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204-081
i • Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ~~ ~ - ~$ ~ Well History File Identifier Two-sided III II'lll VIII II III ^ Rescan Needed III IIIIII II II IIIIII Organ~z-ng (done) ^ RESCAN DIGITAL DATA OVERSIZED (Scannable) ~olor Items: ^ Diskettes, No. ^ M ps: ~eyscale Items: ^ Other, No/Type: Other Items Scannable by a Large Scanner ~a~ ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~s~ -n IIIIIIIIIIIIII VIII Project Proofs g BY: Maria Date: ~s~ Scanning Preparation _~ x 30 = _~ + ~ =TOTAL PAGES (Count does not include cover sheet) BY: Maria Date: ~s~ IIIIIIIIIIIIIIIIIII Production Scanning Stage 1 BY: Stage 7 BY: Page Count from Scanned File: ~~~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO Maria Date: ~ !~ ~ ~© ~s~ ~, 111 If NO in stage 1, page(s) discrepancies were found: YES NO Maria Date: /s/~~ ~~^~.~~~^~~ i~.n Scanning is complete at this point unless rescanning is required. ReScanned II I II II II I) II I I II I BY: Maria Date: ~s~ Comments about this file: Quality Checked III II'II) III II'I III 10/6/2005 Well History File Cover Page doc ~~ ~ ~ ~, DATA SUBMITTAL COMPLIANCE REPORT 6/21/2010 Permit to Drill 2040810 Well Name/No. SWANSON RIVER KGSF 7 Operator UNION OIL CO OF CALIFORNIA MD 2113 TVD 2112 Completion Date 8/25/2004 Completion Status P&A Current Status P&A API No. 50-133-20538-00-00 ~-.-- REQUIRED INFORMATION Mud Log No Samples No Directional Survey Ye DATA INFORMATIDN Types Electric or Other Logs Run: CBL, GR/CCL, PEX, Quad Combo Well Log Information: Log/ Electr Data Digital Dataset Log Log Run (data taken from Logs Portion of Master Well Data Maint Interval OH / type mearrrmi rvumuer a acme ~nruia rvo awr< atop ~n rcecewea ~ommenrs D C Las 12741 Gamma Ray 1 0 5997 Open 9/21/2004 og 12741 Gam a Ray 2 BS 1 0 5997 Open 9/21/2004 TVD D C Las 12740 no'f duction/Resistivity 1 5500 6828 Open 9/21/2004 CML TRIPLE COMBO- ~ NEUTRON POROSITY/COMPENSAT ED DENSITY/INDUCTION/ g 12740 Induction/Resistivity Blu 1 5500 6828 Open 9/21/2004 CML TRIPLE COMBO- NEUTRON POROSITY/COMPENSAT ED ~ DENSITY/INDUCTIONNE CTAR I~,~ I~'-"y 12740 Induction/Resistivity Blu 1 5500 6828 Open 9/21/2004 CML TRIPLE COMBO- NEUTRON ', POROSITY/COMPENSAT ED DENSITY/INDUCTION/SAL' TY D C 12739/Mud Log 4075 6550 Open 9/21/2004 MUD LOG ,~§ 12739 Mud Log Col 4075 6550 Open 9/21!2004 MUD LOG-BAROID belg 12739 Mud Log Col 4350 6550 Open 9/21/2004 MD DRILLING PARAMETERS-BAROID 12739 Mud Log Col 4350 6550 Open 9/21/2004 OIL & GAS MD DRILLING PARAMETERS-BAROID DATA SUBMITTAL COMPLIANCE REPORT 6/21 /2010 Permit to Drill 2040810 Well Name/No. SWANSON RIVER KGSF 7 Operator UNION OIL CO OF CALIFORNIA API No. 50-133-20538-00-00 2113 ND 2112 Completion Date 8/25/2004 Completion Status P&A Current Status P&A UIC Y Log 12741 Gamma Ray 25 BS 1 0 5997 Open 9/21/2004 MD Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments • ADDITIONAL INFOR/M TION /'~~ Well Cored? Y~ Daily History Received? L'J N Chips Received? Y7'I~ Formation Tops ~-=~ N Analysis ~'7id~ Received? Comments: Compliance Reviewed By: _ ~ Date: _~! __ ~~- C~'V~7 ~ V STATE OF ALASKA ` ALA IL AND GAS CONSERVATION COMMI N WELL COMPLETI OR RECOMPLETION R~ ORT AND LOG~~~~'' TRUE Oil Gas Q Plugged Abandoned ~ 20AAC25.105 GINJ ^~ WINJ ^ WDSPL^ No. of Completions Suspended WAG zoaac2s.>>o 0 Other Storage 1 b. Well Class: ~ Development ^ " EXplor'atc~y~~ Service 0 Stratigraphic T=est]. 2. Operator Name: Union Oil Company of California 5. Date Comp., Susp., or Aband.: 8/25/04 12. Permit to Drill Numfier. c 204-081 - 3. Address: PO Box 196247, Anchorage, AK 99519 6. Date Spudded: August 9, 2004 13. API Number: 50-133-20538 4a. Location of Well (Governmental Section): Surface: 1,999' FSL, 425' FEL, Sect. 28, T8N, R9W, S.M. 7. Date TD Reached: August 25, 2004 14. Well Name and Number: KGSF-07 Top of Productive Horizon: n/a 8. KB Elevation (ft): 174' 15. Field/Pool(s): Total Depth: 1,999' FSL, 425' FEL, Sect. 28, T8N, R9W, S.M. 9. Plug Back Depth(MD+TVD): 2113/2112' Swanson River Field/Tyonek 64-5 4b. Location of Well (State Base Plane Coordinates): Surface: x- 347,290 y- 2,468,440 10. Total Depth (MD + TVD): ~ ,21a2~~2'~,~~-J.~ 6$"$" 16. Property Designation: Swanson River Field TPI: x- n/a Total Depth: x- 347,290 y- 2,468,440 11. Depth Where SS V Set: n/a 17. Land Use Permit: A-028399 18. Directional Survey: Yes Q No 19. Water Depth, if Offshore n/a feet MSL : 20. Thickness of Permafrost: n/a 21. Logs Run: n/a 22. CASING, LI NER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD AMOUNT FT TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 16" 68# K-55 0 41' 0 41' DRIVEN 9-5/8" 40# L-80 0 1950' 0 1,950' 12-1/4" 158 bbl lead, 27 bbl tail, cmt to surface 23. Perforations open t o Product ion (MD + TVD of Top and Bottom 24. TUBING RECORD Interval, Size and Number; if none, state "none"): SIZE DEPTH SET (MD) PACKER SET (MD) none n/a 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED n/a 26. PRODUCTION TEST Date First Production: n/a Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". none ~C?NIS ~~. EE(~ ~ ~ 200 ~~; Form 10-407 Revised 12/2003 CONTINUED ON REVERSE 28. GEOLOGIC MARKERS 29. FORMATION TESTS ' NAME TVD Include and briefly su ize test results. list intervals tested, and attach detailed supporting d .necessary. If no tests were conducted, state "None". none n/a 30. List of Attachments: t.~3C~C:ttOElai Survey, Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Steven S. Lambe 263-7637 Printed Name: Timothy C. Brandenburg Title: Drilling Manager Signature: "~-- Phone: 907-276-7600 Date: 1/25/2005 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 1 njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 8/8104 From To Hours Remar s 0:00 6:00 6.0 RU, pull electric lines and hooking up electric components. 6:00 18:00 12.0 Spot Baroid shack Peak connex and change room wire in same. Continue to RU, hook up and test choke lines, repair TD grabber. 18:00 0:00 6.0 Rig Accepted at 18:00 HRS, mix mud, change liners in pump 1 to 5.5" from 4.5", gather BHA equipment 8/9/04 From To Hours Remarks 0:00 2:00 2.0 Continue to mix mud and change liners to 5.5" 2:00 6:00 4.0 Strap BHA components and PU 6:00 14:00 8.0 Spud well at 33' very ratty going through lots of gravel for first 200'. Continue to drill with operation smoothing out, Drill to 478' 14:00 15:00 1.0 Shut down due to electrical problems with UPS 15:00 0:00 9.0 Rotary drill 478' to 1460' 8/10/04 From To Hours Remarks 0:00 4:30 4.5 Rotary drill 1460' to 2000' TD 4:30 5:30 1.0 CBU, Pump high visc sweep with nut plug, flag back at 291 BBL, calculated annular volume of 251 BBL (40 BBL washout.) Pump dry job 5:30 6:00 0.5 POOH had 15K over pull at 1905', Pump out of hole 6:00 9:30 3.5 Pump out of hole to 330' top of 5" HWDP 9:30 10:00 0.5 Circulate and condition mud pump several BU until shakers cleared 10:00 11:30 1.5 TIH to 2000' 11:30 12:00 0.5 Pump hi-visc sweep 12:00 16:00 4.0 Pump out of hole from 2000' to 330' top of 5" HWDP 16:00 20:30 4.5 Hold PJSM discuss safe handling of 8" collars and stabilizers and effectively pumping out of hole. Pump out of hole laying down 5" HWDP, 8" DC, XO, Stabs, Pony collar, bit sub and bit 20:30 22:00 1.5 RU to run 9 5/8" casing 22:00 0:00 2.0 Run guide shoe joint along with float collar joint and fill and test float equipment, continue to run 9 5/8" casing. 8/11/04 From To Hours Remarks 0:00 4:00 4.0 Run 9 5/8" casing to 1950 + /-" tagged up 4:00 6:00 2.0 Worked pipe with varying pump rates. Was able to bury joint, with a 4' Stick up 6:00 6:30 0.5 C&C mud 6:30 9:00 2.5 PU last joint of casing was able to work down to were we had 10' above rotary 9:00 12:00 3.0 C&C mud, RD WOTCO tongs, RU Cement manifold 12:00 13:00 1.0 RD circulating head and RU cement head 13:00 15:00 2.0 Pumped 3 BBL water at 3 BPM rate, Pressure tested lines to 4000 PSI, pumped 20 BBL mud push at 5 BPM rate. Batch up to 12.8 PPG and pump 158 Bbl lead cement slurry at 12.8 PPG, followed by 27 BBL tail at 15.8 PPG. Shut down and drop plug, Pumped 5 Bbl mix water and watched tattle tale move indicating plug release. Using rig pump chased plug with 143.6 BBL 9.1 PPG WBM, bumped plug within 10 strokes of calculated number. Pressured up to 3500 PSI and charted for 30 minutes. Cement returns to surface. 15:00 15:30 0.5 Hold 3500 psi on plug for 30 minutes, bled off to check floats. Had 2 BBL bleed back 15:30 16:30 1.0 RD cement head, spiders and cement equipment 16:30 17:30 1.0 Remove flow line and bell nipple riser 17:30 19:00 1.5 Set C-22 slips with 60K and rough cut 9 5/8" casing 19:00 20:30 1.5 Remove rotary table bail extensions and riser pipe, do final cut on casing 20:30 0:00 3.5 Set (Vetco) well head and NU same, with plastic packing, and attempt to test. 8/12/04 From To Hours Remarks KGSF-07 morning report summary, CONFIDENTAL: last revised 1/25/2005 Page 1 0:00 1:30 1.5 Presst~asing to 4500 PSI to test secondary seal~ellhead 1:30 2:00 0.5 RD Vetco Gray test equipment, Change liners in MP #1 back to 4.5". Change out dampener 2:00 17:00 15.0 NU BOP, hook up koomey hoses, connect choke and kill lines, function test, install catch can, bell nipple and flow line. 17:00 17:30 0.5 Install rotary table 17:30 18:30 1.0 Pick up test equipment and make up 18:30 0:00 5.5 Test BOP 8/13/04 From To Hours Remarks 0:00 3:00 3.0 Test BOPs 3:00 5:00 2.0 RU Scientific portable E-line & Run gyro survey. 5:00 13:00 8.0 PU BHA and RIH 13:00 15:00 2.0 Tag cement wiper plug at 1940', checked up weight of 60M and down weight of 60M. Drill shoe track and rat hole along with 15' of new hole to 2017'. 15:00 16:00 1.0 CBU. 16:00 17:00 1.0 Pertorm LOT, had a 16.2 EMW 17:00 0:00 7.0 Directional drill from 2017, to 2665' Gyro survey to 1931' in 9 5/8" casing 1930' MD, .50 INC, 68.84 AZ, 1930.97 TVD Survey: MD 2691', TVD 2676 INC 20.80 Azimuth 14.64 8/14/04 From To Hours Remarks 0:00 6:00 6.0 Drilled F/ 2665' to 3113', Swept at 3000' 6:00 12:00 6.0 Drilled F/ 3113' to 3746', Swept at 3400' UPWT 84K, DNWT 76K, RTWT 84K 12:00 17:30 5.5 Drilled F/ 3746' to 4272', Swept at 4200' 17:30 21:30 4.0 Electric #2 mud pump went down. Held PJSM, performed lock out tag out on pump, and energy isolation on valves. Replaced seat, valves, and new spring retainer. Remove locks from lock out tag out. Bring pumps back on line. 21:30 0:00 2.5 Drill 30' kelly down, make connection. Attempt to pump survey with no success. Shut down pumps for 3 min, bring pump up to 650 GPM, still no signal. Check wires on MWD unit and rig floor, Pump sweep, and pump 40 bbl of water. Attempt to pump survey with no success. Baker (MWD) seems to think that the turbine in not turning. 8/15/04 From To Hours Remarks 0:00 3:30 3.5 POOH from 4095' tight at 2990', pumped and wiped clean continue to POOH with 4" pipe 3:30 7:00 3.5 POOH with 4" and 5" HWDP connection (very tight), 7:00 10:00 3.0 Stand back flex collars, drain motor, inspect bit, Change out MWD and orientate tool 10:00 11:30 1.5 RIH to 2000' 11:30 12:00 0.5 Service rig 12:00 15:00 3.0 RIH to 4293' set down KU and pump, could not wash rotated down to 4348' 15:00 0:00 9.0 Pump sweep and start to directional drill from 4348' to 4630' TRH 1.9 ROP 87.4 TSH 4 ROP 4.0 TDH 5.9 TROP 47.6 Off bottom circulation Hrs 3.7 Com Circ Time 9.6 Up WT 95M down WT 74M RT WT 84M, Torque on BTM 4-6 off BTM 4-6 8/16/04 From To Hours Remarks 0:00 19:00 19.0 Directional drill to 5430." 19:00 0:00 5.0 Rotary drill to 5850' ART 7.5 926' ROP 123.5 KGSF-07 morning report summary, CONFIDENTAL: last revised 1/25/2005 Page 2 AST 15.~' ROP 37.6 • ACT 1.8 8/17/04 From To Hours Remarks 0:00 2:00 2.0 Rotary drill to 6073' lost swab in #1 pump. 2:00 5:00 3.0 Swab repaired and drilling from 6073' to 6200' 5:00 0:00 19.0 Directional drilled from 6,200'-6,810. APIG - 59.0' / hr ART - 16.9 hrs AST - 0 hrs Survey - 6,720' MD, 1.99 degrees @ 6,426.66' TVD with 25.75 Azimuth 8/18/04 From To Hours Remarks 0:00 0:30 0.5 Drilled from 6,810' to 6,846' MD. Took influx @ 6,846" / 6,551' TVD. 14 bbl pit gain with 175 psi SICP and 0 psi SIDPP. 0:30 3:30 3.0 Circulating kick using step 1 of drillers method with 9.4 ppg mud. SD pump SICP-370, SIDPP-330. 3:30 5:30 2.0 Bled 2 bbl to trip tank off annulus. DP-0 psi, csg-75 in 50 minutes. 5:30 7:00 1.5 Bled 4 bbl to trip tank from annulus. DP - 0 psi, casing - 20 psi. Monitored well for 1 hr. DP - 130 psi, casing - 264 psi. 7:00 10:00 3.0 Circulated BU using step 1 of drillers method. SD pumps/closed choke. SIDPP - 360 psi, SICP - 365 psi. 10:00 11:30 1.5 SIDPP - 330 psi, SICP - 321 psi. Bled 1 bbl from annulus to trip tank. DP - 90 psi, Casing - 91 psi. Monitored 10 minutes. SIDP - 90 psi, SICP - 100 psi. 11:30 17:00 5.5 Transferred mud and weighted up active pits to 9.8 ppg. Held PJSM on circulating killing procedure. 17:00 21:00 4.0 Circulated KWM using step 2 of drillers method. SD pumps/closed choke. SIDPP - 0 psi, SICP - 0 psi. Monitored well shut-in for 30 minutes. Pressures remained 0 psi. 21:00 23:00 2.0 Opened hydril. Monitored well while transferring mud to active pits. Well giving large gas bubbles. No flow. 23:00 0:00 1.0 Circulated 2 BU. Recovered large coal cuttings and sand. Max gas - 475 units. SD pumps. Monitored well. Well slightly flowing. Started pumps. Get slow pump rates. Continued circulating additional 50 bbl. SD pumps. Fluid level falling slowly. No flow. Survey - 6,800' MD, 2.08 degrees @ 6,506' TVD with 27.18 azimuth 8/19104 From To Hours Remarks 0:00 0:30 0.5 Monitored well for 30 minutes. Fluid level dropped 1 ft. in stack. 0:30 3:30 3.0 CBU and pumped hi-visc sweep. Lost 7 bbl mud during BU. High gas - 150 units. SD pumps. Monitored well. Well static. 3:30 20:00 16.5 Pumped out of hole making short trip to 2,800'. Tight spots resulted in back-reaming. 20:00 20:30 0.5 CBU and pumped hi-visc sweep. 20:30 0:00 3.5 RIH following short trip @ 6,025' 8/20/04 From To Hours Remarks 0:00 3:00 3.0 Tagged coal @ 6,025'. Reamed through. CIH to bottom having to ream tight spots @ 6,030', 6,318' and 6,522' 3:00 5:00 2.0 Tagged TD @ 6,846'. Pumped hi-visc sweep with walnut plug and gauged hole (485 bbl). Total volume = 452 bbl. C&C mud. 5:00 7:30 2.5 Back reamed from 6,846'-5,950'. 7:30 8:00 0.5 C&C mud. Changed swab on #2 pump. 8:00 9:30 1.5 RIH from 5,950' to 6,846'. Spot reamed in tight spots @ 6,030', 6,318' and 6,522'. PU wt - 120K, SO wt - 92K 9:30 10:30 1.0 C&C mud. Pumped sweep KGSF-07 morning report summary, CONFIDENTAL: last revised 1/25/2005 Page 3 10:30 20:00 9.5 Pump~.lt of hole from 6,846' to 6,074'. Pumped ~ Pulled out of hole and racked back BHA. 20:00 21:30 1.5 RU Schlumberger Electric line. 21:30 23:30 2.0 RIH with Quad Combo. Unable to get below 6,020' with 4-1/2" max OD. POOH. 23:30 0:00 0.5 Removed density tool and centralizers. Max OD 3-5/8". Note: Received extension for BOP test from AOGCC on 8/20/04. 8/21 /04 From To Hours Remarks 0:00 2:00 2.0 RIH with new tool string. Unable to get below 6,020'. 2:00 4:30 2.5 Logged from 6,020 to surface (GR). RD EL 4:30 6:00 1.5 LD Baker BHA. 6:00 6:30 0.5 Pull wear bushing and MU test jt. 6:30 19:30 13.0 Tested BOPE to 250/3,500 psi for 4", 4-1/2" & 7". 19:30 20:30 1.0 LD test equipment. Installed wear bushing 20:30 23:00 2.5 Tested flow, volume and G/L sensors. 23:00 0:00 1.0 Held PJSM with Reeves on shuttle system. Picked up 3-1/2" shuttle system. 8/22/04 From To Hours Remarks 0:00 2:30 2.5 MU Reeves logging tools and tested same. Broke circ and logged rates. 2:30 10:00 7.5 RIH w/same on 4" DP drifting same. TIH to 5,900'. CBU. Max gas - 149 units. 10:00 11:30 1.5 CIH and tagged @ 6,027' Circ & rotate, Worked through. TIH to 6,831'. PU wt - 110K, SO - 84K. 11:30 12:30 1.0 Start circulating, noticed flow increase on flow meter. Check well -flowing at 17%. Shut in well. DP - 40 psi, Casing - 12 psi. Monitored pressures - DP - 100 psi, casing -95 psi. 12:30 16:30 4.0 Bled 1/4 bbl through choke pressures went to 0 psi. Opened well and circulated. Max gas - 2,500 units. Continue to circulate out gas with no success. Increased mud weight to 10.2 and circulated same. Well static. 16:30 17:00 0.5 POOH to 6,746'. Dropped dart and pumped same down. Sheared and dropped tools into logging position. 17:00 0:00 7.0 POOH and logged with triple combo from 6,834' to 5,600' at 2 minutes per stand. Battery life over for logging tools. Pumped dry job and POOH. LD 3-1/2" shuttle system and logging tools. 8/23/04 From To Hours Remarks 0:00 3:00 3.0 PU BHA #4 for cleanout run. RIH to 1960'. 3:00 3:30 0.5 Serviced rig. 3:30 16:30 13.0 RIH w/BHA #4 to 6,846'. Washed & reamed tight spots @ 4,377', 4,420', 4,530', 6,113', 6,225', 6,476' & 6,676'. 16:30 17:30 1.0 C&C mud. Max gas - 127 units. 17:30 0:00 6.5 Pumped out of hole to 6,608'. Pumped dry job. POOH. Tight spots @ 5,763', 5,608', 5,634' & 4,304' Note: Verbal approval from Porhola w/BLM to proceed with P&A and sidetrack. 8124104 From To Hours Remarks 0:00 1:30 1.5 Continue POOH & LD BHA #4. 1:30 2:30 1.0 RU Weatherford tongs & held PJSM. 2:30 5:30 3.0 PU &RIH w/2-7/8" stinger. 5:30 6:30 1.0 RIH w/ 551' 4" HWDP. Broke circulation. 6:30 10:00 3.5 RIH from 1,984' to 6,846'. PU wt - 90K, SO wt - 78K. 10:00 11:30 1.5 C&C mud. Held PJSM with Schlumberger for cement job. 11:30 12:30 1.0 RU cement equipment. Tested same to 2,000 psi. 12:30 13:30 1.0 Pumped 70.5 bbl 15.8 ppg cement, displaced with 60 bbl 10.2 ppg mud balancing a 896' cement plug in 8-1/2" hole from 6,846' to 5,950'. Cement in place @ 1300 hrs 13:30 15:30 2.0 POOH to 5,900'. CBU w/ 2,400 psi @ 430 gpm. KGSF-07 morning report summary, CONFIDENTAL: last revised 1/25/2005 Page 4 15:30 17:30 2.0 Pump bbl 15.8 ppg cement, displaced with 48510.2 ppg mud balancing a 950' cement plug from 5,900' to 4,950'. Cement in place @ 1700 hrs. 17:30 20:00 2.5 POOH to 4,500'. Reverse circulated 2 DP volumes with 300 psi pump pressure. 20:00 21:30 1.5 POOH to 2,500'. CBU w/ 1,230 psi @ 430 gpm. 21:30 23:00 1.5 Pumped 43 bbl 17.0 ppg cement. Had problems with Schlumberger pump. Aborted cement job. Pulled 2 stds. Pumped 11 bbl 10.2 ppg mud down DP. Estimated TOC - 1,908'. 23:00 0:00 1.0 POOH @ 1500'. 8125/04 From To Hours Remarks 0:00 0:30 0.5 TOOH F / 1630' T / 1540' 0:30 1:30 1.0 Circulate 196 Bbl no cement returns. 1:30 4:30 3.0 L/D 2 7/8 tubing. RD tubing tongs. Change elevators. 4:30 6:30 2.0 Cut drill line. 6:30 16:00 9.5 Test BOPE to 250/3,500 psi. Changed out 3-1/2" x 5" VBR to 4" pipe rams. Tested same to 250/3,500 psi. 16:00 17:00 1.0 RIH w/ 10 stds to displace mud. POOH w/same. Checked out casing @ +/-65' due to scarred DP. 17:00 21:30 4.5 PU BHI BHA #5. T/ 1224' Oriented MWD tool. Tested same. 21:30 23:00 1.5 TIH W/4" DP F/1224' T/ 1854' Kelly Up Wash to top of Cement @ slow pump rate. Top of Cement @ 2107 23:00 23:30 0.5 Circ. and clean out hole, perform flow sensor check, set all parameters, 23:30 0:00 0.5 Drill (Slide) F/ 2107' - T / 2113' Kick off Note: BOPE test witness waived by Mr. Lou Grimaldi w/ AOGCC. Note: Received verbal approval from Mr. Winton Aubert w/AOGCC to proceed with drilling SRU KGSF #7A on 8/25/04 @ 16:15 hrs KGSF-07 morning report summary, CONFIDENTAL: last revised 1/25/2005 Page 5 UNOCAL® uNOC,~;GSF#7 P&S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Well: KGSF#7 Wellpath: GMS <0-1931> MWD <2061-6846> Date Printed: 25~1an-2005 BAKER ^ S INTCQ Wellbore Name Created Last Revised L_ KGSF#7 17-Au -2004 _ ___. 30-Aug,20.04 Well Name Government ID Last Revised KGSF#7 ! 6-Ma -2004 S~Af Name Grid Northing Grid Fasting Latitude .Longitude North East ~ KGSF#7 ~ 2468439 6830 ~ 347290.4730 ~ N60 45 13.6397 W150 51 13.3883 ~ 203.49S ~ 66.13E Installation Name Eastin Northin Coord Svstem Name North Ali nment _ P&S Yard 347227.0000 2468644.0000 _ AK-4 on NORTH AMERICAN DATUM 1927 datum True Field Name Eastin Northin Coord S stem Name North Ali nment Swanson River Unit 347751.9830 2471720.9650 AK-4 on NORTH AMERICAN DATUM 1927 datum True Created- Comments. __ All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level } Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UN~CAL® UNOC~CGSF#7 PS<S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Well: KGSF#7 Wellpath: GMS <0-1931> MWD <2061-6846> Date Printed: 25-Jan-2005 BAKER • !K!6##ES INTEQ Well ath Grid Re ort I MD(ft] ~ Inc{deg] Azi[deg] ND[ft] North[ft] East[ft] Dogleg d I100ft Vertical Section ft Easting ____ Northing -__ ' 0.00 0.00 0.00 0.00 O.OON 0.00E 0.00 0.00 347290.47 2468439.68 ' 50.00 0.15 232.67 50.00 0.04S I 0.05W 0.30 -0.05 347290.42 2468439.64 100.00 0.15 270.31 100.00 O.O8S ~~ 0.17W 0.19 -0.13 347290.30 ' 2468439.61 150 00 0 12 169 16 150 00 13S + 0 0 23W 0 42 19 -0 347290 25 ' 2468439 56 . 200.00 . 0.44 . 173.09 . 200.00 . __ 0.37S I __ . 0.19W . 0.64 __ . -0.41 . __ 347290.28 . 2468439.31 250.00 0.46 150.13 250.00 0.74S 0.07W 0.36 -0.72 347290.39 2468438.95 300.00 0.55 153.59 300.00 1.13S~ 0.14E 0.19 -1.03__ 347290.60 _ I 2468438.56 350.00 0.54 154.16 349.99 1.55S I __ ,___ 0.35E 0.02 -1.38 347290.80 ~ 2468438.13 400.00 0.52 153.00 399.99 1.97S 0.55E 0.05 -1.71 347291.00 2468437.71 450.00 0.45 149.78 449.99 2.34S 0.76E 0.15 -2.01 347291.20 ! 2468437.33 500.00 0.50 160.03 499.99 2.71S 0.93E 0.20 -2.32 347291.37 2468436.96 550.00 0.43 I 148.51 549.99 3.08S __ 1.10E 0.23 _ -2.61 ___ 347291.53 _ __._ 2468436.59 _ 600.00 0.40 132.15 599.99 3.36S 1.33E 0.24 -2.81 347291.76 2468436.31 650.00 I 0.47 154.11 ! 649.98 3.66S 1.55E 0.36 -3.03 347291.97 2468436.01 700.00 '~ 0_37 ~ 151.95 i 699.98 __ _ 3.98S 1.71E 0_20 -3.30 ____ 347292.13 2468435.68 _ 750.00 ~ 0.41 I 146.77 _._ 749.98 4.28S 1.89E 0.11 i -3.52 347292.30 2468435.38 800.00 ! 0.30 '' 131.63 799.98 4.51S 2.08E 0.29 i -3.69 347292.50 2468435.14 850.00 ~ 0.30 141.98 849.98 4.70S ~ 2.26E 0.11 -3.82 347292.67 2468434.95 I 900_00 0.18 180.50 899.98 4.88S ~ 2.34E 0.39 I -3.97 347292.75 2468434.77 ___ r 950.00 0.25 146.36 949.98 5.05S ! 042 E ~i 0.29 ~ -4.11 347292.81 2468434.60 1000.00 ~~ 0.26 163.72 999.98 5.25S i 2.49E ! 0.16 -4.28 347292.90 2468434.40 1050.00 0.24 166.33 1049.98 5.46S I 2.55E 0.05 -4.46 347292.95 2468434.19 i 11 000 0 0.31 160.61 1099.98 5.69S ~ 2.62E 0.15 -4.66 347293.02 i 2468433.96 1150.00 0.26 155.71 1149.98 5.92S 2.71E 0.11 -4.85 347293.11 ! 2468433.72 1200.00 0.32 130.40 1199.98 __ 6.12S 2.86E 0.28 _ -4.99 347293.26 2468433.53 1250.00 0.20 i 151.55 ~ 1249.97 _ 6.29S 3.01E 0.30 -5.11 347293.40 2468433.36 1300.00 i _ 0.18 ' 180.61 I 1299.97 6.44S ___ 3.05E 0.19 -5.25 347293.44 2468433.20 1350.00 ~ 0.16 ~ 139.66 1349.97 6.57S 3.10E 0.24 -5.36 347293.48 2468433.07 1400.00 0.34 168.73 I 1399.97 6.77S 3.17E 0.43 i -5.53 347293.55 _ 2468432.87 ___ 1450.00 ! 1500_00 _~ 1550.00 0.28 _ 0.28 0.25 159.78 142.14 113.02 1449.97_ 1499.97 1549.97 __ 7.03S 7.24S 7.38S i 3.24E _3_36E i 3.53E __ 0.15 0.17 0.27 I _ -5.75 -5.92 -6.00 347293.62 347293.74 347293.91 2468432.61 2468432.40 2468432.26 1600.00 0.32 118.44 1599.97 7.49S 3.76E 0.15 -6.04 347294.13 ~ 2468432.14 1650.00 0.23 141.25 1649.97 7.64S 3.94E 0.28 -6.12 ___ 347294.32 j 2468432.00 1700.00 0.24 142.35 1699.97 7.80S 4.07E 0.02 -6.24 347294.44 2468431.83 1750.00 0.45 110.64 1749.97 7.95S 4.32E 0.55 -6.31 347294.69 2468431.68 1800.00 0.39 154.38 1799.97 8.17S 4.58E 0.64 -6.4_5_ 347294.94 2468431.45 1850.00 ' 0.24 ' 131.35 1849.97 8.39S _ 4.73E 0.39 -6.61 ___ 347295.09 2468431.23 1900.00 I 0.19 73.81 1899.97 _ 8.44S I 4.88E _ I 0.42 -6.61 347295.25 _2468431.18 1931.00 0.50 _ 68.84 _ 1930.97 8.38S _,_ 5.06E ~' 1.00 -6.50 347295.42 ! 2468431.24 2 061.00 0.35 52.91 2060.96 7.93S 5.91E 0.15 -5.82 ___ 347296.28 2468431.67 r 2125.00 2.37 4.16 2124.94 _ 6.50S 6 16E __ 3.37 -4.38 347296.55 __ - }- _ 2468433.11 2187.00 4.35 _ _ 1.09 2186.83 2.87S __.__ 6.30E 3.21 -0.87 347296.73 I 2468436.74 2250.00 6.57 0.38 2249.54 3.13N 6.37E 3.53 4.88 347296.88 _ __ 2468442.73 __ 2313.00 ~ 9.09 1.12 ! 2311.95 11.71 N ___ 6.49E 4.00 13.11 ! 347297.11 2468451.31 2376.00 11.15 ~' 3.19 2373.97 22.77N I 6.92E ) 3.32 'i 23_.80 347297.69 _2468462.36 __ 2438.00 12.98 7.38 2434.60 35.66N 8.15E 3.27 36.47 347299.09 2468475.23 2501.00 14.50 13.30 2495.80 50.35N 10.88E 3.28 51.31 347302.00 I 2468489.89 2564.00 16.31 15.36 2556.53 66.56N 15.03E 3.00 68.02 __ 347306.37 2468506.04 2626.00 18.61 15.52 2615.67 84.49N 19.99E 3.71 86.62 347311.55 2468523.90 2691.00 20.80 14.64 I 2676.86 105.65N 25.68E I 3.40 i 108.51 347317.52 2468544.98 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UNOCAL® UNOC~(GSF#7 P8~S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Were: KGSF#7 Wellpath: GMS <0-1931> MWD <2061-6846> Date Printed: 25~1an-2005 BAKER ^ ~Q-1iES INTEQ Well ath Grid Re ort MD[ft] Inc[deg] Azi[deg} ND[ft] _ North[ftj ___ East[ft] Dogleg de /100ft Vertical SectionlffL Easting Northing 2753.00 22.75 13.76 2734.43 127.95N 31.31E I 3.19 131.48 347323.44 2468567.21 2817.00 25.87 14.81 2792.75 153.47N 37.83E 4.92 ! 157.79 347330.29 2468592.64 2881.00 27.30 16.79 2849.98 181.03N 45.64E 2.63 i 186.42 347338.46 I 2468620.09 2943.00 30.03 17.22 2904.38 209.46N I 54.34E 4.42 216.15 347347.53 2468648.41 ___ 3007.00 30.72 17.38 2959.59 240.36N 63.96E 1.09 -- 248.52 347357.55 2468679.17 3070.00 30:39 17.23 3013.85 270.94N 73.49E 0.54 280.54 347367.47 2468709.62 3133.00 30.15 17.01 3068.26 301.29N 82.84E 0.42 I 312.30 347377.21 ~ ___ 2468739.84 3198.00 30.90 _ 17.24 _ 3124.25 332.84N 92.56E 1.17 345.31 ___ 347387.34 ~! 2468771.26 3261.00 30.98 17.08 3178.28 363.79N 102.12E 0.18 377.70 347397.30 ! 2468802.08 3325.00 30.62 17.05 3233.26 395.11N 111.73E 0.56 ~ 410.47 347407.32 2468833.28 3389.00 30.14 17.11 3288.47 426.05N 121.24E 0.75 ~ 442.84 347417.23 ~ ___ 2468864.09 _3453.00 31.58 _ __ 15.65 3343.41 _ _ 457.55N _ _ 130_49E 2.54 I __ 475.66 ___ 347426.89 ~ 2468895.46 3515.00 32.23 14.42 3396.04 489.19N 138.98E ~ 1.48 508.40 347435.79 i 2468926.99 3577.00 31.52 16.64 3448.69 520.74N 147.74E 2.21 I 541.12 347444.96 2468958.41 3640.00 31.09 __ 17.49 3502.52 552.03N _ 7.35E '~ 0.98 i 573.86 ___ 347454.97 2468989.58 3704.00 30.55 17.55 3557.48 583.30N ~ 167.22E 0.85 ' 606.65 347465.25 2469020.71 3767.00 30.26 17.11 3611.82 613.73N ~ 176.72E . 0.58 ~ 638.53 347475.14 2469051.02 3831.00 30.07 17.31 3667.15 644.45N 186.23E 0.34 ! 670.69 347485.05 2469081.61 3895.00 1 29.79 17.11 3722.62 674.96N 195.68E 0.46 702.62 347494.9_0 2469111.99 3959.00 ~ 30.51 16.13 3777.96 705.76N ~ 204.87E ' 1.36 734.76 347504.49 2469142.66 ~ 4021.00 30.59. 15.76 ~ 3831.35 736.06N I 213.53E ' 0.33 766.27 347513.54 2469172.85 ~ 4084.00 30.33 15.74 3885.66 __ 76680N 222.20E 0.41 798.20 347522.60 2469203.47 4148.00 ! 29.87 15.96 3941.03 797.67N 230.96E 0.74 830.28 347531.77 2469234.23 ( 4211.00 ! 29.48 15.98 ~ 3995.76 827.66N ~ 239.54E 0.62 861.46 347540.74 _ 2469264.10 I 4273.00 29.15 15.59 I 4049.82 856.87N 247.80E 0.61 891.81 347549.37 2469293.20 4335.00 29.38 16.15 4103.91 886.02N 256.09E 0.58 922.11 347558.04 2469322.24 __ ~ 4397.00 29.46 16.29 ~ 4157.92 915.27N 264.60E 0.17 952.56 ____347566.93 _ _ 2469351.36 4459.00 29.32 16.04 4211.94 944.49N __ 273.07E __ 0.30 982.98 347575.78 2469380.47 4520.00 28.11 16.37 4265.43 972.63N 281.25E 2.00 1012.28 347584.32 2469408.50 4582.00 27.35 17.74 4320.31 1000.21N I 289.70E 1.60 1041.13 _____ 347593.13 ~ _ 2469435.97 4644.00 24.70 20.64 4376.02 1025.91N 298.61E __ _ 4.74 1068.31_ 347602.37 I 2469461.54 4706.00 21.64 19.93 4433.02 __ 1048.78N 307.07E ! 4.96 ; 1092.66 347611.13 2469484.30 4768.00 20.22 19.75 4490.92 1069.61N ,' 314.59E 2.29 1114.79 347618.92 2469505.04 4830.00 18 71 17.94 4549.38 1089.16N I 321.28E 2.62 1135.44 347625.86_ 2469524.49 4894.00 16.88 17.69 4610.31 _ 1107.78N I 327.26E ~ 2.86 1155.00 347632.08 2469543.03 4958.00 15.01 18.05 ! 4671.85 1124.51N 332.65E 2.93 1172.58 347637.69 2469559.69 5022.00 ! 12.82 ! 18.38 4733.97 1139.13N 337.46E 3.42 118_7.96 347642.69_ 2469574.25 5086.00 i 11.01 17.97 I 4796.59 _ 1151.68N 341.59E 2.83 1201.17 347646.98 2469586.74 5149.00 ~ 9.33 I 10.59 I 4858.60 1162.43N 344.38E 3.37 1212.26 347649.91 2469597.45 I 5212.00 7.63 _ 7.34 _ 4920.91 1171.60N 345.85E 2.80 1221.46 347651.50 2469606.60 5275.00 5.86 2.98 4983.47 1178.96N 346.56E 2.92 1228_69 347652.30 2469613.95 5338.00 4.12 3.39 5046.23. _ 1184.43N ~ ~ 346.86E i 2.76 ~ 1234.01 _. 347652.67 _ 2469619.41 ___ 5401.00 3.31 5.62 5109.09 1188.50N ~ 347.17E _ ! 1.31 I 1237.99 347653.04 2469623.48 5463.00 3.22 6.68 5170.99 1192.01 N ~__ 347.55E 0.17 ~ 1241.45 347653.46 2469626.98 5526.00 3.30 4.03 5233.89 1195.58N 347.88E 0.27 1244.96 347653.84 2469630.54 5586.00 3.24 7.73 I 5293.79 1198.98N 348.23E 0.37 1248.31 347654.23 2469633.94 5653.00 _ 3.20 __ 9.06 _ ! 5360.69 1202.70N 348.78E 0.13 1252.03 347654.83 2469637.66 5716.00 ~ 2.97 ~ 9.20 5423.60 1206.05N 349.32E 0.37 1255.38 347655.41 I 2469641.00 5778.00 i 2.92 12.96 5485.52 1209.17N ~ 349.93E 0.32 1258.55 _ 347656.06 2469644.11 _ 5840.00 ~ 2.92 11.51 5547.43 1212.26N 350.60E 0.12 1261.70 347656.77 2469647.19 5903.00 ! 2.74 13.64 5610.36 1215.30N '. 351.27E 0.33 1264.79 347657.49 2469650.22 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UNOCAL® UNOC~GSF#7 P&S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Well: KGSF#7 Wellpath: GMS <0-1931> MWD <2061-6846> Date Printed: 25-Jan-2005 ~NTEQ Well. ath Grid Re ort MD[ft] Inc[deg] Azi[deg] TVD[ft] North[ft] East[ft] Dogleg d 100ft Vertical Section ft Fasting Northing 5967.00 2.60 10.43 5674.29 1218.21 N ': 351.89E 0.32 1267.76 347658.15 2469653.12 6029.00 2.45 13.19 5736.23 1220.88N ' 352.45E 0.31 1270.48 347658.74 2469655.79 6091.00 2.27 13.80 5798.18 1223.37N 353.05E 0.29 1273.03 347659.37 2469658.26 6154.00 2.28 19.98 5861.13 1225.75N 353.77E 0.39 ~' 1275.53 347660.12 _ 2469660.64 __ 6218.00 2.40 21.33 5925.07 1228.20N ~ 354.70E 0.21 I 1278.13 347661.08 2469663.07 6281.00 2.37 17.95 5988.02 1230.67N ' 355.58E 0.23 1280.75 347661.99 2469665.53 6345.00 2.50 22.63 6051.96 1233.21N ~ 356.52E 0.37 1283.47 347662.97 2469668.07 6408.00 _ 2.43 19.90 6114.90 _ 1235.74N I 357.51E 0.22 _ 1286.17 347663.99 2469670.58 6470.00 2.31 24.59 6176.85 1238.11N ~ 358.47E 0.37 1288.72 347664.98 2469672.94 6533.00 2.30 22.04 6239.80 1240.44N ~ 359.48E ~ 0.16 1291.24 347666.02 2469675.25 6595.00 2.28 27.22 6301.75 1242.69N 360.51E 0.34 1293.69 347667.08 2469677.48 6657.00 2.11 27.53 6363.70 _ 1244.80N ', 361.60E 0.27 1296.03 347668.20 __ 2469679.58 6720.00 ~ 1.99 ~ 25.75 6426.66 1246.81 N i 362.61E 0.22 1298.25 347669.23 2469681.58 6782.00 2.09 ~ 29.39 6488.62 1248.76N 363.63E ' 0.26 1300.42 347670.28 2469683.52 X800.00 ~ 2.08 27.18 6506.61 1249.34N 363.94E 0.45__ 1301.07 347670.60 2469684.09 6846.00 2.08 27.18 6552.58 1250.83N 364.70E 0.00 1302.71 347671.38 2469685.57 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UMOCAL® UNOC~GSF#7 PSS Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Well: KGSF#7 Wellpath: GMS <0-1931> MWD <2061-6846> Date Printed: 25~Jan-2005 BAKER • 1S 1NTEQ Comments MD ft ND ft _ North ft East ft Comm_e_ nt 6846.00 I 6552.58 1250.83N 364.70E i Protection to TD Hole Sections Diameter in Start MD ft Start ND ft Start North ft Start Eas ft End MD ft End ND ft End Start North ft Eas ft Wellbore 121/4 0.00 0.00 O.OON 0.00E 2000.00 1999.96 8.15S 5.56E KGSF#7 8 1/2 __ __ 2000,00 ~ 1999.96 8.15S 5.56E 6846.00 6552.58 1250.83N ; ___ 364.70E KGSF#7 Casin s Name Top M ft Top ND ft Top North ft Top Eas ft Shoe MD ft Shoe N ft .Shoe Shoe North ft East ft' Wellbore 16.OOOin Casin 0.00 0.00 O.OON 0.00E 77.00 77.00 0.07S 0.11 W KGSF#7 95/8in_Casing_ 0.00 ~ 0.00 O.OON 0.00E 1984.00 1983.97 8.21 S_ __~__ 5.46E KGSF#7 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated r i ~_ i+ 1 ~~ G E ~LASFiA OIL A1~TD GAS COI~TSERQATIOI~T COMI~II5SI011T August 24, 2004 Phil Krueger Drilling Manager Union Oil Company of California P.O. Box 196247 Anchorage, Alaska 99516 Re: Swanson River KGSF #7 304-328 Dear Mr. Krueger: FRANK H. MURKOWSKI, GOVERNOR 333 W. 7"' AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 f Enclosed is the approved Application for Sundry Approval relating to the above- referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. ~~ Norman Chairman Enclosure Unocal Corporation P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCAL~6 Phil Krueger Tuesday, August 24, 2004 Drilling Manager Alaska Oil and Gas Conservation Commission 333 West 7th Avenue f~ECE~~E~ Anchorage, Alaska 99501 Attn: Commission Chair John Norman AUG ~ ~ ZQ04 Alaska Qil & Gas Cons. Commission Re: Application for Sundry (Form 10-403) ~chOrage KGSF #7 - Plug and Abandon 8-1/2" OH in Preparation for Sidetrack Dear Commissioner Norman, Attached for your approval is an application for Sundry Operations (Form 10-403) for the ~' KGSF #7 Service well to plug and abandon the existing open hole. Anew Permit to Drill (Form 10-401) will follow for the re-drill operations. KGSF #7 was directionally drilled to 6848' MD, 6553' TVD as per the Drilling Permit # 204-081. The intended Tyonek 64-5 target zone was penetrated, however, insufficient reservoir quality exists to be an effective gas storage zone. Base~'on1 open hole logs, the top potential hydrocarbon bearing zone was encountered at ,7 MD. Unocal will place a continous 15.8 ppg cement plug, in two stages, from / 6, MD (TD) up to 4,950'. Cement volume calculations are based on acquired open hole sonic logs. Unocal respectfully requests a waiver of the requirement for proving cement plug location and competence as noted in 20AAC 25.112 (g) (1), which states "The operator shall record the actual location and integrity of cement plugs....(1) placing sufficient weight on the plug to confirm location and to confirm that the plug has set and a competent plug is in place." The waiver requeust is based on 1) The cement plug will ~~ cover the top most hydrocarbon zone by 790 liner feet, 2) Cement plug is contionous in nature from 6846 to 4,950', and 3) The 15.8 ppg cement slurry exceeds formation pressure by 6 ppg. The abandonment work is in progress. If you have any questions please contact myself at 263-7628 or Mr. Steven Lambe at 263-7637. Sincerely, - - Phi Krueger Drilling Manager "°` OgIGINAL w~~- ~~Z51~,¢. STATE OF ALASKA ALA... OIL AND GAS CONSERVATION COM~ION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 ~C~~~ V ~® AUG 2 4 2004 1. Type of Request: Abandon ~ Suspend Operational shutdown Perforate W 've nular dt~tis ons l ~ . as l Alaska Other ^ Alter casing ^ Repair well ^ Plug Perforations ^ Stimulate ^ Time xtension ehorage Change approved program ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development ^ Exploratory ^ 204-081 3. Address: Stratigraphic ^ Service Q 6. API Number: PO Box 196247, Anchorage, AK, 99516 50-133-20538 7. KB Elevation (ft): 9. Well Name and Number: 171.9' RT to MSL KGSF #7 ~ 8. Property Designation: 10. Field/Pools(s): A-028399 Swanson River Field / Tyonek 64-5 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 6848 6553 6846 6553 Open Hole Open Hole Casing Length Size MD TVD Burst Collapse Structural Conductor 41 16 41 41 Surface 1985 9.625 1985 1985 5750 3090 Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Open Hole Open Hole Open Hole NA NA Packers and SSSV Type: NA Packers and SSSV MD (ft): NA 12. Attachments: Description Summary of Proposal ~ 13. Well Class after proposed work: Detailed Operations Program Q BOP Sketch Q _ Exploratory ^ Development ^ Service Q 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: 8/24/2004 Oil ^ Gas ^~ Plugged ^ Abandoned ^ 16. Verbal Approval: Dat ~DJ Commission Re ~~ resentati e ~ ~ /~ ~klZ¢ f Z~4 WAG ^ GINJ ^~ WINJ ^ WDSPL ^ p v : /~ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Steven Lambe 263-7637 Printed Name Phil Krue er Title Drilling Manager Signature ~ Phone 263-7628 Date 8/24/2004 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: `'~Q~ ~- Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ , ~ ~ ~ a ~ I Yti'L ~ C - 4Ti' f i^~ L/, ~"~ N-C~ C~ t"' y' S/(~ ~; ~,/ ~!~ W'~ G l a e ` '' Other: • 1 I ~/w~,~y,Ay,~ j 1 /~,~ ~Q,'Ir Zni /~I~~ ~5 s ~l ~ ~T J ~ ~~~1/N.4L~~ W'.'~-`t ~/'LCf~Q~~~` ~Yf~~.C,~~ fr~ ~~~v~~ i Subsequent Form fired: ~Q 7 _ ~. ~,~ ~~ ~ ~ ~~~~ APPROVED BY Approve COMMISSIONER THE COMMISSION Date: O Forrt`KO-403 e ~ ed 06/2004 ~ ~ ~ ~ V ~ ~V ~ ~ Submit in Duplicate • KGSF #7 Abandonment of OH Procedure: 1. POOH with 8-1/2" BHA. LD BHA. 2. MU & RIH 50 joints (1500') 2-7/8" Stinger to TD @ 6846'. Notify BLM and / AOGCC of cement plugs. 3. Mix and pump 71 bbls cement, 15.8 ppg. Lay plug from 6846' to 5,950', assuming / 9" hole from sonic log. 4. PU 50' above calculated TOC, ~ 5900'. Circulate bottoms up. 5. Mix and pump 71 bbls cement, 15.8 ppg. Lay plug from 5,900 to 4,950', assuming / 9" hole from sonic log. NOTE: Top most gas potential in well is 5,740' MD. 6. POOH with DP to 2,500'. Circulate bottoms up. Mix and pump 49 bbl kick off cement plug, 17 ppg, and place TOC inside casing @ 1,800'. 7. POOH with DP to 1700' and circulate clean. 8. POOH LD 2-7/8" stinger. • • UNOCAL 76 Swanson River Field KGSF #7 API # 50-133-20538, Permit to Drill # 204-081 Current Status -Open Hole Jewelry Detail 1. 41' 16" Drive Shoe 2. 1,985' 9-5/8" Surface Casing Bit Sizes: 12-1/4", and 8-1/2" 9-5/8" Cemented to surface CASING DETAIL SIZE WT GRADE CONN TOP BOTTOM 18" 88 K-55 BTC 0' 41' 9-5/8" 40 L-80 BTC 0' 1,985' Hydrocarbon Potential: 5,740' MD to TD TD = 6,846' MD / 6,551' TVD KGSF #7 OH REVISED: 08/24/04 DRAWN BY: SSL RKB to GL = 20.50' • uNOCa~~b API # 50-133-20538, Permit to Drill # 204-081 Swanson River Field KGSF #7 Pn~posctl status - :~hand~~ncd RKB to GL = 20.50' A D 4.950' B C Jewelry Detail 1. 41' 16" Drive Shoe 2. 1,985' 9-5/8" Surface Casing Bit Sizes: 12-1/4", and 8-1/2" 9-5/8" Cemented to surf CASING DETAIL SIZE WT GRADE CONN TOP BOTTOM 18" 68 K-55 BTC 0' 41' 9-5/8" 40 L-80 BTC 0' 1,985' Cement Plugs: ~ ~Z4~' A. 49 bbls, 17 ppg, 1,800' - 2,500' Kick Off B. 71 bbls, 15.8 ppg, 4,950' - 5,900' Isolation C. 71 bbls, 15.8 ppg, 5,950' - 6,846' Isolation D. 9.8 ppg Drilling Mud Hydrocarbon Potential: 5,740' MD to TD TD = 6,846' MD / 6,551' TVD KGSF #7 OH REVISED: 08/24/04 DRAWN BY: SSL ~~~~~1- UNOCAL ,KGSF#7 P8S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) ~Wellbore Name Created I KGSF;i7 17-dug-2004 Well Name _ _ __ ~overnmenllD KGSF#7 ~ Slot __._- Name_ Grid.Northng Grid Eastinq Latitude KGSF#7 2468439.6830 347290.4730 N60 Installation ~ Namc _ _Eastinq Northin~- P&S Yard 347227.0000 2~ -Field • Wellbore: KGSF#7 ~~ Wellpath: GMS <0-1931> MWD ~u~~ <2061-6846> 1NTI:Q Date Printed: 19-Aug-2004 Last Revised 19-dug-2004 Last Revised Longitude Ord System Name _-~ Name_ Eastinq Northing ~Coord System Name ~ Swanson River Unit I 347751.9830 2471720.9654 AK-4 on NORTH A~ Created,_By Comments All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated North .East _ North Alipnm North Alignment • IUMOCAII-i~ UNOCAL ,KGSF#7 P&S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Wellbore: KGSF#7 Wellpath: GMS <0-1931> MWD <2061-6846> Date Printed: 19-Aug-2004 ~~ ~ H~G~ INT~Q Wellpath (Grids Report f~~1D[ft] Inc[deg]~Azi[cleg] TVD[ft] North[ft] East[iQ Daley Vertical ~ Fasting Northing _ ~' _ JJdeg/100ft1 Se_ tion ft] ;. __ n nnl n nnl n nnl n nnl n nnnil n nn~ n nni n nni ~n~ann ni onaon~o ca 50.00 0.15 232.6 50.00 0.04S 0.05 0.30 -0.05 347290.4 2468439.6 100.0 0.15 270.31 100.0 0.08S 0.17 0.19 -0.13 347290.3 2468439.6 150.0 0.12 169.1 150.0 0.13S 0.23 0.42 -0.19 347290.2 2468439.5 200.0 0.44 173.0 200.0 0.37S 0.19 0.64 -0.41 347290.2 2468439.3 250.0 0.46 150.1 250.0 0.74S 0.07 0.36 -0.72 347290.3 2468438.9 300.0 0.55 153.5 300.0 1.13S 0.14E 0.19 -1.03 347290.6 2468438.5 350.0 0.54 154.1 349.9 1.55S 0.35E 0.02 -1.38 347290.8 2468438.1 400.0 0.52 153.0 399.9 1.97S 0.55E 0.05 -1.71 347291.0 2468437.7 450.0 0.45 149.7 449.9 2.34S 0.76E 0.15 -2.01 347291.2 2468437.3 500.0 0.50 160.0 499.9 2.71S 0.93E 0.20 -2.32 347291.3 2468436.9 550.0 0.43 148.51 549.9 3.08S 1.10E 0.23 -2.61 347291.5 2468436.5 600.0 0.40 132.1 599.9 3.36S 1.33E 0.24 -2.81 347291.7 2468436.3 650.0 0.47 154.11 649.9 3.66S 1.55E 0.36 -3.03 347291.9 2468436.0 700.0 0.37 151.9 699.9 3.98S 1.71E 0.20 -3.30 347292.1 2468435.6 750.0 0.41 146.7 749.9 4.28S 1.89E 0.11 -3.52 347292.3 2468435.3 800.0 0.30 131.6 799.9 4.51S 2.08E 0.29 -3.69 347292.5 2468435.1 850.0 0.30 141.9 849.9 4.70S 2.26E 0.11 -3.82 347292.6 2468434.9 900.0 0.18 180.5 899.9 4.88S 2.34E 0.39 -3.97 347292.7 2468434.7 950.0 0.25 146.3 949.9 5.05S 2.40E 0.29 -4:11 347292.8 2468434.6 1000.0 0.26 163.7 999.9 5.25S 2.49E 0.16 -4.28 347292.9 2468434.4 1050.0 0.24 166.3 1049.9 5.46S 2.55E 0.05 -4.46 347292.9 2468434.1 1100.0 0.31 160.61 1099.9 5.69S 2.62E 0.15 -4.66 347293.0 2468433.9 1150.0 0.26 155.71 1149.9 5.92S 2.71E 0.11 -4.85 347293.1 2468433.7 1200.0 0.32 130.4 1199.9 6.12S 2.86E 0.28 -4.99 347293.2 2468433.5 1250.0 0.20 151.5 1249.9 6.29S 3.01E 0.30 -5.11 347293.4 2468433.3 1300.0 0.18 180.61 1299.9 6.44S 3.05E 0.19 -5.25 347293.4 2468433.2 1350.0 0.16 139.6 1349.9 6.57S 3.10E 0.24 -5.36 347293.4 2468433.0 1400.0 0.34 168.7 1399.9 6.77S 3.17E 0.43 -5.53 347293.5 2468432.8 1450.0 0.28 159.7 1449.9 7.03S 3.24E 0.15 -5.75 347293.6 2468432.6 1500.0 0.28 142.1 1499.9 7.24S 3.36E 0.17 -5.92 347293.7 2468432.4 1550.0 0.25 113.0 1549.9 7.38S 3.53E 0.27 -6.00 347293.9 2468432.2 1600.0 0.32 118.4 1599.9 7.49S 3.76E 0.15 -6.04 347294.1 2468432.1 1650.0 0.23 141.2 1649.9 7.64S 3.94E 0.28 -6.12 347294.3 2468432.0 1700.0 0.24 142.3 1699.9 7.80S 4.07E 0.02 -6.24 347294.4 2468431.8 1750.0 0.45 110.6 1749.9 7.95S 4.32E 0.55 -6.31 347294.6 2468431.6 1800.0 0.39 154.3 1799.9 8.17S 4.58E 0.64 -6.45 347294.9 2468431.4 1850.0 0.24 131.3 1849.9 8.39S 4.73E 0.39 -6.61 347295.0 2468431.2 1900.0 0.19 73.81 1899.9 8.44S 4.88E 0.42 -6.61 347295.2 2468431.1 1931.0 0.50 68.84 1930.9 8.38S 5.06E 1.00 -6.50 347295.4 2468431.2 '"2061.0 0.35 52.91 2060.9 7.93S 5.91E 0.15 -5.82 347296.2 2468431.6 2125.0 2.37 4.16 2124.9 6.50S 6.16E 3.37 -4.38 347296.5 2468433.1 2187.0 4.35 1.09 2186.8 2.87S 6.30E 3.21 -0.87 347296.7 2468436.7 2250.0 6.57 0.38 2249.5 3.13N 6.37E 3.53 4.88 347296.8 2468442.7 2313.0 9.09 1.12 2311.9 11.71 N 6.49E 4.00 13.11 347297.1 2468451.3 2376.0 11.1 3.19 2373.9 22.77N 6.92E 3.32 23.80 347297.6 2468462.3 2438.0 12.9 7.38 2434.6 35.66N 8.15E 3.27 36.47 347299.0 2468475.2 2501.0 14.5 13.30 2495.8 50.35N 10.88 3.28 51.31 ' 347302.0 2468489.8 2564.0 16.31 15.36 2556.5 66.56N 15.03 3.00 68.02 347306.3 2468506.0 2626.0 18.61 15.52 2615.6 84.49N 19.99 3.71 86.62 347311.5 2468523.9 2691.0 20.8 14.6 2676.8 105.65N 25.68E 3.40 108.51 347317.5 2468544.9 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated • UNOCAL UNOCAL ,KGSF#7 Wellbore: KGSF#7 ~ P&S Yard, Wellpath: GMS <0-1931> MWD gNUGyES, Swanson River Unit,Kenai Peninsula, <2061-6846> L`TPQ Alaska(Imported) Date Printed: 19-Aug-2004 -- -- - Wellpath Grid) Repor_ t ~~ MG ft Inc de I Azi de ND ft North ft East ft Do le Vertical Eastin Northing [l [ sl [ gl [] [] [] g e -~ 9 a _- fdegi~00ft1 Sectiontfry 2753.0 22.7 13.76 2734.4 127.95N 31.31 3.19 131.4 347323.4 2468567.2 2817.0 25.8 14.81 2792.7 153.47N 37.83 4.92 157.7 347330.2 2468592.6 2881.0 27.3 16.79 2849.9 181.03N 45.64 2.63 186.4 347338.4 2468620.0 2943.0 30.03 17.22 2904.3 209.46N 54.34E 4.42 216.1 347347:5 2468648.4 3007.0 30.72 17.3 2959.5 240.36N 63.96 1.09 248.5 347357.5 2468679.1 3070.0 30.39 17.2 3013.8 270.94N 73.49E 0.54 280.5 347367.4 2468709.6 3133.0 30.15 17.01 3068.2 301.29N 82.84E 0.42 312.3 347377.2 2468739.8 3198.0 30.90 17.2 3124.2 332.84N 92.56 1.17 345.31 347387.3 2468771.2 3261.0 30.98 17.08 3178.2 363.79N 102.12 0.18 377.7 347397.3 2468802.0 3325.0 30.62 17.05 3233.2 395.11 N 111.73 0.56 410.4 347407.3 2468833.2 3389.0 30.1 17.11 3288.4 426.05N 121.24 0.75 442.8 347417.2 2468864.0 3453.0 31.58 15.65 3343.41 457.55N 130.49 2.54 475.6 347426.8 2468895.4 3515.0 32.23 14.42 3396.0 489.19N 138.98 1.48 508.4 347435.7 2468926.9 3577.0 31.52 16.6 3448.6 520.74N 147.74 2.21 541.1 347444.9 2468958.4 3640.0 31.09 17.4 3502.5 552.03N 157.35 0.98 573.8 347454.9 2468989.5 3704.0 30.55 17.5 3557.4 583.30N 167.22 0.85 .606.6 347465.2 2469020.7 3767.0 30.2 17.11 3611.8 613.73N 176.72 0.58 638.5 347475.1 2469051.0 3831.0 30.0 17.31 3667.1 644.45N 186.23 0.34 670.6 347485.0 2469081.6 3895.0 29.7 17.11 3722.6 674,96N 195.68 0.46 702.6 347494.9 2469111.9 3959.0 30.51 16.1 3777.9 705.76N 204.87 1.36 734.7 347504.4 2469142.6 4021.0 30.59 15.7 3831.3 736.06N 213.53 0.33 766.2 347513.5 2469172.8 4084.0 30.33 15.7 3885.6 766.80N 222.20 0.41 798.2 347522.6 2469203.4 4148.0 29.87 15.9 3941.0 797.67N 230.96 0.74 830.2 347531.7 2469234.2 4211.0 29.48 15.9 3995.7 827.66N 239.54 0.62 861.4 347540.7 2469264.1 4273.0 29.15 15.59 4049.8 856.87N 247.80 0.61 891.81 347549.3 2469293.2 4335.0 29.3 16.15 4103.91 886.02N 256.09 0.58 922.11 347558.0 2469322.2 4397.0 29.46 16.29 4157.9 915.27N 264.60 0.17 952.5 347566.9 2469351.3 4459.0 29.32 16.0 4211.9 944.49N 273.07 0.30 982.9 347575.7 2469380.4 4520.0 28.11 16.37 4265.4 972.63N 281.25 2.00 1012.2 347584.3 2469408.5 4582.0 27.35 17.7 4320.31 1000.21 289.70 1.60 1041.1 347593.1 2469435.9 4644.0 24.70 20.6 4376.0 1025.91 298.61 4.74 1068.31 347602.3 2469461.5 4706.0 21.64 19.9 4433.0 1048.78 307.07 4.96 1092.6 347611.1 2469484.3 4768.0 20.22 19.7 4490.9 1069.61 314.59 2.29 1114.7 347618.9 2469505.0 4830.0 18.71 17.9 4549.3 1089.16 321.28 2.62 1135.4 347625.8 2469524.4 4894.0 16.88 17.6 4610.31 1107.78 327.26 2.86 1155.0 347632.0 2469543.0 4958.0 15.01 18.0 4671.8 1124.51 332.65 2.93 1172.5 347637.6 2469559.6 5022.0 12.82 18.3 4733.9 1139.13 337.46 3.42 1187.9 347642.6 2469574.2 5086.0 11.01 17.9 4796.5 1151.68 341.59 2.83 1201.1 347646.9 2469586.7 5149.0. 9.33 10.5 4858.6 1162.43 344.38 3.37 1212.2 347649.9 2469597.4 5212.0 7.63 7.34 4920.91 1171.60 345.85 2.80 1221.4 347651.5 2469606.6 5275.0 5.86 2.98 4983.4 1178.96 346.56 2.92 1228.6 347652.3 2469613.9 5338.0 4.12 3.39 5046.2 1184.43 346.86 2.76 1234.01 347652.6 2469619.4 5401.0 3.31 5.62 5109.0 1188.50 347.17 1.31 1237.9 347653.0 2469623.4 5463.0 3.22 6.68 5170.9 1192.01 347.55 0.17 1241.4 347653.4 2469626.9 5526.0 3.30 4.03 5233.8 1195.58 347.88 0.27 1244.9 347653.8 2469630.5 5586.0 3.24 7.73 5293.7 1198.98 348.23 0.37 1248.31 347654.2 2469633.9 5653.0 3.20 9.06 5360.6 1202.70 348.78 0.13 1252.0 347654.8 2469637.6 5716.0 2.97 9.20 5423.6 1206.05 349.32 0.37 1255.3 347655.4 2469641.0 5778.0 2.92 12.96 5485.5 1209.17 349.93 0.32 1258.5 347656.0 2469644.1 5840.0 2.92 11.51 5547.4 1212.26 350.60 0.12 1261.7 347656.7 2469647.1 5903.0 2.74 13.6 5610.3 1215.30 351.27 0.33 1264.7 347657.4 2469650.2 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated i ~ ~~~AL`'~~` UNOCAL,KGSF#7 Wellbore: KGSF#7 P&S Yard, Wellpath: GMS <0-1931> MWD ~~~~; Swanson River Unit,Kenai Peninsula, <2061-6846> ~`,~,~,~ - Alaska(Imported) Date Printed: 19-Aug-2004 Wellpat~_Grid) Report MDR j ] Inc[deg] 4~i[~feg] ND[ft] North[ft] East]ft] Dogleo Vertical Easting Northing ~g/100ft1__ Seciion~ftl 5967.0 2.60 10.4 5674.2 1218.21 351.89 0.32 1267.7 347658.1 2469653.1 6029.0 2.45 13.1 5736.2 1220.88 352.45 0.31 1270.4 347658.7 2469655.7 6091.0 2.27 13.8 5798.1 1223.37 353.05 0.29 1273.0 347659.3 2469658.2 6154.0 2.28 19.98 5861.1 1225.75 353.77 0.39 1275.5 347660.1 2469660.6 6218.0 2.40 21.33 5925.0 1228.20 354.70 0.21 1278.1 347661.0 2469663.0 6281.0 2.37 17.95 5988.0 1230.67 355.58 0.23 1280.7 347661.9 2469665.5 6345.0 2.50 22.63 6051.9 1233.21 356.52 0.37 1283.4 347662.9 2469668.0 6408.0 2.43 19.9 6114.9 1235.74 357.51 0.22 1286.1 347663.9 2469670.5 6470.0 2.31 24.5 6176.8 1238.11 358.47 0.37 1288.7 347664.9 2469672.9 6533.0 2.30 22.0 6239.8 1240.44 359.48 0.16 1291.2 347666.0 2469675.2 6595.0 2.28 27.22 6301.7 1242.69 360.51 0.34 1293.6 347667.0 2469677.4 6657.0 2.11 27.5 6363.7 1244.80 361.60 0.27 1296.0 347668.2 2469679.5 6720.0 1.99 25.7 6426.6 1246.81 362.61 0.22 1298.2 347669.2 2469681.5 6782.0 2.09 29.3 6488.6 1248.76 363.63 0.26 1300.4 347670.2 2469683.5 6800.0 2.08 27.1 6506.61 1249.34 363.94 0.45 1301.0 347670.6 2469684.0 6846.0 2.08 27.1 6552.5 1250.83 364.70 0.00 1302.71 347671.3 2469685.5 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #2 173.9ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 17.26 degrees Bottom hole distance is 1302.91 Feet on azimuth 16.26 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated Z~4-odl • Subject: KGSF #7 From: "Lambe, Steven S" ~lambes@unocal.com> Date: Mon, 23 Aug 2004 09:29:42 -0800 To: winton_aubert@admin.state.ak.us W inton- The targeted interval for KGSF #7 is the 64-5 sand which we found @ 6670' MD to 6690' MD. The sand giving us the pressure starts @6825'. The pressures in KGSF #1 confirm the required mud weight for the 64-5 sand to be an 8.85 ppg. The sand with pressure is being correlated as the 65-7 sand and is not present in the offsets. Below is the summary of operations as of this morning. The quality of the 64-5 sand is in question for injection, and the team is currently assessing the need to sidetrack. Steven Drilled 8-1/2" hole to 6,846'. Took kick on bottom. 14 bbl pit gain, 175 psi SICP t~z 0 psi SITP. Circulated out on driller's method with 9.4 ppg. SITP 330 psi and SICP 370 psi. Bled 2 bbls to trip tank. DP= 0 psi, and SICP = 75 psi in 50 minutes. Bled 4 additional bbls. DP = 0 psi, csg =20 psi. Monitor 1 hour. DP =130 psi, casing =264 psi. Circulated BU on drillers method. SD pumps SIDP=360 and SICP = 365 psi. Bled 1 bbl. SIDP = 90 psi and SICP = 91 psi. Monitor 1.5 hours. SIDP = 90 psi, and SICP = 100 psi. Build mud weight to 9.8. Weighted mud to 9.8 and circulated well. Well dead on pressures. Circulate 2 BU and recovered coal and sand. Short trip to 2,800'. Had to back ream in tight spots. RIH to bottom setting down @ 6,030, 6318, and 6522. Back ream to 5,950'. RIH to 6846'. POOH to log. RIH with SWS. Unable to pass 6,020'. POOH. Removed density tool and centralizers. RIH. Unable to pass 6,020'. BOP test while waiting on Reeves. PU 3-1/2" shuttle system. TIH to 6831'. Started circulating. Noticed flow increase. Check well. Flowing @ 17%. SIDP 40 psi, CSG 12 psi. Pressures stabilized DP =100 psi, and Casing 95 psi. Increased MW to 10.2 and circulate well. Well static. Activated Reeves logging tools and started logging out. Logged triple combo 6838 to 5,600. Pumped dry job and POOH. LD logging BHA. PU 8-1/2" bit on clean out assembly. TIH to C&C. Unocal Corporation P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCAL Monday, May 24, 2004 Alaska Oil and Gas Conservation Commission 333 West 7tH Avenue Anchorage, Alaska 99501 Attn: Winton Aubert Re: KGSF #7, SRU 314-27 CBL Dear Mr. Aubert, i~~ 1 ~~®~ ~' Attached for your files is a copy of the SRU 314-27 Cement Bond Log dated May 15tH 1963. The main zone of interest with respect ~o KGSF #7 i$ 6501' NID, 6371' TVD. From the log, the SRU 314-27 is well bonded in the area of interest. If you need ariy additional information, please give me a call at 263-7637. Sincerely, Steven Lannbe Advising Drilling Engineer SSL/s Enclosure r~~~~ 3~~~°~~ ~~ .~~ ~.~ (~+~ y~y g Aik4J~a,: ;~~~ ~ t ~e., 1~Q~11tl~J{~~ /ar:~;i;+ara~s ao~- oF~~ n -~ ~ ~ ~ Q -1 < N -~ ~ O ° O rn D co p Q COUNTY ~~~„-,i is m ~ -« ~- ~ ~ m o Z ' `-° o P- o ~' ` ~ ~ Q `° ~.~ ~ ~' Q Field or ~- E "-' ~ o ~' ~ < ° ~ 1, O cn `-'.' Q rn O = ~- ° ~ ° T I s I Z o ~ `Q o ' ~ t ., ;, ;, LOCATION 3'Y"-`.`~~',; ~ ~ I r. J~~y rt fl- ~ ~ ~ m , m `~° ~ '~ ~' ~ rn > o v ~ ~ ' WELL ~ t l~ f~`)_ I ~ ~-2! ~ > ~ ~ n n Q ~ ~ ~ T c COMPANY ~ Tr-1s'r~~~j :~. v ~ ~ L ~~%. H ~ - 3 - ~ ~ a. T 3 ~ ' r t1 T n 4~ N - - ~`~ ~' -~r 0 ~ - ~ O ~ ~ O C rn m ~ r O ~ ~,: "'~ •yl -- ~ ~ ~ :1 ~ ~ -•-3 ~ o ~ ~ . i ~~ f n G7 ~ w v. ~w .~: -~, v m _~ " 3 ~ : ~~ o ~ ~ ~ m~ ~' '" Z o c Q ~ o~ f ~ ~ f ~ Q - - (D .. ~ J _~ ~ N ~ ~ r 0 ~ ~ ~ , ~ n ~ ~ O ~ ~- r ~ _ ~ Crx ' ~ ' .~ ' i re",: -~ / ..! o a o ~ o ii. a p p ~.. ~`i D ~ ..s ~~ ~ ~ - - - Q ~ I ~ ~ m -0- 1 . € 7 ' - _ ~ _ ..., 3 tr ',~ [ as 1 rn 3~ ~ r ~ ~ t . < '" 3 ~. ~ .. ~ y $ .1.:47 r~ r- o r~ < l:i ~„~ ; _ ~..: M ~ -} ,y, ~- r lj s ' ° 4 - ~ _ d~ ~ ~ ,. l . ~ FOLD HERE DDtAAAAV ["FMFt~ITW(~ PRCIf FI~IIRF ~. -- - Hours from start "~"~N"'~"' `"`"" Started um ing cement ---- -- Release pressure Hour -date of operation __ ________- -- ___ _ __ ___ T pe centralizers Logging speed Una - Bias: Max. Q~ Min. ~ Start Cement Bond Log _ ~ ~ _~ ~ Oc~~~f1~ y ~ ~~ ~ (~ ~~~___ ? ~~ 771 __ Cartrid e T e !- Finish Cement Bond Lo : J{~"-`~3 ' '~ - 7 Cartrid a No. Preceding fluid---_-_ _-Volume. bbls. Pipe reciprocated during Pumping: Yes No_ Cement pumped- __ __bbls./minute Pipe reciprocated after plug down: Yes--min., f` SQUEEZE JOB DETAIL - - Centralizer Depths Scra De number S ueeze 1 _ __ 2 _-- 3 -_ 4 _ _ -- Date - ------ - ---- - -- De th interval -- - _ _ -_ '__-_ Ty e cement -_ Volume of cement - --- - ---- _ - --- ------ - ----------- Additive -- - ------------- ----- ------ ---- ---------- ---- Retarder Wei ht of slum _______-_-___ Preceding fluid --------- - ------ --- ------------ ------ . ----- - ----- Breakdown pressure -____-_,_ Max_.pressure-stake 1 -.--------- ------------ - ---------- -------- _--- f, 2 ---- -- - ----------_ ------- ------- ,~ ~, ------ ------ 3 --------- Final maximum pressure ---------- -------_ _---- . -- ----- ---- ----------- ---- ----------- - - -__ -------- - ' --------- Started pum in cement Released pressure ~• ' Start CBL Finish CBL AVERAGE WELL DRIFT: ° from, to from to ~ "fro m to --- -- REMAR.KS- -------- -------------__------------------------------------------------- ----~----_--------- SINGLE ~ECEI~iER dT ° ~ C~ N D L C3 G microseconds ~ rr~illiv~lts BONDING INCREASES. 40C? 2(~0 0 ~" N W O N A O O N O O N 01 O O N O O N O~ O O „ ~ °I 7 'V ~ }.J^:~,y~yr I q ~ r' "I I f 1 "I I I f 4 I I_ I I I I' ~ I I I 2800 2900 3000 3100 3200 3300 3400 ~ ~ ~T- ~ ~ ~ ~ ~ ~ ,T~ )0• 3500 3600 3700 3800 3900 4000 i + - I ~ _ ~ ~ ~, + ' ~ I ~ - ~, ,~ - ~ • 4100 4200 4300 4400 4500 4600 4700 . _ S,Or 5300 4700 4800 4900 ;'~~ Iii ~V ~tiM~. . 5500 5600 5700 5800 5900 I,il I~ 6000 6100 ~;~ w ~~ 6200 6300 i~.. 6400 6500 'I i i~~~14 f i~j~ ~ ~ I~I i I ~I ( ~ j i j ~ II I ill !!s ~, ~ ~ ~ ~ ~ l i i I i i , ~ ii ii ilj i ~~ '~ ~ ~~ 1 I _ _ __ _ . ''~ 1 ;, 6600 6700 6800 6900 ~ 7000 7100 7200 L _ 11- _~ _~ - - a ~ ~- ~ -I-T1. __I-_ _ ~- L -~-__~---~- -I- --_~_~__ -~- ~ I I _ F - f F f f _ f-- f I _-i --I t _1 _ I_~ f 11 __ fi I ~- _ r 1-__1 __ 1_._1_. _,1---1- fi 1_ I __LL . _ Y . 7400 7500 7600 7700 7800 7200 7300 0008 0061 IY 1 ll~d lA __ _ _ ~._I- I_ i~l ~ !. 1 I i j i ~ ~ ~ i , I I I ~ i ~ i , ~ ~~ ~ ~ I ,.~~, A~ I ~ I ! ' _.I ~ .~ _ ,_ ~ _ . ~ j !~I~ ~ :y. !, it Y r ~~ i i ~I ~ ~ ~~ ~ i `~'~'"J ``N' I '"'~!' I I 41'1' I I M I~" I I I`~h'I I ~i i I I'' I I! i i 1' I I I i i I! i ~ I ~ I i 9800 9900 10000 10100 10200 10300 10400 10400 10500 10600 10700 10800 10900 11000 COMPANY ~~', ~I~l~:,'~~,_~lL_~Slg~ti~€_Y __~~----~f-~~_ '"~ ~'=",, 1~=~, SWSC FR I I.~~~~ SWSC TD ~ ~~37 ° R ~ -, ,. WELL a~,'~s-~ {5,~ ~ r ~; DRLR TDB Elev: FIELD S'°~~ +~'j~F~! '~_! ~°=~- -- __ _ _ . - ----_. _ - -____"_ KB ~`~ ~ '~L~S KPH ~i-T~i ~~--- COUNTY ~G~~1~°g ~ -- STATE_ -- ------- DETAIL LOG P ii=~ oo/ ° BOND. LOG millivolts N ... ~ . BONDING INCREASES 5 -_ , _, ii r • t t k# I F I x ,~'ffix ~ 1 ~ L Lva :~v ,sue .y ~LASSA OIL A1~TD G~,S COI~TSERQATI011T COMI~IISSIOIQ Phil Krueger Drilling Manager Union Oil of California (Unocal) P.O. Box 196247 Anchorage, Alaska 99519 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7`" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Swanson River KGSF #7 Union Oil of California (Unocal) Permit No: 204-081 Surface Location: 1999' FSL, 425' FEL, SEC. 28, T8N, R9W, S.M. Bottomhole Location: 3192' FSL, 61' FEL, SEC. 28, T8N, R9W, S.M. Dear Mr. Krueger: Enclosed is the approved application for permit to drill the above referenced development well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit hours notice for a representative of the Commissio Commission's petroleum field inspector at (907) K. BY ORDER OF THE COMMISSION DATED this~day of May, 2004 Please provide at least twenty-four (24) to witness any required -test. Contact the (pager). cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION~OMMISSION PERMIT TO DRILL 20 AAC 25.005 1 a. Type of work Drill: X Redrill: 1 b. Type of well Exploratory: Stratigraphic Test: Development Oil: Re-Entry: Deepen: Service: X ~ Developement Gas: Single Zone: X Multiple Zone: 2. Name of Operator 5. Datum Elevation (DF or KB) 10. Field and Pool Union Oil of California (Unocal) 179.5' KB to MSL feet / 3. Address 6. Property Designation Swanson River Field / Tyonek 645 P.O. Box 196247 Anchorage, AK 99519 A-028399 4. Location of well at surtace 7. Unit or property Name 11. Type Bond (see zo AAC zs.ozs) 1,999' FSL, 425' FEL, Sect. 28, T8N, R9W, S.M. Swanson River Unit At top of productive interval 8. Well number Number 103515406 3,192' FSL, 61' FEL, Sect. 28, T8N, R9W, S.M. KGSF #7 ~ At total depth 9. Approximate spud date Amount $200,000 3,192' FSL, 61' FEL, Sect. 28, T8N, R9W, S.M. 06/10/04 ~ 12. Distance to nearest 13. Distance to nearest well 14. Number of acres in property 15. Proposed depth (MO ana Tvo) property line 62 feet 1200' feet 1,760 6,831' MD / 6,580' TVD feet 16. To be completed for deviated wells ° 17. Anticipated pressure (see AAC 25.035 (e)(2)) 1, f~-` f .. ~~ ~ Kickoff depth: 2000 feet Maximum hole angle: 30 ' ig At total depth (ND) psig Maximum surface 1240 18. Casing program Setting Depth size Specifications Top Bottom Quantity of cement Hole Casing Weight Grade Coupling Length MD TVD MD TVD (include stage data) 16 106 K-55 BTC 40-80' 0' 0' 40-80' 40-80' N/A -driven to refusal 12 1 /4" 9 5/8" 40 L-80 BTC 2000 0' 0' 2000 2000 262 sx lead, 93 sx tail * 8 1/2" 7" 26 L-80 BTC 6831 0' 0' 6831 6580 256 sx lead, 88 sx Tail * -Calc Hole Volume exclud. planned excess 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary ~,~ ~~ ~ eye ~ AY ~~ ~ ~ , oska O ~~~~ i/ boo q~ s' e0mmi . ch ora SSlp~ go 20. Attachments: Filing fee: X Property Plat: X BOP Sketch: X Diverter Sketch: X Drilling program: X Drilling fluid program: X Time vs. depth plot: X Refraction analysis: Seabed report: N/A 20 AAC 25.050 requirements: 21. I herby certify that the foregoing is true and correct to the best of my knowledge: ~~~ Signed: it Krueger Title: Drilling Manager D<3te: 5/07/2004 Commission Use Only Permit Nu er API number Approval dam See cover letter ~~ d - ~ ~-~ O ~.3 (~ Q for other requirements Conditions of approval Samples required: [ ]Yes No Hydrogen sulfide measures [ Yes '`jQ No Direction Mud log regwred: (]Yes No al survey required Yes [ ] No J 3S ~ ' Require w in ssu for OP [ ] 2M; [ ] 3M; [ ] 5M; 2 S S ~k) c~ 1' S 6 , = '~-0 [ ] 10M; [ ] 15M d +~ S f ~P~L cu l ' ; ~' i . LZj ~I~-rf`e-,. r2 Other: ~ e/ ° ~~~~'`)/ cil~P'V-'t,cct~ .~ we r.1~.c t Lu S w ~l~ hC~ S~~Y~ ~ b~der~f~ 1S `~I_Y17~~C Appro d b Commissioner the Commission Date: :c Nt~ Form~1 401 R~/12-1 -85~_ '~~ '~"` "~ (~~; ] Submi"t in tri licate / • WAIVER REQUEST Unocal respectfully requests waiver to; (1.) AOGCC regulations 20 AAC 25.035 (C) WAIVER #1: '~ L~ Unocal request permission to drill the 12-1 /4" surface hole to a depth of +/- 2,000' TVD / 2,000' MD without a diverter. AOGCC regulation 20 AAC 25.035 (h) (2) stipulates: (h) "Upon request f the operator, the commission will, in its discretion, approve a variance ...... (2) from the diverter system requirements in (C) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary." Based on our experience drilling 12'/4" surface holes in Swanson River Field, P and S yard, it is conclusive that no shallow gas hazards exist beneath this pad to a depth of at least 2000' TVD BRT. The 12-1 /4" surface hole for KGSF #7 will be drilled from the same pad as SRU 43-28 to a shallower depth. Shallow geology has been reviewed and the following summary of the lithologies to be encountered is provided: From surface to 2000' VD beneath the P and S yard, we anticipate the following lithologies: 0-500': interbedded med to coarse grained sand and coarse gravels 500'-930': interbedded ~75%-25% fine to medium grained, unconsolidated sandstone with claystone, clayey siltstone and carbonaceous mudstones. 930'-1600': interbedded ~60%-40% fine to medium grained sandstones, with claystone, siltstone, clayey sandstone and carbonaceous mudstones. 1600'-2000': interbedded ~75% -25% fine to medium grained, unconsolidated sandstone with claystone, clayey siltstone and carbonaceous mudstones. We do not anticipate any significant faulting, nor do we expect any oil or gas to be trapped, as no suitable seals exist within this shallow section. • • Shallowest identified gas sand occurs at 5886TVD (59-2 sand) in well SRU 43-28. Even here the sand may be wet but there is a slight sonic response which may indicate gas. For the purpose of basic risk mitigation, Unocal will utilize a spud mud which is expected to weigh approximately 9.2 ppg when drilling at the planned surface hole TD of 2,000' MD / 2,000' TVD', to eliminate the risk of a shallow water flow. WAIVER #2: ~ Unocal requests permission to drill the 12'/4" surface hole to +/-2000' without surveying until after the 9 5/8" casing is cemented. AOGCC regulation 20 AAC 25.050 (h) stipulates: (h) "Upon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve alternate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well intersection, to comply with spacing requirements, and to ensure protection of correlative rights." Due to plans to drill the 12'/4" surface hole vertically to 2000', there is no cost-effective means to survey once each 500' as required in regulation 25.050 (C)(1). Unocal will obtain the required surveys at the first opportunity after cementing the 9 5/8" casing, before drilling the 8'/2" hole, to eliminate the risk of a well-to-well collision and ensure accuracy of the final BHL. • ~ KGSF #7 Pre-Rig Activities Install cellar & drive 16" Surface Conductor Prepare pad & install liner, tankage & berms Turnkey MI & RU Drilling Rig Post Rig Activities Rig Acceptance. Hold pre-spud & HES meetings. Finish RU basic comg:©nents & mix mud RU & test diverter RU & function test TDS RU pipe handling equipment (tongs & hawkjaw) PU portion of spud BHA Clean-out conductor PU remainder of BHA & DP to drill to 6,700 Drill 12 1!4" hole from: 0' to: 2000' MD / 2000' TVD Circ clean & pump carbide indicator POH (pump out to BHA) UD 12 1/4" BHA Clean rig floor & RU to run 9 5/8" csg Run 9 5/8" casing ~ Land casing & M/U cement. head Circulate, reciprocate & conduct safety meeting Pressure test lines & cement 9 5/8" casing j RD casing running equipment ND diverter & lines ND wellhead connection NU & test MBS wellhead NU BOPE & choke/kill lines & test 250 / 3500 Pressure test 9 5/8" casing to 2,000 psi M/U 8 1/2" steerable BHA with Triple Combo LWD,TIH Drill out & perform LOT Drill 8 1/2" hole from: 2025' to: 6831' MD / 6580' TVD Circulate clean (& pump nut plug sweep) POH w/ 8 1/2" BHA UD BHA MIRU E-line /' RU & run 7" casing Land casing (includes wishing down) & circulate Cement 7" casing ~ RD cementers & casing running equipment Set pack-off & test MU 6-1/8" C/O Bit and Casing Scraper. RIH to PBTD @ 6746'. Circulate Well Clean, Displace to Completion Brine Test 7" casing to 2,500 psi POOH & LD C/O BHA & DP PU &RIH 4-1/2" Completion w/ Hydo-Trip Packer / Set packer and Test TBG & Casing to 3,500 psi Set BPV ND BOPE, NU & test tree to 5,000 psi, Clean tanks, UD TDS & Hawkjaw Release Rig • V N ~ CA ~ 76 Swanson River Field KGSF #7 Proposed Completion Jewelry Detail 1. 80' 16" Drive Shoe 2. 2,000' 9-5/8" Surface Casing 3. 6,831' 7" Production Casing 4. 2,500' Chemical Injection Mandrell 5. 6,400' 4-1 /2" Tubing 6. 6,350' Retrievable Packer 7. 6,380' X Nipple 8. 6,400' WLEG Bit Sizes:. 12-1/4", and 8-1/2" 9-5/8" Cemented to surf, 262 sx lead, 93 sx tail (calc hole Vol.) ~ . 7" Cemented to 2000'.56 sx lead, 88 sx tail (calc hole Vol.) CASING DETAIL SIZE WT GRADE CONN TOP - BOTTOM 13-3/8" 88 K-55 BTC 0' 80' 9-5/8" 40 L-80 BTC 0' 2,000' 7" 28 L-80 BTC 0' 6,831' TITBING DETAIL SIZE WT GRADE CONK' TOP BOTTOM 4-1/2" 12.6 L-80 IBTC (AB Mod) 0' 6,400' Perforations Date MD TVD TBD -Pending OH Logs TD = 6,831' MD / 6,580' TVD KGSF #7 Proposed REVISED: 05/07/04 DRAWN BY: SSL RKB to GL = 20.50' • • Swanson River KGSF#7 9-5/8"" SHOE DESIGN ~ SUMMARY 8< SKETCH uNOCa~~ METHOD 2: RT-MSL=179.5ft WD = 0 ft with 0.433 PSI/FT Gradient DESIGN DOWN: 9-5/8" shoe MW = 9.2 PPG 1,821 ft BML Pform = 9.2 PPGfMW r' 9-5/8" shoe (2,000 ft TVD) \ KT = 15 BBLS at 0 PPG / FG = 0.7 PSI/FT \ Gas Gradient = 0.05 PSI/FT / Drill Pipe = 4 INCH 8-1/2" Hole / _ \ / The shallowest \ 9-5/8""shoe depth = / 1,653 ft BML or 1,833 ft TVD METHOD 1: \ ~ / 1 \ / / \ \ / / \ / The deepest 8-1/2 in hole \ that can be drilled = / 7,060 ft BML or 7,239 ft TVD ~ \ DESIGN UP: / MW = 9.2 PPG 1 Pform = 9.2 PPG EMW 8-1/2" Hole / Kl' = 15 BBLS at 0 PPG _ \ FG = 0.7 PSI/FT I Gas Gradient = 0.1 PSI/FT 1 Drill Pipe = 4 INCH 1 / TD = 6,401 ft BML or 6,580 ftTVD / • • Maximum Anticipated Surtace Pressure Calculation Swanson River Field KGSF#7 Kenai Peninsula, Alaska Assumptions: 1. Based on offset drilling & well test data, the pore pressure gradient is predicted to be a 0.433 psi/ft gradient from surtace to planned total depth at 6,580' VD BRT. 2. The M.A.S.P. during drilling operations will be governed by the 9 5/8" shoe frac gradient, and is calculated based on a full column of gas between the 9 5/8" shoe and the surtace. 3. The M.A.S.P. during production operations will be the estimated SIBHP minus the gas hydrostatic pressure between TD & the surface. M.A.S.P. During Production Phase: Max. pore pressure at T.D. _ M.A.S.P. (tbg leak at surface) _ M.A.S.P. During Drilling Phase: Max. Est. Frac pressure at 9-5/8" shoe = M.A.S.P. during drilling = 6,580 ' VD x 0.433 = 2849 psi 2849 psi - (0.096 psi/ft " 6, 580 ft) _ = 2217 psi 2000 ft. x 0.7 psi/ft = = 1400 psi 1400 psi - (.08 psi/ft x 1515 ft.) _ = 1240 psi Calculation & Casing Design Factors Swanson River Field KGSF#7 Kenai Peninsula, Alaska WELL: KGSF#7 .FIELD: Swanson River DATE: 6-May-04 DESIGN BY: Steven Lambe Sect. 1 12 1/4" hole MUD WT. 9.2 PPG MASP= 1,240 psi" Sect. 2 8-1/2" hole MUD WT. 9.2 PPG MASP= 2,217 psi TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF DESCRIPTION W/O BF SECTION STRENGTH TENSION ~ PRESS @ BOTTOM RESIST. w/o TENSION ~ MASP MINIMUM YIELD SECTION CASING BOTTOM TOP LENGTH WT. GRADE :THREAD ~ LBS LBS 1000 LBS SF TENSION PSI' PSI SF COLL. PSI*` PSI SF BURST 1 9 5/8" 2,000 0 2000 40 L-80 ~ BTC 80,000 80,000 979 12.24 880 3090 3.51 921 5750 6.24 rvD 2,000 0 2 7" 6,831 0 6831 26 L-80 BTC-mod 177,606 177,606 519 2.92 2895 5410 1.87 1237 7240 5.85 rvD s,sso 0 ' Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.44 psi/ft) and the casing evacuated for the internal stress (0 psi/ft) " See attached sheet for calculation of MASP Notes: 1. All wellhead components are rated to 5000 psi working pressure. • • Property grids and formula's for KGSF #7 Surface Hole Recommendations Mud Type: 6% KCI, EZ Mud (PHPA) Pro erties: Density Viscosit Plastic Viscosity Yield Point API FL QH CI- 0 - 1000' 8.6 - 60 - 85 6 - 16 25 - 40 N/C 8.5 - 9.0 28-30K .1000-2000' 8. -9. 55 - 75 8-16 20-35 8-10 8.5 - 9.0 28-30K System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 20 ppb (28 - 30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25-1.5 ppb (as required 35 YP) EZ Mud DP 0.75 ppb Aldacide G 0,1 ppb Baracor 700 1 ppb Barascav D 0.5 ppb add as the well spuds) PAC L' additions below 1000' to reduce filtrate. Production Hole Recommendations Mud Type: 6% KCI, EZ Mud (PHPA) Properties: ' Dens' Viscosit Plastic Viscosity Yield Point API FL ~H CI- 2,000 -6,831' 9.0 9. 40-55 8 - 16 13 - 20 < 5 8.5-9.0 28-30K ~/ System Formulation: 6%KCI, EZ Mud Product Concentration Water 0.905 bbl KCI 19.8 ppb (28-30K chlorides) KOH 0.2 ppb (9 pH) Barazan D 1.25 ppb (as required 20 YP) Dextrid 1-2 ppb EZ Mud DP 0.75 ppb Aldacide G 0.1 ppb Baracor 700 1 ppb Barascav D 0.5 ppb (maintain per dilution rate) PAC L 2-3 b Baracarb would be strung into the system starting approximately'/z through the 8.5" hole. • • KGSF #7 BOP Stack Diagram Well Cellar • • 2 ~~ 3.® To Shahr 3"Panic To Gesbuster Q ,- '' 3 1 /8" 2 1 /16" ~ J 0 2 1 /16" ~, u r I'~ ~ 2 1 /16~ `~ 2 1 /16" ` - ~ ~ a® ~ ~ '\ 3 1/6 ~, ~ N ~~ ~f 2 1 /16" 2 1 /16" Manual Chore ,~ Automatic Choke 2 ~/16 Inlet ressure Sensor ~" 3" 5,000 PSI Choke IVf~nifold Kuulq~ik Dril ling Rig 5 l RED = 3 1/18" 5,®®® PSI \/ALVES AIVD LILIES BLUE = 2 1/16" 5,000 PSI VALVES °~..,.. . - UN~CAL~76 500 ,1,000 1,500 2,000 2,500 3,000 ~ 3,500 a~ A 4,000 4,500 5,000 5,500 KGSF #7 AFE DAYS KGSF #7 PLAN DAYS VERSUS DEPTH 6,000 6,500 7,000 Time (Days) KGSF #7 AFE DAYS _~ tNTEQ Created by : Planner Date plotted : 7-May-2004 I Plot reference is KGSF#7 Version#1. I Ref wellpath is KGSF#7 Version#1. j Coordinates are in feet reference KGSF#7. ~: True Vertical Depths are reference Rig Datum. ~ Measured Depths are reference Rig Datum. I Rig Datum: Datum #1 Rig Datum to mean sea level: 179.50 ft. Plot North is alifJned to TRUE North. ~ -500 CV E U U m '~,, U I, ~ 500 i 1000 7 ~ UNOCAL VOCAL Location. Kenai Peninsula, Ataska(Imported) Slot. KGSF#7 Ffeld: Swanson River Unit Well: KGSF#7 Inatailationi P&S Yard Wellbore: KGSF#7 Version#1 ', some 1 cm = 4o ft East (feet) -> -80 0 80 160 240 320 400 480 560 640- 720 KOP 6.00 12.00 DLS: 3.00 deg/100ft 24.00 EOC Begin Drop 26.00 22.00 DLS: 2.00 deg/100ft 14.00. 10.00 6.00 2.00 f EOC KGSF#7 64-5 Entry Tgt ~Targe KGSF#7 TD Tqt i TD 1440 i 1360. 1280 II, 1200 ~I 1120..._.._.', 1040 960 880 800 A 720 Z O ~• 840 tD 560 v 480 400 320 240 160 80 Iv m 0 n II -80 .P -500 -0 500 1000 1500 2000 si;aie 1~~~~1 Section (feet) -> Azimuth 23.38 with reference 0.00 N, 0.00 E from KGSF#? t~1~A~ UNOCAL ,KGSF#7 PSS Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) • .PROPOSAL LISTING Page 1 Wellbore: KGSF#7 Version#1 Wellpath: KGSF#7 Version#1 Date Printed: 7-May-2004 ~' B~AitE! I'VTEQ ~Welibore Slot -- ------ Name Grid Northin --- - Grid Eastin Latitude Lon itude North East KGSF#7 ' 2468644.0000 347227.0000 N60 45 15.6436 '. W150 51 14.7191 O.OON 0.00E 1=ieid C~ea~ ~ - - Corr~e~s All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 179.5ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 23.38 degrees Bottom hole distance is 1157.18 Feet on azimuth 23.38 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UNOCAL® UNOCAL ,KGSF#7 P&S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) Wolinath (C~rirll Rannrt PROPOSAL LISTING Page 2 Wellbore: KGSF#7 Version#1 Wellpath: KGSF#7 Version#1 Date Printed: 7-May-2004 ~t<~ BAK~it IiU6iES 1'~TE(~ -- MD[ft] Inc[deg] Azi[deg] I ND[ft] North[ft] East[ft] Dogleg I Vertical d /100ft Section ft Easting Northing 0.00 0.001 23.3 0.00. O.OON 0.00E O.OOi 0.00 347227.04 2468644.04 100.00 0.00~~ 23.3 100.00 O.OONI 0.00E 0.00' 0.00 347227.0 2468644.0( 200.04 0.00' 23.38 200.00 O.OONI 0.00E 0.00' 0.00 347227.0 ! 2468644.0( 300.00 0.001 23.38 300.00 O.OON' 0.00E 0.00 0.00 347227.0(' 2468644.0( 400.00 O.Od 23.38 400.00 O.OON~! 0.00E O.OO 0.00 347227.04 2468644.0 500.0 ~ 0.00! 23.38 500.04 _ O.OON 0.00E 0.001 0.00 347227 04 2468644.OG 600.00 0.00! 23.3 600.00' O.OON 0.00E 0.00! 0.00 347227.0 2468644.04 700.04 0.001 23.3 700.00 O.OONI 0.00E 0.00' 0.00 347227.0 2468644.OQ 800.04 0.00' 23.38 800.0 ' O.OONI 0.00E 0.00' 0.00 347227:0 2468644.0( 900.0 0.00' 23.38 900.00 O.OONI 0.00E -0.001 0.00 347227.0 2468644.0 1000.0 0.00) 23.3 1000.04 O.OONi 0.00E 0.001 0.00 347227.OC 2468644.04 1100.00 O.OOI 23.3 1100.00 O.OON 0.00E 0.001 0.00 347227.0 2468644.04 1200.00 0.00' 23.38 1200.00 O.OON 0.00E 0.00 0.00 347227.0( 2468644.0( 1300.0 0.00: 23.38 1300.0 O.OON 0.00E 0.00 0.00 347227.04 2468644.0 1400.0 0.00 23.38 1400.0 O.OON! 0.00E 0.00 0.00 _347227.0 2468644.0 1500.0 0.001 23.38 1500.00 O.OON 0.00E 0.001 0.00 347227.04, 2468644.0 1600.04 0.00 23.3 1600.0 O:OON~ 0.00E O.OO 0.00 347227.0 2468644.04 1700.0 0.00 23.3 1700.0 O.OON~ 0.00E .0.00 0.00 347227.0 2468644.00 1800.b 0.00 23.38 1800:00 O.OON~ 0.00E 0.00 0.00 347227.0 2468644.0 1900.0 0.00 23.3 1900.0 O.OON'~ 0.00E 0.00 0.00 347227.0 2468644.04 2000.00 0.00 23.3 2000.0 O.OOM 0.00E 0.00 0.00 347227.0 ~ 2468644.0 2100.0 3.00! 23.38 2099.9 2.40N 1.04E 3.00 2.62 347228.01 2468646:3 2200.0 6.Od 23.38 2199. 9.60N 4.15E 3.00 10.46 347231.2 .2468653.5 2300.0 ~ 9.00 23.3 2298.77 21.58N 9.33E 3.001 23.51 347236.6 2468665.4 2400.0 12.00 23.3 2397.0 38.31 N 16.56 3.00 41.7 347244.0 ~ 2468682.0 2500.0 15.00 23.38 2494.31 59.73N 25.83 3.00 65.08 347253.64 2468703.3 2600:U 2700.0 2800.0 18.001 23.38 21.00 23.3 24.00 23.38 2590.1 2684.4 2776.81 85.80N 116.43N 151.56N 37.10 50.34 65.53 3.00 93.48 3.001 126.8 3.00 165.1 347265.2 2468729,3 347278.8 2468759.75 347294.4 2468794.6 2900.0 27.00 23.38 2867.0 191.07N 82.61 3.00 208.1 347312.0 2468833.9 3000.0 30.0 ' 23.3 2954.9 234.86N ' 101.55 3.001 255.8 347331.5 2468877.5 3100.0 30.0 23.3 3041.5 280.75N 121.39 0.00 305.8 347352.0 2468923.1 3200.0 30.00 23.38 3128.1 326.64N 141.24 0.00 355.8 347372.4 2468968.7E 3300.0 30.00 23.38 3214.7 372.54N 161.08 0.001 405.8 7392.9 2469014.3 3400.0 3500. 3600.0 30.00 23.3 30.0 23.3 30.00. 23.3 3301. 3387.9 3474.5 ~ 418.43N ~ 464.33N 510.22N 180.93 200.77 ' 220.61 0.00 455.8 0.00 505.8 0.00 555.8 347413.3 2469060.0 347433.7 2469105.64 347454.2' 2469151.21 3700.0 30.00' 23.3 3561.1 556.11 N ' 240.46 0.00 605.8 347474.65 2469196.9 3800.0 30.0 23.3 3647.70 602.01 N 260.30 0.00 655.8 347495.0 2469242.5"e 3900.0 30.00 23.38 3734.3 647.90N 280.14 0.00 705.8 347515.53 2469288.14 4000.0 4035.0 30.001- 23.38 30.0 23.3 3820.9 3851.2 693.79N 709.86N 299.99 306.94 0.00 755.8 0.00' 773.3 _347535.96 2469333.7E 347543.1 469349.74 4135.0 28.00 23.38 3938.7 2 754.35N 326.18 2.00 821.8 347562:9 2469393.99 4235.0 ~ 26.00 23.38 4027.8 796.02N 344.19 2.00 867.2 347581.4 2469435.4 4335.00 24.04 23.3 4118.4 834.81 N ! 360.96 2.001 909.51 347598.7 _ 2469473.9E 4435.00 22.00'', 23.38 4210.4 870.67N 376.47 2.00 948.5 347614.7 2469509.64 4535.0 20.0 ~ 23.38 4303.8 903.57N 1 390.69 2.00 984.41 347629.3 2469542.3 4635.0 18.0 23.3 4398.3 0 933.45N 403.61 2.001 1016.9 347642.65 2469572.04 4735.0 . 16.00 23.38 4494.0 960.28N 415.22 2.00 1046.2 347654.6 2469598.7 4835.0 0 14.0 ~ 23.38 4590.61 984.04N 425.49 2.00 1072.0 347665.2e 2469622.34 4935.0 0 12.0 23.38 4688.0 4 1004.68f ~ 434.41 2.001 1094.5 347674.4 2469642.8 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 179.5ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 23.38 degrees Bottom hole distance is 1157.18 Feet on azimuth 23.38 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UNOCAL ,KGSF#7 P8~S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) • PROPOSAL LISTING Page 3 Wellbore: KGSF#7 Version#1 Wellpath: KGSF#7 Version#1 Date Printed: 7-May-2004 ~~~ B l106r1 I'~"TlE(~ Well a th Grid..Report ' MD[ft] Inc[deg] Azi[deg] ND[ft] North[ft] Eas4[ft] Dogleg d /100ft Vertical Section ft Easting Northing i 5035.Od 10.00!. 23.3 4786.2Q 1022.20t~ 441.99 2.00 1113.6 347682.21 2469660.2£ 5135.0(r 8.001 23.38 4884.96 1036.55N 448.19 2.00 1129.3 347688.60 2469674.5E 5235.Od 6.00' 23.3 4984.21!, 1047.74N 453.03 2.00. 1141.4 347693.55 2469685.61 5335.00 4.00! 23.3 5083.8 1055.74 456.49 2.00 1150.2 347697.1 F 2469693.62 5435.0(! 2.00'.: 23.3 5183.68 1060.54 458.57 2.00' 1155.4 347699.2' 2469698.41 5535.00 O.OOi 23.38 5283.6 1062.14N 459.26 2.00 1157.1 347700.00 2469700.0(1 5600.0(1 0.00 23.3 5348.6 1062.14N 459.26 0.00 1157.1 347700.00 2469700.00 5700.0 5800.00 0.00. 23.38 0.00'. 23.38 5448.66 1062.14 . 5548.6 1062.14N 459.26 459.26 0.00 0.001 1157.1 1157.1 347700.00 2469700.00 347700.0 2469700.0E 5900.Otl O.OO~I 23.3 5648.6@ 1062.14N 459.26 0.001 1157.1 347700.0 2469700.0 6000.0 0.00 23.3 5748.66 1062.14 459.26 O.OO 1157.1 347700.00 2469700.0 6100.0 0.00 23.38 5848.6 1062.14N 459.26 0.00 1157.1 347700.0 ~ 2469700.0( 6200.0 0.00 23.3 5948.66 1062.14 459.26 0.00 1157.1 347700.00 2469700.0( 6300.0 0.00 23.3 6048.6 1062.14 459.26 0.00 1157.1 347700.0 2469700.0 6400.0 0.00 23.3 6148.6 1062.14 459.26 0.00 1157.1 347700.0 2469700.0 6500.0 0.00 23.3 6248.6 1062.14 459.26 0.00 1157.1 347700.00 2469700.0 6600.Od 0.00 23.38 6348.6 1062.14 459.26 0.00 1157.1 347700.00 2469700.0E 6630. 0.00 0.00 6379.2 1062.14 459.26 0.00 1157.1 347700.0 2469700.0 ~ 6700.0 0.00 0.00 6448.6 1062.14 459.26 0.00 ' 1157.1 2469700.0 347700.0 6800.0 0.00 0.00 6548.66. 1062.14 459.26 0.00 - 1157.1 347700.0 2469700.0 6831. 0:00 0.00 6580.0 1062.14 459.26 0.00 1157.1 347700.0 ~ 2469700.0 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and ND's are from Rig (Datum #1 179.5ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 23:38 degrees Bottom hole distance is 1157.18 Feet on azimuth 23.38 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated UNOCAL UNOCAL ,KGSF#7 P8~S Yard, Swanson River Unit,Kenai Peninsula, Alaska(Imported) PROPOSAL LISTING Page 4 Wellbore: KGSF#7 Version#1 Wellpath: KGSF#7 Version#1 Date Printed: 7-May-2004 .,;:~. ,:. , ,~.1 -- Comments MD ft TVD ft North ft East ft Comment 2000.04 2000.0 O.OON O.OOE KOP 3000.bd 2954.9 234.86 _ 101.55 EOC 4035.00 3851.2 709.86 306.94E Be in Dro 5535.Od 5283.6 1062.14 459.26 EOC I 6630.54' 6379.2 1062.14 459.26 i Tar et - 64-5 Ent 6831.3Q 6580.0 1062.14 459.268 TD T~nptc - Name North ft East ft TVD ft Latitude Lon itude Eastin Norhtin Last Revised KGSF#7 64-5 Entry 1062.14 Tt 459.26 6379.24 N60 45 26.1. W150 51~ 347700.0 ~ 2469700.0 15-Apr-2004;,, KGSF#7 TD T t 1062.14 459.26 6580.04 N60 45 26.1 W150 51a 347700.0 2469700.0 15-A r-200 All data is in Feet unless otherwise stated Coordinates are from Slot MD's are from Rig and TVD's are from Rig (Datum #1 179.5ft above mean sea level ) Vertical Section is from O.OON 0.00E on azimuth 23.38 degrees Bottom hole distance is 1157.18 Feet on azimuth 23.38 degrees from Wellhead Calculation method uses Minimum Curvature method Prepared by Baker Hughes Incorporated ~ w Surface Use Program for KGSF #7 43 CFR Part 3162.3 - 1 1) Existing Roads See Map 2) Access Roads to be Constructed and Reconstructed Roads and Pad are already in place. Reference P & S Yard 3) Location of Existing Wells See attached maps -Single. Well on Pad, .KGSF #1 (SRU 243-28) 4) Location of Existing and/or Proposed Facilities Existing facilities will be utilized for Gas Injection & gathering. New gathering & Injection lines to the well will be required and contained on the existing pad. 5) Location and Type of Water Supply Fresh water is available from the adjacent facilities and will be used for the drilling of the well as a water based mud will be utilized. 6) Construction Materials N/A 7) Methods of Handling Waste Disposal Solid waste in the form of drill cuttings will be hauled in cutting boxes to the SRF Central Waste Facility. Liquid drilling mud will be recirculated while drilling the well. At the end of the well, the liquid mud will be hauled to and disposed of in the field class II disposal well. Garbage. will be burned at the incinerator at the P&S yard in the SRF or hauled. to the Soldotna dump. Septic/sewage/gray water will be self-contained on site and will be hauled away by contract disposal. 8) Ancillary Facilities Three small trailers will be present on the drill site for use by the Unocal drilling supervisor and the contract drilling rig toolpusher. 9) Well Site Layout See attached pad layout diagram 10) Plans for Reclamation • • The road and pad for the proposed well will not be able to be reclaimed because they are currently in use. Well KGSF#1 is located on the same pad and currently producing & injecting gas into the Tyonek 64-5 sand. 11) Surface Ownership U.S. Fish & Wildlife, Federal Government 12) Other Information None 13) Leassee's Representative and Certification Phil Krueger, Drilling Manager, Unocal Alaska 907-263-7628 I hereby certify that I, or persons under my direct supervision, have inspected the proposed drill site and access route; that I am familiar with the conditions which currently exist; that the statements made in this. plan are to the best of my knowledge, true and correct; and that the work associated with operations proposed herein will be performed by Unocal and its contractors and subcontractors in conformity with this plan and the terms and conditions under which it is approved. This statement is subject to the provisions of 19 U.S.C. 1001 for the filing of false statement. Date: /2~,.a-; a~ Name and Title: ~~ P it rueger, Drilling Manager SCALE KGSF #1 1 inch = 300 ft. FORMERLY 243-28 0 30o aso aoo GRID N:2468635.116 GRID E: 347199.282 LATITUDE: 60°45'15.553"N LONGITUDE: 150'51'15.275"W PROPOSED KGSF #7 WELL SURFACE LOCATION AS STAKED KGSF #7 GRID N: 2,468,439.683 GRID E: 347, 290.473 LATITUDE: 60°45'13.640"N LONGITUDE: 150°51 '13.388"W ELEV. 151.4' SECTION 28 TOWNSHIP 8 NORTH RANGE 9 WEST `` SEWARD MERIDIAN ALASKA '~ P~E.~F A~q ~~I ~ S ~ =~~49 ~~~i ~ ~ '•:M. SCOTT McLANE: ~ . ~~ ~~ '• 4928-S ~I~~~FO p•••........~••• royJ NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27 ALASKA STATE PLANE ZONE 4. 2) BASIS OF ELEVATION: NGS BM Q79 RESET NAVD88. 3) SECTION LINE OFFSETS DERIVED FROM TIES TO BLM MONUMENTS AT CN 1/16, C 1/4 AND WC NE 1/16 SECTION 28 T8N R9W SM FOUND THIS SURVEY KGSF NO. 7 SURFACE LOCATION SWANSON RIVER FIELD, STERLING, AK P.^. Box 468 SoLDOTNA, AK 99669 Project: 043026 Consulting C~'roup IV~cLane Testing Revisions: Dwg:043026 Date: 5/11/04 42~'' FEL P&S YARD I Grid SEC 2~ SEC 27 SEC 33 SEC 34 APPLICANT: VNOCAL '6 909 W. 9th Avenue Anchorage, AK 99519-7685 FIGURE: 1 i • FOR INDUIRIC ^ CGPdiA~ T I.OC~TIUN ;^JHFPF: Ir,IV01CF Wf=(ll= St1P,1f Ti F_;~ VENDOR N0. DATE :CHECK N0. 1031548 05-12-04 2007791 DATE INVOICE/CREDIT MEMO N0. VOUCHER CIO. GROSS DISCOUNT NET 05-12-04 DRILLPERMITKGSF7 10177305 100.00 100.00 FORM 4-2B181 (REV. 11-95) PRINTED IN U.S.A. nr-~i;~r~ i cn u? ra-c. ,i ar i u r •r ~-_:~ i ;rir-: ~ ~~ F,_~ ~, TOTAL - 100.00 100.00 CITIBANK DELAWARE s2-20 A subslalary of clticorp ai, Union Oil Company of California oNE PENN~s vvAY Accounts Payable Field Disbursing NEW CASTLE, DE 19720 UN®CAL.'~6 Pay One Hundred Dollars And 00 Cents*************************************** TO the STATE OF ALASKA order ALASKA OIL ~ GAS CONSERVATION Of COMMISSION 333 WEST 7TH AVENDE SIIITE 100 ANCHORAGE, AR 99501 IInited States II' 200 7 ? 9 X11' ~:0 3 L L00 20 9~: Date 12 MAY-04 2007791 Check Amount *****100.00 Void after six months from above date. d.,p,1~q~E MAY ) 2 2004 391L8L3711' • Unocal Alaska Union Oil Company of California 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 ~ Fax (907) 263-7698 Kevin A. Tabler, Manager Land/Government Affairs UNOCALQ May 10, 2004 '~ fV _ SAY ~ ~ 2 zQ ~~#~~ pal ,~ G ~~ ~s a©~s ~o Anchorage ~missio~ Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 APPLICATION FOR SPACING EXCEPTION Swanson River Unit (SRU) KGSF #7 well A-028399, A-028406 Dear Mr. Crandall: Union Oil Company of California (Unocal) hereby submits this Application for Spacing Exception to drill the referenced "SRU KGSF #7" well in the Swanson River Field. Our anticipated spud date is late May, early June, 2004. In accordance with 20 AAC 25.005 (a), a Permit to Drill and associated filing fees are filed herewith. The SRU KGSF #7 well is situated in governmental Section 28, Township 8N -Range 9W S.M. and may require a spacing exception in accordance with 20 AAC 25.055 (a)(2). Should the results of the SRU KGSF #7 well be successful, said well will be within 1,500' of a property line with a different royalty percentage landowner. This regulation provides in pertinent part, "a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line." In this instance the owner and the landowner are the same on each side of the property line and unit boundary however, the same landowners hold different royalty percentages. in the captioned offsetting leases. Although Unocal believes the landowner is the same per the definition of landowner (AS 31.05.170 (7)), in an overabundance of caution, we are submitting this application for spacing exception should you deem it necessary. This well location is structurally high on the formation and is a crestal withdrawal based on seismic, dip meter and subsurface data available to • Unocal. Additionally, the correlative rights of all affected owners, landowners and operators will be protected by exception approval. At the date of this mailing, in accordance with 20 AAC 25.055 (d)(1), notice of our intent to drill has been sent by certified mail to all owners, landowners, and operators of all outlying properties within 3,000 feet of the SRU KGSF #7 well. This application was sent to each landowner and constitutes "landowner notice". Certified mailing receipts are attached to this application. Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-1"identifies the owners, landowners and operators associated with each tract. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is acquainted with the facts and verifying that all facts are true. It is requested that the Commission approve an exception, if necessary, to the statewide spacing regulation for the drilling of the proposed SRU KGSF #7 well. If you require additional information regarding the SRU KGSF #7 drill site, please contact Mr. Steven Lambe, drilling engineer at 263-7637, or you may contact the undersigned at 907-263-7600. Sincerely, Kevin A. Tabler Enclosures cc: CIRI BLM • VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA A-02.8399 A-028406 SRU KGSF #7 well I, KEVIN A. TABLER, Manager, Land and Government Affairs, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the SRU KGSF #7 well in the Swanson River Field. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(2) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 10th day of Mayes, 2004. vin A. Tabler Mgr., Land & Govt. Affairs STATE OF ALASKA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this lOt~' day of May, 2004. ~s~~~~~.,A:.. ~T,q,~t~~~~/,~ \~ • ~lssioq ,~Y ~j ~ 'Q• Ooh ~~~~ ~"~ N®,~„~ ~ ' c TARY PUBLIC IN AND FOR Y ~ ~ THE STATE OF ALASKA .~ ~;P 6 • Q ~ My Commission expires: a - / ~- p ~ ~~%iqr~ C3 F Z~°;P~a\ ~~ • 2, A028077 _. ~ i • KGSF -7 ~TDi - - 28 T,h ~'. *KGSF #7 (Surfacel`. ~ ~;,~ ~ T$N ~9w snn A028406 - r _ _ r l t +~w k i ` ,. Z f y '`3 a ~ d~ S ~ ~ ro }~ 1 r ,Y ~ . j + I r* ~, 1-: Y"~ Z ~~ ~..k..t ~ s ~. n. x=` > y' ~~~,~. 16 SWANSON RIVER UNIT KGSF #7 EXHIBIT A 33 N A 750 375 0 750 Feet Alaska State Plane Zone 4, NAD27 • ~ ,.. EXHIBIT "A-1" LEASE LANDOWNER OWNER A-028399 BLM Unocal Sec.28 Anchorage Field Office T8N-R9W S.M. 6881 Abbott Loop Road Anchorage, Alaska 99507-2591 A-028406 Attn: Greg Noble Sec. 27 T8N-R9W S.M. Cook Inlet Region, Inc. 2525 C Street, Suite 500 Anchorage, Ak 99509 Attn: Kirk McGee OPERATOR Unocal Name and Address of Sender i• i~ Lin Article Number r.,~ 7221 0322 0225 5886 973.8 7221 0320 2205 5886 9721 8 s~ 10 11 12 13 14 15I Total Number of Pieces Total Number of Pieces Listed by Sender Received at Post Office PS Form 3877, August 2000 Chec pe of mail or service: Affix Stamp Here (I/issued as a )_- Certified L ] Re rded Delivery (Intemationap certiRcate o/mailing, C:~ COD ^ gistered or for additional (.l Delivery Confirmation Return Receipt for Merchandise copies of this bil/) CJ Express Maif L Signature Confirmation Postmark and U Insured _.-_-_ Date of Recei t _ _ Handling Actual Value Insured ~ Due Sender DC SC T SH RD RR Addressee Name, Street, and PO Address Poste a Fee ~ p Charge I if Registered Value I d COD Fee Fee I Fee Fee Fee ._ --11 - -- ------ .. _- -- -- _- -------- ~ ... _ __ . 4_ ..__ _ _ _.I--_._ - __~ k McGee "` oklnUet Regon,_-Lac.-----_.__-- .---.. 2`5 C. Street, Suite 500 ~- - -__ au of Land 1O-age-Piet Abbott Lai X07-2591 ---- _. .--- _. ---1---- - L---- - - -~-- Per (Name ofreceiving employee) The lull declaration of value is required on a I domestic and international registered mail. The maximum indemnity payable for the reconstruction of nonnegotiable documents under Express Mail document reconstruction insurance is $500 per piece subject to additional limitations for multiple pieces loft or damages in a single catastrophic occurrence. The maximum indemnity payable on Express Mail merchandise Insurance is $500, but optional Express Mail Service merchandise insurance is availeDle for up to $5,000 to some, but not all countdes. Tpe maximum indemnity payable is $25,000 for registered mail. See Domestic Mail Manual R900, S913, and S921 for limitations of coverage on Insured and COD mail. See International Mail Manua/lor limitations of coverage on international mail. Special handling charges apply only to Standard Mail (A) and Standard Mail (8) parcels. Complete by Typewriter, ink, or Ball Point Pen Unocal Corporation P.O. Box 196247 Anchorage, AK 99501 Telephone (907) 263-7660 UNOCAL® Phil Krueger Friday, May 07, 2004 Drilling Manager Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Attn: Commission Chair John Norman Re: Appl' for Permit to Drill (Form 10-401) SF Dear Commissioner Norman, 7 a ryour approval is an application for permit to drill (Form 10-401) for the SRU . 41-16 O yvli5'a~irt'f' ~~~dl°e- Unocal respectfully requests a waiver of the requirement for a diverter on the 12-1/4" surface hole as allowed under AOGCC Regulation 20 AAC 25.035 (h) (2). Unocal respectfully requests a waiver of the requirement for drilling the vertical 12-1/4" surface hole without surveying until the 9-5/8" casing is set as allowed under AOGCC Regulation 20 AAC 25.050 (h). Please refer to attached supporting documentation for both the above waiver requests. The anticipated spud date is approximately June 10th. If you have any questions please contact myself at 263-7628 or Mr. Steven Lambe at 263-7637. Sincerely, l ~~~ Phil Krueger Drilling Manager SSL/s Enclosure ~r~~~ MAY 12~ Alaska ~~~ Dil & Gas Cons. Anchorage Commission ''-~. t :v T r' r ~ I target (black circle). Blue +) :SRU 43-28 and SRU 314-27 ;and). These do not penetrate 64-5~°~ ~v rti t T .~ ~ i r5 n {~7 • Q .~. sA.+ ~~ SRU-r,-~,8 T ~ fir' SRU 4-27 23-2'7/ ~_~ KGSF #7 target at 64-5 sar With '/4 mile RADIUS arour One well within '/4 mile at 64-5 sans BHL only of KGSF #2 and #3( in 62 SRU 314-27 uphole portion only. d _ d~target 'black circle). is SRU 43-28 5 sand). These do not penetrate 64-5. SRU SRU 41-i ~ ~,=~, 23-~8 ~Rj_~ 34-^8 ~T ~ ~~'~ SRL ~ 4 --;? SRU ~1-27 f • TRANSMITAL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# Development Exploration Service Stratigraphic CHECK WIiAT ADD-OHS "CLUE" APPLIES (OPTIONS) MULTI The permit is for a new wellbore segment of LATERAL existing well Permit No, API No. (lf API number Production. should continue to be reported as Iasi two (2) digits a function ~of the original API number stated are between 60-69) above. PILOT HOLE In accordance with 20 AAC 25.005(f), all (per records, data and logs acquired for the pilot bole must be clearly differentiated in both name (name on permit plus PIS 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 is contingent upon issuance of a conservation order approving a spacing exception. _ ~Company Name) assumes the liability of any protest io the spacing .exception that may occur. DRY DITCH All dry ditch sample sets submiried to the SAMPLE Commission must be in no greaterthan 30' sample intervals from below the permafrost or from wbere samples are first caught. and 0' sample intervals through target zones. WELL PERMIT CHECKLIST Field & Pool SWANSON RIVER, GAS STORAGE - 772555 -Well Name: SWANSON RIV UNIT KGSF #7 Program SER Well bore seg ^ PTD#:2040810 Company UNION OIL CO OF CALIFORNIA Initial Class/Type SER / GSTOR GeoArea Unit OnlOff Shore On Annular Disposal ^ Administration i 1 Pe[mitfee attached- - - Yes - 2 Lease number appropriate___________________________________ _____ Yes __-.-______-_. -- - 3 Unique well-name andnumbe[- - ------ --- - --------- - ---- Yes- ---- -- ----- ------ -- ---- ------- ------ --------- ----- ---------- 4 Well located in a_definedpool__________________ ________.-.---_- __ No_ ___..__ -- - - - - 5 Well located proper distance_from drilling unit_boundary_ No- Hearing notice for spacing exception prepraed_5/12.RPC _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ _ _ 6 Well located proper distance from other wells- - _ _ . _ - - - - _ . _ No_ - - - - Another storage welt is within_3,000 of this proposed BHL.-Both- of these wells can not be Rrodu_ced at the-same _ _ 7 Sufficient acreage available in_drillingunit- _ _ - - - - - .. - Yes - - of the_proposed-BHL, 8 Ifdeviated,is-wellboreplatinclu_ded-------------- -------------------- Yes_ ___-..Bothof_these wells-cannot be produced_concu_rrentlyR_PC__..__--__--__-----_._--__- .._... 9 Ope[atoronlyaffectedparty---- ------------------,--------------- N°-- -----.- - - -- 10 Ope[atofhasappropriafe.bondinforce----- ------ --- -- ------ ----- Yes- ------- - - ------- - - ----------- -- -- ------ --- -- ------------ -- 11 Pe[mitcanbeissuedwithoutconservationorder_----___------------------ No-_ --___ ...-_-__-____--------------------- ----------------------- ------ Appr Date 12 Pe[mitcanbeis5uedwithoutadministrative-approya_I_---____________________ No-- ----____.._.__-____-..--- ____-__._____.__.-____-----------------.------ 13 Can permit be approved before 15-day wait No RPC 5/12!2004 14 Well located within area and strata authorized by_Injection Order # (putlO# in_comments)_ (For- No- . .. _ - -Storage injection orders have_been written on a single well basis.- _ . _ - - - _ . _ _ . - - 15 All wells-within 114-mile area of review identified (For service well only)- - - - - - - - - - - - - - - Yes - - . - _ ..Wells-in the AOR-are KGSF 2&3, $R1112-27, SRU-212-27, SRU_23-27 and SRU 21-27 - - - - - - - - - . _ _ _ _ _ _ 16 Pre-produced injector_dur_ation_ofprep[oductionl_essthan3months-(Forsenricewellonly)_ NA__ _______________________________--_-__.._---------------.--------- 17 ACMP_FindingofConsistency_hasheenissued_forthisproject.______-_-... NA__ _____________~_-______--..____---.----_--._-___---...-_ _-.__--------.-- Engineering ' 18 Conducto[string-provided - - - Yes 40' - 80' TVD. - - - 19 Surface casing protects all_known USDW& _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - _ - Yes _ _ _ _ - 2000' ND. _ - _ - :: - 20 CMT-v9l adeguate_to circulate on conductor & su_rf_csg - - , _ - . - - Yes - - Adequate excess,. _ - - - - -- 21 CMT_voladequate_totie-in long string to surfcsg - - - Yes . - ' - - ; 22 CMT_will coverall known_productiye horizons - Yes - - - - - - - - 23 Casing designs adegrrate fo[ C, T, B &-permafrost - Yes _ - - - 24 Adequate tankage-or reserve pit - - - - - - - Yes - Kuukpik Rig 5: - - 25 Ifa-re-drilll,hasa1.0.403 for abandonment been approved_____________________ NA_ --_-__NewwelL--_____.--_____-__-__-_--__._____._.-__----.--__--_._-_--__ 26 Adequatewellboreseparation-proposed --------- -- --- ---------- - Yes --- ----- --- -------- --- ------ --- --- ------ - -- -- ----- -- -- 27 If diverterrequired,doesjtmeetregulations_______________________________ NA_ -_-___Waiverrequested._---__ __- .__._---...--__---_--__-__-_ __-__.-__----_ Appr Date 28 Drillingfluid-programschematic$equiplistadequate_______________-.__-_-_ Yes- ______MaxMW-9,5ppg,_._._.__.-___--._.-__.__..-_---__.----------- -- WGA 5/2012004 29 BOPEs, do they meet regulation . - - - - - - Yes - - - - - - 30 BOPS-press rating appropr-iate; test to.(put prig in comments)- ___ _ _ _ _ _ _ _ _ _ __ _ _ _ _ Yes - - - - _ _ Test to 3500 psi. _MSP t 240 psi.- _ _ . _ _ _ _ - - - - _ _ - _ _ . _ _ - - . _ - - .. - _ - - _ _ - _ .. - - - - 31 Choke-manifold complieswlAPIRP-53(May84)_______--_________________ Yes_ _-.._---_-_-.__.--____....--__.__.__ - - 32 Work willocc_urwithoutoperationshutdown------------------------------ Yes- -- ------------------.--------------- -------------------------------- 33 Is presence_of H2Sgss-probable - - - - NO - - - - - 34 Mechanical_condition ofwells within AOR verified (Fgr-service well onlya - - _ - .. Yes _ - - - - Gmtng records of-all AOR wells indicate meth-integrity_ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ Geology 35 Permilcanbeissuedwlohydrogen_&ulfdemeasures__^___________________ Yes_ _--__.-_--_--_.._--__ -__.-___-_.____---..-_--_--..._-_-__._-------.-. 36 D_ata-presentedon_potenlialoverpressurezones--___...__________- NA_- _____________________---.._..__-_--__-_-__- .__-__.-._-_--_.._---_-- - Appr Date i37 Seismic analysis ofshallowgaszones..._________________-____-_...- NA_ _-_-------._-----------.---------- ------------------------------- RPC 5112/2004 38 Seabed condition survey-(ifoff-shore)-----------------------------_--- NA_- ----____. 39 Contact name/phone for weekly progress_reports [exploratory only)- - - - . NA- - Geologic Engineering Public Date Date D Commissio Commissioner Commissioner: n ry 5~aoby s • o`• v ur r
