the pressure prediction provided reliable pressure estimates below 1300 ft sstvd; low fold in the seismic data above 1300 ft sstvd limit the accuracy of shallow hazards prediction. • • S. Simpson #1 µs/ft Seismic Pore Pressure Analysis Figure 1 • Ikpikpuk # 1 • Seismic Pore Pressure Analysis -c~ I ' Normal Compaction II ^ i re na u ne 1 -~ i - '.400 1 ~ I --_ 800 ~ ` ' -- i Interval Transit Ti from Seismic Vr ~ i me ms I --I - -- - - -- '200 i ~--~ + i - ~ .~___ I i - r ' _ '600 I ~ .r ' I I i - i ~ ~ i - -~ 2000 --- - - ~ i - __ --- -_ - _ r ~ ~ _I- . j - - a D 50 60 70 80 90100 200 240 .00 13.00 20.I µs/ft PPG Figure 2 • • Aklaqyaaq #1 Seismic Pore Pressure Prediction .00 13.00 18.00 Figure 3 µs/ft PPG Edit culture data Map apri12005 CDP SP In Svy . H ~ HZ F ~ i • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season BOP Control 5ystem The BOP control system on Nabors Rig #14E is an NL Koomey Mode140200-35 blowout preventer control unit with a 202 gallon volume tank. Main energy is provided by a 40 HP electric motor driven triplex plunger pump rated at 20.2 gpm at 3,000 psi. The pump charges twenty (20) eleven gallon bladder-type separator accumulators. A second energy charging system consists of two Mode131-00103 air pumps rated at a combined volume of 11.0 gpm at 1,200 psi, or 7.2 gpm at 3,000 psi. The above two energy systems are backed up by six 220 cubic foot nitrogen bottles connected to the manifold system. All of the systems are controlled by a Model SU2KB7 series manifold with seven manual control stations at the unit. f. f NiM1AR IOWYLY Y A191-MYAE lA'M~NI1.Y dA9kA AR Yt DIVERTER CONFIGURATION ~NdiasAl^I~s ~ c ~ a~i. ~ u..erM...a,. ~N.r aew-mn. rrAeuRS ~usfu faic f~ f.~ u,~ 11r anarrFR sna IgAIiVK, ALA,RA KIV 7 gC DIVERTER LINE LAYOUT HYDRIL 13-5/8' 5k PSI GK ANNULAR BOP KILL LINE #1 ' SCREW HEAD FLANGED BOTTOM CONNECTION 3' 5k GA)E VALVE ' 54-1/B' LENGTH 3 5k HCR VALVE 3' 5k CHECK VALVE ' 3-1/16" 5k FLG x 2" 5k UNIBOLT FITTING REFERENCE KILL LINE /2 ~ HYDRIL 13-5/8" 5k PSI FOR ALIGNMENT 14" OPERATOR -- --- -- -- -- 14' OPERATOR HYDRAULIC RAM SINGLE GATE FLANGED CONNEC710N BLIND SHEARS 36' LENGTH HYDRIL 13-5/8" 5k PSI ' 18 10" OPERATOR -- ----~-- -- -- 10' OPERATOR HYDRAULIC RAM SINGLE GATE 4" FLANGED CONNECTION PIPE RAMS 36' LENGTH 4" 5k HCR VALVE DRIWNG SPOOL ' 13-5/8" fOk BLIND FLANGE ~~--~ 4" CHOKE LINE 4-1/16" 5k (CHOKE SIDE) ~ 4. 5k GATE VALVE HYDRIL 13-5/8' Sk PSI 10" OPER4IOR -- ---- -- -- -- 10' OPERATOR HYDRAULIC RAM SINGLE GALE 3.1/2" x 6' ~ FLANGED CONNECTION VBR'S 36' LENGTH 3' Sk GATE VALVE 3" 5k GA1E VALVE DRIWNG SPOOL KILL LINE #2 2' 5k KILL LINE~`~'y~ --'-- BOND FLANGE 5k8 ~ 3-i/16" (KIL SIDE) 3-1/16' 5k FLG x 2" 5k UNIBOLT F1171NG 3' 5k CHECK VALVE NABORS ALASKA RIG 14E BLOWOUT PREVENTOR STACK CONFIGURATION Material List Item Description A 3 1/16" 10M Manual Choke B,C 2 9/16" 10M Remote Super Choke 1,2,4,5,7,8,15-17 Type FC 3 1/16" 10M Gate Valve 13,14 Type FC 4 1/16" 10M Gate Valve 3,6,9-12 Type DM 3 1/8" 5M Gate Valve ~ Legend ~ a~ White Handle Valves a ~ Normally Open Red Handle Valves Normally Closed I Date: 11-11-03 Rev. 2 I • • • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaqyaaq #1 Cementing Program 9-5/8" Surface Casing (set at 2700') PreFlush /Spacer: 10 bbl Water, 30 bbl 10.0 ppg Dual Spacer Lead Slurry: Top of slurry: Surface Permafrost type L cement, 10.7 ppg density 150% excess across Permafrost, 80' to 1100' 25% excess below Permafrost from 1100' to 2700' Yield: 4.15 cu ft/sk Volume: 265 bbls (358 sx) including excess Tail Slurry: Top of slurry: 2200' Premium class G + 1% Calcium Chloride, 15.8 ppg density 25% excess for 500' of annulus volume Yield: 1.15 cu ft/sk Volume: 41 bbls (201 sx) including excess 7" Production Casing (set at 10,570') PreFlush /Spacer: 10 bbl Water, 20 bbl 11.5 ppg Dual Spacer Lead Slurry: Top of slurry: +/- 7600' Premium class G + 0.5% Halad-344, +0.23% CFR-3 +/- 0.3% HR-5 (retarder) as required, 15.8 ppg density 30% excess Yield: 1.15 cu ftlsk Volume: 89 bbls (435 sx) including excess • • FEX LP Drilling Program NW NPR-A 2005-2006 Drilling Season Aklaqyaaq #1 Cementing Program -Contingency Case 9-5/8" Surface Casing (set at 2700') PreFlush /Spacer: 10 bbl Water, 30 bbl 10.0 ppg Dual Spacer. Lead Slurry: Top of slurry: Surface Permafrost type L cement, 10.7 ppg density 150% excess across Permafrost, 80' to 1100' 25% excess below Permafrost from 1100' to 2700' Yield: 4.15 cu ft/sk Volume: 265 bbls (358 sx) including excess Tail Slurry: Top of slurry: 2200' Premium class G + 1 % Calcium Chloride, 15.8 ppg density 25% excess for 500' of annulus volume Yield: 1.15 cu ft/sk Volume: 41 bbls (201 sx) including excess 7" Intermediate Casing (set at 8100') PreFlush /Spacer: 10 bbl Water, 20 bbl 11.5 ppg Dual Spacer Lead Slurry: Top of slurry: +/- 7600' Premium class G + 0.5% Halad-344, +0.23% CFR-3 +/- 0.3% HR-5 (retarder) as required, 15.8 ppg density 30% excess Yield: 1.15 cu ft/sk Volume: 15 bbls (72 sx) including excess 4-1/2" Production Liner (set at 10570') PreFlush /Spacer: 10 bbl Water, 20 bbl 11.5 ppg Dual Spacer Lead Slurry: Top of slurry: +/- 8000' (100' above top of liner) Premium class G + 0.5% Halad-344, +0.23% CFR-3 +/- 0.3% HR-5 (retarder) as required, 15.8 ppg density 30% excess Yield: 1.15 cu ftlsk Volume: 93 bbls (455 sx) including excess ~~ ~~ ~~~ ~ ~~ ~~ ~~ ~ fir-. ~ ~ ~~ ~ ~ ~ R ~ ~ ~~ tl ~~ ,~ .~ ~~ ?~ R ~S ~~ ~I~ ~ I ~ ~ ~ ~ ~ ;~;~ I~ ~=A~ N ~:~ ~ ~ I~ ~~ ~ ~~ saorAO ~ ~ s~co s amen ® a ~ ~~ ~~~ „~~ ~~ .~~ ® ~~ ~ ~ . ~ ~ ~7~~~ ~~ g °C=~z .~~ a a~ 3 ~~ ~~ ~ Cym= ~ ~ g~ ~~ S IWN Se • 7EiN16 7~ imnr a ~ ~~ ~ ~~ ~~a~~ ~~~~~~~ Halliburton sAROID FEX LP Mud Program Aklagyaaq #1 General Discussion This exploration well will be drilled from an ice pad in the NPRA. Due to the extremely remote location, waste management is critical on this well. `' Storage tanks will be available but minimization will be key to a successful drilling operation. The well will be drilled as a straight hole, spudding with a 12 '/4" bit, and drilling to a surface hole TD of 2,700' TMD where 9 5/8" casing will be run and cemented. An 8 '/2" hole will then be drilled to 10,570' where 7" casing may be run and cemented. Spud the well with a 6% KCI/PHPA/Clayseal mud. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with several mechanisms to provide effective wellbore stabilization, ionic inhibition (KCI), polymer encapsulation (PHPA) and anionic bonding (Clayseal). The PHPA/Clayseal mud will be maintained through the lower interval. The weight will be adjusted to 9.6 ppg prior to drilling out of the surface casing. Special emphasis should be placed on maintaining low ECD's and surge/swab pressures to minimize the potential for shale instability. Special Considerations: i. Maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. ii. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). iii. .Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@1000 sxs barite on location at all times). iv. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. v. Reduce the potential for hole erosion/destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drillpipe in the 150-200 fpm range. vi. Possible shale instability issues in the Jurassic sequence (tight filtrate control/mud weight). Well Specifics: Casin Pro ram MD TVD Foota e 12 '/4" hole 9 5/8" casin 2700 2700 2700 8'/z" Hole 7" casin 10570 10570 7870 Aklagyaaq # 1 v 1.0 2 10/06/05 i ~ Halliburton BAROiD FEX LP Mud Program Estimated Formation Tops/Casing Program: Base Permafrost Torok 9 5/8" Casing Point H RZ LCU BCU Kugrua Sand Base Kugrua Pleinsbachian Shublik Sadlerochit Ivishak SS Lisburne TD TMD Comments 1070' Possible hydrates ° 2274' 2700' Condition for casing 7094' 7242' Possible pressure 7948' 8302' Possible pressure 8372' Possible pressure 8715' 9285' Keep HTHP tight 9987' Possible pressure 10121' Possible pressure 10569' WATCH FOR LOSSES 10570' condition mud for logs/cement jobs Surface Interval: 12'/4" to 2,700'; 6% KCI/Clayseal/PHPA Mud Properties S ud to Base of Permafrost Base of Permafrost to Total De th Initial Value Final Value Initial Value Final Value Densit 8.7 9.0 9.0 9.5 Funnel Viscosity seconds g0-100 50-70 50-70 50-70 Yield Point cP 35-45 25-35 25-35 20-30 Plastic Viscostty Ib/100 s 10-21 10-23 13-23 13-23 10 second Gel Stren th Ib/100 s 10-15 10-15 10-15 10-15 10 minute Gel Stren th Ib/100 s 14-24 14-24 12-24 12-24 H 8.5-9.5 8.5-9.5 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 5-6 5-6 Solids % 6-12 6-12 6-12 6-12 Base Formulation: COLD Water - 0.905 bbl KCI - 20 Ibs (30-32K ppm chlorides) EZ Mud DP - 0.75 Ibs (.15 ppb in initial mix) Clayseal - 0.84 gal (.21 gal/bbl in initial mix) Dextrid - 3 Ibs (API filtrate of 6-12 cc's) Barazan-D - 1-2 Ibs (as required for an initial 35 YP) KOH - 0.1-.25 Ibs (pH = 8.5-9) Aldacide-G - 0.25 Ibs (X-cide 207 for rig maintenance) Baroid - as needed (9.3 ppg) Baracor - 1 ppb Barascav D - 0.5 ppb (to be added at the rig when first circulating) ** Use Barite for any needed weight ups on this well. NOT drill solids. Aklaqyaaq #1 v1.0 3 10/06/05 • • Halliburton sAROID FEX LP Mud Program A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system, however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders/desilters, mud cleaners and centrifuge(s) to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. On an example well, some of the centrifuge under-flow was returned to the mud system. This led to a fines build up and the resultant required dilution was excessive. The personnel were trying to reduce waste, but wound up causing additional waste. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud <75°F should be made. Normal surface hole viscosities should be adequate for the angle of hole being drilled. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well (no gravel is anticipated -mostly clays and sand). Reduce viscosity as allowed, previous wells in the area have TD'd the surface with a --20-25 YP. However, do not hesitate to quickly raise the viscosity if hole-cleaning problems develop. Polymer viscosity in the form of Barazan D additions should be utilized to provide rheological support as needed. Utilize high viscosity or Barolift sweeps to supplement the hole cleaning capabilities of the system. Spud the well with a 8.7 ppg density mud.` Expect the natural progression of the weight as drilling proceeds. Increase the mud weight as dictated by actual hole conditions. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. • A two pound per barrel treatment with Driltreat (Lecithin) could provide some inhibition of the hydrate break-out. • Keep the mud as cool as possible to minimize thawing of the hydrates. Mud up with cold water and dilute with cold water. • Milne Point and Tarn operations have reported benefits from treating with 1 % DriI-N-Slide. The .mud engineers state that it acts to smooth out the rheology of the fluid which allows the hydrates to break out of the fluid more readily. If possible, use 6% KCI water (COLD) to maintain volume while drilling ahead. Maintain the mud chlorides - 28,000 - 34,000 ppm with KCI. Use Dextrid and PAC's for API filtration control. Target 6-12 cc's initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. Hold the pH in the 8.5-9.5 range with KOH. Mix 0.15 ppb of EZ Mud in the initial mix. Once the mud has sheared through the bit twice, slowly increase the EZ Mud concentration to the full 0.75 ppb. Initial Clayseal concentration should be .21 gal/bbl. Increase this to the full concentration while drilling ahead. By material balance, maintain the Clayseal concentration in the 2% by volume range. Keep penetration rates below 150'/hr for controlling clay "chunks" (as have been experienced on other NPRA wells). Daily additions of X-Cide 207 are needed to control bacterial action. Should bacteria become a problem, hold a safety meeting and add the desired amount of Aldacide G using all the proper PPE. High levels of corrosion have been seen when running KCI fluids in other areas on the North Slope. Daily sulfite and phosphonate checks will be run. Sulfite levels at 200-300 ppm and phosphonate levels between 600-800 ppm will be targeted. Barascav D and Baracor 700 levels will be maintained at programmed levels. Aklagyaaq #1 v1.0 4 10/06/05 ! i Halliburton BAROi~ FEX LP Mud Program Heavy amounts of clay will be present below the permafrost which will require additions of DriI-N-Slide and/or Condet to reduce BHA balling and screen blinding. Sweeping the hole with high viscosity or Barolift sweeps prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible, reduce the fluids rheology to those recommended in the cementers program after the casing is on bottom. Dilution can be used as a lower weight will be desired to drill the initial 8'h" hole. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Production Interval: 8'/2" to 10,570'; 6% KCI/Clayseal/PHPA Mud Pro erties Initial Value Final Value Densit 9.5 - 9.6 9.9 - 10.5 Funnel Viscosity seconds 40-65 40-65 Yield Point cP 18-26 18-26 Plastic Viscostty Ib/100 s 14-24 14-28 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <6 <4 HTHP filtrate <14 <10 Solids % 6-12 6-12 Treat the mud with bicarb and citric acid prior to driling out. After drilling out, maintain the mud as specified above in the surface section until reaching the top of the LCU (7242'). The mud weight should be raised to 9.9 ppg at this depth to help control the lower shales. The HTHP should be lowered to <10 cc at 7242'. Maintain this tight filtration to TD of the well with N-Dril HT/Dextrid, PAC and Baranex. A 2 ppb treatment with Barotrol will be made while drilling once the HTHP has been lowered. Keep low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0-9.5 with KOH. Daily additions of Aldacide G/X-Cide 207 should be made to control bacterial action. Previous wells in the area have had mud weights of 9.9-10.0 ppg at this well's TD depth. The chloride level should be kept in the 28-34K range through additions of KCI. The Clayseal and EZ Mud concentrations will be maintained at their respective programmed concentrations. A 15-25 YP should be maintained using Barazan D+. Due to over balance, it may be advisable to have a 25 ppb LCM pill standing by before entering the zone of interest. Some losses were noted in prior years drilling programs when drilling this zone. Also consider stringing in 2-5 ppb Barofibre as the zone is drilled. " Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. Aklaqyaaq # 1 v 1.0 5 10/06/05 Halliburton BAROID FEX LP Mud Program A decision will be made at TD as to running casing or not. If casing is run, pretreat the system with bicarb and citric acid to facilitate a better cement job. Recommended Drilling Parameters: Penetration Rates: Please see the following optimization chart for maximum allowable penetration rates. These rates are set for rotating not sliding. Penetration rates may need to be controlled to minimize overloading the annulus with cuttings. Close monitoring of PWD data will assist in diagnosing this potential problem and allow real- time, timely remedial actions. Due to the vertical profile of this well, rpm has little effect on hole cleaning. Hydraulics Optimization Chart Actual P rates will need adjusted to how well the surface equipment can handle the flow and cuttings. 12'/<" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-> 500 600 700 80r m 130 162 190 100r m 130 162 190 Do not drill at rates above 150'/hr on surface. RPM has no effect in this vertical well. 8'/2" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 350 450 550 80r m 171 246 324 100r m 171 246 324 Hole Cleaning: Maintaining the programmed flow properties are essential to a successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (drag, torque, partial pack offs) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps. If these sweeps seem ineffective, other type sweeps (Barolift, weighted, etc.) should be tried. The returns at surface of all sweeps should be monitored at the shakers to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Waste Minimization: 1. Solids Control Equipment - for reduced dilution volume. Monitoring shaker screen mesh size and checking for screen damage (holes) is a primary responsibility of both the fluids engineer and rig contractor. The centrifuges must be run as much as possible to reduce dilution throughout all hole sections. 2. Gauge Hole -for reduced cuttings volume. • Inhibitive Mud System -Use of 6%+ KCI Polymer system as outlined in the mud program to reduce washout in clay/shale sections • Hydraulics and Rheology as recommended in the mud program to reduce washouts in unconsolidated formations, especially on surface hole. • Use of near freezing water for mud make-up and dilution to reduce thawing of Permafrost. Note: the close proximity of heat generating equipment (power plants) to the mud pits on some rigs can increase the surface mud temperatures by 10 to 15 deg F while drilling surface hole. Aklagyaaq #1 v1.0 6 10/06/05 • • Halliburton BaROI~ FEX LP Mud Program • Drilling the surface hole and running casing as efficiently as possible to reduce time, thus minimizing thawing and washout of the Permafrost. 3. Re-cycling of Fluid -for reduced mud volume disposal An Inhibitive KCI Polymer system, as outlined in the mud program, allows for re-use from interval to interval and from well to well. Tracking and Reporting of Waste Streams and Costs: We consider this to be of vital importance. TFM reports will be completed daily. Interval and well summaries will also be done. Lubrication: Due to the vertical nature of this wellbore, lubricants should not be required. If required, 1-2% of EZ Glide or Torq Trim II and '/2% DriI-N-Slide can be added. Risks and Continaencies: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the production zone. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long way toward reducing the risk of lost returns. Should lost returns occur check with MWD personnel prior to pumping any pills to ensure that no plugging will occur. Wellbore Instability: The lower shales can be problematic. Ensure the mud has the HTHP reduced to less than 10 cc. Should any signs of shale splintering be seen immediately raise the mud weight a minimum of 0.4 ppg. As much as 11.3 ppg has been needed in other areas of the NPRA. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning. Stuck pipe can occur if the hole isn't clean or if the wellbore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario in the first place, and if they do occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming is an invitation to packing off and resulting stuck pipe so backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. Aklaqyaaq #1 v1.0 7 10/06/05 FW: Aklaqyaaq 1 Geoscience Questions; • • Subject: FW: Aklaqyaaq 1 Geoscience Questions; From: "Quick, Michael J." <Michael.Quick@asrcenergy.com> Date: Tue, 29 Nov 2005 15:02:10 -0900 To: Stephen Davies <steve_davies@adminstaxe.ak.us> CC: Tom Maunder <tom maunder@adminstate.ak.us>, "Quay, Walter" <Walter.Quay@asrcenergy.com> Hi Steve - Please see Kathy's comments on the shallow gas question for Aklaqyaaq #l. Please let me know if you have any questions. Regards, Michael -----Original Message----- From: Heinlein, Kathy Sent: Tuesday, November 29, 2005 2:46 PM To: Quick, Michael J. Cc: Quay, Waiter; Waters, Doug Subject: RE: Aklagyaaq 1 Geoscience Questions; Hi Michael - I didn't see any indication of shallow qas on the seismic data at or near the proposed Aklaqyaaq #1 well location. Kathy -----Original Message----- From: Quick, Michael J. Sent: Tue 11/2912005 1:14 PM To: Heinlein, Kathy Cc: Quay, Walter; Waters, Doug Subject: FW: Aklaqyaaq 1 Geoscience Questions; Hi Kathy - Can you send me a response to Steve's question for Aklaqyaaq #1? Thanks, Michael From: Stephen Davies [mailto:steve davies@admin.state.ak.us] Sent: Tuesday, November 22, 2005 4:23 PM To: Quick, Michael J.; Quay, Walter Subject: Aklaqyaaq 1 Geoscience Questions; Notices of Change of Ownership forAklaq 2 and Aklaqyaaq 1 Mike, Walter: Aklaqyaaq 1 Geoscience: 1 of 2 11/29/2005 3:15 PM FW: Aklagyaaq 1 Geoscience Questions; 1) Did the project geophy37cist see any indication of shallow~as on seismic data atop and surrounding the proposed well location (bright spots, signal losses, phase reversals, etc.)? If you have any questions, please call me at 793-1224. Thanks, Steve Davies Petroleum Geologist AOGCC 907-793-1224 2 of 2 11/29/2QO5 3:15 PM NPR-A Federal Lease AA-085494 Legal Land Description • • Subject: NPR-A Federal Lease AA-085494 Legal Land Description From: Melissa_Ainsworth@ak.blm.gov Date: Fri, 25 Nov 2005 15:30:00 -0900 To: steve_davies@adminstate.ak.us CC: Carol Taylor@ak.blm.gov, Bob_Merrill@ak.blm.gov, Greg_Noble@bim.gov, Stan_Porhola@ak.blm.gov Steve: Here is the information on NPR-A Federal Lease AA-085494. Land Included in Lease: Umiat Meridian T. 14N R. 14W South Half Total Lease Acres: 11,458 acres If you have any further questions please let me know. Thank You, /s/ Melissa Ainsworth Mineral Law Specialist BLM-Alaska Division of Energy and Solid Minerals Mineral Law Staff 907-267-1212 Phone 907-267-1304 Fax melissa ainsworth@ak.blm.gov 1 of 1 11128/2005 8:34 AM ~HE ATTACHED CHECK IS IN PAYMENT OF ITEMS BELOW. I ORRECT ASRC Energy Services PLEASE NOTIFY ACCOUNTS PAYABLE PROMPTLY. NO RECEI SIRED. CK NO . 117 3 74 07-NOV-05 S TATE OF ALASKA 976 APD AKLAQYAAQ #1 06-NOV-05 APPLICATION FEE 100.00 ~. ~ i5~~ 4 ... ~ ~4?'~ ~ ~~ a ,.~ . qq dds '754sd~'e@d~. ASRC Energy Services TOTALS o . oo loo . 00 39UU L Street Anchorage, Alaska 99503 Phone: (907) 339-6200 DETACH AND RETAIN THIS STATEMENT ;~ ~cc~~t.~ P`aya~ile `heck ~ '~rt'~ ~~~~ ~K ~o.. ,. ~ . w~L~~ F.q>zco'~L~s~Ca. v .a 0 7 NOV = 0 5 1' 17 3 7 4 835 ~ ~fkl L[11~J ~ lK1Cl I~~~ / ~ ASR` Energy Services iasz ryry(~ . ~" asu6sldiekY of~llretic SIo~RegicnaF Copporacion ~ ~ ~ ~ ~;~~*'* * ~~* ~ ~'~~ QO, VSy 3900 C STREET, ANEITORAGE.; ALr1SKA 19503 ~ ~ Q~~, ONE ,Z~~ ER~ ~C~TS. ~ ~ ~'~i O07} 339~fi209 i ~ ~ , ,r ~~, .:~~ ~~ ~ ~ ~PAY~ ONE HUIVARED DOLL[XRS~AND:OOBEN'IS~~*~v~*~~*****~.****~***~***+~~**~******~*~~********~ ~*~*~*~***+*****~************~******~*~~*x~:** ' VOID OVER $100.00> `STATE OF ALASKA To~THE -OIL & GAS CONSERVATION COMMISION ~ oRDExoF.333 WEST 7TH AVE STE 100 ANCHORAGE, AK 99501 II'LL73741i• ~:L25200057~: 37~~17827LL11' ~• TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLLTDED IN TILAi~tSMITTAL LETTER WELL NAME CHECK WHAT I ADD-ONS APPLIES ~ (OPTIONS MULTI iLATERAL (If API number last two (2) digits are between 60-69) "CLUE" The permit is for a new wellbore segment of existing well , Permit No, API No. Production should continue to be reported as a function of .the original API number stated above. PILOT HOLE ~ In accordance with 20 AAC 25.005(f), all (per .records, data and togs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 - 70/80) from records, data and logs acquired for well (name on permit). SPACING ~ The permit is approved subject to full EXCEPTION ~ compliance with 20 AAC 25.055. Approval to perforate and produce/infect is contingent j upon issuance of a conservation order approving a spacing exception. (Company Name) assumes ~ the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the ~ SAMPLE Commission must be in no greater than 30' ~ ~ sample intervals from below the permafrost j or from where samples are first caught and 10' sample intervals through target zones. Rev: 04/01/OS C\jody\transm ittal_checklist WELL PERMIT CFiECK!.CST Field & Pool Well Name: AKLAQYAAO1 Program EXP Well bore seg ^ PTD#:2051890 Company FEX L P Initial ClasslType EXP 1 PEND GeoArea $9t) Unit On/Off Share 4n Annular Disposal^ Administration 1 Pe[mitfee attached - - - Yes 2 Lease number appropriat_e_______________________________ _________Yes- __-_--NPR-A Lease AA-085494 encompassesS,1.9-36_o_fT14N,R14W,_UM.___.._......__.___...-... 3 Uniquewell_nameand number_____________________________ __-..-_. Yes_ __-__- 4 Well locatedin_a_defined_pool_____________________________ --__--__-No__ _-_-_-Exploratory well,-________________-__.-___-_- 5 Well located proper distance f[om drilling unit-boundary_ - .. _ - - Yes Statewide spacing requirements apply. . . . .. . . .... . .. . .. . ... . 6 Well located p[operdistancefromotherwells_____________________ _________Yes- __--_-Nearestwell_isE._Topagoru_k 1, 1.7 miles-away.-_--.___---_--____--___________________ 7 Sufficient acreage available in_drilling un~_ _ - - _ _ _ _ - - - - - - -- - - - - - - - - - - - Yes _ _ _ _ - _ _ -- -- -- - - 8 Ifdeyiated,is_wellboreplat_included_---____----------------- --- -----NA__ -____Verticalwell,__--__- -- -- 9 Ope[ator only affected party - - - - - - - Yes - -- - - - - - - - 10 Ope[ator has.appropriate-bond in fprce - - - - - - - - - ------- - - - - - - - - - - - - - - - -- Yes - . - - . - . NQv.17, 2005,_Kaye Laughlin: Letter of Credit in trapsit, 12-7-0~:- Letter 4f Credit c4nditignally _ _ _ _ _ _ _ - _ - _ - 11 Pe[mit_can be issued without conservation order_ - - - - - ... - - - - Yes approved for 90-da s --see bond file. SFD_ y - - Appr Date 12 Permit_canbeissuedwithoutadministrativ_e_approval-__-__-________ _---..--Yes_ -__-___-------------------------------------------_-__--______----.-_ SFD 12!712005 13 Can permit be approved before 15-day wait Yes 14 Well located within area and strata authorized by-Injection Order#(put1O#in_cornments).(FCr_tJA__ __________________________________________---___-__-__--_--__-__-----_ 15 Allwells.within1l4.mileareaof[eyiew]dentified(Forserviicewellonly)______ _________Nq- -.._-____--______-___--_--_--__-----.....--.---_.._-..._.._---_--._-..--._ 16 _P_re-produced injector; duration of pre production less than_ 3 months_ (For_service well only) - _ NA_ _ _ - - - - - - - - - -- - - - - - - _ - ACMP_Finding of Consistency-has been issued_for this project- - - _ - - _ _ NA_ _ _ _ _ - - _ Approval of a permit to drill is_n_o longer_contingent on an ACMPdetermination- - - - - - - - - - - - - - - - - - - - - Engineering 18 Conductor string_provided _ _ _ _ - - - Yes _ - _ _ - - _ Surface casing set at 2500'_ & cemented to su_rface_will protect any potential USDWs, However, abundant surface_ 19 Surface casing_protects all known- USDWs - - - - - .. - - - Yes water, presence of permafrost andgas present in shallow section of nearby USGS wells indicates there is very - 20 CMT-vol. adequate_to circul_ate_on conductor& surf csg - ... - - - - - -Yes little_possibilitythot any subsurface aquifer here will-everbe-util¢ed for drinking water_purposes, SFD- - 21 CMT_vol-adequate_to tie-in long string to surf csg_ - - - .. - - - - - - - - No_ All hydrocarbon zones will be_covered. Annular_disposal_ may_be_proposed_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 22 CMT will coverall know_n_productivehorizons_____________________ ____----Yes_ ___--_--__-______________ _--____-._....-.._--_--_.-__-___-__--__--..-. 23 Casing designs adequate for C,T,B&.permafrost------------------ --- Yes- ----------------------.-- -------------- ------------------------.-.-..-.- 24 Adequate tankage_or reserve pit - - - -- - - - - - - - - - - -Yes _ _ _ _ - Rig is_equipped with steel_pits. No reserv_e_pitplanned, Annular disposal_planned_or waste will be hauled. 25 Ifa_re-dill,has_a1.0-403 for abandonment been approved__-___---_-- -.---.-__NA__ ________________-__---__.-_--_--___-__- __-________________-_----__--_-- 26 Adequatewellboreseparation_proposed------------------------ ---------Yes. .--.__Nearestwell-is1.7m]lesaway.__._____.---_--.----_._..-..------_------------_-. 27 Ifd]verterrequired,doesitmeetregulations---------------------- ----- ---Yes_ ____-_---.---.---..--....._----.-___-__---_---_ - - - Appr Date 28 Drilling fluid_program schematic-& equip listadequate_ _ .. - - . - - - - - - Yes Maximum expected formation presss~re 19.2 EMW._ MW_up to 10.5 planned-- - - - - - - - - - - - - - - - - TEM 1218!2005 29 B_OPEs, do they meetregulation - - - - - - - - - -Yes - - - - - - - - - - - '~A/' 30 BOPE.press rating appropriate; test to-(put prig in comments)- . - - . - - . - - _ -Yes MASP without_formation_breakdown, 3382 psi._ 4000_psi_BOP testplanned, _ 31 Choke-manifold complieswlAPI_RP-53 (May 84)--------- -- ------ ---------Yes- ------------------------------------..--------------------------- -_ - 32 Work will occur without operation shutdown- _ _ - - _ _ - - _ -Yes _ - _ _ _ _ If available-time_becomes limited, an ppera_tignal SD may be needed.. - - - _ - . - - - 33 Is presence-of H2S gas probable - - - - - - - - - - - - - - ---- - - - - - - - - - - - - - - - - - - No_ - - - - . - - H2S was-not reported in_the offset well._ Mud should preclude H2$ on-the rig. Riq has sensorsand alarms. - - - - 34 Mechanical-condition of wells withinAORyenfied(For_servicewellonly)----- ---------NA_ _____________________-_---_--___-_---_-.-____-__- ----------------------- Geology 35 Permitean be issued wlo hydrogen_sulfide measures- - . - - - - No_ - - _ _ - _ Exploration well. H2S sensors and precaution_will bein place although H2S is_unl_ik_ely._ X36 _D_ata_presented on-potential oyerpressur_e zones_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ - - - -Expected reservoirpressure is 10.2ppg; will be drilled with 10.5 ppg_mud, Seismic_pressure - - . - - ... - .. - Appr Date 37 Seismic analysis_ of shallow gas-zones- - . - - - - - _ - - - - . - - . - . - - . Yes predictions show-no apparent shallow hazards or-pressure anomalies. No shallow_ gas indicators_ - SFD 11122!2005 38 Seabed condition suru_ey.(if off-shore) _ _ - - - - - - NA_ - - - were observed in the-seismic data, Hydrates not expected based on 4ff_set_well records.-SFD _ - - - _ - - . _ 39 Contact namelphone for weekly_p_rogress reports-[exploratory only] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ - - _ -Chris Bellis,-403-231-2854 or Mike Quick 907-339-6488- _ _ _ - - _ _ _ _ _ _ _ _ - _ _ - _ _ - _ _ _ _ . - _ _ - . _ - - _ Geologic Engineering P ~ Date Date: Date Vertical exploration well in NPR-A. Indination survey required. Well will be mud logged from base of conductor to TD. SFD Commissioner: Co mis io Commis sioner: / ) r~ 1~ a