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207-152
Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ®~ - ~ ~ c~ Well History File Identifier Organizing (done) Two-sided II I II II II II II (IIIII ^ Rescan Needed III (I'I () II I I II I III. RESCAN DIGITAL DATA OVERSIZED (Scannable) ~olor Items: ^ Diskettes, No. ^ Maps: ~Greyscale Items: ^ Other, No/Type: ~j Other Items Scannable by e, a Large Scanner ~5 .~~ ~ i *7 ItJ '~ ^ Poor Quality Originals: SVfLV~ ~,..,D~-~ OVERSIZED (Non-Scannable ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: BY: Maria Date: ~ ~s~ r Project Proofing III 111111 IIIII II III BY: Maria Date: /s/ nnin Pre aration x 30 = ~ + ~. =TOTAL PAGES Sca g p ~- (Count does not include cover sheet) BY: Maria Date: Q' ~ I ~~ ~sl Production Scanning Stage 1 Page Count from Scanned File: s~ (Count does include cover heet) Page Count Matches Number in Scanning Preparation: YES _ BY: Mari Date: ~~~ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO /s/ ~~ NO BY: Maria Date: ~s~ Scanning is complete at this point unless rescanning is required. II I II'I II I II II IIIII ReScanned III 111111 IIIII II III BY: Maria Date: /s~ Comments about this file: Quality Checked III IIIII III III III 10/6/2005 Well History File Cover Page.doc a I~h~f, ~~~~ DATA SUBMITTAL COMPLIANCE REPORT 8/11/2010 Permit to Drill 2071520 Well Name/No. SMILODON 9-4-9 Operator UNION OIL CO OF CALIFORNIA API No. 50-223-20022-00-00 MD 5058 TVD 4959 Completion Date 3/22/2008 Completion Status P&A Current Status P&A UIC N REQUIRED INFORMATION Mud Log Yes Samples No Directional Survey Yes DATAINFORMATpN Types Electric or Other Logs Run: LWD (GR-Res, Den, Neu, Son) Wireline (Caliper-GR-Res-Den-Neu-So (data taken from Logs Portion of Master Well Data Maint Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / i e mea~rrmt numaer flame acme meuia no start atop ~.n rcecervea ~.ommenis ED C 1618 See Notes 0 0 Open 5/1/2008 Drill Mech, Combo and Sgma in PDF graphics ED C 16182 .See Notes 0 0 Open 5/1/2008 Core Analysis in rotary, Omni report f og Magnetic Resonance 5 Col 2200 3975 Open 5/1/2008 Mag Res explorer log, prelim results Log Magnetic Resonance 5 Col 2200 3975 Open 5/1/2008 Mag Res explorer log, prelim results Log Sonic 5 Col 800 5000 Open 5/1/2008 Multipole Array Acoustilog og Sonic 5 Col 1750 5000 Open 5/1/2008 Multipole Array Acoustilog, Azimuthal Anisotropy Analysis og Induction/Resistivity 25 Col 250 5037 Open 5/1/2008 High Def Induction Log, Comp Denislog, CNL, GR, Caliper 19-Mar-2008 og Sonic 25 Col 250 5037 Open 5/1/2008 Multipole Array Acoustilog, GR, Caliper 19-Feb-2008 g See Notes 5 Col 2296 4739 Open 5/1/2008 Rotary Sidewall Coring Tools 20-Feb-2008 og Reservoir Saturation Col 2368 4727 Open 5/1!2008 Res Characterization, Sampleview, Fast Response Quartz, GR, Cal, GR, CN Seismic. 23- Feb-2008 Pressure Test Summary Only (no log) • DATA SUBMITTAL COMPLIANCE REPORT 8/11/2010 Permit to Drill 2071520 Well Name/No. SMILODON 9-4-9 Operator UNION OIL CO OF CALIFORNIA API No. 50-223-20022-00-00 All GnCS2 T/fl AO~.O f mm~lctinn rlatc ~n~/~nnu !`mm~latinn Statuc PRA Currant Stafi is PRA 1110 N -- -- ~ og Reservoir Saturation 5 Col 2368 4727 Open 5/1/2008 Res Characterization, ~ Sampleview, Fast Response Quartz, GR, Cal, GR, CN Seismic. 23- Feb-2008 ~'Yog Induction/Resistivity 2 Col 80 5032 Open 5/1/2008 MD Vision Resistivity 16- Feb-2008 og Induction/Resistivity 2 Col 80 5032 Open 5/1/2008 TVD Vision Resistivity 16- Feb-2008 og Induction/Resistivity 5 Col 80 5032 Open 5/1/2008 TVD Vision Resistivity 16- Feb-2008 Log Induction/Resistivity 5 Col 80 5032 Open 5/1/2008 MD Vision Resistivity 16- Feb-2008 og See Notes Col 80 5032 Open 5/1/2008 Drilling Process and Mechanics (Time) Log, ROP DRL Format 16-Feb- 2008 og See Notes 2 Col 80 5032 Open 5/1/2008 Drilling Process and Mechanics (Depth) Log, ROP DRL Format 16-Feb- 2008 D C Las ~~ 16181 ~fnduction/Resistivity 80 5058 Open LAS OH log data, EOW files Graphics Directional Survey 0 5058 Open pt See Notes 0 0 Open 6/16/2008 Rotary Side wall core Photos S D C 16650 ee Notes 0 0 Open 7/28/2008 Mudlogs in PDS format, Final Well Report in Word Format t Report: Final Well R 0 0 Open 7/28!2008 Final Well Report, Table of Contents, Well Details, Feo Data, Drilling Data, Daily Reports og Mud Log 2 Col 90 5058 Open 7/28/2008 MD Formation log og Mud log 2 Col 90 5058 Open 7/28/2008 MD QFTII Combo Log • DATA SUBMITTAL COMPLIANCE REPORT 8/11/2010 Permit to Drill 2071520 Well Name/No. SMILODON 9-4-9 Operator UNION OIL CO OF CALIFORNIA MD 5058 TVD 4959 Completion Date 3/22/2008 Completion Status P&A Current Status P&A API No. 50-223-20022-00-00 UIC N Lo~ Mud Log 2 Col 90 5058 Open 7/28/2008 MD Gas Ratio g Mud Log 2 Col 90 5058 Open 7/28/2008 MD Drilling Dynamics C Exc 17018fSee Notes 2296 4763 Open 8/11/2008 Weatherford Rotary Core data /Fluid Result ED C Pdf 17195 Mud Log 90 5058 Open MD QFTII Combo log pt See Notes 0 0 Open 3/27/2009 VSP Report with Seismic section. By vsfusion ED C ~~ 17763 "See Notes 0 0 Open 3/27/2009 VSP pt See Notes 0 0 Open 8/27/2009 Core Analysis D C Exc 19563''~ee Notes 0 0 Open 8/7/2008 Core Lab core analysis og Induction/Resistivity 2 Col 80 5032 Open 5/1/2008 MD Vision Service 16-Feb- 2008 Log Induction/Resistivity 2 Col 80 5032 Open 5/1/2008 TVD Vision Service 16-Feb- 2008 Log Induction/Resistivity 5 Col 80 5032 Open 5/1/2008 TVD Vision Service 16-Feb- 2008 og Induction/Resistivity 5 Col 80 5032 Open 5/1/2008 MD Vision Service 16-Feb- 2008 I// ,VL.og Density 5 Col 80 5032 Open 5/1/2008 MD Vision Density Quadrant 16-Feb-2008 Well Cores/Samples Information: Interval Name Start Stop Sample Set Sent Received Number Comments • ~I DATA SUBMITTAL COMPLIANCE REPORT 8/11/2010 Permit to Drill 2071520 Well Name/No. SMILODON 9-4-9 MD 5058 TVD 4959 Completion Date 3/22/2008 ADDITIONAL INFORMATION Well Cored? ~/ N ~j- ~ Co ~ ~ ~ ~-ly Chips Received? ~-'f-Nd=-" Analysis ~ N ~ L~1 G5 ~ ~ O~ Received? Operator UNION OIL CO OF CALIFORNIA Completion Status P8.A Current Status P&A Daily History Received? ~N Formation Tops ~/ N API No. 50-223-20022-00-00 UIC N Comments: Compliance Reviewed By: Date: ~ ~ I ~ /~X! L~ ciiwROr~' Chevron U.S.A. I~ REQUEST DATE P•O. BOX 36366 08/13/2008 Houston, TX 77236 11111 S. Wilcrest Houston, TX 77099 H AOGCC i Christina Mahnken P 333 W 7th Ave Ste 100 T Anchorage, Alaska 99501 o United State America Shipped Via: DHL • No. 2009.08113 ORIGINAL TRANSMITTAL OF CONFIDENTIAL DATA From: David Guthman Sent by: Norma Blake Smilodon 9-4-9 . API: 50.223.20022-00 QUANTITY DESCRIPTION AREA Survey Product REMAR KS 1 Report Summary Smilodon 9-4-9 Omni Special Core Analysis, Electrical Pro ernes White Hills Report Special Core Analysis DATE SHIPPED VIA CHEVRON TRANS. NO AIR WAYBILL # 08/13/2009 FedEx CH-20090813-0000 885629510010632 ~ ~~n ,..~ PLEASE ACKNOWLEDGE RECEIPT OF MATERIAL BY SIGNING AND RETURNING COPR~FAXING TO (281) 561.3592 ~~r `~ ~ ~~~!~~ Date a~aska l~il ~ Gas ~t~~s ,anchor~e Rn ~i~nnq ~ _ ~ W~tl~'IOfd LABS}fiATORtES Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 FORMATION FACTOR SUMMARY 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 Permeability Formation Factor Cementation 100 Sample Depth, to Air, Porosity, FF, Ro, Exponent, Number feet millidarc s fraction (Ro/Rw) ohm-m m 3-1 R 3023.00 3430 0.311 7.588 8.038 -1.74 2-1 R 3030.20 423 0.259 11.36 12.03 -1.80 2-5R 3078.20 161 0.259 9.572 10.14 -1.67 2-8R 3182.30 42.8 0.242 10.02 10.61 -1.62 2-23R 4702.10 731 0.237 12.46 13.20 -1.75 Composite Values a m 1.00 -1.72 0 U (C LL 0 10 c~ E 0 Y = X-~.~2 1 L 0.10 1.00 Porosity, fraction CABOFATORIES Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 RESISTIVITY INDEX 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 Terminal 100 Permeability - Water Saturation Sample Depth to Air, Porosity, RI, Saturation, Exponent, Number , feet millidarc s fraction (Rt/Ro fraction n 3-1 R 3023.00 3430 0.311 91.26 0.083 -1.81 2-1 R 2-5R 3030.20 3078.20 423 161 0.259 0.259 25.90 3.549 0.142 0.353 -1.68 -1.23 2-8R 2-23R 3182.30 4702.10 42.8 731 0.242 0.237 2.961 5.761 0.386 0.316 -1.16 -1.52 Composite Value n -1.61 a c ~' 10 .~ .y .y y = X-1.61 1 0. 01 Wa ter Saturation, f 0. ra 10 ction pore spac e 1. 00 J W08'111Bf fOPd` LABORATORIES • FORMATION FACTOR AND RESISTIVITY INDEX 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 Sample Number: 2-23R Depth, feet: 4702.1 Permeability to Air, md: 731 Porosity, fraction: 0.237 Grain Density, gm/cc: 2.67 Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 10 Formation Water Resistivity Factor Saturation, Index FF (Ro/Rw) fraction pv Rt, ohm-m RI (Rt/Ro) 12.46 1.000 13.20 1.000 0.974 13.70 1.038 942 14 41 1 091 Ro ohm-m 0 . . , . 0.867 16.35 1.239 13.20 0.829 17.48 1.324 63 1 0 825 17 335 Cementation . . . 0.736 21.06 1.595 Exponent, 0.637 26.28 1.991 m 0.544 33.50 2.538 0.481 40.58 3.074 -1.75 0.477 40.92 3.100 0.472 41.62 3.153 Saturation 0.420 49.71 3.766 Exponent, 0.416 50.47 3.823 n 0.393 54.81 4.152 0.384 56.97 4.316 87 4.459 -1 52 0 377 58 axi - . . . a 0.371 59.88 4.536 0.343 67.57 5.118 ~> 0.342 67.85 5.140 0.337 69.22 5.244 ~ 0.332 70.67 5.353 0.325 73.17 5.543 0.321 74.03 5.608 0.316 76.05 5.761 y _ X-1.52 1 0. 10 1. 00 Water Saturation , fraction p ore spa ce W88~11~Of d :.ABORATORIES FORMATION FACTOR AND RESISTIVITY INDEX 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 Sample Number: 2-5R Depth, feet: 3078.2 Permeability to Air, md: 161 Porosity, fraction: 0.259 Grain Density, gm/cc: 2.69 Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 10 Formation Water Resistivity Factor Saturation, Index FF (Ro/Rw) fraction pv Rt, ohm-m RI (RdRo) 9.572 1.000 10.14 1.000 0.990 10.26 1.012 ohm-m 0 990 10 27 1 012 Ro . , . . 0.985 10.32 1.018 10.14 0.982 10.35 1.021 970 10 48 1 033 0 Cementation . . . 0.654 17.26 1.703 Exponent, 0.586 19.71 1.944 m 0.584 19.81 1.954 0.537 22.03 2.173 -1.67 0.527 22.60 2.229 0.503 23.76 2.344 Saturation 0.479 25.21 2.486 Exponent, 0.460 26.45 2.609 n 0.458 26.69 2.632 0.449 27.25 2.688 56 2 718 -1 23 0 446 27 aXi . . . . . o 0.442 27.89 2.750 0.435 28.39 2.800 ~> 0.426 29.11 2.871 .~ 0.413 30.21 2.979 ~ 0.405 30.85 3.043 0.391 32.23 3.178 0.378 33.48 3.302 0.378 33.58 3.312 0.365 34.83 3.435 0.363 35.08 3.460 0.355 35.81 3.532 0.354 35.95 3.545 0.353 35.98 3.549 y _ X-1.23 1 0. 10 1. 00 Water Saturation , fraction p ore spa ce W88it1191'fOYd' !_ABORATORIES FORMATION FACTOR AND RESISTIVITY INDEX 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 Sample Number: 2-8R Depth, feet: 3182.3 Permeability to Air, md: 42.8 Porosity, fraction: 0.242 Grain Density, gm/cc: 2.68 Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 10 Formation Water Resistivity Factor Saturation, Index FF (Ro/Rw) fraction pv Rt, ohm-m RI (Rt/Ro) 10.02 1.000 10.61 1.000 0.990 10.73 1.011 Ro ohm-m 0.981 10 84 1 021 , . . 0.945 11.31 1.066 10.61 0.939 11.41 1.074 0.797 13 89 1 309 Cementation 0.773 . 14.32 . 1.349 Exponent, 0.772 14.37 1.353 m 0.675 16.74 1.577 0.668 16.90 1.592 -1.62 0.636 17.95 1.691 0.601 19.18 1.806 Saturation 0.600 19.25 1.813 E n t 0 574 20 26 1 909 xpo en , . . . n 0.567 20.50 1.931 0.540 21.73 2.047 -1.16 0.534 21.98 2.070 axi . o 0.525 22.45 2.115 0.506 23.44 2.208 '> 0.498 23.86 2.248 .~-, 0.489 24.41 2.299 ~ 0.478 25.07 2.362 0.464 26.04 2.453 0.461 26.16 2.464 0.447 26.79 2.524 0.431 28.05 2.643 0.416 29.12 2.744 0.402 30.33 2.858 0.398 30.57 2.880 0.392 31.04 2.924 - X-1.16 _ y 0.387 31.42 2.960 0.386 31.43 2.961 1 0. 10 1. 00 Water Saturation, fraction p ore spa ce IBffOt'd` LAflORATORtES FORMATION FACTOR AND RESISTIVITY INDEX 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 Sample Number: 3-1 R Depth, feet: 3023.0 Permeability to Air, md: 3430 Porosity, fraction: 0.311 Grain Density, gm/cc: 2.66 Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 100 Formation Water Resistivity Factor Saturation, Index FF (Ro/Rw) fraction pv Rt, ohm-m RI (RURo) 038 1 7 588 1 000 8 000 . . . . 0.962 8.609 1.071 Ro, ohm-m 0.918 9.369 1.166 0.890 9.926 1.235 816 8 038 0 719 14 60 1 . . . . 0.668 16.66 2.073 Cementation 0.654 17.34 2.157 Exponent, 0.206 140.9 17.53 m 0.204 143.2 17.81 0.183 176.3 21.93 -1.74 0.180 178.4 22.19 0.178 182.2 22.66 Saturation 0.159 226.0 28.12 Exponent, 0.150 251.6 31.31 n 0.149 255.1 31.74 0.139 289.8 36.06 -1.81 0.134 309.7 38.53 0.132 316.9 39.43 x ~ a ~ 0.128 334.5 41.62 0 >_ 0.124 353.1 43.93 'y m 0.123 357.0 44.41 ~ 0.115 405.4 50.44 0.114 410.4 51.05 0.111 433.0 53.87 51 108 454 3 56 0 . . . 0.107 456.7 56.82 0.104 491.5 61.15 0.103 499.7 62.17 0.100 524.3 65.23 094 580 4 72 20 0 . . . y -_ X-1.81 0.091 615.4 76.57 0.091 622.4 77.43 0.087 673.5 83.80 087 684 4 85 15 0 . . . 0.086 692.2 86.12 0.085 699.9 87.07 0.084 732.4 91.12 0.083 733.5 91.26 1 0. 01 0. 10 1. 00 Water Satur ati on , f raction pore space ~8t11M'~OCd _ABORATORIES FORMATION FACTOR AND RESISTIVITY INDEX 2-Terminal Method, 1 kHz Net Confining Stress: 1000 psi Chevron North America Exploration and Production Union Oil Co. of California Smilodon 9-4-9 Well North Hills Field North Slope Borough, Alaska File: HH-38745 Sample Number: 2-1 R Depth, feet: 3030.2 Permeability to Air, md: 423 Porosity, fraction: 0.259 Grain Density, gm/cc: 2.69 Saturant: Synthetic Formation Brine Rw, ohm-m @25°C: 1.0593 100 Formation Water Resistivity Factor Saturation, Index FF (Ro/Rw) fraction pv Rt, ohm-m RI (Rt/Ro) 11 36 1 000 12 03 1- 000 . . . . 0.985 12.34 1.026 Ro, ohm-m 0.975 12.54 1.042 0.963 12.81 1.064 12 03 0 962 12 84 1 067 . . . . 0.945 13.26 1.102 Cementation 0.425 50.90 4.230 Exponent, 0.366 65.86 5.473 m 0.364 66.45 5.522 0.320 82.48 6.854 -1.80 0.275 106.4 8.843 0.269 110.2 9.155 Saturation 0.267 111.4 9.254 Exponent, 0.263 113.9 9.466 n 0.231 142.2 11.82 0.222 151.6 12.59 -1.68 0.221 0.219 153.4 155.0 12.75 12.88 x ~ ~ 0.217 156.8 13.03 0 >_ 0.203 175.2 14.56 .~ a~ 0.202 176.1 14.64 ~ 0.202 176.3 14.65 0.195 187.6 15.59 0.185 206.1 17.13 178 0 218 6 18 17 . . . 0.178 219.6 18.25 0.170 234.6 19.50 0.163 252.6 20.99 0.156 272.4 22.64 0 153 278 6 23 16 . 0.145 . 301.9 . 25.09 y __ X-1.68 0.144 305.3 25.37 0.143 309.3 25.71 0 142 311 7 25 90 . . . 1 0. 10 1. 00 Water Saturation , fraction p ore spa ce c~ ~ ~ ~ i4 h ~ ~ ~ ~ . p w t` • I { ~- ~ ~ ~ ~ ~ 7 ~~~ ~u,~ ~,~ ~' SEAN PARNELL, GOVERNOR K ~ p~~, ~ ~, s ~~, t ~ ~ S y` ~r~~-. b ALASFiA OII/ A1~TD GrA-S 7~ 333 W. 7th AVENUE, SUITE 100 C01~5ERQATIOI~T C011Il~II5SIOIQ ~` ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 ~~ FAX (907) 276-7542 August 11, 2009 Ms. Faye Sullivan North Slope HES Coordinator Union Oil Company or California P.O. Box 196247 Anchorage, AK 99519-6247 Dear Ms. Sullivan: The Alaska Oil and Gas Conservation Commission (Commission) completed location clearance inspections for Smilodon 9-4-9 (PTD 207-152) and Panthera 28-6-9 (PTD 208-033). Both exploration wells were drilled by Union Oil Company of California (Union) from temporary ice pads during February-March 2008. Location inspections"were performed on August 6, 2008. A copy of the Commission's inspection report covering these two locations is attached. The Commission previously witnessed plug and abandonment operations on both wells, verifying compliance with the abandonment regulations and approved permit requirements. Inspections showed the Smilodon 9-4-9 and Panthera 28-6-9 locations to be in compliance with onshore location clearance requirements as stated in 20 AAC 25.170. The Commission requires no further work on the subject wells or locations. However, Union remains liable if any problems occur in the future with these wells. Sincerely, Cathy P. Foerster Comm ssioner Attachment i Page 1 of 2 Regg, James B (DOA) From: Regg, James B (DOA) ~ ~j~/~~~~ Sent: Monday, August 10, 2009 11:27 AM ~~ To: 'Henderson, Jennifer' Cc: Brandenburg, Tim C; Hammons, Darrell; Sullivan, Faye W; Quick, Mike [ASRC]; Pecci, Chris L Subject: RE: Well location clearance from season 1 and 2 Attachments: 2008-0806_Locations_Mastodon_Smilodon_PantheraJc.pdf Mastodon Attached is the inspection report covering the August 2008 location inspection at Mastodon 6-3-9 (also Smilodon 9-4-9; Panthera 28-6-9). While there was evidence of some mounding over the well/well cellar, the amount of water just at the well location justified additional inspection during 2009, thus the reason for not closing out the location inspection requirements. This year's inspection will determine if additional work is needed at Mastodon. Smilodon, Panthera No further work is necessary for Smilodon 9-4-9 and Panthera 28-6-9 based on information from inspections completed by AOGCC. I understand from your discussions with AOGCC Inspector Jeff Jones that Union plans to visit the Panthera location again since there was a conductor removed last winter from the undrilled Panthera 21- 6-9. The Commission will attempt to accompany Union on the site visits subject to inspector availability. Photo documentation would be acceptable in AOGCC's absence. Official correspondence will be sent to Union for Smilodon 9-4-9 and Panthera 28-6-9 as requested. Call if you have questions or concerns. Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 From: Henderson, Jennifer [mailto:JenniferHenderson@chevron.com] Sent: Friday, August 07, 2009 2:04 PM To: Regg, James B (DOA) Cc: Brandenburg, Tim C; Hammons, Darrell; Sullivan, Faye W; Quick, Mike [ASRC]; Pecci, Chris L Subject: Well location clearance from season 1 and 2 Jim, Chevron met with Jeff today to inspected the White Hills season 2 wells. We were unable to complete the clearance inspection due to weather. After further discussion with Jeff today he said Chevron will need to do more work on the Mastodon well. Per the letter attached from John Crisp dated August 11, 2008, Chevron was under the impression, Mastodon, Panthera and Smilidon were going to be closed out and no further work was required. Chevron never received any further correspondence that more work was required. Chevron would like to request a clearance location close out letter from you for at least Panthera and Smilidon. 8/10/2009 ~~~ J fS~ Page 2 of 2 Chevron would like official correspondence requesting additional work on Mastodon. Chevron is working a plan forward to fill in the well at Muskoxen and would like direction from AOGCC if we need to add more dirt to Mastodon. Chevron will have the pads and well location from season 2 inspected once we complete the required work. Thank you :,~~~~r~~ ,~E~c~~rz~ Chevron North America Mid-Continent/Alaska Exploration and Production Company Environmental Specialist 907.263.7902 907.382.2908 ~ ~~ 8/10/2009 MEMORANDUM TO: Jim Regg ' 1~~ ~~~~'~~ P. I. Supervisor FROM: John Crisp, Petroleum Inspector • State of Alaska Alaska Oil and Gas Conservation Commission DATE: August 06, 2008 SUBJECT: Location Clearance Union Oil Co. of California Exploration Sites White Hills Project August 6, 2008: I traveled to Union Oil Company of California's Mastodon 6-3-9, Panthera 28-6-9 &Smilodon 9-4-9 Exploration drill sites for AOGCC Location Clearance Inspections. Smilodon 9-4-9 PTD 207-152: Mounding on the actual casing string cutoffs was good & there was no ponding in the well cellar. DNR inspected the drill sites before AOGCC Inspection. Mastodon 6-3-9 PTD 208-019: Mounding on the casing strings cellar was good. The area around the cellar had standing water that was no more than 8" deep. This will probably have no adverse effect on the actual mounding @ the cellar. AOGCC will request site inspection next year. Panthera 28-6-9 PTD 208-033: Site looked good & mounding was also good. Standing water outside of cellar looked to be natural due to low spots in tundra & rainwater. DNR inspected all locations prior to AOGCC inspections. Summary: I inspected Union Oil Co. of California's (Chevron) White Hills project Drill sites & reviewed photo's with Supervisor Jim Regg. Attachments: photos (6) Location Inspections -Mastodon, Smilodon, Panthera Location Clearance Inspections August 6, 2008 Location Inspections -Mastodon, Smilodon, Panthera 2 • Mastodon 6-3-9 (PTD ZOS-0'19 r'` ~~_ a 11Y . ~. s ~,~ ~ ~~. ~~ • Location Inspections -Mastodon, Smilodon, Panthera 3 • Location Inspections -Mastodon, Smilodon, Panthera ~~evRO~i REQUEST DATE 03/18/2009 Chevr®n IJ.S.A.~ P.®. Sox 3636E Houston, TX 77236 11111 S. Wilcrest Houston, TX 77099 s H AOGCC ~ Christina Mahnken P 333 W 7th Ave Ste 100 T Anchorage, Alaska 99501 o United State America Shipped Via: FedEx From: David Buthman Sent by: Norma Blake Smilodon 9-4.9 API: 50-223.20023-00 QUANTITY DESCRIPTION AREA Survey Product REMARKS 1 VSfusion Velocity Survey Seismic Report Smilodon 9-4-9 Vsfusion -Borehole Seismic Report -Velocity Survey North Slope -White Hills Vsfusion - Borehole Seismic Report DATE SHIPPED VIA CHEVRON TRANS. NO TRACK # 03/18/09 FedEx CH-20090318-031809 8856295100057 20 PLEASE ACKNOWLEDGE RECEIPT OF MATERIAL BY SIGNING AND RETURNING COPY EN~~FA~EING `T© E~~ X61.3592 -- - Date ~~~ 4~~' .~ .. ziionnno ~ ~ CHEVRON Chevron U.S.A. IBC. REQUEST DATE P.O. BOX 36366 08/08/2008 Houston, TX 77236 1-.1111 S. Wilcrest Houston, TX 77099 s H AOGCC ~ Christina Mahnken P 333 W 7th Ave Ste 100 T Anchorage, Alaska 99501 o United State America Shipped Via: DHL No. 2008.08108 ORIGINAL TRANSMITTAL OF CONFIDENTIAL DATA From: David Guthman Sent by: Norma Make Smilodon 9-4-9 API: 50.223.20022-00 QUANTITY DESCRIPTION AREA Survey Product REMARKS 1 CD Smilodon 9-4-9 Initial Core Lab Analysis, Fluid Result Summary, Logging Procedures, Rota Core Data Weatherford Lad HH-38745 White Hills Core Analysis DATE SHIPPED VIA CHEVRON TRANS. NO AIR WAYBILL # 08/08/2008 DHL CH-20080808.0000 28519576750 PLEASE ACKNOWLEDGE RECEIPT OF MATERIAL BY SIGNING AND RETURNING COPY OR FAXING TO (281) 561-3592 ~G~, Date l / ~ ~~ a~~ CHEVRON Chevron U. nc. REQUEST DATE P.O. Box 3 '6 07/24/2008 Houston, TX 77236 11111 S. Wilcrest Houston, TX 77099 s H AOGCC P 333 W 7th Ave Ste 100 Anchorage, Alaska 99501 T United State America 0 Shipped Via: DHL No. 2008.07/24 ORIGINAL TRANSMITTAL OF CONFIDENTIAL DATA From: David Guthman Sent by: Norma Blake Smilodon 9.4.9 API: 50-223.20022-00 QUANTITY DESCRIPTION AREA Survey Product REMARKS 1 EPOCH Final Well Report Mudlogging Data Smilodon 9-4-9 EPOCH Final Well Report Mudlogging Data White Hills EPOCH Final Well Report Mudlogging Data 1 Paper Print Smilodon 9-4-9 Mud Lo Hard co y White Hills Paper Copy DATE SHIPPED VIA CHEVRON TRANS. NO AIR WAYBILL # 7/24/2008 DHL CH-20087240000 228305386653 PLEASE ACKNOWL E RECEIP OF MATERIAL BY SIGNING AND RETURNING COPY:aR FAIC~'L0 (281)561=3592 _ ~ --. __=_"____--._- Date ~~ ~ C ~~s ~i~ai~nnA ~ _ ~ • i STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Surface Abandonment /Location Clearance /Suspended Well ( Title 20 AAC 25.170 ) ~~~~ -~27~L~ FILE INFORMATION: Operator: Union Oil of California Address: P.O. Box 19647 Well Name: Smilodon 9-4-9 PTD No.: 207-152 Anchorage Ak. 99519 API No. 50- 223-20022-00 Surface Location (From Sec. Line): Unit or Lease Name: North/South East/West Field and Pool: Ex /orator Section: _ Township: _ Range: _ Meridian: _ Downhole P&A Date: 20 AAC 25.120 -ABANDONMENT MARKER: Insp. Date: Surface Monument Approval Date: Post OD: (4" min) _" Length: Height above final grade (4' min.): Top of Marker Post Closed ? _ft. Set on (V1/ellhead, Csg , In Cmt) _ ft. Casing stub _ ft. below final grade _ All openings closed ? Inspector: Insp. Date: 3/22/08 Subsurface Monument Approval Date: Marker Plate Diameter: 16 Distance below final grade Level: approx 4' Thickness: Marker Plate Attached To Conductor 1/2 " Side Outlets removed or closed: Yes N (Y/N) Cement to surface (all strings)? Yes Inspector: Bob Noble Exact Information Beadwelded Directly to Marker Post or Blind Marker Plate: Insp. Date: 3 Zz. G'4~ Approval Date: UNION OIL CO. of CALIFORNIA SMILODON 9-4-9 50-223-20022-00 PTD#207-152 Ins ector: ~ ~~ ~) ~ Insp. Date: 20 AAC 25.170 -LOCATION CLEANUP: Approval Date: Pit's filled in? Liners Removed or Buried? Debris Removed: Notes: General condition of padAocation: (Rough, Smooth, Contoured, Flat, Natural ) Notes: Type of area surrounding location: (Wooded,Tundra,Grass,Brush,Dirt,Gravel,Sand) Debris on surrounding area: Notes: Access road present? Type road: (Dirt, Gravel, Ice, Other) Condition: Condition of road: Notes: Cellar filled in? Type of fill: Height above grade: Notes: Type work needed at this location: Ins ector: i RECOMMENDED FOR APPR/O'V`AL OF ABAN~D,,O~NME(Yes No~_! (If "No" See Reason ) Distribution: Reason: l_,()CC~-12i;+~ CK:.wt~Q-`tC~ i~lS~~'C%"~cV~ ~'~G/l sue?' _- orig -Well file c -Operator Final Inspection performed? Yes No _~ c -Database c -Inspector Final Approval By: Title: DATE: Sheet by L.G. 8/5/00 Union Oil, Smilodon 9-4-9, Cut off, 3-22-08.x1s 3/27/2008 CHEVRON REQUEST DATE 06/13/2008 Chevron U.S.A. I P.O. Box 36366 Houston, TX 77236 11111 S. Wilcrest Houston, TX 77099 s H AOGCC ~ 333 W 7th Ave Ste 100 P Anchorage, Alaska 99501 T United State America 0 Shipped Via: DHL N0.2008.06113 ORIGINAL TRANSMITTAL OF CONFIDENTIAL DATA From: David Guthman Sent by: Norma Blake Smilodon 9-4-9 API: 50.223-20022.00 QUANTITY DESCRIPTION AREA Survey Product REMARKS 1 Box Lab Report Smilodon 9-4-9 Rotary Sidewall Core Photography Omni File File No. HH-38745 White Hills Core Photography DATE SHIPPED VIA CHEVRON TRANS. NO AIR WAYBILL # 6/13/2008 DHL CH-2008613-0000 27750894651 PLEASE ACKNOWL DGE REC T OF MATERIAL BY SIGNING AND RETURNING COPY OR FAXING TO (281) 561-3592 Date ~C~'lv~a tii~ zi~nnR ~ - ~ CHEVRON REQUEST DATE 04/29/2008 Chevron U.S.A. TIC. P.O. Box 36366 Houston, TX 77236 11111 S. Wilcrest Houston, TX 77099 s H AOGCC ~ 333 W 7th Ave Ste 100 P Anchorage, Alaska 99501 T United State America 0 Shipped Via: DHL No. Zoos-o4/2s ORIGINAL TRANSMITTAL OF CONFIDENTIAL DATA From: David Buthman Sent by: Norma Blake Smilodon 9-4-9 API: 50.223.20023.00 QUANTITY DESCRIPTION AREA Survey Product REMARKS 2 (CD's) - Smilodon 9-4.9 Well Log Data - White Hills Well Data CD Schlumberger CD1. DLIS Data File EcoView21 Software PDF Files CD2. Drlg Mechanics dig data and PDS Logs, LWD Form Eval dig data and PDS Logs and Dir Survey data 11 Log Prints - Smilodon 9-4-9 White Hills Well Data Log Schlumberger 1). Vision Resis MD Log Recorded Mode- Prints Composite Log Scale: 1:600 2). Vision Resis TVD Log Recorded Mode- Composite Log Scale: 1:600 3). Vision Resis TVD Log Recorded Mode- Composite Log Scale 1:240 4). Vision Service MD Log Recorded Mode- Composite Log Scale: 1:240 5). Vision Service TVD Log Recorded Mode- Composite Log Scale: 1:240 6). DRL Format Drlg Process and Mechanics (TIME) Log Realtime-Composite Log Surface ~_ fS~ and Downhole Data 7). DRL Format Drlg Process and Mechanics ~ (DEPTH) Log Realtime-Composite Log /ir,~~ ~~UU Surface and Downhole Data 8). Vision Resis MD Log Recorded Mode- ,,k. ~ ~~~ ~ ~S ~ Composite Log Scale: 1:240 9). Vision Service MD Log Recorded Mode- Composite Log Scale: 1:600 ~' /(o~~a 10). Vision Service TVD Log Recorded Mode- Composite Log Scale: 1:600 11). Vision Density Quadrant MD Log Recorded Mode-Com osite Lo Scale: 1:240 9 Log Prints - Smilodon 9-4-9 White Hills Baker Hughes 1). PROUD MEREX (NMR285) 2}. PROUD MEREX (NMR250) 3). PROUD XMAC - Mult Array Acoustilog; Compressional and Shear wave Slowness ~~ r~ aY o ~ 2008 Alaska Oil ~ Gas Gans. Commission. Anrhpracte ni~oi~nnv ~ ~ 4). PROUD ANISO - Mult Array Acoustifog Azimuthal Anisotropy Analysis 5). HDIUZDUCN/GR/CAL -Main Log 2" / 100ft Scale 6). XMAC/GRICAL - Mult Array Acoustilog GR, CL Log, Unprecessed Acoustic -Main Log 2" / 100ft Scale 7). R-COR -Rotary Sidewall Coring Tool, RCOR Correlation log 5" / 100ft 8). RCt (Short) -Res Characterization Inst Sampleview Log, Fast Response. Quartz Gauge GR Log 9). RCI (LONG) -Res Characterization Inst Sampleview Log, Fast Response Quartz Gauge GR Log 1 (CD) - Omini Smilodon 9-4.9 -Rotary Core Analysis White Hills Core Analysis Re ort CD 1 Survey Report, Drilling and Measurements Fld White Hills Documentation Su ort - Schlumber er DATE SHIPPED VIA CHEVRON TRANS. NO AIR WAYBILL # 4/29/2008 DHL CH-2008429-0000 27066679253 PLEASE ACKNO E~,iE RECEIPT OF MATERIAL BY SIGNING AND RETURNING COPY ~12 / ~.~- _,_ +r ' Date '~1AY n 1 ?~Oa ~lask~ U! & vas Gans. iommissior~ Anchorage Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Wednesday, April 16, 2008 4:35 PM To: Quay, Walter (Natchiq) Subject: Smilodon 9-4-9 (207-152) Page 1 of 1 Walter, I am reviewing the 407 for Smilodon. When the diverter was tested, it is noted that Chuck Scheve was there to witness. It is not noted if any Inspector was present when the BOP was tested or if not who waived witness. The BOP test pressure and the casing test pressure are also not noted. These are items that should be included in the reports. Number 1, these - are actions accomplished to meet the regulatory requirements and the information allows us to crosscheck our records to make sure we have not missed anything. Thanks in advance. If you have that information, you can just reply to this message. Tom Maunder, PE AOGCC FW: Smilodon Formation Tops Maunder, Thomas E (DOA) Page 1 of 1 From: Quay, Walter [ASRC] [WQuay@chevron.com] Sent: Thursday, May 22, 2008 2:33 PM To: Maunder, Thomas E (DOA) Subject: FW: Smilodon Formation Tops Smilodon 9-4-9 Base Permafrost 1230 MD -866 TVD Subsea Prince Creek "A" 1478 MD -1114 TVD Subsea Ugnu 2290 MD 2287 TVD -1925 TVD Subsea Schrader Bluff A 3028 MD 2990 TVD -2628 TVD Subsea Schrader Bluff B 3790 MD 3723 TVD -3361 TVD Subsea Schrader Bluff C 4610 MD 4695 TVD -4160 TVD Subsea Chevron Timothy C Brandenburg Union Oil Company of California Drilling Manager P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 ~~~~~~~® APR 1 5 2008 March 28, 2008 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7`l' Avenue Anchorage, Alaska 99501 Re: Well Completion Report and Log (Form 10-407) Exploration, Wildcat, Smilodon 9-4-9 (PTD 207-152) Dear Commissioner: sa~aa~co~.c~ ~ONf~~EMIQ~ a.~"~' Enclosed for your review is the Well Completion Report (Form 10-407) for the Smilodon 9-4-9 Exploration Well. The attachments include a summary of the daily drilling operations, directional survey, well as-built, wellbore diagram, and photos of the abandonment. The well has been plugged and abandoned as of March 23, 2008. Approval for the plug and abandonment work was given under sundry number 308-060 (Form 10-403). We request that this data be held confidential as required under AS 31.05.035(c) and 20 AAC 25.537(d). If additional information is required, please contact either myself or Mr. Walter Quay at 263-7812. Sincerely, . _. r Timothy C. Brandenburg Drilling Manager TCB: stp ._-_-, Attachments: Form 10-407 Operations Summary Directional Survey As-Built Survey Wellbore Diagram Photos (3) Cc: Well File Union Oil Company of California / A Chevron Company http://www.chevron.com • STATE OF ALASKA ~ APR 1 5 2008 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION RE~~'~~'m'~01 1 a. Well Status: Oil ^ Gas ^ Plugged Q Abandoned ~ Suspended ^ zonACZS.~os 2oaaczs.~~o GINJ ^ WINJ ^ WDSPL ^ WAG ^ Other^ No. of Completions: 0 1 b. Well Cla Development ^ Exploratory^~ Service ^ Stratigraphic Test^ 2. Operator Name: Union Oil Company of California 5. Date Comp., Sus~or ' Aband.: 3123/2008 12. Permit to Drill Number: ~~ 207-152 ~~-~ ~ Q 3. Address: P.O. Box 196247, Anchorage, AK 99519 6. Date Spudded: 2/2/200 ~ 13. API Number: 50-223-20022-00-00 4a. Location of Well (Governmental Section): Surface: 539' FSL & 700' FEL Sec. 9, T4N, R9E, Umiat Meridian 7. Date TD Reached;` 2/008 ~~• ~/ 14. Well Name and Number: .~'•Smilodon 9-4-9 Top of Productive Horizon: x' FSL & x' FEL Sec. 9, T4N, R9E, Umiat Meridian 8. KB (ft above MSL): Ground (ft MSL): 341 • 15. Field/Pool(s): Total Depth: 1294' FSL & 656' FEL Sec. 9, T4N, R9E, Umiat Meridian 9. Plug Back Depth(MD+TVD): Surface Exploration 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 510,146 y- 5,743,509 Zone- 4 10. Total Depth (MD + TVD): • 5058' / 4959' • 16. Property Designation: ADL 389990 TPI: x- y- Zone- 4 Total Depth: x- 510,187 y- 5,744,232 Zone- 4 11. SSSV Depth (MD + TVD): N/A 17. Land Use Permit: ADNR LAS 26542 18. Directional Survey: Yes ~ No (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (TVD): 1230 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): LWD (GR-Res, Den, Neu, Son) Wireline (Caliper-GR-Res-Den-Neu-Son-NMR) • 22. CASING, L INER AND CEMENTING RECORD CASING WT. PER FT GRADE SETTING DEPTH MD TOP BOTTOM SETTING D TOP EPTH TVD BOTTOM HOLE SIZE CEMENTING RECORD AMOUNT PULLED 16 65 H-40 0 104 0 104 24 50 bbl (297 sx) 0 9-5/8 40 L-80 0 1698 0 1698 12-1 /4 196 / 45 bbl (260 / 220 sx) 0 3-1/2 9.2 L-80 1400 5057 1400 4950 8-1/2 280 bbl (485 sx) 0 23. Open to production or injection? Yes^ No0 . If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: 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 Conventional Core(s) Acquired? Yes ^ No ~ Sidewall Cores Acquired? Yes^ No ^ If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Sidewall Cores: ~COfi1PLk7lON f D2~. ~ ~~~. f~~~Y ~ ~ 2Q0~ ~ ~~~ G Form 10-407 Revised 2/2007 ~ ~ ~ ~ ~ ~ J,CbNTINUED ON REVERSE `q'~! a=y. ~~ YIF~, ~~ 28 ° GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? ^ Yes ~ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost -Top 0 0 needed, and submit detailed test information per 20 AAC 25.071. Permafrost -Base 1230 1230 Formation at total depth: Colville - 5058 4959 30. List of Attachments: Operations Summary, Directional Survey, As-Built Survey, Wellbore Diagram, Photos (3) 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Walter Quay - Printed Name: Tim Brandenburg Title: Drilling Manager ~... ~ ~ Phone: 263-7812 Date: 3/28/2008 Signature: c_.~-- ~' INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 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 and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 ~~'~`'"'°~' Smilodon 9-4-9 Exploration Well Lower Foothills White Hills Pros ect p Operations Summary: 1-11-08 to 3-23-08 PTD No. 207-152 (All depths RKB unless labeled otherwise) 1/11/08: Excavate Cellar. Set up Alyeska and Annex Camp. 1/12/08: Dri1124" conductor hole. Set up Alyeska and Annex Camp. 1/13/08: Set well cellar. Set up Alyeska and Annex Camp. 1/14/08: Set 16" conductor. Set up Alyeska and Annex Camp. 1/15/08: Cement 16" conductor down annulus w/ 2 sx inside conductor. Set up Alyeska and Annex Camp. 1/16/08: Weld and cut 16" conductor. Level and grade location. 1/17/08: Lay herculite and matting boards around well. 1/18/08: Install multibowl wellhead. RU Nabors 106E. Spot rig subbase. 1/19/08: Continue RU Nabors 106E. Build ice road to Mastodon location. 1/20/08: Continue RU Nabors 106E. Stop ice road construction due to warm temperatures. 1/21/08: Continue RU Nabors 106E. 1/22/08: Continue RU Nabors 106E. 1/23/08: Operations suspended. Phase III weather conditions. Late evening begin cleaning snow drifts from location. 1/24/08: Continue RU Nabors 106E. Clear and level location for Galena Camp. 1/25/08: Continue RU Nabors 106E. Setup cuttings containment area. 1/26/08: Continue RU Nabors 106E. Set up Galena Camp. 1/27/08: Continue RU Nabors 106E. Set up Galena Camp. 1/28/08: Continue RU Nabors 106E. Set up Galena Camp. 1/29/08: Continue RU Nabors 106E. Conduct Pre-Spud meetings w/ rig crews and rig support. 1/30/08: NU DiverterBOP stack. Mix spud mud. Final Report Summary page 1 1/31/08: Install diverter line. Function test diverter. Test - OK. Accept Rig 12:00 p.m. AOGCC inspector Chuck Scheve on location. Perform Diverter Systems Inspection. Test -Pass. Prep to PU 4" drillpipe. Continue mixing spud mud. PU 4" drillpipe and rack back in derrick. MW = 8.6 ppg. 2/01/08: Install diverter line. Function test diverter. Test - OK. Accept Rig 12:00 p.m. AOGCC inspector Chuck Scheve on location. Perform Diverter Systems Inspection. Test -Pass. Prep to PU 4" drillpipe. Continue mixing spud mud. PU 4" drillpipe and rack back in derrick. MW = 8.6 ppg. 2/02/08: PU BHA. Test mud pump lines to 2000 psi. Test - OK. Conduct Rig Evacuation Drills. Clean out conductor from 88' to 104'. Spud well 2:00 p.m. Drill from 104' to 277'. POOH. Stand back 4" HWDP and PU Anadrill Neu-Den tool. Load source. PU drill collars and jar. RIH. MW = 8.6 ppg. 2/03/08: Drill from 277' to 460'. Troubleshoot Anadrill MWD. Relog 460' to 545'. Troubleshoot Epoch computer. Relog 545' to 606'. Drill from 606' to 729'. Service rig and change out cable for mud pump pressure sensor. Drill from 729' to 1327'. 2/04/08: Drill to surface casing point at 1710'. Circulate and condition mud for short trip. Backream tight spots on short trip to 175'. Trip in hole. 2/05/08: Complete Short Trip. POOH for CSG. L/D 12 1/4" BHA, Rig up and run 9 5/8" csg. 2/06/08: Wash and work 9-5/8" Surface Casing to bottom. Circulate and condition hole. Run 4" Inner String for cementing. 2/07/08: RU for Cementing. Mix and pump 196 Bbls of 10.5 ppg lead cement. Spacer to surface. Switch to Tail. Mix and pump 45 bbsl of 15.8 ppg tail cement. Displace inner string with 17 bbls of mud. Est. 20 Bbls cement to surface. Continue ND and set wellhead packoff. 2/08/08: Wash Out Stack, Attempt to Set Packoff, ND BOP & Clear Off Top of HGR, NU BOP, Set & Test Packoff. Switch Rams & RU BOP. 2/09/08: NU & RU BOP, Test BOP, Start Csg Test. 2/10/08: Complete Csg Test, Repair Top Drive, Pick up 3500' of 4" DP, P/U BHA. 2/11/08: Handle BHA, Service Rig, TIH, Repair Swivel Wash Pipe. 2/12/08: Drill out shoe track & new hole to 1743'. LOT to 12.8 ppg EMW. Drill to 1968'. Perform second LOT to 11.98 ppg EMW for future annular injection. TIH to drill ahead. Final Report Summary page 2 2/13/08: Drill 1968-2805. Circlate and clean up Hole. Drill to 2998. Repair Top Drive. Drill to 3288. 2/14/08: Drill to 3320. Backream out on Short Trip to Shoe. Rig Service. Drill to 3900. 2/15/08: Dri113900' to 4350'. Rig Service. Drill from 4350' to 4929. 2/16/08: Dri114929-5058'(TD). Circulate Bottoms up for Short Trip. Back Ream out of hole. Rig Service (Change Saver sub) At Shoe. Trip in Hole. 2/17/08: Complete Short Trip. Circulate and Condition Mud and Hole for logging. Straight Pull Out of hole. Test BOP. RU Baker Open Hole Wireline. 2/18/08: RIH W Baker Grand Slam (Neutron, Density, GR, Res, Dipole Sonic). Sonic Tool Failure. Replace Tool. Complete Grand Slam Run. RU and Run MREX (Magnetic Resonance) Log. 2/19/08: Complete MREX Logging Run. PU RCOR (Rotary Coring). Cut Cores- Tool Failure. Rerun and complete RCOR Run #l. 2/20/08: Finish RCOR (Rotary Side Wall Core) logging. Run RCI Pressure Sampling tools on Wireline. 2/21/08: PU RCI drill pipe conveyed fluid sampling tools, function test logging tools. Trip in hole with drill pipe to casing shoe. Circulate and rig up wreline sheave system for DP conveyed logging. TIH.. Circulate and rig up side entry sub, install new latch head on wreline. TIH to first sample point. Set packers and sample. Release packers and TOOH up to second sample point. 2/22/08: Continue Sampling W/RCI. Tool Failure. POH. Diagnose Problem and Repair. TIH and Continue Sampling. 2/23/08: Complete RCI Sampling Program. RU for Seismic Checkshot. Trouble shoot tool problems. 2/24/08: Diagnose and Repair Cable Head Problem. Take Checkshots. RU and Run 3-1/2" Liner for P&A. 2/25/08: Complete Runing 3-1/2" Liner to To 5057'. Cement with 280 Bbls of 11.2 ppg Cement. Set liner hanger and liner top pac er 1490'. PU 390' above the liner hanger. Several Bbls of cement contaminated mud on circulated returns to surface. LD DP and DC. Test Csg & Liner to 2000 psi. Continue LD DP. Final Report Summary page 3 ~ ~ 2/26/08: Complete LD DP. PU 9-5/8" Bridge Plug and set at 245'. Pump 14.5 Bbls of Class C Permafrost Cement. Clean and ND BOP. RIG RELEASED FROM Smilodon @ 00:00 hrs. 02/27/2008 to Mastodon 6-3-9. 2/27/08: RD Nabors 106E. Moving rig to Mastodon 6-3-9. 2/28/08: RD Nabors 106E. Rig moved to Mastodon 6-3-9. Cover well and cellar location. 2/29/08: No operations on Smilodon well. 3/01/08: No operations at Smilodon well. 3/02/08: Cut and recover wellhead. Recover well and cellar location. 3/03/08 to 3/16/08: No operations at Smilodon well. 3/17/08: Notify AOGCC of abandonment witness. 3/18/08: Discuss abandonment procedure w/ AOGCC inspector. Inspector to be on location to witness installation of abandonment marker plate. 3/19/08: No operations at Smilodon well. 3/20/08: Cut 16" conductor and 9-5/8" surface casing 15" below previous cut to achieve minimum 3' below original ground level cutoff. Top off cement inside 9-5/8" and 9-5/8"x16" annulus w/ 15.6 ppg Permafrost C cement. 3/21/08: Finish top job of 9-5/8" casing w/ 15.6 ppg Permafrost C cement. Flush out and clean cellar. Contact AOGCC to witness marker plate installation. 3/22/08: Final cutoff located 41" below original ground level. AOGCC inspector Bob Noble onsite. Weld on marker plate. Marker plate inscribed w/ following information: UNION OIL CO OF CALIFORNIA SMILODON 9-4-9 50-223-20022-00 PTD # 207-152 3/23/08: Backfill cellar with excavated material and place 4' mound over well location. GPS coordinates N 69°42.603', W 149°55.390' ***FINAL REPORT Smilodon 9-4-9*** Final Report Summary page 4 Chevron i t, ® . ~~~: s ,.. .... ~ ,~ .. 1 ; JiY11i0AOr1 JUfV@~/ K@F7OfL Report Date: March 26, 2008 Survey 1 DLS Computation Method: Minimum Curvature i Lubinski Client: Chevron Vertical Section Azimuth: 4.000° Field: White Hills Chevron Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot Smilodon / Smilodon 1 TVD Reference Datum: RKB Well: Smilodon TVD Reference Elevation: 361.50 ft relative to MSL Borehole: Smilodon Sea Bed 1 Ground Level Elevation: 341.00 ft relative to MSL UWIIAPI#: 502232002200 Magnetic Declination: 22.565° Survey Name 1 Date: Smilodon I February 4, 2008 Total Field Strength: 57561.789 nT Tort 1 AHD 1 DDI 1 ERD ratio: 37.090° / 781.13 ft / 4.47110.158 Magnetic Dip: 80.373° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: February 04, 2008 Location LaULong: N 69 42 37.480, W 149 5512.420 Magnetic Declination Model: BGGM 2007 Location Grid NIE YIX: N 5743508.750 ftUS, E 510146.240 ftUS North Reference: True North Grid Convergence Angle: +0.07492672° Total Corr Mag North -> True North: +22,565° Grid Scale Factor: 0.99990012 Local Coordinates Referenced To: Well Head Comments Measured Inclination Azimuth Sub•Sea TVD TVD Vertical , Along Hole Closure NS EW DLS Northing Easting Latitude Longitude Depth Section Departure ft (de de ) ft ft) (ft ft) ft ft ft (de 1100 ft ftUS) ftUS ) eon ~n~ a en cc to non K I t U.V V MWD-Standard 226.99 u.uv 0.26 u.vv 147.70 -moo i.ov -134.51 ~.vv 226.99 ~.vv -0.42 ~.w 0.52 ....... 0.52 ....... -0.44 .,..,.. 0.28 ....... 0.11 . ... ......._.. _ 5743508.32 _ . _ .. _._ . 510146.52 . - -- ~- - - - ~ - - - - - - - - - N 69 42 37.476 W 149 55 12.412 510.29 0.24 193.59 148.79 510.29 -1.52 1.69 1.63 -1.56 0.48 0.07 5743507.20 510146.72 N 69 42 37.465 W 149 55 12.406 593.29 0.35 152.86 231.79 593.29 -1.91 2.10 2.03 -1.95 0.55 0.28 5743506.80 510146.80 N 69 42 37.461 W 149 55 12.404 716.79 0.45 142.34 355.28 716.78 -2.59 2.96 2.86 -2.67 1.02 0.10 5743506.08 510147.27 N 69 42 37.454 W 149 55 12.391 777.59 0.58 148.59 416.08 777.58 -3.02 3.50 3.39 -3.12 1.33 0.23 5743505.63 510147.57 N 69 42 37.449 W 149 55 12.382 899.39 0.57 145.52 537.87 899.37 -4.00 4.72 4.60 -4.15 1.99 0.03 5743504.61 510148.24 N 69 42 37.439 W 149 55 12.364 1028.79 0.58 139.04 667.27 1028.77 -4.96 6.02 5.87 -5.17 2.79 0.05 5743503.58 510149.03 N 69 42 37.429 W 149 55 12.341 1092.89 0.58 135.86 731.36 1092.86 -5.41 6.67 6.51 -5.65 3.23 0.05 5743503.11 510149.47 N 69 42 37.424 W 149 55 12.329 1158.69 0.56 136.45 797.16 1158.66 -5.85 7.32 7.14 -6.12 3.68 0.03 5743502.63 510149.93 N 69 42 37.420 W 149 55 12.316 1220.19 0.55 134.98 858.66 1220.16 -6.25 7.92 7.72 -6.55 4.09 0.03 5743502.21 510150.34 N 69 42 37.416 W 149 55 1 1350.49 0.58 146.61 988.95 1350.45 -7.18 9.20 8.99 -7.54 4.90 0.09 5743501.22 510151.15 N 69 42 37.406 W 149 55 1 1479.89 0.49 155.96 1118.35 1479.85 -8.19 10.41 10.19 -8.59 5.49 0.10 5743500.16 510151.74 N 69 42 37.395 W 149 55 12. 5 1544.49 0.49 159.89 1182.94 1544.44 -8.69 10.96 10.74 -9.10 5.69 0.05 5743499.65 510151.94 N 69 42 37.390 W 149 55 12.259 1638.29 0.53 160.66 1276.74 1638.24 -9.45 11.79 11.56 -9.89 5.97 0.04 5743498.87 510152.23 N 69 42 37.383 W 149 55 12.251 1711.81 0.49 162.89 1350.26 1711.76 -10.06 12.45 12.19 -10.51 6.18 0.06 5743498.25 510152.43 N 69 42 37.377 W 149 55 12.245 ____~___..____..____.___. ___-'1776:3'I____._- --~0:"ID"" __27'1=33_~" ~'114:76~ -"rT76:26.i ~_=X10:32".___ .__.1T.73"^ _._'12:?43___ _.,t0,~_-. -----6.2D"__._ _-Q:82. "_5743~F97:98-~"_ ~51~01~2:zt6" '~N-69"42-37:374~ttV~t9"55-?22fi4 1840.90 0.78 335.08 1479.34 1840.84 -9.93 13.20 11.97 -10.37 5.96 1.15 5743498.38 510152.22 N 69 42 37.378 W 149 55 12.251 1903.44 3.30 353.94 1541.84 1903.34 -7.79 15.41 9.92 -8.20 5.59 4.12 5743500.56 510151.84 N 69 42 37.399 W 149 55 12.262 1968.44 5.41 354.23 1606.65 1968.15 -2.93 20.35 6.06 -3.29 5.09 3.25 5743505.47 510151.33 N 69 42 37.448 W 149 55 12.276 2033.54 6.84 352.47 1671.38 2032.88 3.90 27.29 5.59 3.61 4.27 2.22 5743512.36 510150.51 N 69 42 37.515 W 149 55 12.299 2098.39 8.18 352.62 1735.67 2097.17 12.20 35.77 12.42 12.01 3.17 2.07 5743520.77 510149.40 N 69 42 37.598 W 149 55 12.330 2162.69 9.38 354.95 1799.21 2160.71 21.86 45.58 21.87 21.77 2.12 1.95 5743530.52 510148.34 N 69 42 37.694 W 149 55 12.360 SurveyEditor Ver SP 2.1 Bld( doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon Generated 3/26/2008 2:21 PM Page 1 of 3 Comments Measured Inclination Azimuth Sub•Sea ND ND Vertical Along Hole Closure NS EW DLS Northing Fasting Latitude Longitude Depth Section Departure ft) (de (de ) ft (ft (ft) (ft (ft) (ft (ft) de 1100ft ftUS (ftUS ZZZb.Uy 2290.89 2354.29 2419.29 2482.79 2546.39 2610.99 2676.59 2740.29 2804.59 2868.89 2924.98 2999.52 3063.42 3128.22 3192.52 3260.02 I U.J23 JJt5.t51 ItSb I.bJ LLLJ.IJ JL./b .70.J/ JL.I1 JL.!'f I.J:J L.I/ J/`FJJ41.Y0 JIV IV/./J IV VJ YG JI.VVG v Y- iG.JiV 11.85 3.02 1925.22 2286.72 45.34 69.16 45.36 45.33 1.78 2.33 5743554.08 510147.96 N 69 42 37.926 W 149 55 12.370 13.27 14.46 15.78 16.40 16.15 16.28 16.31 16.28 16.29 16.38 16.26 16.40 16.21 16.39 16.17 5.09 1987..10 2348.60 59.13 82 .95 59.14 8.09 2050. 20 2411. 70 74. 68 98 .52 74.68 4.81 2111. 50 2473. 00 91. 22 115 .08 91.22 2.29 2172. 61 2534. 11 108. 84 132 .71 108.84 0.06 2234. 63 2596. 13 126. 92 150 .81 126.93 358.91 2297. 62 2659. 12 145. 18 169 .12 145.20 358.52 2358. 76 2720. 26 162. 98 187 .00 163.03 1.64 2420. 48 2781. 98 180. 97 205 .04 181.05 4.10 2482. 20 2843. 70 199. 00 223 .06 199.08 5.01 2536. 02 2897. 52 214. 77 238 .84 214.84 4.31 5.29 4.39 4.11 4.11 2607.56 2668.88 2731.08 2792.79 2857.58 2915.39 2977.90 3039.14 3101.71 3163.27 2969.06 3030.38 3092.58 3154.29 3219.08 3276.89 3339.40 3400.64 3463.21 3524.77 235.71 259.78 235.77 253.68 277.75 253.73 271.87 295.94 271.91 289.92 313.99 289.95 308.84 332.91 308.87 59.08 74.54 91.00 108.59 126.68 145.00 162.87 180.90 198.91 214.63 235.51 253.41 271.54 289.54 308.41 2.76 4.57 6.41 7.49 7.87 7.70 7.30 7.32 8.23 9.48 11.18 12.69 14.22 15.56 16.92 325.61 349.69 325.65 325.16 17.87 343.77 367.86 343.82 343.31 18.67 361.67 385.77 361.72 361.21 19.16 379.97 404.09 380.03 379.53 19.46 397.82 421.95 397.89 397.38 20.17 3320. 21 16 .20 2.45 3385. 31 16 .21 2.59 3449. 11 16 .40 0.52 3514. 31 16 .25 1.40 3578. 41 16 .11 3.16 2.35 5743567.82 2.14 5743583.29 2.48 5743599.75 1.47 5743617.33 1.04 5743635.43 0.53 5743653.74 0.18 5743671.61 1.36 5743689.64 1.07 5743707.65 0.48 5743723.37 0.31 5743744.25 0.48 5743762.15 0.49 5743780.28 0.31 5743798.28 0.33 5743817.15 0.77 5743833.90 0.06 5743852.05 0.96 5743869.95 0.44 5743888.27 0.80 5743906.12 510148.93 510150.71 510152.53 510153.59 510153.94 510153.75 510153.33 510153.33 510154.21 510155.44 510157.11 510158.59 510160.11 510161.42 510162.75 510163.69 510164.46 510164.92 510165.21 510165.89 N 69 42 38.061 W 149 55 12.342 N 69 42 38.213 W 149 55 12.291 N 69 42 38.375 W 149 55 12.238 N 69 42 38.548 W 149 55 12.208 N 69 42 38.726 W 149 55 12.197 N 69 42 38.906 W 149 55 12.202 N 69 42 39.082 W 149 55 12.213 N 69 42 39.259 W 149 55 12.212 N 69 42 39.436 W 149 55 12.187 N 69 42 39.591 W 149 55 ~1 N 69 42 39.796 W 149 55 12.103 N 69 42 39.972 W 149 55 12.061 N 69 42 40.151 W 149 55 12.017 N 69 42 40.328 W 149 55 11.979 N 69 42 40.513 W 149 55 11.941 N 69 42 40.678 W 149 55 11.913 N 69 42 40.857 W 149 55 11.891 N 69 42 41.033 W 149 55 11.877 N 69 42 41.213 W 149 55 11.868 N 69 42 41.388 W 149 55 11.848 3642.41 16.23 4.78 3224.74 3586.24 415.64 439.78 415.71 415.16 21.41 0.73 5743923.89 510167.10 N 69 42 41.563 W 149 55 11.813 3706.81 16.24 6.13 3286.57 3648.07 433.64 457.78 433.70 433.08 23.12 0.59 5743941.82 510168.79 N 69 42 41.740 W 149 55 11.765 3771.41 16.40 5.75 3348.57 3710.07 451.78 475.93 451.83 451.14 25.00 0.30 5743959.87 510170.65 N 69 42 41.917 W 149 55 11.712 3835.32 16.38 5.44 3409.88 3771.38 469.81 493.97 469.85 469.08 26.76 0.14 5743977.82 510172.38 N 69 42 42.094 W 149 55 11.662 3899.56 16.40 5.44 3471.51 3833.01 487.93 512.09 487.96 487.13 28.47 0.03 5743995.87 510174.07 N 69 42 42.271 W 149 55 11.613 3964 86 16.25 4.71 3534.18 3895.68 506.28 530.45 506.31 505.41 30.10 0.39 5744014.15 510175.67 N 69 42 42.451 W 149 55 11.567 . 4029.16 16.37 4.07 3595.89 3957.39 524.34 548.50 524.36 523.42 31.48 0.34 5744032.15 510177.03 N 69 42 42.628 W 149 55 1~ 4093.16 16.29 4.76 3657.31 4018.81 542.33 566.50 542.35 541.36 32.87 0.33 5744050.09 510178.39 N 69 42 42.805 W 149 55 1 4156.76 16.46 4.33 3718.33 4079.83 560.26 584.43 560.28 559.23 34.29 0.33 5744067.97 510179.79 N 69 42 42.980 W 149 55 11.448 4221.36 16.05 3.91 3780.35 4141.85 578.34 602.51 578.36 577.27 35.59 0.66 5744086.00 510181.07 N 69 42 43.158 W 149 55 11.411 4286.46 16.22 2.78 3842.88 4204.38 596.43 620.60 596.45 595.33 36.64 0.55 5744104.06 510182.10 N 69 42 43.335 W 149 55 11.382 4349.86 15.50 2.65 3903.87 4265.37 613.75 637.93 613.78 612.63 37.46 _ 1.14 __. 5744121.37 _~_._~_.~. 510182.90 d~_ N 69 42 43.506 W 149 55 11.358 ~ ____~~.~___ ~~._____ ~ -- 4414.66 ~_~~ _____ 14.47 - _~___ 3.42 ~_~ 3966.51 ~__,__.__ 4328:01 ~~_ 630.34 - 654.52 ~_____ 630:37 _~.__ _ 629.20 -..._ 38.34- 2:07 574413794 5101.83.75 1N 149 55 11-.334 ~N-69 42 43.669 4478.36 13.29 3.91 4028.39 4389.89 645.46 669.64 645.49 644.29 39.30 1.39 5744153.02 510184.69 N 69 42 43.817 W 149 55 11.306 4543.06 12.38 2.30 4091.47 4452.97 659.83 684.01 659.86 658.64 40.09 1.51 5744167.37 510185.46 N 69 42 43.958 W 149 55 11.284 4607.46 12.60 1.99 4154.34 4515.84 673.75 697.94 673.78 672.56 40.61 0.36 5744181.29 510185.96 N 69 42 44.095 W 149 55 11.269 4672.31 12.24 2.63 4217.68 4579.18 687.69 711.88 687.73 686.49 41.17 0.59 5744195.23 510186.51 N 69 42 44.232 W 149 55 11.253 4735.81 11.56 2.01 4279.81 4641.31 700.78 724.98 700.82 699.58 41.70 1.09 5744208.31 510187.02 N 69 42 44.361 W 149 55 11.238 4801.26 10.66 0.67 4344.03 4705.53 713.38 737.59 713.42 712.18 42.00 1.43 5744220.91 510187.30 N 69 42 44.485 W 149 55 11.230 SurveyEditor Ver SP 2.1 Bld( doc40x_100) Smilodon 1\Smilodon\SmilodonlSmilodon Gen erated 3/26/2008 2:21 PM Page 2 of 3 Comments Measured Inclination Azimuth Sub•Sea TVD ND Vertical Along Hole Closure NS EW DLS Northing Easting Latitude Longitude Depth Section Departure k de {de ) (ft) ft) ft ft (ft) (ft) (ft) de l100ft) (ftUS (ftUS) 425b5.i5b `J.bL Sby.yU 44U/.bL 4/by.lL /L4.13 /4iS.yb 4936.16 9.33 359.41 4476.97 4838.47 736.27 760.54 Last Survey 4996.76 9.87 3.35 4536.72 4898.22 746.36 770.64 TD (Projected) 5058.00 9.87 3.35 4597.05 4958.55 • 756.85 781.13 Legal Description: Northing (Yl fftUSl Surface : 539 FSL 700 FEL S9 T4N R9E UM 5743508.75 BHL : 1294 FSL 656 FEL S9 T4N R9E UM 5744264.43 /L4./O /LS.OO 4L.Vb I.tlL O/44LJL.Ly D IU 10/.JD IV 07 4L 44.Jy/ VV 197 JJ I I.LLO 736.33 735.13 41.99 0.43 5744243.86 510187.27 N 69 42 44.710 W 149 55 11.230 746.42 745.22 42.24 1.40 5744253.95 510187.51 N 69 42 44.810 W 149 55 11.223 756.92 755.70 42.86 0.00 5744264.43 510188.11 N 69 42 44.913 W 149 55 11.205 Easting (X) (ftUS 510146.24 510188.11 CJ SurveyEditor Ver SP 2.1 Bld( doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon Generated 3/2612008 2:21 PM Page 3 of 3 • RSV CATS BY CK APP pESCRIPTION r<E' ~--, gY ~ C`.K APP ~SC~i'?lOh' i ._ ~_ ,.. f .... _ _ .__ w : ~i ; w V ~ .... ~ ~ ~ ~ tT+ 4 [. COORDIiVATES SMOU~JN ARE NAF327, ALA5~CA ~ -- ~ / ~'~ ~_,,-~-~''~/, r' STATE PLANE ZONE 4. - . 40 r . ~. GEODETIC COORDINATES ARE NAB 27. 4. t ~ ~ 3. ALL O;'STANCES ARE TRUE. 4. PAD IS ROTATED 70' EAST FROM TRUE •`~' -''' T 5 N i /~ -~- ~-~ [~-.~ I ~,_ ~ .._.... ~...._. _1 _ ~- ~ ~ ~ ,.,, ~ I 0 I ,t t2! 1 ~ ~ ~ $ 9 . 7 `• I ` -~ ~ / dCE GAQ' ~J ~ ~ ..71V I3 Ll..''c..~oi1 ~C>CATEC 4~,~ITNffJ PROTRACTE© TF€S SITE ,--~~ ; ,,~ --r'~~ ~.._~,.1,.,.-,-.n,y ~.... ~M1s _ I ~~ G© ~i I ~4 ~ L>~ Y i ~ ~ --.,f~`` Ar~ ~ SEC. S T ~ N, & ft 9 i~, IMIAT MERIDIAN. _ _ - " 3t3 ~xa ?~. 21 .r.._ `~39' F.S L, 70t1' F.E.L. - . LAT = 69"42'37.48" N ~= - T 4 N ~~ ~ ~ ~ ~ " , ' ' ~ ~ "~ ~ 1 ~ ,. _. ~ LONG = 149 55 12.42 ., ..~ ; .._ ._,......._. , .~.~ .,. , - „ ~ SCALE: !"200' 4 W' ~ ro i rn ~" ~ ~ w ~ '~ ' ~ -~' cry ,, ~ ^ _ 's~ I ~JICINITY MAP' ~ ?'~ = 3 4~1LES' ~-- AS EU~LT CC1N[3UG`~ I (~R LOCATkOf~ E `'~O 14 I r ' G ~1 ROX{M9ATE ~. _ APf ~c~ PAD Lt6~lT5 4jE3 ~,~.~.,t `~.A1~ ~S 1!}}~~~ ~ . S!v'"Lt}DC'tl ~~ tct; t~tiP° r - ~ l'i ~ r .............. ...... ..... ~ o ~ .Kenneth ~ ff ~ L5--8 d. t~~ers ~i3v °' ° d~~ i , ~ ~ 1 b + sy4 ~ .gyp ~ t ~ ~ ~ ~10'11.~~ ~ ~" 'w ~• L~~~ ~ Sl1RVEYpR`S G~RTIFiCAT~ ~ I HEREElY CERTIFY THAT i AM PROPERLY REGeSTi=RED IzND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF +~ ~ ~~~~~~ " ALASKA AND THAT TH1S REP RESENTS A SURVEY DONE BY ME OR UNDER MY DIRECT SUPERVISION AND T}-IAi' ALL DiMENS90NS & ,~,SS+ r ,, "``su~znzs fES, I.t~C. ~CIA GLR." pz,~tl'>~,'xs (~ 7) arz-~sa AND OTHER DETAILS ARE CORRECT AS OF MARCH 18, 2008. SM1L~[}QN EXF''~O2ATO~Y WELL NCRTH AMERICA EXPIrC?RA~ION AfJD PRt3DUCTlQN WELL C~3N1)UCTUR AS, UILT CARD FiL£ ~kTE. flRAldG NC3: SNEcT: REU: 3/18/08 SMi~C}i3~f~ ASUILT 01- I 0 • • ' i C hevron White Hi/s Exp oration a #: ADL 389990 Lease 8 Seri Field: Ex loration API#: 50-223-20022-00-00 Surface Location: Well Classificaton: Ex loration Well 539' FSL 8 700' FEL Total De the 5,058' Sec 9,T4N,R9E,UM pgTD: Surtace ~ _ X: ASP4 510,146 Tubin N/A RKB-GL ~~ Y: ASP4 5,743,509 Prod Pkrs: (1) 9-5/8" Baker ZXP H draulic Set Pkr 23.00' Well Status: PSA G~ Operator: Union Oil of Cal Ownership: Union Oil Company of California 100% I GL-MSL: 341 S ud Date: 2/2/08 2:00 PM 104' Cs RKB-MSL: 364 Other: Spud F eb 2008; Plugged Feb 2008; Abandoned Mar 2008 g 0' TOC BHP. 15.6 ppg 297 sx ~ ~ BHT: CA ubinp RKB-MSL MsL Description Wei ht Grade Conn ID Len th To Btm TOC orate Hr: 364.00' Conductor 16" 65# H-40 Weld 15.250" 104' 0' 104' 0' MUd Surface 9 5/8" 40.0# L-80 BTC-Mod 8.835" 1,698' 0' 1,698' 0' - ' 9.3 ppq Abandonment 31/2" 9.2# L-80 IBT-Mod 2.992" 4,247' 1,490' 5,057' 1,220' - RKB-Pennafrosl ~,- 1 aa~ 1230.00' 1r ae~nao-oat Smilodon Cellar ":~;_ ' '" ,e i ~'- u Smilodon After Backfill • • Drilling & Measurements 2525 Gambell Street. Suite 400 Anchorage AK 99503 Tel (907) 273-1700 Fax (90'1) 561-8317 Schlumberger Date: 20-Feburary-2008 Well Name: Smilodon 9-4-9 Company: Union Oil Company of California API Number: 50-223-20022-00 AFE Number: UWDAK-E7003 EXP Location: X= 510,147.OOft US Y= 5,743,513.OOft US Field: White Hills Rig: Nabors 106E Drilling and Measurements Field Support: Operations Manager: Julio Loreto Field Service Manager: Franklin Medina Drilling and Measurements Field Crew: Cell Manager(s) David Brown Jr. Cell Engineer David Ziegahn SERVICES PROVIDED Services Services Dates Depth Intervals Directional Survey Service 02-Feb-08 to 17-Feb-08 80 ft to 5058.9 ft PowerPulse* 02-Feb-08 to 06-Feb-08 80 ft to 1710.5 ft ARC* (Gamma Ray, Resistivity) 02-Feb-08 to 06-Feb-08 80 ft to 1710.5 ft VISION* (Annular Pressure While Drilling) 02-Feb-08 to 06-Feb-08 80 ft to 1710.5 ft adnVISION* (Neutron, Density Azimuthal) 02-Feb-08 to 06-Feb-08 80 ft to 1710.5 ft TeleScope* 11-Feb-08 to 17-Feb-08 1710.5 ft to 5058.9 ft EcoScope*VISION (Gamma Ray, Resistivity, Neutron, Density Azimuthal, APWD, Spectroscopy, & Fm Sigma) 11-Feb-08 to 17-Feb-08 1710.5 ft to 5058.9 ft OPERATING STATISTICS Total MWD Pumping Time: 129.1 hr Total MWD Time Below Rotary: 261.5 hr Total MWD Depth Interval: 4978.9 ft Total MWD Runs: 2 Total LWD Pumping Time: 129.1hr Total LWD Time Below Rotary: 261.5 hr Total LWD Depth Interval: 4952.9 ft Total LWD Runs: 2 JOB PERFORMANCE Directional The final MWD survey point was 5058.9 ft with an inclination of 9.87 degrees and an azimuth of 3.35degrees. A survey was straight line projected ahead to TD, making the final bottom hole location as follows: Measured Depth: 5058.90 ft True Vertical Depth: 4958.55 ft Displacement at Azimuth: 756.94 ft at 3.25 deg c~~-~~ ,~ • • Formation Evaluation 12 1/4 inch Surface Hole: This section was drilled in one run using PowerPulse* & ARC* (Resistivity, Gamma Ray & APWD) Real- time and Recorded Mode, adnVISION*Service was run in Recorded Mode. This run was drilled to 1710.5 ft and then 9 5/8-inch casing was set at 1698 ft. No problems were encountered with MWD services on this run. 81/z inch Intermediate Hole: This section was drilled from 1710.5 ft to 5058.9 ft MD in one run VISION* Service -EcoScope (Resistivity, Gamma Ray, Azimuthal Density Neutron & APWD) was run in both Real-time and Recorded mode. Since this run was drilled using PowerDrive Rotary Steerable system, there was no slide ensuring good data quality for density & porosity. The EcoScope Recorded mode data was subject to post processing due to a tool clock reset during the run. Schlumberger's IWW system was used to send real-time surface and down-hole data to InterAct for all runs. Schlumberger Oilfield Services -Drilling & Measurements appreciates the opportunity to provide Union Oil of California with MWD and LWD services. Sincerely, David Brown Jr. Cell Manager Schlumberger Drilling & Measurements 2 SARAH PAL/N, GOVERNOR ~~ OII< t>•lsil ~ 333 W. 7th AVENUE, SUITE 100 CO1~T5ERQA7'I011T COM1~II55IO1~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 Tim Brandenburg FAX (907) 276-7542 Drilling Manager Union Oil Company of California PO Box 196247 Anchorage, Alaska 99519 RE: Exploration, Wildcat, Smilodon 9-4-9 Sundry Number: 308-060 Dear. Mr. Brandenburg: Enclosed is the approved Application for Sundry Approval (Form 10-403) relating to the above referenced well. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659- 3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. Seamount, Jr ~ Chair n DATED this ? Z day of February, 2008 Encl. • • Chevron Timothy C Brandenburg Union Oil Company of California Drilling Manager P.O. Box 196427 Anchorage, AK 99519-6247 Tel 907 263 7657 Fax 907 263 7884 Email brandenburgt@chevron.com February 21, 2008 John Norman Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7`" Avenue Anchorage, Alaska 99501 Re: Plug & Abandon Smilodon 9-4-9 Exploratory Well Dear Commissioner Norman, Attached for your approval is an Application for Sundry Approval (Form 10-403) for the above referenced well. The proposed work will be to plug and abandon Smilodon 9-4-9. The well was drilled to TD of 5058' on 2/16/07. Exploratory evaluation work for this well is progressing and is expected to be complete this weekend. If you have any questions, please call me at 263-7657 or Mr. Walter Quay at 263-7812. Sincerely, C~ Timothy C. Brandenburg Drilling Manager Attachment TB:sk Cc: Well File Walter Quay DUB J~ F Union Oil Company of California / A Chevron Company ~ ~ ~ ~" '~"' http://www.chevron.com STATE OF ALASKA ALA OIL AND GAS CONSERVATION COMMIT~ION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1. Type of Request: Abandon Suspend ^ Operational shutdown ^ Perforate ^ Waiver ^ Other^ Alter casing^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Extension ^ Change approved program^ Pull Tubing^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development ^ Exploratory O 207-152 3. Address: Stratigraphic ^ Service ^ 6. API Number: P.O. Box 19647, Anchorage, AK 99519 223-20022-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No ~ Smilodon 9-4-9 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ADL 389990 361.5 MSL None 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 5058' 4958' 5058 4958 Casing Length Size MD ND Burst Collapse Structural Conductor 80 16 80 80 Surtace 1698 9-5/8" 1698 1698 5750 3090 Intermediate Production Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): Packers and SSSV Type: Packers and SSSV MD (ft): 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: Detailed Operations Program ^~ BOP Sketch ^ Exploratory ^~ Development ^ Service ^ 15. Estimated Date for Feb. 23, 2008 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^ Plugged Q/ Abandoned^ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Walter Quay 263-7812 Printed Name Tim Brandenburg Title Drilling Manager Signature ~ Phone 263-7657 Date 20-Feb-08 COMMISSION USE ONLY N mber: S d un ry u Conditions of approval: Notify Commission so that a representative may witness ~~P~ Plug Integrity [ ~ BOP Test ^ Mechanical Integrity Test ^ Location Clearance [~ ~~3 ++ Other: ~~ 1t i~r Z ~ ~~-p c- O~ p ~ c'~ Y~ vJ ~ TEES J C-'f~ ~ ~ i ~ ~ 7 G`~~ ~ S ~csS s S 't S p Q P Q c. J~--o~-~ Pt t o ~~o v,~ e.\c~ Z ~~~\c~~~ . P ~p~-o S o -~c~t-o-~-~^v ~~ \ c,.~-~c. ~ ~ ~ ~c~. \ w~~.c~tv~, Locc~.~-~o~~~s, ec~1o~ svu•~w~~ ~- a-00~. Subsequent Form Required: 1.,lOh APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: ~ ZZ ~~ D U ~ ~ ~ ~ ~T E ~~~ ~~. ~-r~ ~ ~ ~n~s~ Form 10-403 Revised 06/2006 Submit in Duplicate • • Smilodon Proposed Abandonment Procedure 1. M/U and run 3-~/2" production liner on 4" drill pipe as follows: • 3-1/2" float shoe +2,800' of 3-1/2" liner • 3-1/2" IBT liner type I landing collar • 2 joints 3-1/2" IBT liner. • 9 5/8" x 7" liner hanger Liner Hanger to set 250' above the 9-5/8" shoe. • 9 5/8" x 7" ZXP liner top packer • 4" drill pipe to surface 2. Cement with 280 Bbls, 485 Sx of 11.2 ppg Econlite cement. • Basis for cement volume: • Cement from Landing Collar (100' below liner hanger) in 3-1/2" • Cement from TD to 9-5/8" OH Caliper + 20 Bbls. Est. TOC @ 340' above TOL With 4" DP. Est. TOC 270' above TOL Pipe Out. • Cement from 9-5/8" shoe to liner hanger 0250') • 100' of cement above liner top. 3. Set liner hanger; 4. Set the liner top packer, 5. Pressure Test to 2000 psi. 6. POH and L/D DP & setting tool. 7. Set Bridge Plug at 200'. 8. Cement to surface with ~15 Bbls, 88 sx of 15.6 ppg Type C Permafrost Cement 9. ND -Release Rig 10. Complete Surface abandonment with Surface Casing and Conductor cut and placement Well abandonment marker. White Hills Well #1 Smilodon 9-4-9 DIR I LWD O Est. EI. GL 360' HOLE CASING MUD INFO MWD F RM MD TVD TVD-SS DEPTH•RKB 21 SIZE SPECS Cement Info INFO 0' 0' 381' 16" Top ofSfc Cmt Plug 5' S' 376' 651b/ft, L-60 16" Conductor 701' 101' 280' N/A N/A LWD/GR/RES 9-5/8" Bridge Plug 200' 200' 161' Surface Csa MSL 381' 381' 0' 9-5/8" Lead Slum 401bs/ft zs4 Bbls, 35a sx Wellbore Stability L-80, BTC-M 1D.7 ppg Lost Circulation ID. = 8.635^ a.15 ft3/sx Hole Cleaning In[. Yield 5750 psi Casing Sections Collapse 3D90 psi Casing Wear Base Permafrost 1,230' 1,230' -849' is I slurry 45 Bbis, 220 sz Top of Liner Hanger 1,450' 1,450' -1,069' ~ 15.e ppg & Packer Assbly 1.7 s tt3/sx 3-112 Landing Collar 1,550' 9.0 -10.0 ppg 9-518" Casing Point 1,700' 1,700' -1,319' '^`~ i< ~"°~ 12-114" 60 ° F Water Based Mud :; LWD/GRlRES/ Porosity ~ s; ~~~31 1.950' i~w, i, 1 ~~° ,x Inter. Casino Lead Slurry Wellbore Stability 3-1 /2" 28o Bbls, 485 sz Lost Circulaton 9.3 Ibs/ft 11.2 ppg Hole Cleaning L-80, IBT-M 3.za ft3lsx Torque & Drag Casing Sectons ID. =2.992 IM. Yield 10,160 psi xeny :x: i~,! ~' Collapse 10,530 psi ~Z3. ii , !~(;~ ~ki& ':i3>3Si ` RCI Sampling i;' '~` ~ ""~ ~ _ ' 3.112" Csg zi a8£3 ? 9.0 - 9.4 PP9 Float Shce 5,058' 5,058' -4,577 >,,;,xawl?~31. 8-1 /2" 85° F Water Based Mud 2a Smilodon 9-4-9 Well Bore.xls 2/21/2008 Diverter Rig Up on Rig 106 for Smilodon Page 1 of 2 • Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, January 31, 2008 5:45 PM To: 'Quay, Walter [ASRC]' Cc: Brandenburg, Tim C; Harness, Evan; Quick, Mike (ASRC]; Buster, Larry W; 'aogcc prudhoe_bay@admin.state.ak.us' Subject: RE: Diverter Rig Up on Rig 106 for Smilodon (207-152) Walter, The stack-up will be the equivalent of what was originally proposed. No objections to the change. Tom Maunder, PE AOGCC From: Quay, Walter [ASRC] [mailto:WQuay@chevron.wm] Sent: Thursday, January 31, 2008 3:38 PM To: Maunder, Thomas E (DOA) Subject: RE: Diverter Rig Up on Rig 106 for Smilodon Tom, Yes, there are outlets between the rams in the Double Gate BOP that will be utilized for choke and kill line connections. Walter Quay WQuay@chevron.com Office: 907-263-7812 Cell: 907-230-3961 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Thursday, January 31, 2008 3:34 PM To: Quay, Walter [ASRC] Subject: RE: Diverter Rig Up on Rig 106 for Smilodon Walter, As I understand, there are outlets between the double rams where the choke and kill line connections will be made, correct? Tom Maunder, PE AOGCC From: Quay, Walter [ASRC] [mailto:WQuay@chevron.com] Sent: Thursday, January 31, 2008 3:02 PM To: Maunder, Thomas E (DOA) Cc: Brandenburg, Tim C; Harness, Evan; Quick, Mike [ASRC]; Buster, Larry W Subject: Diverter Rig Up on Rig 106 for Smilodon 1!31!2008 Diverter Rig Up on Rig 106 for Srnilodon • Page 2 of 2 Tom, As per our conversation, the diverter rig up and for the subsequent hole section BOP rig up is being changed from the submitted diagram. This is due to unforeseen height and handling issues with the previously submitted rig up. Previously Submitted Rig-Up - Bottom Up from Wellhead: Single Gate BOP Drilling Spool Double Gate BOP Annular New Rig-Up -- Bottom Up from Wellhead: Double Gate BOP Single Gate BOP Annular Drops the drilling spool and swaps the relative positions of the single and double gate bops. Attached is diagram «Diverter Stack-Up Diagram.xls» Walter Quay WQuay@chevron.com Office: 907-263-7812 Cell: 907-230-3961 1/31/2008 Form DRLG-01, May/2001 ~ ~~ ,lit ~{_~ ~~~~~ :~ ~~{y~ ~j ~r ~ ~sl,~ ~iF~ !?.' ± ~~ ~t. a~ i~ ~.~. .~l ~~~il ~ it ~k AI.ASSA OIL A1~TD C>~S COIQSF.8QA7.`I011T COMI-IISSIOI~T ; Tim Brandenburg Drilling Manager Union Oil Company of California PO Box 196247 Anchorage, Alaska 99519 f' /~ SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 RE: Exploration, Wildcat, Smilodon 9-4-9 Union Oil Company of California Permit No: 207-152 (revised) Surface Location: 539 FSL, 700 FEL, SEC. 9, T4N, R9E, UM Bottomhole Location: 539 FSL, 700 FEL, SEC. 9, T4N, R9E, UM Dear Mr. Brandenburg: Enclosed is the revised approved application for permit to drill the above referenced exploration well. This revision was necessary due to moving the bottomhole location. All requirements contained in the Commission's letter of December 10, 2007 apply. 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. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at le hours in advance at (907} 659-3607 (pager). ~ DATED this day of January, 2008 cc: Department of Fish 8v Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. r Chevron Timothy C Brandenburg Drilling Manager January 10, 2008 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7`h Avenue Anchorage, Alaska 99501 Re: Application for Permit to Drill Smilodon 9-4-9 Exploration Well Dear Commissioner: Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 ~~V~1 V ~L~ JAN 1 1 20~~ Alaska Oil ~ Oaa Oa~r~. att-la~a _ Anchorage Enclosed for approval is a updated Permit to Drill (form 10-401) for Union Oil Company Of California to drill the Alaska North Slope White Hills Exploration well, Smilodon 9-4-9. The primary update in this permit from the approved permit 207-152 is the directional plan change. This change involves directionally drilling to a target 800' to the north of the surface location. This change is to meet the 3 mile distance from the Malguk well. The changes in this application from the 207-152 permit approved on 12/10/07 are: • Directional Plan Change and knock on depth changes • Cement Volumes changes for altered TD • Cement Volume correction on Surface Cement Lead Volume from 224 to 233 bbls. • Changing of VSP checkshot to full VSP The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill(except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Union Oil Of California a wholly owned subsidiary of Chevron Corporation. An anticipated spud date is January 25, 2008. If additional information is required, please contact either myself or Mr.Walter Quay at 263- ~~~^~ Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill (Public Information) - 1 Copy 2. Form 10-401 Application for Permit to Drill - 2 Copies 3. Well Program 4. Wellbore Schematic 5. Drilling Fluids Program 6. Directional Program 7. As Staked Location Plat 8. Days Vs Depth Drilling Plot 9. MASP Calculation & Casing Design 10. Diverter, BOP and Choke Manifold Schematics 11. Shallow Hazard Analysis Sincerely, Timo .Brandenburg Drilling Manager Cc: Well File ~->-~j ORIGINAL Union Oil Company of California / A Chevron Company http://www.chevron.com STATE OF ALASKA ~ ~,~~~ ALASKA OIL AND GAS CONSERVATION COMMIS510N PERMIT TO DRILL JAN 1 Y 20~~ ,, 20 AAC 25.005 '~le..b., na o. n__ ~___ ., 1a. Type of Work: 1b. Current Well Class: xpbratory ^ Development Oil ^ 1c. Specify i we is pr ~ ' s Drill Q Redrill ^ Stratigraphic Test ^ Service ^ Development Gas ^ Coalbed Methane ~iCh01'BQ,~as Hydrates ^ Re-entry ^ Multiple Zone Q Single Zone ^ Shale Gas ^ 2. Operator Name: Union Oil Company of California 5. Bond: Blanket Q .Single Well ^ 11. Well Name and Number: Bond No. 086S1035154066CM °` Smilodon 9-4-9 3. Address: 6. Proposed Depth: 12. Field/Pool(s): PO Box 196247, Anchorage, Alaska, 99519 MD: 5064 TVD: 4950 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 539 FSL, 700 FEL, Sec 9, T4N, R9E, Umiat Meridan ~ ADL 389990 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 573 FSL, 697 FEL, Sec 9, T4N, R9E, Umiat Meridan ADNR LAS 26542 12/1/2007 Total Depth: 9. Acres in Property: 14. Distance to Nearest 1341 FSL, 642 FEL, Sec 9, T4N, R9E, Umiat Meridan / 5587 Property: 14000' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation ~/s' /1150... 15. Distance to Nearest Well Surface: x- 510,147 ~ y- 5,743,513 Zone- ASP 4 (Height above GL): ~ feet ~,~V ithin Pool: None 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 2143 ~ Surface: 1648 ~ 18. Casing Program: Specifications To p -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Angered 16 65 N-80 Weld 80 0 0 80 ~ 80 i4s Required to Surface 12-1/4 9-5/8 40 L-80 BTC 1722 0 0 1722 1722 Lead: 233 bbls (250% excess) Tail: 45 bbls (40% Excess) 8-1/2 7 26 L-80 BTC-M 5064 0 0 5064 4950 Lead: 72 bbls (40% excess) Tail: 118 bbls (40% excess) 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re-Entry O perations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production Liner Perforation Depth MD (ft): N/A Perforation Depth TVD (ft): N/A 20. Attachments: Filing Fee ^ BOP Sketch Q Drilling Program Q Time v. Depth Plot Q Shallow Hazard Analysis 0 Property Plat Q Diverter Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Walter Quay Printed. Name Tim Brandenburg Title Drilling Manager ~.. Signature ~ _ ''--~" Phone 263-7640 Date 1/10/2008 Commission Use Only Permit to Drill Number: a.~~.- ~Sa-- API Num 50-. 'a~- l~a."~-(~~ Permit r al Date: b b~ See cover letter for other requirements. If box is checked, well may not be used to explore for, test, or produce co bed methane, gas hydrates, or gas contained in shales: [~ Conditions of approval : ~0©~~, .~~,~`j~`~` 3O~ ~S~ Samples req'd: Yesd No ^ Mud log req'd: Yes[/~ No^ ~ No^ ^~ `~ ~ H2S measures: Yes[+~ No Directional svy req'd: Yes[/] ~~~~~ ~ l~~-Cx~~ ~ P ~ ~~ O 1~~ ~Cl.~ ) t~-`t ~~~~~~L~~ ~~c~.~~~~~ ~-~~~` 5`o3~Ch~Ca~ Othe . ~ APPROVED BY THE COMMISSION DATE: ~'~ g~'~ ,COMMISSIONER Form 10-401 Revised 12/2005 Submit in Duplicate Chevron • Drilling Department Smilodon 9-4-9 Well Plan Summary S~3 ~~.~~.•s Surface Location: X = 510,146.72' Y = 5,743,32 As-Staked 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM - Target Location: X = 510,149' Y = 5,743,543' To U nu 573' FSL, 697' FEL, Sec. 9, T4N, R9E UM Top West Sak X = 510,163' Y = 5,743,749' 780' FSL, 682' FEL, Sec. 9, T4N, R9E UM Bottom Hole Location: X = 510,202' Y = 5,744,311' 1341' FSL, 642' FEL, Sec. 9, T4N, R9E UM ` The well approaches within 14,000' of the nearest Chevron White Hills lease line. Estimated Start Date: 01/25/2008 MD: 5064' TVD: 4950' Formation Markers: O eratin da s to com lete: 27 Elev. GL: 341' MSL ~ RKB: 20.5 . Formation To s MD -RKB TVD -RKB TVD-GL Comments To Prince Creek C 1040' 1040' 1019 Base Permafrost 1222' 1222' 1201 Casin Point 500' below base Permafrost* To Prince Creek B 1465' 1465' 1444 To Prince Creek A 1850' 1850' 1829 Top Upper Ugnu 2336' 2335' 2314 To Lower U nu 2851' 2835' 2814 Top West Sak D 3151' 3122' 3101 To West Sak B 3322' 3286' 3265 Top West Sak A-1 3486' 3442' 3421 Top Coleville 4308' 4228' 4207 Est. TD 5064' 4950' 4929 Drill thru Mal uk #1 E uiv. Zone of 4850' to 4900' Casing Program: Hole Size Csg/ Tb O.D. Wt/Ft Grade Conn Length Top MD/TVD Btm MD/TVD bkb Au ered 16" 65# 80 80' GL 80' ` 12-1/4" 9-5/8" 40.0# L-80 BTC 1722' GL 1722'/1722' 8-1 /2" 7" 26# L-80 BTC-M 5064' GL 5064/'4950' Mud Program: 12-1/4" Surface Hole (0-1722'): Fresh Water Mud - 6% KCUPHPA Initial Value Final Value Densi 8.7 9.0-9.4" Funnel Viscosity g0-100 50-70 seconds Yield Point 35-45 25-35 cP Plastic Viscostiy (Ib/100 10-21 10-23 s 10 second Gel Strength Ib/100 s 10-15 10-15 10 minute Gel Strength 14-24 14-24 Ib/100 s H 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 Solids % 6-12 6-12 8-1/2" Production Hole 1722' - 5064' :Fresh Water Mud - 6% KCUPHPAICIayseal Initial Value Final Value Densi 9.1 - 9.2 9.3 Max Funnel Viscosity seconds 40-65 40-65 Yield Point (cP) 15-25 15-25 Plastic Viscostiy (Ib/100 s 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <4 <4 Solids % 6-12 6-12 Hydraulics: Surface Hole: 12-1/4" Interval Pump GPM Drill Pie AV f m Pump PSI ECD p -emw Motor Jet "/32 Nozzles TFA in2 0'-1722' 600 4" 14# 9.7 N/A Tbd tbd Production Hole: 8-1 /2" Interval Pump GPM Drill Pie AV fpm Pump PSI ECD -emw Motor Jet "/32 Nozzles TFA in2 1722' - 5064' 450 4" 14# 9.6 N/A tbd .tbd Lo in Pro ram: Lo in While Drillin Hole Size Services Run 1 0-surf cs LWD: GR/Res/Sonic/Directional Run 2 surf cs -TD LWD: GR/Res/Directional Run 3 Mud Lo in Services 0-SUrf CSg mudlogger required from surtace to TD-~ 0-TD Bagged samples of cuttings every 30 feet, with 10 ft samples caught from sandstones and other potential reservoirs from surtace to TD (both legs); three washed and dried cuts, one unwashed cut. Corin Hole Size Services surf cs -TD 50 rota sidewall cores Open Hole Logging Hole Size Services Run 1 8-1/2" GR/CN/ZDL/XMAC Run 2 8-1/2" MREX Run 3 g_1/2" RCOR Run 4 $_1/2" RCI(MDT Type Formation Sampler & Pressure) Run 5 g_1/2" VSP me rit Testi n Test Point Depth Test Type EMW Surface Casing Shoe At least 20 feet but not more than LOT 12.5 ppg EMW Estimated 50 feet of new formation Cement Calculations: Casina Size 9-5/8" Surface Basis: Lead: Based on conductor set at 80', 1200' of annulus in the permafrost 250% excess Tail: Based on 500' o en hole volume + 40% excess + 80' shoe track volume. Total Cement Volume: Lead 233 bbl / 1312 ft / 315 sks of Permafrost Type L at 10.7 ppg and 4.15 cf/sk. Tail 45 bbl / 255ft / 220 sks of Premium `G' at 15.9 ppg and 1.16 cf/sk. Production Casin Casina Size 7" Lonastrin Basis: Lead: Based on TOC 500' below the 9-5/8" shoe + 40% excess volume Tail: Based on TOC 500' above to the 7" shoe + 40% excess volume Total Cement Volume: Lead 72 bbls / 404 ft / 124 sks of Premium Cement with Econolite at 11.2 and 3.24 cf/sk Tail 118 bbls / 667 ft / 580 sks of Premium at 15.8 ppg at 1.15 cf/sk Well Control: Surface hole will be drilled with a diverter. The MASP is 1648 psi. (See Attached) The intermediate/production hole well control equipment (of at least 3000 psi working pressure) consisting of will be equipped with pipe rams, blind rams, and an annular preventer will be installed and is capable of handling the MASP pressure. Based upon the planned casing test of 2000 psi for casing integrity considerations, the BOP equipment will be tested to 2500 psi. Disposal: Annular disposal is planned for this well. / In planning for this, an analysis of the aquifers in the area concluded: 1. The salinity increases uniformly from the base of permafrost to over 10,000 ppm chlorides in the area 2. Abundant oil and gas, thick viscous oil, and brines occupy most of the reservoirs below the base of the permafrost, and are not generally drinkable. 3. The permafrost provides an impermeable upper seal for the disposal of cuttings and wastes derived during drilling operations. 4. The permafrost ranges in thickness of from approximately 600 feet in the south, to 1400 feet thick in the north end of the prospect, containing permanently frozen ground comprised of gravels, sands, silts, shales, gas hydrates, brines, and peat. 5. There are numerous freshwater lakes situated on top of the permafrost that can provide drinkable water and some of which sustain fish populations. 6. There are no roads, no permanent trails or manmade habitable structures of any kind in the prospect area 7. There is no indigenous human population that lives in the White Hills Prospect (ie: population = 0). • Cuttings Handling: Cuttings generated from drilling operations will be annularly disposed in the 9-5/8" X 7" Annulus or hauled or hauled to an approved disposal facility. • Fluid Handling: All Mud and Used drilling and completion fluids and other Class II wastes will be annularly disposed in the 9-5/8" X 7" Annulus or hauled to an approved disposal facility. Summary of Drilling Operations Pre-Rig Work: 1. Set and cement 16" conductor 2. Install cellar Rig Operations: 1. MIRU Nabors 106E and camp. 2. Nipple Up the 13-5/8" BOP diverter spool and riser in diverter mode. Function test diverter system. Provide the AOGCC at least 24 hours notice of each BOPE function pressure test so that a commission representative can witness the test 3. MU 12-1/4" drilling assembly and drill surface hole to approximately 500' below the permafrost. FWD j°`''~ 4. Run and cement the 9-5/8", 40.0# surface casing back to surface. A Stab-in cementing system will ~° ~" be utilized. "'""' 5. RU the BOPE in BOP Mode and test to 250/5000 psi. Provide the AOGCC at least 24 hours notice of each BOPE function pressure test so that a commission representative can witness the test ~• ~~'6° 6. MU 8-1/2" drilling assembly with MWD/GR/RES/and RIH to float collar. Test the 9-5/8" casing to 2000 psi for 30 minutes -' 7. Drill out shoe joints and new formation greater than 20' and less than 50'. Perform the Leak Off Test. 8. Directionally Drill an additional +/-300' and perform a second leak off test. This test is to determine the allowable Annular Injection pressure for Annular Disposal. 9. Directionally Drill ahead to planned TD 10. Circulate and condition hole and perform wiper trip to surface casing shoe. POOH and stand back BHA. 11. RU Open Hole Wireline and run Logging Suite. 12. TIH to TD and condition hole for running casing. 13. Run and cement the 7" production casing. Freeze protect the 7" x 9-5/8" annulus and 7" as required. Test casing to 2000 psi. 14. TOOH and LD drill pipe. 15. Completion program will be advised. 16. Nipple down the BOPE. Nipple up and test the tree to 5000 psi. Remove TWC. 17. Rig down and move off v2.0 DIR /LWD MWD LWD/GR/RES sr~,y(a~.ti r /./°f `Op White Hills Well #1 Smilodon 9-4-9 FORM DEPTH-RKB(21') HOLE CASING MUD INFO MD TVD TVD-SS SIZE SPECS Cement Info 0' 0' 361' 16" 65 Ib/ft, L-80 101' 101' 260' N/A N/A INFO Surface Cssr MSL 361' 361' 0' 9-5/8" Lead Slurry 40 Ibs/ft 233 Bbls, 315 sx Welibore Stability L-80, BTC-M 10.7 ppg Lost Circulation ID. = 8.835" 4.15 ft'3/sx Hole Cleaning Int. yield psi Casing Sections PC C 1,040' 1,040' -679' Collapse psi Casing Wear a Permafrost 1222, 1 222, _861, of Tail Cement PCB 1,465' 1,465' -1,104' 9.5/8" Casing Point 1,722' 1,722' -1,361' LWD/GR/RES/ Porosity Used Drilling Mud IIFRICas Disposal Zone Top PC A 1,850' 1,850' -1,489' Stage Collar Est. TOC 2,300' Top Upper Ugnu 2,350' 2,335' -1,974' Float Collar -2380' Top Lower Ugnu 2,851' 2,835' -2,474' Top West Sak D 3,151' 3,122' -2,761' Top West Sak B 3,322' 3,286' -2,925' Top West Sak A-1 13,486' 13,442' I -3,081' Top Coleville 4,308' 4,228' -3,867' 7" Casing Point Float Eauioment Tail Slurry 1 ea Float Shoe 45 Bbls, 220 sx 1 ea Floa[ Collar 15.8 ppg Centralizers 1.16 R3/sx 9.0 -10.0 ppg 12-1/4" 60 ° F Water Based Mud 0 0 0 0 0 0 Inter. Casino Lead Slurry Wellbore Stability 7" 72 Bbls, 125 sx Lost Circulation 26 Ibslft 11,2 ppg Hole Cleaning L-80, BTC-M 3.2a to/sx Torque & Drag ID. =s.27s'. Casing Sections Int. Yield psi Collapse psi Tail Slurry 11 B 8bls, 580 sx 15.8 PP9 1.15 R3/sx 8-1/2" 9.0 - 9.4 Ppg 8-1/2" 85° F Water Based Mud RCI Sampling 2 Smilodon 9-4-9 Well Bore.xls 1/10/2008 Halliburton BaROio Chevron Mud Program White Hills Well #1 Smilodon Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Walter Quay Version No: Date: 1.3 September 5, 2007 Smilodon v1.3a 1 01/10/08 Halliburton BaROiD Chevron Mud Program Smilodon General Discussion This exploration well will be drilled from an ice pad south of Kuparuk. Due to the remote location, waste management is critical on this well. A 12 '/0" surface hole will be drilled vertically to a depth of 1722' where 9-5/8" casing will be set and cemented. An 8 '/2" production hole will then be drilled to a depth of 5064'. For annular injection, 7" casing will be run and cemented at this depth. Spud the well with a 6% KCI/PHPA mud. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide effective wellbore stabilization and minimize waste: ionic inhibition (KCI) and polymer encapsulation (PHPA). Clayseal will be added to the existing 6% KCI/PHPA mud for use in the production interval. This will provide another mechanism for inhibition and waste minimization and will facilitate drilling a gauge hole. If necessary, the weight will be reduced to 9.3 ppg prior to drilling out of the surface casing. Special Considerations: i. While gas hydrates are unlikely, maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. Contact the Technical Representative prior to any additions of Driltreat. ii. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). iii. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@1500 sx barite on location at all times). iv. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. v. Reduce the potential for hole erosion/destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drill pipe in the 150-200 fpm range. vi. Some shale instability has been noted on offset wells (maintain tight filtrate control/mud weight). vii. Obtaining good logs and fluid samples are a key component of this drilling program. Maintaining low filtrate and using the inhibitive mud system will limit fluid invasion and help drill a gauge hole. viii. Maintain an adequate supply of STEELSEAL should losses be observed. String 3-5 sx/hr immediately after noting losses. Again, this will improve the post well fluid samples by limiting drilling fluid invasion. Well Specifics: Casin Pro ram MD TVD Foota e 12'/0" hole 9 5/8" Casin 1722 1722 1722 8'/z" Hole 7" Casin 5064 4950 3228 ~'' Smilodon v1.3a 2 01/10/08 • Halliburton BaROID Chevron Mud Program Surface Interval: 12'/4" to 1,722'; 6% KCI/PHPA Mud Pro erties Initial Value Final Value Densit 8.7 9.0-9.4* Funnel Viscosity (seconds) 80-100 50-70 Yield Point cP 35-45 25-35 Plastic Viscostty (Ib/100 si) 10-21 10-23 10 second Gel Strength (Ib/100 sf) 10-15 10-15 10 minute Gel Strength (Ib/100 s~ 14-24 14-24 H 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 Solids % 6-12 6-12 *Weight increase due to natural progression of solids. A weight up is not programmed. Base Formulation: COLD Water - 0.905 bbl KCI - 20 Ibs (30-32K ppm chlorides) EZ Mud DP - 0.75 Ibs (.15 ppb in initial mix) Dextrid - 3 Ibs (API filtrate of 8-15 cc initially) Barazan-D - 1-2 Ibs (as required for an initial 35 YP) KOH - 0.1-.25 Ibs (pH = 8.5-9.5) Aldacide-G - 0.25 Ibs (X-cide 207 for rig maintenance) Baracor 700 - 1 ppb Barascav D - 0.5 ppb (to be added at the rig when first circulating) ** Use Barite for any needed weight ups on this well. NOT drill solids. A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system; however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders/desilters, mud cleaners and centrifuge(s) to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. On an example well, some of the centrifuge under-flow was returned to the mud system. This led to a fines build up and the resultant required dilution was excessive. The personnel were trying to reduce waste but wound up causing additional waste. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud <75°F should be made. Normal surface hole viscosities should be adequate for this vertical well. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well (On offset wells, pea gravel was noted to 500', then mainly sticky clay and sand was observed). Reduce viscosity as allowed, previous wells in the area have TD'd the surface with a ~18-25 YP. However, do not hesitate to quickly raise the viscosity if hole cleaning problems develop. Polymer viscosity in the form of Barazan D additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. Smilodon v1.3a 3 01/10/08 i ~- Halliburton BaROID Chevron Mud Program Spud the well with an 8.7 ppg mud. Expect the natural progression of the weight as drilling proceeds. Increase the mud weight as dictated by actual hole conditions. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. • A two pound per barrel treatment with Driltreat (Lecithin) could provide some inhibition of the hydrate break-out. Contact the Technical Representative prior to any additions of Driltreat. • Keep the mud as cool as possible to minimize thawing of the hydrates. Mud up with cold water and dilute with cold water. • Milne Point and Tarn operations have reported benefit from treating with 1 % DriI-N-Slide. The mud engineers state that it acts to smooth out the rheology of the fluid. If possible, use 6% KCI water (COLD) to maintain volume while drilling ahead. Maintain the mud ~ chlorides ~ 28,000 - 34,000 ppm with KCI. Use Dextrid and PACs for API filtration control. Target 8-15 cc initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. Hold the pH in the 8.5-9.5 range with KOH. Mix 0.15 ppb of EZ Mud in the initial mix. Once the mud has sheared through the bit twice, slowly increase the EZ Mud concentration to the full 0.75 ppb. Daily additions of X-Cide 207 are needed to control bacterial action. Should bacteria become a problem, hold a safety meeting and add the desired amount of Aldacide G using all the proper PPE. High levels of corrosion have been seen when running KCI fluids in other areas on the North Slope. Barascav D and Baracor 700 levels will be maintained at programmed levels. As noted on offset wells, heavy amounts of clay will be present from about 500' onward which will require additions of DriI-N-Slide and/or Condet to reduce BHA balling and screen blinding. Sweeping the hole with high viscosity or Barolift sweeps prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible, reduce the fluids rheology to those recommended in the cementers program after the casing is on bottom. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Smilodon v1.3a 4 01/10/08 Halliburton BaROi~ Chevron Mud Program Production Interval: 8'/Z" to 5064'; 6% KCI/PHPA/Clayseal Mud Pro erties Initial Value Final Value Densit 9.1 - 9.2 9.3 max Funnel Viscosity (seconds) 40-65 40-65 Yield Point cP 15-25 15-25 Plastic Viscostty (Ib/100 s fl 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <4 <4 Solids % 6-12 6-12 * Unless hole conditions dictate otherwise Treat the mud with bicarb and citric acid prior to drilling out. Drill out using the existing mud system from surface hole. Some whole mud dilution may be required to reduce solids content and MBT to an acceptable level. Add Clayseal slowly until a final concentration of 0.84 gal/bbl is reached. Maintain this concentration until interval TD. Decrease the API filtrate to <4 cc/30 for the interval using Dextrid and/or PAC L. Keep low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0-9.5 with KOH. Daily additions of Aldacide G/X-Cide 207 should be made to control bacterial action. The chloride level should be kept in the 28-34K range through additions of KCI. The EZ Mud concentration should be maintained at .75 ppb. A 15-25 YP should be maintained using Barazan D+. On Amethyst #1, some shale splintering was seen at 4,300', requiring aweight-up to 10.5 ppg. Proper drilling practices should be employed to minimize mechanical disturbance in this interval. If splintered shale is seen at the shakers, consider weighting up a minimum of .4 ppg and maintain this weight until TD. Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. If seepage losses are noted while drilling the sands, immediately string in STEELSEAL at 3-5 sx/hr. Obtaining good logs and fluid samples are key goals of the well. Smilodon v1.3a 5 01/10/08 Halliburton BaROiD Chevron Mud Program Recommended Drilling Parameters: Penetration Rates: Please see the following optimization chart for maximum allowable penetration rates. These rates are set for rotating not sliding. Penetration rates might need to be controlled to minimize overloading the annulus with cuttings. Close monitoring of PWD data will assist in diagnosing this potential problem and allow real- time, timely remedial actions. Due to the vertical profile of this well, rpm has little effect on hole cleaning. Hydraulics Optimization Chart Actual P rates will need adjusted to how well the surface equipment can handle the flow and cuttings. 12'/4" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM 500 600 700 60r m 130 162 190 80r m 130 162 190 8'/z" Maximum Acceptable ROP in fph at Specified GPM and RPM GPM-> 350 450 550 60r m 174 253 332 80r m 174 253 332 Hole Cleaning: Maintaining the programmed flow properties is essential to successful completion of this well. Any indication of a failure to keep the annulus clean of excess cuttings (drag, torque, partial pack offs) should be countered by increasing the circulation time on subsequent connections and prior to trips. Pipe rotation should also be used in conjunction with the pumping of high viscosity sweeps. If these sweeps seem ineffective, other type sweeps (Barolift, weighted, etc.) should be tried. The returns at surface of all sweeps should be monitored at the shakers to gauge their effectiveness. When circulating bottoms up prior to POH, it is advisable to pull one stand every half hour to reduce the hole washout effects of circulating over one short interval. Waste Minimization: 1. Solids Control Equipment - for reduced dilution volume. Monitoring shaker screen mesh size and checking for screen damage (holes) is a primary responsibility of both the fluids engineer and rig contractor. The centrifuges must be run as much as possible to reduce dilution throughout all hole sections. 2. Gauge Hole -for reduced cuttings volume. • Inhibitive Mud System -Use of 6%+ KCI Polymer system as outlined in the mud program to reduce washout in clay/shale sections • Hydraulics and Rheology as recommended in the mud program to reduce washouts in unconsolidated formations, especially on surface hole. • Use of near freezing water for mud make-up and dilution to reduce thawing of Permafrost. Note: the close proximity of heat generating equipment (power plants) to the mud pits on some rigs can increase the surface mud temperatures by 10 to 15 deg F while drilling surface hole. • Drilling the surface hole and running casing as efficiently as possible to reduce time, thus thawing and washout of the Permafrost. 3. Re-cycling of Fluid -for reduced mud volume disposal An Inhibitive KCI Polymer system, as outlined in the mud program, allows for re-use from interval to interval and from well to well (logistics dependent). Smilodon v1.3a 6 01/10/08 Halliburton BaROi~ Chevron Mud Program Tracking and Reporting of Waste Streams and Costs: We consider this to be of vital importance. TFM reports will be completed daily. Interval and well summaries will also be done. Lubrication: Due to the vertical nature of this wellbore, lubricant support is not anticipated. If required, 1-2% of EZ Glide or Torq Trim I I and '/2% DriI-N-Slide can be added. Risks and Contingencies: Lost Circulation: Preventing the initiation of lost returns should be a primary goal of the drilling fluid in the production zone. To that end the rheology of the system has been reduced while still providing ample hole cleaning. Maintaining a low ECD while circulating, and eliminating high pressure spikes while tripping, will both go a long way toward reducing the risk of lost returns. Should lost returns occur check with MWD personnel prior to pumping any pills to assure that no plugging will occur. Wellbore Instability: Some splintered shale was noted on Amethyst #1. Ensure the mud has tight filtrate control and minimize mechanical disturbance of the wellbore. Should any signs of shale splintering be seen immediately raise the mud weight a minimum of 0.4 ppg. Stuck pipe: Two forms of stuck pipe are possible. One is from hole pack-off as related to poor hole cleaning. Stuck pipe can occur if the hole isn't clean or if the wellbore exhibits severe instability. The best cure is to pro-actively prevent the occurrence of either scenario, and one does occur, correct drilling practices must be employed. If pulling up into a tight spot, do not jar up further, but attempt to get below the problem. Backreaming is an invitation to packing off and resulting stuck pipe so backreaming must be done with care and only when necessary. If stuck pipe occurs across a sand zone and there are indications of differential sticking, there are drilling fluid solutions. If possible, reducing the fluid density by a minimum of 0.5 ppg may provide some relief. 12.25" Surface -Modeled hole cleaning with 4" dp Smilodon vl.3a 7 01/10/08 s Halliburtoln BaROi~ Chevron Mud Program ~ 3 hig11 time Good hole cleaning can be achieved with 600 gpm at 100' per hour. Baroid does not recommend drilling at rates above 150'/hr on surface. Elevated penetration rates may cause problems with "clay chunks"/ clay rings plugging off the flowline and causing pack offs. Smilodon v1.3a 8 01/10/08 Halliburton saROl~ Chevron Mud Program 8.5" Production -Modeled hole cleaning sh~a~Te~ Excellent hole cleaning is achieved at 150 fph at 400 gpm. Pump rates over 500 gpm cause a sharp increase in ECD and are not necessary to clean this hole section. Smilodon v1.3a 9 01/10/08 • Halliburton eaROiD Chevron Mud Program Fluid Costs: Interval depths ft P10 P50 P90 12'/4" Surface 0 - 1722 $36,000 $68,000 $90,000 8 %2" Production 1722 - 5064 $ 53,000 $98,000 $158,000 Total 5064 $ 89,000 $166,000 $ 248,000 Fluid Volumes: Surface Interval to 1,722': At spud approximately 550 barrels of new fluid will be built. Dilution rates for the 12 '/4" section are anticipated at 0.62 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial build 500 550 650 Dilution 750 1100 1800 Reuse to next interval -500 -500 -500 Total 750 1150 2950 Estimated Drill Solids Disposal Volumes: P10 P50 P90 Cuttin s Volume 280 310 370 Wettin Fluid 140 310 740 Total 420 620 1110 Production Interval to TD at 5,064': Dilution rates for this 8 %" section are anticipated at 0.4 bbl/ft. Estimated Fluid Disposal Volumes: P10 P50 P90 Initial Volume 500 500 650 Dilution 950 1300 2300 Total 1450 1800 2950 Estimated Drill Solids Disposal Volumes: P10 P50 P90 ` Cuttin s Volume 230 250 290 Wettin Volume 115 250 580 Total 345 500 870 Smilodon v1.3a 10 01/10/08 Chevron ~ Schlumherger Smilodon (P5) Proposal Report Date: January 10, 2008 Survey 1 DLS Computation Method: Minimum Curvature I Lubinski Client: Chevron Vertical Section Azimuth: 4.000° Field: White Hills Chevron Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure 1 Slot: Smilodon I Smilodon 1 TVD Reference Datum: RKB Well: Smilodon TVD Reference Elevation: 361.50 ft relative to MSL ' Borehole: Smilodon Sea Bed /Ground Level Elevation: 341.00 ft relative to MSL ' UWIIAPIq: 50029 Magnetic Declination: 22.542° Survey Name 1 Date: Smilodon (P5) I January 10, 2008 Total Field Strength: 57562.847 nT Tort 1 AHD 1 DDI 1 ERD ratio: 17.114° 1800.06 ft 14.146 / 0.162 Magnetic Dip: 80.374° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet % Declination Date: February 2Q 2008 Location LatlLong: N 69.71042272, W 149.92011065 Magnetic Declination Model: BGGM 2007 Location Grid NIE YIX: N 5743513.000 ftUS, E 510147.000 ftUS North Reference: True North ~ Grid Convergence Angle: +0.07493238° Total Corr Mag North -> True North: +22.542° Grid Scale Factor: 0.99990012 Local CooMinates Referenced To: Well Head • Comments Measured Inclination Azimuth SulrSea TVD TVD Vertical NS EW Mag 1 Grev DLS Directional Northing Easting La titude Longitude Depth Section Tool Face Difficulty ft de de ft ft k fl ft de de 1100 tt Index ftUS ftUS ~KB 0 .00 0.00 4.00 -361 .50 0. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 conductor 101. 00 0.00 4.00 -260. 50 101. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 MSL 361. 00 0.00 4.00 -0. 50 361. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 Top PC C 1040. 00 0.00 4.00 678. 50 1040. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 3ase Perm 1222. 00 0.00 4.00 860. 50 1222. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 Top PC 8 1465. 00 0.00 4.00 1103. 50 1465. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 9-5/8" Csg 1722. 00 0.00 4.00 1360. 50 1722. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 Top PC A 1850. 00 0.00 4.00 1488. 50 1850. 00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 KOP Crv 2/100 1920 .00 0.00 4.00 1558 .50 1920 .00 0.00 0.00 0.00 4.OOM 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.9201106E 1950 .00 0.60 4.00 1588 .50 1950 .00 0.16 0.16 0.01 4.OOM 2.00 0.00 5743513.16 510147.01 N 69. 71042315 W 149.92011057 2000 .00 1.60 4.00 1638 .49 1999 .99 1.12 1.11 0.08 4.OOM 2.00 0.25 5743514.11 510147.08 N 69 .71042577 W 149.9 2050 .00 2.60 4.00 1688 .46 2049 .96 2.95 2.94 0.21 4.OOM 2.00 0.88 5743515.94 510147.20 N 69 2 .71043076 W 149.92 2100 .00 3.60 4.00 1738 .38 2099 .88 5.65 5.64 0.39 4.OOM 2.00 1.31 5743518.64 510147.39 N 69 .71043813 W 149.9201 5E 2150 .00 4.60 4.00 1788 .25 2149 .75 9.23 9.20 0.64 4.OOM 2.00 1.63 5743522.20 510147.63 N 69 .71044787 W 149.9201055E 2200 .00 5.60 4.00 1838 .05 2199 .55 13.67 13.64 0.95 HS 2.00 1.88 5743526.64 510147.94 N 69 .71045998 W 149.92010314 2250 .00 6.60 4.00 1887 .77 2249 .27 18.98 18.94 1.33 HS 2.00 2.10 5743531.94 510148.30 N 69 .71047446 W 149.92010022 2300 .00 7.60 4.00 1937 .39 2298 .89 25.16 25.10 1.76 HS 2.00 2.28 5743538.10 510148.72 N 69 .71049130 W 149.92009682 2336 .46 8.33 4.00 1973 .50 2335 .00 30.21 30.14 2.11 HS 2.00 2.40 5743543.14 510149.07 N 69 .71050507 W 149.92009404 Top Upper Ugnu 2336. 48 8.33 4.00 1973. 51 2335. 01 30.22 30.14 2.11 HS 2.00 2.40 5743543.14 510149.07 N 69. 71050507 W 149.92009404 2350 .00 8.60 4.00 1986 .89 2348 .39 32.21 32.13 2.25 HS 2.00 2.44 5743545.13 510149.21 N 69 .71051050 W 149.9200929E 2400 .00 9.60 4.00 2036 .26 2397 .76 40.11 40.01 2.80 HS 2.00 2.59 5743553.01 510149.75 N 69 .71053205 W 149.92008860 2450 .00 10.60 4.00 2085 .48 2446 .98 48.88 48.76 3.41 HS 2.00 2.71 5743561.76 510150.35 N 69 .71055594 W 149.92008371; WeIlDesign Ver SP 2.1 Bld( doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon (P5) Generated 1/10/2008 10:45 AM Page 1 of 2 Comments Measured Depth (ft) Inclination (deg) Azimuth (deg) Sub-Sea TVD (ft) TVD (ft) Verticel Section (ft) NS (ft) EW (ft) Ma 1 Grav g Tool Face (deg) DLS (deg1100ft) Directional Difficulty Index Northing (ftUS) Easting (ftUS) Latitude Longitude 2500.00 11.60 4.00 2134.55 2496 .05 58.50 58.36 4.08 HS 2.00 2.83 5743571 .36 510151 .01 N 69.71058217 W 149.9200784£ 2550.00 12.60 4.00 2183.44 2544 .94 68.98 68.82 4.82 HS 2.00 2.94 5743581 .82 510151 .73 N 69.71061074 W 149.92007274 2600.00 13.60 4.00 2232.13 2593 .63 80.32 80.12 5.61 HS 2.00 3.04 5743593 .12 510152 .50 N 69.71064162 W 149.92006651 2650.00 14.60 4.00 2280.63 2642 .13 92.50 92.27 6.46 HS 2.00 3.13 5743605 .27 510153 .34 N 69.71067481 W 149.92005982 2700.00 15.60 4.00 2328.90 2690 .40 105.52 105.26 7.37 HS 2.00 3.22 5743618 .26 510154 .23 N 69.71071031 W 149.92005267 2750.00 16.60 4.00 2376.94 2738 .44 119.38 119.09 8.33 HS 2.00 3.30 5743632 .09 510155 .18 N 69.71074810 W 149.9200450E =nd Crv 2775.58 17.11 4.00 2401.42 2762 .92 126.80 126.49 8.85 --- 2.00 3.34 5743639 .49 510155 .68 N 69.71076831 W 149.9200409E Top Lower Ugnu 2851.00 17.11 4.00 2473.50 2835. 00 148.99 148.63 10.40 --- 0.00 3.41 5743661. 62 510157. 20 N 69.71082879 W 149.92002880 3151.29 17.11 4.00 2760.50 3122 .00 237.34 236.76 16.56 --- 0.00 3.61 5743749 .76 510163 .25 N 69.71106958 W 149.9199802E Top West Sak D 3151.30 17.11 4.00 2760.51 3122. 01 237.34 236.76 16.56 --- 0.00 3.61 5743749. 76 510163. 25 N 69.71106959 W 149.91998028 Top West Sak B 3322.88 17.11 4.00 2924.50 3286. 00 287.82 287.12 20.08 --- 0.00 3.70 5743800. 12 510166. 70 N 69.71120717 W 149.91995256 Top West Sak A-1 3486.11 17.11 4.00 3080.50 3442. 00 335.85 335.03 23.43 --- 0.00 3.76 5743848. 02 510169. 99 N 69.71133805 W 149.919 Top Coleville 4308.51 17.11 4.00 3866.50 4228. 00 577.81 576.40 40.31 --- 0.00 4.00 5744089. 39 510186. 55 9 N 69.71199750 W 149.9197 TD / 7" Csg 5063.92 ~ 17.11 4.00 4588.50 4950 .00 ~ 800.00 798.05 55.81 --- 0.00 4.15 5744311 .04 510201 .76 N 69.71260308 W 149.9196712° Les tal Description: Northing (Y) [ftUS] Easting (X) [ftUS] Surface : 543 FSL 699 FEL S9 T4N R9E UM - 5743513.00 510147.00 Top Ugnu : 573 FSL 697 FEL S9 T4N R9E UM 5743543.14 510149.07 Top West Sak : 780 FSL 682 FEL S9 T4N R9E UM 5743749.76 510163.25 TD / 7" Csg / BHL : 1341 FSL 642 FEL S9 T4N R9E UM 5744311.04 510201.76 WeIlDesign Ver SP 2.1 Bld(doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon (P5) Generated 1/10/2008 10:45 AM Page 2 of 2 ~/ ~ Schlumberger WELL FIELD STRUCTURE Smilodon (P5) White Hills Chevron Smilodon Magnetic Parameters SuAaca Location NAD2] Adska Slate Planes. Zme 04, US Faet Miscellaneous Motlel: BGGM 200] Dip: 60.3]4° Data: FaGruary 20, 2008 Let N69 42 3].522 N°rt~ing'. 5]4351] 00 ftUS Grid Conv:.0.0]693238° Slat: 5milotl°n 1 ND Ref'. RKB (361.50 fl a8°ve MSL) Mag Dec: +23.542° FS-. 5]5628 nT Lan: W1495512 ]98 Easdng: 51016]00 flU5 Scab Fact'. 099990011] Plan: Smilotlon BPS) Srvy Dale: January 10, 2008 -1200 -600 0 600 1200 600 1200 1800 `o 0 c .= 2400 a~ m U (~ H 3000 3600 4200 4800 -1200 -600 0 600 1200 600 1200 1800 2400 3000 3600 4200 4800 Vertical Section (ft) Azim = 4°, Scale = 1(in):600(ft) Origin = 0 N/-S, 0 E/-V Chevron ~ Schiumberger WELL Smilodon (P5) FIELD White Hills Chevron STRUCTURE Smilodon Magnetic Parameters Surface Location NA02] Alaska State Planes, Zgrle 0.1, US Feet Miscellaneous Model. BGGM 200] Dip: 80.3]4° Dafe: February 20. 2008 Lal. N69423]522 Northing'. 5]4351300 ftUS Grid Com:+0.0]493236° SIW: Smilotlont NDRei RKB (3fii50fl above MSL) Meg Dec'. +22,542° FS: 5]563 B nT Lon: W1495512.396 EasSng: 51014].00 flU5 Style Fad:099990011] Plan: Smilatlon (P5) Srvy Date: January 10, 2008 -150 0 150 300 n n z 0 c u m U V V V 1050 900 750 600 450 300 150 0 TD l7," Cs v Smilodon (PS) 1 ............................... i...................................;.. ........... i.................................. r...............,..,........ 9J' ilodon Top West Sak L ..............................~.................................. ........................,.,......;..................................`........................... End Crv KOP Crv 21100 9-SI8" Cs ilodon Top Ugnu Conductor RKB 1050 900 750 600 450 300 150 0 -150 0 150 300 c« W Scale = 1(in):150(ft) E »> DESCRIPTION N NOTES: 1. COORDINATES SHOWN ARE NAD 27 ALASKA STATE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 27. 3. ALL DISTANCES ARE GROUND. 4. ICE PAD IS ROTATED 70' EAST FROM NORTH. 5. VERTICAL DATUM IS ASSUMED. SCALE: 1" = 200' SMILODON tx~ 500 ~ ~ N ~0 ~ I `3~ O ~ ~ 2 ~ ~ O, O ~ RAG P Po G~ °o ,,.~ N ,,~ 5 ~0 W /~M~ ~- w w w w ~ ~ ~~ o' o' o pr ~- ~ ~ G~' ~O T5N p`~ OQ T 4 N ~' Q 6 5 4 3 2 7 7 8 10 11 12 THIS SITE ~ ,B 17 , 13 ~~ 19 20 21 22 23 J ~ 30 29 28 27 QP J ~ T 4 N 37 32 3s T3N w w w ``' ~ ~ ~ o ~ ~ ~ 1" ^^~ ~~ v' ~338`~ v'~ ~~~r N o, t^ R OS PO cro P\C~ RO 0 cr°~ 0 VI(;INI I Y MAF' = APPROX. 3 MI. SMILODON LOCATED WITHIN PROTRACTED SEC. 9, T 4 N, & R 9 E, UMIAT MERIDIAN. 539' F.S. L, 700' F.E.L. LAT = 69'42'37.52" N LONG = 149'55'12.39" W Y = 5,743,513' X = 510,147' ~~ ^~ ~ DENOTES SPILL TRAJECTORY STAKED CONDUCTOR LOCATION LOUNSBURY & ASSOCIATES, INC. SURVEYORS 8NGINSERS PLANNERS CHEVRON SMILODON WELL UNION OIL OF CALIFORNIA AS-STAKED DRAWING WITH TOPO AND SPILL TRAJECTORY CADD FILE N0. DRAWING N0: SHEET: REV: SMILODON TOPO 25 SEPT. 07 1 OF 1 0 0 1000 2000 d w ,~ 3000 a A 4000 5000 6000 Chevron Smilodon Depth vs. Time Actual TIME -+-Smilodon 9-4-9 Plan 12-1/4" Hole 9-5/8" asing 8-1/2" Hole 0 5 10 15 20 25 30 • Time (Days) Chevron Maximum Anticipated Surface Pressure Calculation Smilodon 9-4-9 Well White Hills Exploration Assumptions: 1. Based on offset drilling data & G&G evaluation and analysis, the pore pressure gradient is predicted to be a a normal 0.433 psi/ft gradient from surface to planned total depth at 4950' TVD 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 surface. With the shoe for Smilodon at 1701' TVD, the Leak-off is anticipated to be -12 ppg EMW. 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. Drilling 8-1/2" Hole at 4929' TVD Max. pore pressure at T.D. = 4,950 ft. x 0.433 psi/ft = 2143 psi r M.A.S.P. = 2143 psi - ( 0.1 psi/ft x 4950 ) = 1648 psi Chevron Calculation & Casing Design Factors Smilodon 9d-9 White Hills Exploration WELL: Smilodon 9-4-9 FIELD: White Hills DATE: 17-Oct-07 DESIGN BY: W. Quay Sect. 1 12 1/4" hole MUD WT. 9.5 PPG MASP= 0 Diverter Sect. 2 8 1/2" hole MUD WT. 9.3 PPG MASP= 1,648 psi TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION W/O BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE 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" 1,722 0 1722 40 L-80 BTC 68,880 68,880 916 13.30 778 3,090 3.97 1,641 5,750 3.50 TVD 1,722 0 2 7" 4,950 0 4950 26 L-80 BTC 128,700 128,700 604 4.69 2,237 5,410 2.42 2,356 7,240 3.07 TVD 4,950 0 * Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.452 psUk) and the casing evacuated for the internal stress (0 psi/k) ** See attached sheet for calculation of MASP Chevron LEAK OFF TEST PROCEDURE 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 2. Pull the drill string into the shoe. Rig up to observe annulus pressures. 3. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 - 1/3 BPM) if exposed formation is permeable. Anon-permeable formation should be step tested to a predetermined pressure. 4. Measure the volume pumped and plot annulus pressure-vs-cumulative volume pumped. Compare annulus pressure to drill pipe pressure and confirm both are the same. Record and plot pressure versus volume pumped. The pumps should be shut down immediately upon indication of leak-off. Record the inital, shut down pressure and the pressure after 1, 2, and 3 minutes. 5. Release pressure and record the volume of fluid recovered in the trip tank. The point "B" shown in the attached graph at which the plot of drillpipe pressure stops increasing equally as the volume is pumped is called the P.I.T. limit, Leak Off, or pressure integrity test limit. The leak-off pressure is calculated as follows: Leak-off (EMW) = Mud weight in hole + P.I.T. (PSI) (0.052) X (shoe depth in TVD ft.) This equivalent mud weight should be made known to all drilling personnel to ensure it is not exceeded. See the drilling procedure for guidelines on expected LOT's or pressure integrity test limits for each casing shoe. SURFACE PRESS. TYPICAL PIT PLOT [psi] NOTES: Point "A" will have some variance until the system begins to pressure up. Point "B" is the leak off and is abbreviated LOT. Point "C" is known as the injection pressure and is usually dependent on rate. Point "D" is known as the fracture closure pressure and may not stabilize if permeable formations are exposed. VOLUME PUMPED SHUT-IN-TIME [BBLS] [MIN] ! ~ Diverter Schematic Date -October 17, 2007 Location - White Hills -North Slpe Rig -Nabors 106E Stack: Size - 13 5/8" Pressure Rating - 5000 PSI Annular: Hydril 13-5/8" GK Double Gate BOP Deactivated Drilling Spool Single Gate BOP Deactivated --- Knife Valve: r 12" Diverter Line NABOBS DRI ~~I NG N.T.S APR 11 2007 Drawn by: DWG# RAVI MANi NDR#106 Checked REV 00 by: qq CC 3-1/8" 5,000# NACE TRIM CHOKE & KILL MANIFOLD SYSTEM BB ~~ -'". PACIFIC VALVE SERVICES INC. VIEW VIEW VIEW Chevron North Slope Alaska White Hills Prospect SHALLOW HAZARD ANALYSIS 29 June 2007 SMILODON 9-4-9 Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 CHEVRON ACREAGE a J_ _ p~ S q i ~ LOtJQ IsL:+tlD [fF-E7 1., T/'"~' " i ~ M1~1~P-N ?HSTFJ~3 FI R ~ it Ca L f~ ~ q ., .-. - dr-i.K;~w:.~k r 1i',~~ :,+i~' . 2E 1KRia 3H-116A E ILEf ri S . 1 ~ " ~~1 ~ - y f"~I._ Ri+ ~>~"'~~~ „ E UGNU ~T~ KUF'tt°.+r'~`°?~'t u ~~`~- ~'t, -S _ 1 x-?«l$~'-r.~~`i-1~aBP-~ALt~I-t~t'^r~~GNU~1 6P~J`;JE2-01B~-S-~g6 .~~1 .6R>'-G7 BP ~ r k~ ~ -, ~~ 1ti-1°1H-15 ~i'-L-101 $P-K-,q - pbp~, " + ~ y; COLVILLE 1 c ~'=-'r''B`-C -E-tJ ;sh ~Iti'dy 4 ,4 co- c s VJSAK Q$1HL03hH 18 mBP~100BP 1~ PI.r1t RA~ 1 ,w ~~ ti~ .. ~ ~~ ~~g~ ~ BPLH~EV78x+t39.~ '4 -~~"'t> _t1UJOSJT#1 1~^ b`dS+5K1& tE,~;._1~-01 °'In"17" FiIUHU%dlr1~ ~ #~~T'R44fR K o i.r_VItLE R 1 ° D ~ EP ~flLo ftFt2 ~ ' 1Y 5~ 14 ~ i v SAJC c' t~t3Ak, r NECHEL~K#1,~y ~ - KOOKPUK01 f a ~-'~ q ° ~ '~ Nm .. ~(~1 _ ~` U-1 1J-10' ~T21Lx ST _~ -KO,; 1 °.:9VER~+~ ,-'W~A{C1E ee_ .,RY'SNJC031J-0yf1J-0° ~BP~20CK-Ot BPl~~~_:.,'-Z'i1 , 7SE•TGOTHA ~ "`,~ KUF4RUI{'RIVU}JIB;vSi.J(7¢ "~+`S'+x`- ~EI.IISPRINGSS 1 ~ GLuVERr,'~ ~. f '~ ~Ptd2K#1 -`2C=?2f2L--323 KRU S' #1VJ S+'JC 1 si dINTf R TRAILS 1 6URGLII~ f ~'-'t- _--_ __ PARK#1P~ L 4 r 2L-31E'",~~321 ` ° ~;JItJTERTRiJLS#3 Lb' SAK 13 PRC7POSED DX606'J#1 ~' ~ -307 s +;JSAK2S"HEf.11 STATE 3-5-11 _ .:Ky~ry~ OPi7SEDRENDENflUS#2 ,~3EaV~JSAK20 - HEF.+ISPRItJGS IT#3 2rJ-` ',`dINTER TRA!LS #2 CIRQUE 2 TOi CIRQUEl1GRQUE3 RAVIKST1 7000KFEDERAL#2 .. il:e~ +Utam ura-2 -p 0 LI K EE D E RAL #3 ike8 Wtamura-t FJ RAtIKLiN E WCEDo!-=3.tURA#1 f;KILUK01 ~ RUB"c-=:-E#1 - 2P-448 1.1 SEQUOIA#1 .. 2P-44"x' .. v,~ R N1 rJARVAn #1 f.P;J'R S1 ;dOLFBUTTOp 3c-'-8 'dJOLFBU"ON 2PT&~9 PIPE iE STATE #1 V ° S' K- -' f KV1K #1 GRIZ~Y-1 HE:~VftlL~`1 ~ - - ?ULpGp#1 ~ 6USH FEDf RryL 1 ~" SfNTINELHILLCTI NOR EDE ,~ ,:. § N ysuslE uNlTy1 Amethyst St#1 T White Hills (TKILLIK UNIT #1 Cam` ~~~~~" `- GUBIK 1 ° M • Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Union Oil Company of California (UOCC), a wholly owned indirect subsidiary of Chevron Corporation currently has leased approximately 20 x 40 sq miles of acreage on the Central North Slope of Alaska (Fig 1). UOCC holds 100% working interest in the field which is bounded by the National Petroleum Reserve of Alaska (NPRA) to the West, the Trans-Alaska Pipeline (TAPS) to the East, Kuparuk River and Prudhoe Bay Fields to the North and the Brooks Range Foothills to the South. STw4T~~rto,PHY 8~ RESERVOIR OBJECTIVES nna sw Fig 2: White Hills Stratigraphy ~.. ra E --- ..nifktdk' F~ The Smilodon 9-4-9 well will target reservoir objectives in the shallow Tertiary through Upper Cretaceous (Mastrictian) strata referred to as the Saganivriktok, Prince Creek, Ugnu and West Sak Formations bounded at the top by the permafrost and down to a total depth of approximately 5000 ft MD. Overall, the sequence records aregressive-transgressive cycle starting with the West Sak (Schrader Bluff) shallow marine prograding shelf sands, overlain by Ugnu fluvial-deltaic and then Non-marine Prince Creek and Sagavanirktok clastic strata. (From USGS Open-File Report 2005-1182) Chevroln Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 PRINCE CREEK FORMATION Sagavanirktok Groua and Prince Creek Formation The Smilodon 9-4-9 well will spud in Tertiary generally upward-coarsening Sagavanirktok siltstones, fine to very-fine grained sandstones, interbedded bentonitic mudstones with minor lignite horizons, and gravels deposited under shallow marine to non-marine conditions. Below the Sagavanirktok Group are undifferentiated Prince Creek coarse clastic strata, comprised of gravels, coarse lithic sands, lignites, and siltstones. The Prince Creek sandstones typically exhibit 8-30% clay content, with porosities to 38% and permeabilities to several darcies. UGNU FORMATION Ugnu Sands The Early Paleocene Ugnu Formation consists of upper-fine to medium and coarse grained lithic sandstones, siltstones, bentonitic shales, lignites, and some gravels deposited in anon-marine delta plain environment. The sandstones are poorly indurated to unconsolidated, with porosities exceeding 35% and to several darcies permeability. Heavy oil saturation is common 30 miles to the north in Kuparuk River, Milne Point, and Prudhoe Bay fields. WEST SAK FORMATION West Sak Sands The West Sak consists of a shallowing upward shallow marine sequence comprised of very fine-grained, single and amalgamated hummocky cross-stratified sandstone beds. The formation is typically characterized by fine to medium-grained, unconsolidated but well sorted sands interbedded with siltstones, mudstones, and coals. The West Sak sands were deposited in a shoreface to proximal shelf environment. Lower West Sak members were deposited in a lower shoreface to inner shelf setting by storm-generated waves and currents, both the upper and lower members showing good continuity both in the subsurface in areas with good control and in the outcrops to the southwest and south. The Smilodon 9-4-9 well will TD at the base of the West Sak Formation at approximately 5000 ft MD. Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 STRUCTURE Fig 3: Pre-stack time migrated 2D White Hills 2D seismic line (PM89-306); dip direction The regional structure on the top of the West Sak in the vicinity of the Smilodon 9-4-9 well is a monocline that strikes north-south and dips eastward at between 1 ° and 2°. The reservoir occurs at relatively shallow depths within the West Sak core area, with the top of the "D" sand being located at between -2536 and --2801 feet subsea. To the west of the core area the top of the West Sak shallows until it intersects the base of the permafrost at about 1,000 feet subsea to the west of Smilodon 9-4-9. y The Smilodon structure consists of aNorthwest-Southeast trending closure with stratigraphic and dip related traps. The structure is thought to have both permafrost and temperature seals. The structure shows distinctive depositional fairways for sand accumulation based on 2D seismic, surface geology, and magnetic data. The structure sub-outcrops at certain places throughout the field allowing regional correlation between the source rock and target formations. The primary reservoir objectives Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 include gas in the Prince Creek, Ugnu and West Sak formations. In general, gas hydrates are not anticipated. GEOPHYSICAL DATA QUALITY AR3 'V i .' qrf .v' e:=-~; L Le 3 ~a W' ~. ' B~LASC?~..".71° °.., rc., 1 -- ~~, ~ ~:S;L,t',lut~~ `U~i~ _:. 25-1KRW 3H 1~A E UGNU Dfi- EILEEN ST 1KUF ;:i4 a~~ - t ~ f J'~ _ +~t -ts4~ '' f L~ 15r-T .1 1ABP-PALS-t-~ ~'GGNU 171 BP-N? ic2-01 I;~BIL j27 ~ ~ B ~~R~~~,~,+ rv ° c ! o' 1H-19tH-16 s ~~-101 8~-$-2`bBc-S-31 ° _ E ~1kA^t~T'j~s ~,. COLVILL 1 BPS-16~'~?~,~~~PU~ R{'T9~ y ~ ~~`~ ';rES': SAK255 8#11y,~~AK~+,~~g-~ aBP~. 10^u-0 P~H°EV1S+T45~, ~- -~'r~'~}~ ~, }~ ~~1' LJ SCIC 1&~ '~ tEy`_ 1E 71 1F~ j7 H}(fiLA~IIl~1 #~~^ R91.c1~Bdr-02-14 .. ; ~ VILLE R 1 °Q .#t - KOOKPUK01 ~'kS~14 ~_~18-~4 2p~EILE°IFt ; ~1 - /~ ~-_ ~''t 1J-1 1J-10aPJ SAK o c o ttUFiL.S~ ;R~ cT~~' t b1~S++K03.~-0~J4}8 „BP~tDCK-01 6P-GEiTl~71 ~+~,~a 15 g1rSf,KS =HEt.115PRINGSS 1 #.%q+~++t KU;w4itul~RlV UNIp,J SAK OQ ~ + ~`~ - -~-32 2L-329 KRU S' #i~ti SW( 10,';dltdTER'.RiJLS 1 8UR^uL~N 3'_ 2L-31m,~321 ^^ ,. - 'NIN-ERTR.+JLS#3 ',~fEE h J SAK 13^ ~. , - ~ 307 ° si,t SAK 2£`HE Gt l S; A-E ?-9-11 _ oKADLE t ?~i'S0`~7SAK20 HEF."ISPRINGS '"#3 `" - 'JeItJ?ER7RA;LS#t" CiRpUE c ~ '00 CIRGUE1CiR:;,,E? RAVIKSTI ?OOLIKFEDERAL#2 ~ '?OCLK=.:~eL#$ - N RAAiKLiN B! KILLIK 01 ~ RUB `-:~ E #1 - 2P -4482P ~,.1 2P 441 x'147 SEQUOIA #1 .. ,, t.14'vTR N1 ~ SPARK#1A PROPOSE;) 0X6 . #? ROPOSED RE NDEZVG. ~ #2 :faked :faked ~'. Idb'vTR 51 ~;uOLFBU'?CIJ 32-7-$ r ' 4NOLfBU?TON 2S-Cr9 `' PIPE i° S-ATE #1 v ',.rE S" KAI E KVIK #1 1 t~lalguk #1 Amethyst St#1 _ fSKILLIK UNIT #1 GUBIK 1 " x Fig 4: Approximate mapped extent of poor quality 2D seismic data BUSH F NO cF vSUSIE UN1-#1`J C Chevron has an extensive grid of 2D spec data. With our working interest participation in the Kuparuk and Prudhoe Bay fields, we have obtained as much well data and 3D seismic as we are entitled too in order to characterize the White Hills area south of the current main producing fields. Currently, our key 2D lines through the White Hills prospective area have undergone several stages of reprocessing. In 2002, GeoTrace produced apre-stack migration data set which was later reprocessed by GR IZ11.Y-1 ?U L1wA #1 SL N'. INEL HILL C' t 5 i ~ Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Unocal in 2005 to attempt to apply newer noise reduction techniques. However, after the merger with Chevron, and high grading of the White Hills prospective area, it was decided to try and increase the signal to noise ratio of the data further by applying Chevron's proprietary noise attenuation technique. This was in an effort to enhance the image in a large swath of low frequency, poor quality data (Fig2). This poor data zone is coincident with a large portion of the Chevron acreage on the Central North Slope. 2007 DATA ACQUISITION The drilling program for the White Hills area was developed from both geologic and geophysical data sets. The results of the various reprocessed datasets were evaluated and it is clear that the current data quality is not sufficient to determine potential shallow hazards and completely validate well location placement. In the winter of 2007 (Jan 5-Feb 11) nine 2D lines, approximately 170 sq miles as outlined on Fig 3, were acquired over the White Hills area by CGG Veritas. The survey was designed to tie the current proposed well locations in a North-West -- South-East strike direction with two long North -South tie lines. Every attempt was made to avoid water bodies whenever possible due to the potential statics issues that ice lakes have on seismic data. Fig 5: Chevron 2007 2D seismic acquisition lines; acquired by CGG Veritas Chevron POTENTIAL SHALLOW HAZARDS Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Fig 6: Alaska North Slope Gas Hydrate Energy Resources, USGS Open File Report 2004-1454; by Timothy Collett Permafrost is expected to 1000 ft below the surface and there is the possibility that gas hydrates could be present although not expected. The current known accumulations of Gas Hydrates (Fig 6) do no appear to be present in the White Hills prospective area. A few coal layers are possible in the permafrost. The 2D pre-stack time migrated line, tying the Cirque wells (Fig 7a, b), shows a high amplitude reflector at the base of permafrost and bounded by faults. We suspect that this well blow out is possibly due to shallow gas. ~ There are no significant high-amplitude reflectors that occur on our existing poor quality 2D seismic data around the Smilodon 9-4-9 well. This suggests that shallow gas hazards are not a threat as in the Cirque analogues. 7 c L W U N O ~ O~ a a~ ~ d~ rn ~ V ~ Q ~ ~ ~ N Oaroi. Cpp O~ O s ~ C ~ c ~ ~ a Q ~ i~ ~ ; i^ ~ ~ ~. ~~ ~~ ~ ~~ ala ` '~ • ~, ~ j ~~~~ 7 ~~~~~ ~~ ll• ,s ~ ~ ~~~1~ ~~ ¢~ s, "~ ~,"' r~ ~ ~~ " ~ :, . '~ : F~;~ ~~ ~,, "~ Cz ~. ~ ~ ~~ ~` era.. , :~~~~~, .' ~, V ~x ~„ ~~,, ~~'~ /)yF v , . P~ ~ ~ ~~ ~~, ~ ~~~"~ , ~~ ~ ~ ~ jk ~: ~~~ m if « ~ t ~ #' ~~~, '~ ~~ ~' ~1 1 .. ,'° ~~ ~ ~ ~,~ ~ tl - ,~ I! 4TH ** A ~ ~~° . ~~ "~ ~ ~~ '~~,~ ~ #~ a +~.. 0~ . •a r a + C~C k{~ C ~~ N .~ v i ~ U i~ • ChE`~~~"On Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The present 2D seismic data quality is very poor.f In particular, the Central Depth Points (CDPs) which tie the Smilodon 9-4-9 well are coincident with an ice lake at the time the data was acquired. Ice lakes pose a significant challenge when processing and interpreting the data because of statics issues which diminish the image quality and frequencies in that section (Fig 3). With the current state of the seismic, it is difficult to truly asses the potential for shallow hazards. The newly acquired (2007) 2D seismic, acquired to tie the wells and help identify possible shallow hazards, is anticipated to be completed by late summer 2007. The expectation is to review the data as soon as it is completed for any shallow hazards which may not be identifiable on the current pre-stack time migrated dataset. GEO-PRESSURE /VELOCITY ANALYSIS Checkshot and VSP data is sparse in the White Hills area. However, there is sufficient data to generate a velocity field (Fig. 8) across the region which indicates that we should not encounter any velocity anomalies. The permafrost zone has higher velocities as expected and the transition beneath the frozen, lower velocity base is quite distinctive. CHECKSHOTS Time vs Depth 2000 1840 1600 130D 1200 a ~~ ^ ~$ d 1000 N E 1- 800 6DG 3DD mD D o c c_ c c c - - _ - _ a v~. ~, v. ~: ~: ir. c v~. a ir. ~r: ir. ND Depth (it) below T D datum Fig. 8 Checkshot and VSP Velocity Field across the White Hills and Surrounding Areas lVOltbutton="-6-9 __. 7am=? Tarn=1 Ru1vvST=1 al-atq=1 ~- ~-leltw~ater-X-1 Eln ih=1 Cirque=2 V. -AmethvstST~l 9 • • Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The Wolfbutton 25-6-9 is the most proximal checkshot to the proposed Smilodon 9-4-9 well. We expect similar velocities as shown in (Fig 9) on the Interval Velocity (Vint) vs Depth plot; Interval Transit Time (ITT) vs Depth. The plots show the expected faster velocities through permafrost and slower velocities through the zone of interest. From the velocity analysis, we expect a normally pressured regime through the Prince Creek, Ugnu, West Sak formations, and Colville zone. Fig 9. Wolfbutton 25-6-9: Time vs Depth, Vint vs Depth, ITT vs Depth MUD WEIGHT & SHALE RESISTIVITY ANALYSIS 3 key wells which delineate the White Hills area and Smilodon prospect are the Malguk #1, Wolfbutton 25-6-9, and Ruby State #1. These wells were used in addition to the checkshot and VSP data to examine the possibility of pressure and velocity anomalies. In Fig (10) Mud Weight (MW) in ppg were plotted vs depth for the 3 wells. The graphs indicate that drilling was balanced through our zone of interest where MW increased with depth. The Malguk well shows an anomaly at 2977 ft which coincides with top of the west sak pay interval; the well was cased at this point. 10 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Malguk #1 it 100 Rshale ohm-m 10 8.8 9 9.2 9.4 9.6 9.8 10 10.2 Mudweight ppg 1 0 2000 4000 r 6000 m 0 0 f 8000 10000 12000 10.4 Mudweight and Shale Resistivity versus Measured Depth plot for the Malguk #1 well. Mudweights were increased from 1200' to casing point due to oil and gas shows in the mudstream. Note that the shale resistivity trend indicates a normally pressured section down to approximately 10,000 feet, where a higher nressured regime is indicated. 11 • • Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Wolfbutton #25-6-9 Rshale ohm-m 100.00 10.00 8.00 8.50 9.00 9.50 10.00 10.50 Mudweight ppg 1.00 0.00 2000.00 4000.00 6000.00 8000.00 10000.00 12000.00 11.00 Mudweight and Shale Resistivity versus Measured Depth plot for the Wolfbutton #25-6-9 well. The shale resistivity trend indicates a normally pressured section at least down to 8,000 feet. 12 CheVirvn Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 SUMMARY In conclusion, we do not expect any shallow hazard in the well based on our current dataset. /The interpretation of our current 2D seismic and evaluation of offset mudweight well data do not highlight any potential problems. Prepared by: Dave Guthman Geologist /Technical Team Lead Alaska New Ventures Team MidContinent /Alaska BU (281)561-3401 buthbdb(a~chevron.com Monique Velasquez Sr. Exploration Geophysicist Alaska New Ventures Team MidContinent /Alaska BU (281) 561-4958 moniauevelasauez(a~chevron.com 13 Page 1 of 1 Maunder, Thomas E (QOAj Front: Maunder, Thomas E (DOA} Sent: Friday, January 18, 2008 2:46 PM To: Quay, Walter (Natchiq} Subject: Permit Applications Walter, As discussed, 1 am finalizing our review of the Smilodon revision. Please send only one original and one copy of the 401 sheet. Tom Maunder, PE AOGCC 1/18/2008 Addendum to Shallow Hazard Analysis for Smilodon well, North Slope CONFIDENTIAL • Davies, Stephen F (DOA From: Buthman, David B [buthbdb~chevron.com) Sent: Tuesday, January 15, 2008 12:36 PM To: Davies, Stephen F (DOA) Cc: Buthman, David B; Quay, Walter [ASRC) Subject: Addendum to Shallow Hazard Analysis for Smilodon well, North Slope CONFIDENTIAL Attachments: smile new 011508.BMP Hi Steve, David B. Buthman Technical Team Leader, Central North Slope MCBU Alaska North Slope New Ventures 11111 South Wilcrest Houston, TX 77099 office:281.561.3401 cell: 281.630.4698 «smile new 011508.BMP» Page 1 of 1 Per our phone conversation, attached find an example of the newly acquired (2007) 2D seismic over the Smilodon location. Referencing page 9, paragraph 2, of our previously submitted "Shallow Hazard Analysis" dated 29 June 2007, we have evaluated the new seismic data near the Smilodon location and find no evidence of shallow gas hazards below the permafrost. ---' Please consider the attachmen CONFIDENTIAL. Regards 1/15/2008 TRANSMITTAL LETTER CHECKLIST C WELL NAME ~" ~ ~ / U 1~~ 1~ ~~ ~" ~ ' ~~ ~r~ PTD# ~~ ~ ~ ~~s~ Development Service Non-Conventional Well FIELD: R /5s ~~ Exploratory Stratigraphic Test POOL: Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in permit No. API No. 50- - - API number are , between 60-69) Production should continue to be reported as a function of the . original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API. number (50- - -_) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH SAMPLE All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals throu h tar et zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Comuany Name) must contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 1/11/2008 WELL PERMIT CHECKLIST' Field & Pool Well Name: SMILODON 9-4.9 Program EXP Well bore see ^ PTD#:2071520 Company UNION OIL CO OF CALIFORNIA Initial ClasslType EXP ! 1.Oil GeoArea 890 Unit OnlOff Shore On Annular Disposal ~ Administration 1 Pe[mitfae atta4hed- - - - - - - - - - - - - - - - NA- - - - - - - - - - - - - - - - - - - - - - - - - - - ~ 2 Lease ns~mber approRnate - - - - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - - - - - - 3 Uniquawall_rtameandnumber--- ---- - -- - --- Yes-- --- -- - --- ----- ---- -- - -- - -- 4 Well located in a.defined-pool- - - - - - - - - - - - - - - - - N0 - - - Exploratory Well- - - - - - - - - - - - - - - - - - - - - - 5 Welt locatedProPerdiskancefro_mdrillingunit_boundary__________- -_ ___--Yes--- ----------------------------------------- ------------- -- ~ 6 Well located proper distance from other wells_ _ _ _ _ _ - _ _ _ _ _ - _ - _ _ _ _ _ Yes _ _ _ _ _ . Nea-resi well-is the plugged anq abandoned Malg~k_exploratory v~ell,-which lies 3 miles tQ the south. _ _ _ _ _ _ _ _ _ 7 Sufficient acreage available in_drillinq unit- - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - - - - - - 8 If deviated,iswellboreplatincluded________-_______--__ _______Yes--- ----Deviatedwell.__-_______--______________--------------------__ 9 Oparatoronlyaffectedpa~Y ---- ----- -- -- -- - --- Yes - -- - - -- - ---- ---- - -- -- - - - -- ~ 10 Operator has_appropriatebon~fntorce ---- - ---- - ---- -Yes-- --- - -- -- - ----- --- --- - -- - --- ! 11 PeCmitcartbeissuedwNhoutccnservationorder_____-_-____ _____ _--Yes-- ------------------------------------------------------------- ----- Appr Date j 12 Petmitcanbefssuedwhhoutadrriinistrativeapproval--------------- -- __---Yes-- ------------------------------------------------------------ ----- 13 Can permit be aPRrQVed befGra lS-day Wait- - - - - - - - - - Y~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SFD 1114/2008 14 Welllocaledwithirtereaandstraiaeuthorizedby_InjectionOrder#(put10#in-comments)-(Fpr_No___ ___________________________________-__________--__-__------------------ 15 Ail Wells withinil4_mileareaofreyiewjdentified(Forservicewellonly)______ _________ NA,_. __-___-__--___--_______________-___________--_______----------- 16 Pre•producedinjedor, duration ofpreprodpciionlessthan-3 months_(ForservicewallQnly)-- NA-- ------------------------------------------------------------ ---- ~ 17 Noncornren, gas c9niorms to ASS1,05,030Q.1-.A),(t.2.A-D) - - - - - - - NA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Engineering 1 18 Conductor string-provided - - - - - - - - - - - - - - - - - -Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 Surface casingprotects all known_USDWs _ _ _ _ _ _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - NA_ _ _ _ _ _ _ No subsurface watersources_in area._ Surface casing 400' below permafrost, _ _ - _ _ - _ _ - _ _ _ _ 20 CMTvoladequale_tocirCUlaieonc4nductQr&SUd-csg_-_____--__-_ _--___ --Yes-- ----------------.--------------------------------------------- 21 CMT vol adequate_to tie-in long string to ss~rf csg_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ No_ _ _ _ Annular disposal is-planned, _ _ _ _ _ _ X 22 CMTwill coverah known_prodt~otiye horizorts- - - - - - - - - - - - -Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - 23 CasingdesgnsadequataforC,TS&_pe[roafroar-------------- - ---_ _--Yes- ---------_------ ------------------------------------------- ---- 24 Adequate Tankage-or reserve pit _ _ _ _ _ _ _ _ - _ _ _ - - _ _ - _ _ _ _ _ _ _ -Yes _ . _ _ Rig equipped with steel pits, No reserve pit planned.. Annular disposal ofwaste-planned, _ _ - _ _ _ _ _ _ 25 Ifa_re~driil,has_a10-~OSforabandonmentbeenapP_roved------------- -------- NA--- --------------------_------------------_---------------------------- ~2ii Adequatewetlboreseparationproposed_______--__--____---_ ______ --Yes-- -----Nearestwell_3 miles distant---------------------------------- - - 21 If diverterrequired, does )t meetregulations _ _ _ _ _ - _ _ _ _ _ _ _ - - _ _ _ _ _ Yes _ - 12-114"-hole-planned, 12"_diverter line planned. This has been approved previousty, - - _ _ _ _ _ _ Appr Date 28 Drilling fluid_program Schemaiie& equip list adQquate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ Yes _ _ _ _ _ _ Maximum expected f_ormatiort pressu[e 8,4_EMW_ MW planned up to 9,3-ppg o[ as-needed, _ _ _ _ _ . _ _ - _ _ _ _ TEM 1N812008 29 BOPEs~ do theyrneetregulaiioo - - - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ ~30 BOPE_p-Tess rating appropriate; test to_(pui prig in comments)- - - - _ - - _ _ _ _ _ _ _ _ _ Yes _ _ MASP calculated at 1648 psi, 2500-psi_BOP test_planned: _ _ _ . _ _ _ _ - _ _ _ _ - _ _ _ _ Y V 31 Cheke-manifold compliee w1APi_ Ri?~3 (May 84)- - - - - - - - - - - -Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 32 Work willoccurwithoutoperationshutdown______-___--_-__ _--__ -Yes-- ------------------------------------------------------------ - -- 33 Is presence of H2S gas probable _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ , - _ _ _ _ _ No- _ _ _ _ H2S has notbeen reported in the offsetwells._ Mud should preclude_ii2S on ng.-Rig has Sensors and_alarms._ _ _ 34 Mechanical condition of wells withinAQRveriBBd(Forserv~ceweiloniy)---- --------- NA--- -----------------------------------------_---------------- Geology 35 Permitean be issued wlo- hydrogen_sulRde measures _ _ - _ _ _ - - _ _ _ - _ N_o_ _ _ _ _ _ _ -Exploratory well. Will_be mudlogged fcom_sprfacelo TD. Lime & zinc carbonate wfll be onsite,- _ _ _ _ _ - _ _ _ _ 36 Data_P~senied ort Rotential cverpresSUrezones _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -Yes _ _ _ _ Expected reservoirptessure is 8,4_Ppg._rNih be drilled with@.0.9.4 ppg mud. _ - - _ _ _ _ _ _ _ _ _ - _ _ _ Appr Date 37 Sefsmieanalysis of shallow gas zones_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ - _ _ _ _ Seismic, velocity & offset well data do not indicate the presence of shallow hazards. _ - _ _ _ _ _ - - _ _ _ _ SFD 111412008 38 Seabed conditionsurve~+_(ifoff~sho[e)_-_______-_____________ _________ NA--- --___BOttomholelocationchanged-$04'NNW.____________________-____.________-_______-_ 39 Contactnamelphoneforweekiy_prog_ressrepods_I4acPloretoryontyj-_--__-- _____--_Yes._ _____Tim-Branderlberg_907.283-7640___________________________________.___________ Geologic Engineering Date Dale: Date This permit was originally issued on 12110107. It is being re-issued to a new boflom hole location before drilling operations Commissioner: DTS s ner Commissionee 9 tl 1$ CPF ,~-. /~~ begin. • ~` • • SARAH PAUN, GOVERNOR +'~"~~ ~~ ~ ~ 333 W. 7th AVENUE, SUITE 100 CO1~SL'`RVA'1'IO1~T COl-IMISSIOI~T ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Tim andenburg ~, Union Oi Company of California PO Box 19 47 Anchorage, aska 99519 S RE: Explorati ,Wildcat, Smilodon 9-4-9 e i/ ~ Union Oil mpany of California Permit No: 7-152 Surface Locati 539 FSL, 700 FEL, SEC. 9, T4 , R9E, UM Bottomhole Loc 'on: 539 FSL, 700 FEL, SEC. , T4N, R9E, UM Dear Mr. Brandenburg: Enclosed is the approved app~Cation for p~init to drill the above referenced exploration well. \\ ~ This permit to drill does not exem u from obtaining additional permits or approvals required by law from of governmental agencies, and does not authorize conducting drilling ope do until all other required permits and approvals have been issued. In ddition, the Commission reserves the right to withdraw the permit in the ev nt it was a oneously issued. A weekly status report is required from the me the well is pudded until it is suspended or plugged and abandoned. e report should e a generalized synopsis of the week's activities and is lusively for the Com sion's internal use. Please -note that in ddition to the proposed log 'ng program, an openhole sonic or density p osity log must be recorded in e surface hole to enable evaluation of w er salinity in shallow aquifers at is remote location. If formation testi is planned, a Sundry Notice (Form 40 must be submitted in advance of operations. ~eratio must be conducted in accordance with AS 31. 5 and Title 20, iapte 25 of the Alaska Administrative Code unless t e Commission eci cally authorizes a variance. Failure to comply with applicable sion of AS 31.05, Title 20, Chapter 25 of the P.laska Admini ative Code, a Commission order, or the terms and conditions of this permit ay result the revocation or suspension of the permit. When providing notice r a ~ r Permit No: 207-152 Page #2 of 2 red Co DA'' cc: the ~~~~ V ~~ STATE OF ALASKA ALA OIL AND GAS CONSERVATION COSSION ~~~ Q 4 1CJ~1~ PERMIT TO DRILL ~~(~. 20 AAC 25.005 ~ias~~ ~,;` ~. ' .~.' ~ i,~_ ~:. ~11"?9;x500€1 1 a. Type of Work: 1 b. Current Well Class: Exploratory ^ Development Oil ^ 1 c. Specify if well is proposrt:.18 Drill 0 ~ Redrill ^ Stratigraphic Test ^ Service ^ Development Gas ^ Coalbed Methane ^ Gas Hydrates ^ Re-en ^ Multiple Zone ~ ~ Single Zone ^ Shale Gas ^ 2. Operator me: Union Oil Company of California 5. Bond: Blanket Q Single Well ^ 11. Well Name and Number: Bond No. 086S103515406BCM ~ Smilodon 9-4-9 - 3. Address: 6. Proposed Depth: 12. Field/Pool(s): PO Box 196247, An rage, Alaska, 99519 MD: 4950 TVD: 4950 Exploration 4a. Location of W~JI ( vernmental Section): 7. Property Designation: Surface: 539 r~l`~rL, 70 EL, Sec 9, T4N, R9E, Umiat Meridan ADL 389990 ~ Top of Productive orizon: 8. Land Use Permit: 13. Approximate Spud Date: 539 , 700 FEL, ec 9, T4N, R9E, Umiat Meridan ADNR LAS 26542 12/1/2007 Total Depth: 9. Acres in Property: 4. Distance to Nearest 539 ~, 700 FEL, Se , T4N, R9E, Umiat Meridan 5587 Property: 14000' 4b. Location of Well (State Base Plan oordinates): 10. KB Elevation - 15. Distance to Nearest Well Surface: x- 510,147 ~ y- 5, ,513 , Zone- ASP 4 (Height above GL): 341' MSL feet Within Pool: None ` 16. Deviated wells: Kickoff the feet 17. Maximum Anticipated Pressures in p (see 20 AAC 25.035) Maximum Hole An degrees Downhole: 2143 '" rface: 1648 18. Casing Program: Speer tions Top -Setting Depth - Bo m Cement Quantity, c.f. or sacks Hole Casing Weight Grade oupling Length MD TVD MD TVD (including stage data) Augered 16 65 N-80 We 80 0 0 80 80 As Required to Surface 12-1/4 9-5/8 40 L-80 BTC 1722 0 0 1722 1722 Lead: 224 bbls (250% excess) Tail: 45 bbls (40% Excess) 8-1/2 7 26 L-80 BTC-M 4950 0 4950 4950 Lead: 63 bbls (40% excess) Tail: 19 bbls (40% excess) 19. PRESENT WELL CONDITION SUMMAR To be completed for Re and Re-Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measure Effect. pth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size ment Volume MD TVD Conductor/Structural Surface Intermediate Production `- Liner Perforation Depth MD (ft): N/A Perforation Dep TVD (ft): N/A 20. Attachments: Filing Fee ^ BOP Sketch ~ Drilling Program Q Time v. Depth Plot ~ Shallow Hazard Analysis Q Property Plat 0 Diverter Sketch ~ Seabed Report ^ Dri Fluid Program 0 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Walter Quay Printed Name Tim Brandenburg Title Drilling Manager ~_.__~ s Signature ~ Phone 263-7640 Date 12!4/2007 Commission Use Only Permit to Drill ~7~'~~Z API Nu er: . ---"'2~ ~ `~~~ ~ 2 Permit Approval / ~ ~ See cover letter for other Number: . 50- f . -J Date: I requirements. If box is checke ell may not be used to explore for, test, or produce Coalbed meths e, g hydrates, gas contained in shales: ' ~ ~ ' No ^ No ^ log req d: Yes [ d: Yes /[ Conditions of approval : ~~~i'`~ ~ ~ri~~h`~~~~~- Samples req S measures: Yes No ^ Directions vy req'd: Yes No H U z _ ~`~ ~~ ~5 i ~ h~~ ~~~`E ` ' ` 1 . ~ T~` ' ~i.6.o7 •~a.. ~., ~~ vc~ ~' '~ ..~ (` ` (a `~~ ~~ ~ ~ t" ''sp ~y~ - .E ~ ccs~. ~ . ~v~'~~ 1~0 a-fl ~C~-5.~`~ 5 C~n~ C Other: APPROVED BY THE MMISSION ~d 7 DATE: , COM STONER / ~ Form 10-401 Revised 12/2005 ORIGINAL Submit i Duplicat Chevron December 4, 2007 Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7a' Avenue Anchorage, Alaska 99501 Timothy C Brandenburg Union Oil Company of California Drilling Manager P.O. Box 196427 Anchorage, AK 99519-6247-~.~-~a, ~ G~ rA {.,~ Fax 907 263®®7884'+ CC ~~,g 1° ~ (T (' ~-tJ B~.~VG~V~i..J Re: Application for Permit to Drill Smilodon 9-4-9 Exploration Well Dear Commissioner: Alaska Qil & Gas Cons. Commission Ancharage Enclosed for approval is a corrected Permit to Drill (form 10-401) for Union Oil Company Of California to drill the Alaska North Slope White Hills Exploration well, Smilodon 9-4-9. The corrections are: • Eliminating "Chevron" from the 2. Operator Name on the 10-401 form. • Changing the 10. KB Elevation to 341' MSL on the 10-401 form. Subject to AOGCC approval, it is intended to mobilize Nabors 106E rig for the drilling of Smilodon 9-4-9. The plan is to drill a vertical well to 4950'/4950' MD/TVD, evaluate the well with wireline logs, run and cement a 7" production casing string, then demobilize the rig from this well to the next White Hills exploration well. Upon the drilling of this well, a sundry requesting annular disposal of the used mud and cuttings in this well is planned. A variance from requirements of 20 AAC 25.035, to utilize a diverter vent line diameter of 12" is requested. This is smaller than the planned surface hole of 12-1/4". A similar request was submitted and approved for the SCU 42- OSY well in June 2007 and the Happy Valley #12 well (with Nabors 106E) in October 2007. The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill(except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Union Oil Of California a wholly owned subsidiary of Chevron Corporation. An anticipated spud date is December 1St, however in an exceptional year, this spud could be as early as November 15`x. This is dependent upon the weather conditions in the Franklin Bluffs staging area and the White Hills exploration area and the DNR approval to proceed with the mobilization of the ice construction and drilling equipment to site via the planned snow road. Therefore, your earliest attention to this application will be greatly appreciated. If additional information is required, please contact either myself or Mr.Walter Quay at 263-7612. Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill (Public Information) - 1 Copy 2. Form 10-401 Application for Permit to Drill - 2 Copies 3. Well Program 4. Wellbore Schematic 5. Drilling Fluids Program ewe ~ ~~~ 6. Directional Program a~-+~-~-•-~_ 7. As Staked Location Plat ~~ 8. Days Vs Depth Drilling Plot 9. MASP Calculation & Casing Design 10. Diverter, BOP and Choke Manifold Schematics (~~ ~ ~.~~7 11. Shallow Hazard Analysis Alaska Oi! SI Gas Ca , Corrlrrlisgior~ Sincerely, AnC6tDra'~~ ~;, ~ ~ T~vn~Brandenbur Y g Drilling Manager Cc: Well File Union Oil Company of California / A Chevron Company http://www.chevron.com ~. chevron ~ i Drilling Department Well Plan Summary , S/3 ~s~ ~•9•~~ Surface Location: X = 510,146.72' - Y = 5,743 .32 As-Staked 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM Target Location: X = 510,146.72' Y = 5,743,507.32 To U nu 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM Top West Sak X = 510,146.72' Y = 5,743,507.32 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM Bottom Hole Location: X = 510,146.72' Y = 5,743,507.32 537' FSL, 700' FEL, Sec. 9, T4N, R9E jJM The well approaches within 14,000' of the nearest Chevron White Hills lease line. ~ Estimated Start Date: 12/01/2007 O eratin da s to com lete: 27 - MD: 4950' - TVD: 4950' - Formation Markers: Elev. GL: 341' MSL - RKB: 20.5 - Formation To s MD -RKB TVD-GL Comments To Prince Creek C 1040' 1019 Base Permafrost 1222' 1201 Casin Point 500' below base Permafrost" To Prince Creek B 1465' 1444 To Prince Creek A 1850' 1829 Top Upper Ugnu 2335' 2314 To Lower U nu 2835' 2814 Top West Sak D 3122' 3101 To West Sak B 3286' 3265 Top West Sak A-1 3442' 3421 TD Shallow Contingency 3581' 3560 Top Coleville 4228' 4207 Est. TD 4950' 4950 Drill thru Mal uk #1 E uiv. Zone of 4850' to 4900' Casing Program: Hole Size Csg/ Tb O.D. Wt/Ft Grade Conn Length Top MD/TVD Btm MD/TVD bkb Au ered 16" 65# 80 80' GL 80' 12-1/4" 9-5/8" 40.0# L-80 BTC 1722' GL 1722' 8-1/2" 7" 26# L-80 BTC-M 4950' GL 4950 3 of 39 ~, Mud Program: Initial Value Final Value Densit 8.7 9.0-9.4* Funnel Viscosity g0-100 50-70 seconds Yield Point 35-45 25-35 cP Plastic Viscostiy (Ib/100 10-21 10-23 s 10 second Gel Strength Ib/100 s 10-15 10-15 10 minute Gel Strength Ib/100 s 14-24 14-24 H 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 Solids % 6-12 6-12 12-1/4" Surface Hole 0-1722' : Fresh Water Mud - 6% KCLJPHPA 8-1/2" Production Hole 1722' - 4950' :Fresh Water Mud - 6% KCUPHPA/Clayseal Initial Value Final Value Densit 9.1 - 9.2 9.3 Max Funnel Viscosity seconds 40-65 40-65 Yield Point (cP) 15-25 15-25 Plastic Viscostiy (Ib/100 s 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <4 <4 Solids % 6-12 6-12 Hydraulics: Surface Hole: 12-1/4" Interval Pump Drill AV Pump PSI ECD Motor Jet Nozzles TFA GPM Pie f m pp -emw "/32 in2 0'-1722' 600 4" 14# 9.7 N/A Tbd tbd Interval Pump Drill AV Pump PSI ECD Motor Jet Nozzles TFA GPM Pie f m -emw "/32 in2 1722' - 4950' 450 4" 14# 9.6 N/A tbd .tbd Production Hole: 8-1/2" 4 of 39 ~ ~ Logging Program: Lo in While Drillin Hole Size Services Run 1 0-surf cs LWD: GR/Res/Directional Run 2 surf cs -TD LWD: GR/Res/Directional Run 3 Mud Lo in Services 0-SUrf CSg mudlogger required from surface to TD ,/ 0-TD Bagged samples of cuttings every 30 feet, with 10 ft samples caught from sandstones and other potential reservoirs from surface to TD (both legs); three washed and dried cuts, one unwashed cut. . Corin Hole Size Services surf cs -TD 50 rota sidewall cores Open Hole Logging Hole Size Services Run 1 8-1/2" GR/CN/ZDL/XMAC Run 2 8-1/2" MREX Run 3 g-1/2" RCOR Run 4 $_1/2" RCI(MDT Type Formation Sampler & Pressure) Run 5 g_1/2" Seismic Veloci Checkshot Integrity Testing: Test Point Depth Test Type EMW Surface Casing Shoe At least 20 feet but not LOT 12.5 ppg EMW Estimated more than 50 feet of new formation Cement Calculations: Casino Size 19-5/8" Surface Basis: Lead: Based on conductor set at 80', 1200' of annulus in the permafrost 250% excess Tail: Based on 500' o en hole volume + 40% excess + 80' shoe track volume. Total Cement Volume: Lead 224 bbl / 1257 ft / 303 sks of Permafrost Type L at 10.7 ppg and 4.15 cf/sk. Tail 45 bbl / 255ft / 220 sks of Premium `G' at 15.9 ppg and 1.16 cf/sk. Production Casing Casino Size 7" LonQStrin Basis: Lead: Based on TOC 500' below the 9-5/8" shoe + 40% excess volume Tail: Based on TOC 500' above to the 7" shoe + 40% excess volume Total Cement Volume: Lead 67.3 bbls / 379 ft / 117 sks of Premium Cement with Econolite at 11.2 and 3.24 cf/sk Tail 19.1 bbls / 107 ft / 93 sks of Premium at 15.8 ppg at 1.15 cf/sk 5 of 39 ~ ~ Well Control: Surtace hole will be drilled with a diverter. The MASP is 1648 psi. (See Attached) The intermediate/production hole well control equipment (of at least 3000 psi working pressure) consisting of will be equipped with pipe rams, blind rams, and an annular preventer will be installed and is capable of handling the MASP pressure. Based upon the planned casing test of 2000 psi for casing integrity considerations, the BOP equipment will be tested to 2500 psi. Disposal: Annular disposal is planned for this well.'' In planning for this, an analysis of the aquifers in the area concluded: 1. The salinity increases uniformly from the base of permafrost to over 10,000 ppm chlorides in the area 2. Abundant oil and gas, thick viscous oil, and brines occupy most of the reservoirs below the base of the permafrost, and are not generally drinkable. - 3. The permafrost provides an impermeable upper seal for the disposal of cuttings and wastes derived during drilling operations. - 4. The permafrost ranges in thickness of from approximately 600 feet in the south, to 1400 feet thick in the north end of the prospect, containing permanently frozen ground comprised of gravels, sands, silts, shales, gas hydrates, brines, and peat. 5. There are numerous freshwater lakes situated on top of the permafrost that can provide drinkable water and some of which sustain fish populations. 6. There are no roads, no permanent trails or manmade habitable structures of any kind in the prospect area 7. There is no indigenous human population that lives in the White Hills Prospect (ie: population = 0). Cuttings Handling: Cuttings generated from drilling operations will be annularly disposed in the 9-5/8" X 7" Annulus or hauled or hauled to an approved disposal facility. Fluid Handling: All Mud and Used drilling and completion fluids and other Class II wastes will be annularly disposed in the 9-5/8" X 7" Annulus or hauled to an approved disposal facility. ~. ~ r~~s~vc~peJ P~CC'N.~.~ro5~ ~~~ pj`"O V°1`c) ~ G ~D G.E't~d C. C- ~ X10 W ~c.v E ~ ~~U W ~Uv `~ S vcovh~ ~~.vccE'~Pw`~~~ •~E~` ~ wEt~ r`~~~w.~ ~c~ ~o tae cra ~~~~ s ~ ~, ~ S `~ 'b~ac.~. 5~~. ~~o ~~3 ~~1~3 ~~~. ~~~ -o~ ~a(~ 6 of 39 ~ ~ Summary of Drilling Operations Pre-Rig Work: 1. Set and cement 16" conductor 2. Install cellar Rig Operations: 1. MIRU Nabors 106E and camp. 2. Nipple up diverter spool and riser. Function test diverter system. Provide the AOGCC at least 24 hours notice of each BOPE function pressure test so that a commission representative can witness the test 3. MU 12-1/4"drilling assembly and drill surface hole to approximately 500' below the permafrost. 4. Run and cement the 9-5/8", 40.0# surface casing back to surface. A Stab-in cementing system will be utilized. 5. NU BOPE and test. MU 8-1/2" drilling assembly with MWD/GR/RES/and RIH to float collar. Test the 9-5/8" casing to 2000 psi for 30 minutes 6. Drill out shoe joints and new formation greater than 20' and less than 50'. Perform the Leak Off Test. 7. Drill ahead to planned TD 8. Circulate and condition hole and perform wiper trip to surface casing shoe. POOH and stand back BHA. 9. RU Open Hole Wireline and run Logging Suite. 10. TIH to TD and condition hole for running casing. 11. Run and cement the 7" production casing. Freeze protect the 7" x 9-5/8" annulus and 7" as required. Test casing to 2000 psi. 12. TOOH and LD drill pipe. 13. Completion program will be advised. 14. Nipple down the BOPE. Nipple up and test the tree to 5000 psi. Remove TWC. 15. Rig down and move off 7 of 39 TANK 106-13 TYPICAL OF 2 TANK 106-12 TANK 106-16 TYPICAL OF 2 TYPICAL OF 2 TANK 106-25 AN TANK 106-10 -TANK 106-9 -TANK 106-11 TANK 106-26 tnnt~ tvu-] TANK 106-1 TYPICAL OF 2 toa-t ntwwu>ae wnv -, 2 . ,.! awns Luee a< 106-2 BOP ICCUIKRAIOR 220 aLS KOOYLY RUe toe-3 eov tFSr wuv usrwTKR~ 2.! awrrs luee al 106-1 RIO MY TNe( 9.366 G.LS 0E3EL e11E1 roes Lvu wuv x e t.s awas wee of toe-a r~R coevResmR 100-] KDI9F11 T.WK : e a avers was a~ 191e 6NS BALER e.lEle toe-e 106-9 CaD6fNrt FUEL TN1K 106-tO COLBSfNIf CE/15Ef WBE l2.2 a9i aE6EL e11EL 9.! aLt LUKE al toe-tt aoetsaar mrser RIONIOR eau arcs toe-t2 cExsET Luee 2 e n au. Lua rn 106-13 aTREf MDMTLKi 2 e 1!3 aLS. Qv[0. tos-te waEURr RIG ~ SIOR~f.E 2 e e9l0 cKS oRSCL ncL toe-ta uRm 9uv[R x e 2a au rutm to6-1s tuo vuuv 2 e ro GKS. LuaE al 106-1] PKI. TNiK !0.]I 8615 ORLLf1G NN toe-te 1wv neu toe-19 uuo nwa ezm eeLS oRwKC wo a rovaasc eee aas uw t0e-20 106-21 106-82 t0e-T3 VNTER TNlK - YIRe t9.e0> G.LS. N61ER toe-xa W~1ER TNlK - Ilna1N>f t.,la> Ty< M41ER 106-TS YOfOR Oe. SIORIOE 1 to6-2s cr~R as seoaicE 6..66 GKB. 40TOR aL ...ee Txs. cuR aL 1oe-u erm. aL sTORacE ...ee rws. Kra oR toe-2e >au Rune ruL wr was 3eo das. oxsR rw. 106-ZI P1PE SNEI>-RPE SINIe IW tae-ae 1x0 G4.S ee'0. aL tos-a9 cFUnR BnooE u+ue > Rro. a toe-a artnxcs eaass. 2 nr s rnE 6 e 6xe.x rxs cumws TANK 106-2 AN~w:Almlm 2373 INeOee/M~lrt>,~ Mcla 90]-. FQ RIG 106E ' PLAN VIEW - LEVEL 1 SPCC PLAN NTS f - JULY o7 J~ • M White Hills Well #1 Smilodon 9-4-9 DIR /LWD FORM DEPTH-RKB(21~ HOLE CASING MUD INFO MWD MD TVD TVD-SS SIZE 5PECS Cement Info INFO 0' 0' 361' 16" 651bRt, L-80 101' 101' 260' N/A N/A LWD/GRIRES Surface Cso MSL 361' 361' 0' 9-5/8" Lead Slurry 40 Ibs/ft 224 Bbls, 303 sz Wellbore Stability L-80, BTC-M 70.7 ppg Lost Circulation ID.=8.835" 4.15 ft3/sx Hole Cleaning Int. Yield psi Casing SeC110ns Top PC C 1,040' 1,040' -679' Collapse psi Casing Wear Float Eauioment Tail slurry Base Permafrost 1,222' 1,222' -861' ~ 1 ea Float Shoe 45 Bbis, 220 sx Top of Tail Cement 1 ea Float Collar 15.8 ppg Top PCB 1,465' 1,465' -1,104' Centralizers 1.ts ft3/sx 9.0 -10.0 ppg 9-5/8" Casing Point 1,722' 1,722' -1,361' 12-1/4" 60 ° F Water Based Mud LWD/GR/RES/ Porosity Used Drilling Mud IIFR/Cas Disposal Zone Top PCA 1,850' 1,850' -1,489' Stage Collar Est. TOC 2,350' 0 0 0 0 0 0 o Inter. Casing Lead Slurry Wellbore Stability 7" 67.3 Bbls, 117 sx Lost Circulation Top Upper Ugnu 2,314' 2,314' -1,953' 261bs/ft 11.2 ppg Hole Cleaning L-80, BTC-M 3.24 R3/sx Torque & Drag Top Lower Ugnu 2,835' 2,835' -2,474' ID. =s.27s^ Casing Sections Int. Vield psi Top West Sak D 3,122' 3,122' -2,761' Collapse psi Tail Slum 19.1 Bbls, 107 sx Top West Sak B 3,286' 3,286' -2,925' 15.5 ppg 1.15 ft3/sx Top West Sak B 3,442' 3,442' -3,081' Top Coleville 4,228' 4,228' -3,867' RCI Sampling £ 8-1/2" ~ 9.0 - 9.4 PP9 7" Casing Point 4,950' 4,950' -4,589' 8-1/2" 85° F Water Based Mud 4 Smilodon Well Bore.xls 91~/9i~007 Halliburton saROi~ Chevron Mud Program White Hills Well #1 Smilodon Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Walter Quay Version No: Date: 1.3 September 5, 2007 Smilodon v1.3 1 9/5/010 of 39 i • Halliburton BaROiD Chevron Mud Program Smilodon General Discussion This exploration well will be drilled from an ice pad south of Kuparuk. Due to the remote location, waste management is critical on this well. A 12 '/4" surface hole will be drilled vertically to a depth of -1722' where 9-5/8" casing will be set and cemented. An 8 '/2" production hole will then be drilled vertically to a depth of 4950'. For annular injection, 7" casing will be run and cemented at this depth. Spud the well with a 6% KCI/PHPA mud. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide effective wellbore stabilization and minimize waste:. ionic inhibition (KCI) and polymer encapsulation (PHPA). Clayseal will be added to the existing 6% KCI/PHPA mud for use in the production interval. This will provide another mechanism for inhibition and waste minimization and will facilitate drilling a gauge hole. If necessary, the weight will be reduced to 9.3 ppg prior to drilling out of the surface casing. Special Considerations: i. While gas hydrates are unlikely, maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. Contact the Technical Representative prior to any additions of Driltreat. ii. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 v' pallets lime). iii. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@1500 sx barite on location at all times). iv. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. v. Reduce the potential for hole erosion/destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drill pipe in the 150-200 fpm range. vi. Some shale instability has been noted on offset wells (maintain tight filtrate control/mud weight). vii. Obtaining good logs and fluid samples are a key component of this drilling program. Maintaining low filtrate and using the inhibitive mud system will limit fluid invasion and help drill a gauge hole. viii. Maintain an adequate supply of STEELSEAL should losses be observed. String 3-5 sx/hr immediately after noting losses. Again, this will improve the post well fluid samples by limiting drilling fluid invasion. Well Specifics: Casin Pro ram MD TVD Foota e 12'/4" hole 9 5/8" Casin 1722 1722 1722 8'/2" Hole 7" Casin 4950 4950 3228 Smilodon v 1.3 2 9/5/011 of 39 ~ ~ Halliburton BaROID Chevron Mud Program Surface Interval: 12'/4" to 1,722'; 6% KCI/PHPA Mud Properties Initial Value Final Value Densi 8.7 9.0-9.4* Funnel Viscosity (seconds) 80-100 50-70 Yield Point cP 35-45 25-35 Plastic Viscostty (Ib/100 sf) 10-21 10-23 10 second Gel Strength (Ib/100 sfJ 10-15 10-15 10 minute Gel Strength (Ib/100 sf) 14-24 14-24 H 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 Solids % 6-12 6-12 "Weight increase due to natural progression of solids. A weight up is not programmed. Base Formulation: COLD Water - 0.905 bbl KCI - 20 Ibs (30-32K ppm chlorides) EZ Mud DP - 0.75 Ibs (.15 ppb in initial mix) Dextrid - 3 Ibs (API filtrate of 8-15 cc initially) Barazan-D - 1-2 Ibs (as required for an initial 35 YP) KOH - 0.1-.25 Ibs (pH = 8.5-9.5) Aldacide-G - 0.25 Ibs (X-cide 207 for rig maintenance) Baracor 700 - 1 ppb Barascav D - 0.5 ppb (to be added at the rig when first circulating) ** Use Barite for any needed weight ups on this well. NOT drill solids. /' A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system; however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders/desilters, mud cleaners and centrifuge(s) to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. On an example well, some of the centrifuge under-flow was returned to the mud system. This led to a fines build up and the resultant required dilution was excessive. The personnel were trying to reduce waste but wound up causing additional waste. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud <75°F should be made. Normal surface hole viscosities should be adequate for this vertical well. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements. of the well (On offset wells, pea gravel was noted to 500', then mainly sticky clay and sand was observed). Reduce viscosity as allowed, previous wells in the area have TD'd the surface with a -18-25 YP. However, do not hesitate to quickly raise the viscosity if hole cleaning problems develop. Polymer viscosity in the form of Barazan D additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. i Smilodon v1.3 3 9/5/012 of 39 • Halliburton saROiD Chevron Mud Program Spud the well with an 8.7 ppg mud. Expect the natural progression of the weight as drilling proceeds. Increase the mud weight as dictated by actual hole conditions. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. • A two pound per barrel treatment with Driltreat (Lecithin) could provide some inhibition of the hydrate break-out. Contact the Technical Representative prior to any additions of Driltreat. • Keep the mud as cool as possible to minimize thawing of the hydrates. Mud up with cold water and dilute with cold water. • Milne Point and Tarn operations have reported benefit from treating with 1 % DriI-N-Slide. The mud engineers state that it acts to smooth out the rheology of the fluid. If possible, use 6% KCI water (COLD) to maintain volume while drilling ahead. Maintain the mud chlorides - 28,000 - 34,000 ppm with KCI. Use Dextrid and PACs for API filtration control. Target 8-15 cc initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. Hold the pH in the 8.5-9.5 range with KOH. Mix 0.15 ppb of EZ Mud in the initial mix. Once the mud has sheared through the bit twice, slowly increase the EZ Mud concentration to the full 0.75 ppb. Daily additions of X-Cide 207 are needed to control bacterial action. Should bacteria become a problem, hold a safety meeting and add the desired amount of Aldacide G using all the proper PPE. High levels of corrosion have been seen when running KCI fluids in other areas on the North Slope. Barascav D and Baracor 700 levels will be maintained at programmed levels. As noted on offset wells, heavy amounts of clay will be present from about 500' onward which will require additions of DriI-N-Slide and/or Condet to reduce BHA balling and screen blinding. Sweeping the hole with high viscosity or Barolift sweeps prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible, reduce the fluids rheology to those recommended in the cementers program after the casing is on bottom. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Smilodon v1.3 4 9/5/013 of 39 Halliburton BaROi~ Chevron Mud Program Production Interval: 8'/Z" to 4,950'; 6% KCI/PHPA/Clayseal Mud Properties Initial Value Final Value Densi 9.1 - 9.2 9.3 max Funnel Viscosity (seconds) 40-65 40-65 Yield Point cP 15-25 15-25 Plastic Viscostiy (Ib/100 stJ 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 AP1 filtrate <4 <4 Solids % 6-12 6-12 * Unless hole conditions dictate otherwise Treat the mud with bicarb and citric acid prior to drilling out. Drill out using the existing mud system from surface hole. Some whole mud dilution may be required to reduce solids content and MBT to an acceptable level. Add Clayseal slowly until a final concentration of 0.84 gal/bbl is reached. Maintain this concentration until interval TD. Decrease the API filtrate to <4 cc/30 for the interval using Dextrid and/or PAC L. Keep. low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0-9.5 with KOH. Daily additions of Aldacide G/X-Cide 207 should be made to control bacterial action. The chloride level should be kept in the 28-34K range through additions of KCI. The EZ Mud concentration should be maintained at .75 ppb. A 15-25 YP should be maintained using Barazan D+. On Amethyst #1, some shale splintering was seen at 4,300', requiring aweight-up to 10.5 ppg. Proper drilling practices should be employed to minimize mechanical disturbance in this interval. If splintered shale is seen at the shakers, consider weighting up a minimum of .4 ppg and maintain this weight until TD. Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. If seepage losses are noted while drilling the sands, immediately string in STEELSEAL at 3-5 sx/hr. Obtaining good logs and fluid samples are key goals of the well. Smilodon v1.3 5 9/5/014 of 39 Ch~ ~/ Schlumberger ilodon (P2) Proposal Report Date: October 9, 2007 ~ ~ Survey /DLS Computation Method: Minimum Curvature I Lubinski ° Client: Chevron it Vertical Section Azimuth: 90.000 Field: White Hills ~ ~+v7 ~ Vertical Section Origin: N 0.000 k, E 0.000 ft Structure /Slot: Smilodon /Smilodon 1 , ~ TVD Reference Datum: RKB Well: Smilodon , l l ~' TVD Reference Elevation: 361.5 ft rela8ve to MSL Borehole: Smilodon ~ ~/~~, Sea Bed /Ground Level Elevation: 341.000 k relative to MSL UWIIAPI#: Survey Name /Date: 50029 Smilodon (P2) I October 9, 2007 0 ~ V ~ ~/1~~ Magnetic Declination: Total Field Strength: 22.594° 57560.386 nT Tort 1 AHD 1 DDI 1 ERD ratio: 0.000° / 0.00 k / 0.000 / 0.000 ~ 1'y Magnetic Dip: 80.373° Gdd Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 15, 2008 Location LaVLong: N 69.71042272, W 149.92011065 Magnetic Declination Model: BGGM 2007 Location Grid NIE YIX: N 5743513.000 kUS, E 510147.000 kUS North Reference: True North Grid Convergence Angle: +0.07493238° Total Corr Mag North -> True North: +22.594° Grid Seale Factor: 0.99990012 Lowl Coordinates Referenced To: Well Head C~ Comments Measured Inclination Azimuth Subsea T~ Vertical NS EW Gravity DLS Directional Northing Easting Latitude Longitude Depth Section Tool Face Difficulty k de d k k k k de de O k Index kUS kUS tZKt3 u.UU u.uu u.uu -sti~.ou u. u.uu u.uu u.vu --- u.uu u.uu ar4sois.UU aiU~4r.uu rvna.nuvaiz vviva.azuiiuoo Conductor 101.00 0.00 0.00 -260.50 101.00 00 0.00 0.00 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 200.00 0.00 0.00 -161.50 200.00 0. 0.00 0.00 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 MSL 361.00 0.00 0.00 -0.50 361.00 0.00 .00 0.00 -- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 400.00 0.00 0.00 38.50 400.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 600.00 0.00 0.00 238.50 600.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 800.00 0.00 0.00 438.50 800.00 0.00 0.00 0 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 1000.00 0.00 0.00 638.50 1000.00 0.00 0.00 0.00 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Top PC C 1040.00 0.00 0.00 678.50 1040.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 1200.00 0.00 0.00 838.50 1200.00 0.00 0.0 0.00 --- 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Base Perm / 1222.00 0.00 0.00 860.50 1222.00 0.00 .00 0.00 --- 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011 1400.00 0.00 0.00 1038.50 1400.00 0.00 0.00 0.00 --- 0.00 0.00 43513.00 510147.00 N 69.71042272 W 149.92011 Top PCB 1465.00 0.00 0.00 1103.50 1465.00 0.00 0.00 0.00 --- 0.00 0.00 5 .00 510147.00 N 69.71042272 W 149.92011065 1600.00 0.00 0.00 1238.50 1600.00 0.0 0.00 0.00 --- 0.00 0.00 574351 510147.00 N 69.71042272 W 149.92011065 9-5/8" Csg 1722.00 0.00 0.00 1360.50 1722.00 0.00 0.00 --- 0.00 0.00 5743513.00 147.00 N 69.71042272 W 149.92011065 1800.00 0.00. 0.00 1438.50 1800.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.0 69.71042272 W 149.92011065 Top PC A 1850.00 0.00 0.00 1488.50 1850.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 .71042272 W 149.92011065 2000.00 0.00 0.00 1638.50 2000. 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2200.00 0.00 0.00 1838.50 22 . 0 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Top Upper Ugnu 2314.00 0.00 0.00 1952.50 4.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2400.00 0.00 0.00 2038.5 2400.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2600.00 0.00 0.00 223 2600.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 WeIlDesign Ver SP 2.1 Bld( doc4Ox_1OO) ~ Smilodon 1\Smilodon\Smilodon\Smilodon (P2) Generated 10/9/2007 1:58 PMT®91 of 2 a Measured Vertical Grevdy Directional Comments Inclination Azimuth SulrSea TVD TVD NS EW DLS Northing Easting Latitude Longitude Depth Section Tool Face Difficulty k de de k k k k k de de 100 k Index kUS kUS 'CifUU.UU U.UU U.UU Y43tS.bU ZifUU.UU Lower Ugnu 2835.00 0.00 0.00 2473.50 2835.00 3000.00 0.00 0.00 2638.50 3000.00 Top West Sak D 3122.00 0.00 0.00 2760.50 3122.00 3200.00 0.00 0.00 2838.50 3200.00 Top West Sak C 3286.00 0.00 0.00 2924.50 3286.00 3400.00 0.00 0.00 3038.50 3400.00 Top Wesf Sak 8 3442.00 0.00 0.00 3080.50 3442.00 3600.00 0.00 3238.50 3600.00 3800.00 0.00 0.00 438.50 3800.00 4000.00 0.00 0.00 3 0 4000.00 4200.00 0.00 0.00 3838. 4200.00 Top Coleville 4228.00 0.00 0.00 3866.50 8.00 4400.00 0.00 0.00 4038.50 4400.0 4600.00 0.00 0.00 4238.50 4600.00 4800.00 0.00 0.00 4438.50 4800.00 4959.00 0.00 0.00 4597.50 4959.00 TD / 7" Csg 4960.00 0.00 0.00 4598.50 4960.00 Leg al Description: Surface : 539 FSL 700 FEL S9 T4N R9E UM BHL : 539 FSL 700 FEL S9 T4N R9E UM U.UU 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 (~ Sl 510147.00 (10147.00 ~G ~~ r ~ o~ ~~® U.UU 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 U.UU 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 00 Northing (Y) [ftUS] 5743513.00 5743513.00 U .UU U.VU b/43D13. UU 0"IU"14/.UV N by. /lV4ZZ/Z VV l .yZU11Vb5 0. 00 0.00 5743513. 00 510147.00 N 69. 71042272 9.92011065 0 .00 0.00 5743513. 00 510147.00 N 69. 71042 149.92011065 0. 00 0.00 5743513. 00 510147.00 N 69 42272 W 149.92011065 0 .00 0.00 5743513. 00 510147.00 . 71042272 W 149.92011065 0. 00 0.00 5743513. 00 510147.0 69. 71042272 W 149.92011065 0 .00 0.00 5743513. 00 5101 N 69. 71042272 W 149.92011065 0. 00 0.00 5743513. 00 5 47.00 N 69. 71042272 W 149.92011065 0 .00 0.00 5743513 510147.00 N 69. 71042272 W 149.92011065 0 .00 0.00 574 . 00 510147.00 N 69. 71042272 W 149.92011065 0 .00 0.00 513. 00 510147.00 N 69. 71042272 W 149.92011 0 .00 0.0 743513. 00 510147.00 N 69. 71042272 W 149.92011 0. 00 5743513. 00 510147.00 N 69. 71042272 W 149.92011065 0 .0 0.00 5743513. 00 510147.00 N 69. 71042272 W 149.92011065 . 0 0.00 5743513. 00 510147.00 N 69. 71042272 W 149.92011065 0 .00 0.00 5743513. 00 510147.00 N 69. 71042272 W 149.92011065 0. 00 0.00 5743513. 00 510147.00 N 69. 71042272 W 149.92011065 0 .00 0.00 5743513. 00 510147.00 N 69. 71042272 W 149.92011065 i WeIlDesign Ver SP 2.1 Bld(doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon (P2) Generated 10/9/2007 1:58 PMtPe~9~ of 2 ~h~ • ~ Schlumberger WELL FIELD STRUCTURE Smilodon (P2) White Hills Smilodon MaOreec Parameie Surface Locatbn NAO3] Alaska Stale Planes. Zone 04, US Faet Miecelleneous MoaN: BGGM ] Dip: 503]3° Dab'. anuary 15.2998 Let: Nfi9 43 ]].533 NatN~q: 5]4051300 f1US Glb Conv'. t0 0]493338° Sld: Smibn°n 1 ND Ref RKB (Sfit 50 X above M9L) Map Dec: .22594° F5: 5]560.4 nT Lon: W149 55 13 398 Eastin9: 51014)00 flUS Scala Fact 0.99999011] Plan: Smibeon (P31 Sny Dab: October 09, 300] -1200 -600 0 600 1200 p ......................°.................................:......................RICB ~ 1..................................:..................................v............. Q D Conductor MSL 600 .......... ........:...................................:.................................................................... :............ ....................;............. 600 1200 ......................>............... .. ... ... 1200 .........................Be Y • a erm sip ~ °I ~i~~ ~ op PCB 9518" Csg ~ ' 1800 .....................:....... ... .... .. ..........E........ ....... ................................:................................................ 1800 op PC A O O CO .._.._.._.._.._:._.._.._.._.._.._.._.._.. ~.._.._.._.. ._.._.._.._. .P tJppe~l/griu_.._.. _.._ _._.. _.._.._.._.._.._.._ _._.._.._ 2400 .....................;..................................:.......... ...................... ..................,............................................;............. 2400 I I N .._.._.._.._.._i._.. _.._.._.._.._.. _. .. ~.._.._.._.. _.._.._.._.._. .._.._.._.._.._. ._.._..... _.._.._.. _.._.. _.._.._ _ ._.._.._ ower Ugnu i ............................. .~.............................,.....;............. 3000 3000 ..................... :...................... .............................................. . ° op West Sak D op West Sak C .. _.. _.. _.._.. _j._ .._.._.._.._.._.. _.. y.. _.. _.. _.. _.._.. _.. _.._. ._.._.._.. _.._.. _.. _.._..j... _.. _.._.. _.. _.. _.. _.S_.. _.._.._ ° op West Sak B 3600 ................... ..................................i............................................................................................ ........i............. 3600 4200 ........................................................E...................................................................? ................................._' ...,......... 4200 .. _.._.. _.._.. _i. _.._.._.._.._.._.._.. _...t.._.. _.. _.._.._.._.. _..~. .._.._.._.._.._.._.._.._..f.._.. _.._.._.._.._.._.. _.:-..-.. _.._ op Coleville 4800 ............................................................................................................................ {..................................;............. 4800 lodon Taa~t TD l7" Csg milodon (ir1) 17 of 39 -1200 -600 0 600 1200 Vertical Section (ft) Azim = 90°, Scale = 1(in):600(ft) Origin = 0 N/-S, 0 E/-V N NOTES: 1. COORDINATES SHOWN ARE NAD 27 ,r' ALASKA STATE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 27. 3. ALL DISTANCES ARE GROUND. 4. ICE PAD IS ROTATED 70' EAST FROM NORTH. 5. VERTICAL DATUM IS ASSUMED. SCALE: 1 " = 200' SMILODON Z ~ ~ ,~ O, ~Q ~ N 10 E ~~~, a ~ 5 ~~ W ~~ W W W W ~ ~ ~~ ~ ~ O pQ ~ ~ G~ O ~ T 5 N p`' Q p T4N ~ Q 6 5 4 3 2 1 7 8 10 11 12 THIS SITE ~ 1e „ , 13 ~~ 19 20 21 22 23 J ~' 30 29 28 27 QP J ~ T 4 N 31 32 3s T3N W W W W ~ ~ ~ o ~ ~ ~ 1" ~h, ~~ ~~ ~g3a'~ ~ ~~$/ o, ~^ o O pR~PR~ ~ O. SCE t~ 0~ VIC;INI I Y MAF' = APPROX. 3 MI. SMILODON LOCATED WITHIN PROTRACTED SEC.9,T4N,&R9E, UMIAT MERIDIAN. 539' F.S. L, 700' F.E.L. LAT = 69'42'37.52" N LONG = 149'55'12.39" W Y = 5,743,513' / X = 510,147' ~ ~~ ^J ^• DENOTES SPILL TRAJECTORY STAKED CONDUCTOR LOCATION LOUNSBURY & ASSOCIATES, INC. SITRVEYORS BNGIIQEERS PLANNERS CHEVRON SMILODON WELL AS-STAKED DRAWING UNION OIL OF CALIFORNIA WITH TOPO AND SPILL TRAJECTORY CADD FILE N0. DRAWING NO: SHEET: 1g ~~~: SMILODON TOPO 25 SEPT. 07 1 of 1 0 0 1,000 2, 000 s a m ~ 3, 000 L N d 4, 000 5, 000 6,000 • White Hills Days vs. Depth • ~-Proposed Depth `~, ~- W olfbutton --~- Malguk Heavenly ~i i .~ 1 ~~ e 0 5 10 15 20 25 Days Chevron Maximum Anticipated Surface Pressure Calculation Smilodon 9-4-9 Well White Hills Exploration Assumptions: 1. Based on offset drilling data & G&G evaluation and analysis, the pore pressure gradient is predicted to be a a normal 0.433 psi/ft gradient from surface to planned total depth at 4950' TVD 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 surface. With the shoe for Smilodon at 1701' TVD, the Leak-off is anticipated to be ~12 ppg EMW. 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. Drilling 8-1/2" Hole at 4929' TVD Max. pore pressure at T.D. = 4,950 ft. x 0.433 psi/ft = 2143 psi M.A.S.P. = 2143 psi - ( 0.1 psi/ft x 4950 ) = 1648 psi 20 of 39 Calculation & Casing Design Factors ,,,,,~ C h evrv~ n Smilodon 9-4-9 White Hills Exploration WELL: Smilodon 9-4-9 FIELD: White Hills DATE: 17-Oct-07 DESIGN BY: W. Quay Sect. 1 12 1/4" hole MUD WT. 9.5 PPG MASP= 0 Diverter Sect. 2 8 1/2" hole MUD WT. 9.3 PPG MASP= 1,648 psi TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM DESCRIPTION W/O BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE 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" 1,722 0 1722 40 L-80 BTC 68,880 68,880 916 73.30 778 3,090 3.97 1,641 5,750 3.50 ND 1,722 0 2 7" 4,950 0 4950 26 L-80 BTC 128,700 128,700 604 4.69 2,237 5,410 2.42 2,356 7,240 3.07 ND 4,950 0 * Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.452 psifft) and the casing evacuated for the internal stress (0 psi/ft) ** See attached sheet for calculation of MASP f~ 21 of 39 • • Chevron LEAK OFF TEST PROCEDURE 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 2. Pull the drill string into the shoe. Rig up to observe annulus pressures. 3. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 - 1/3 BPM) if exposed formation is permeable. Anon-permeable formation should be step tested to a predetermined pressure. 4. Measure the volume pumped and plot annulus pressure-vs-cumulative volume pumped. Compare annulus pressure to drill pipe pressure and confirm both are the same. Record and plot pressure versus volume pumped. The pumps should be shut down immediately upon indication of leak-off. Record the inital, shut down pressure and the pressure after 1, 2, and 3 minutes. 5. Release pressure and record the volume of fluid recovered in the trip tank. The point "B" shown in the attached graph at which the plot of drillpipe pressure stops increasing equally as the volume is pumped is called the P.I.T. limit, Leak Off, or pressure integrity test limit. The leak-off pressure is calculated as follows: Leak-off (EMW) = Mud weight in hole + P.I.T. (PSI) (0.052) X (shoe depth in TVD ft.) This equivalent mud weight should be made known to all drilling personnel to ensure it is not exceeded. See the drilling procedure for guidelines on expected LOT's or pressure integrity test limits for each casing shoe. SURFACE PRESS. TYPICAL PIT PLOT [psi] NOTES: Point "A" will have some variance until the system begins to pressure up. Point "B" is the leak off and is abbreviated LOT. Point "C" is known as the injection pressure and is usually dependent on rate. Point "D" is known as the fracture closure pressure and may not stabilize if permeable formations are exposed. 22 of 39 VOLUME PUMPED SHUT-IN-TIME [BBLS] [MIN] • Diverter Schematic Date -October 17, 2007 Location -White Hills -North Slpe Rig -Nabors 106E Size - 13 5/8" Pressure Rating - 5000 PSI Annular: Hydril 13-5/8" GK Double Gate BOP Deactivated Drilling Spool Single Gate BOP Deactivated Knife Valve: 12" Diverter Line 23 of 39 C~ HELI RIG 106 - DIVERTER LINE LAYOUT • C~ BOP Schematic Date -October 17, 2007 Location -White Hills -North Slpe Rig -Nabors 106E Size - 13 5/8" ~~ Pressure Rating - 5000 PSI Annular: Hydril 13-5/8" GK Double Gate BOP Shaffer 13-5/8" SL Drilling Spool Single Gate BOP Shaffer 13-5/8" SL Blanked Off Diverter Outlet 25 of 39 NABORS DRI~~ING VIEW VIEW 0 CC gg 0 0 0 0 00 VIEW AA VIEW VIEW CC VIEW qq gg Scale: N.T.S Date: APR 11 2007 Description: 3-1/8" 5,000# NACE . ~~ ~, ::: Drawn by: RAVI MANI DWG# NDR#106 TRIM CHOKE & KILL ~ ' ~ Checked REV 00 MANIFOLD SYSTEM ~ "' j' t)y: PACIFIC VALVE SERVICES INC. y Chevron North Slope Alaska White Hills Prospect SHALLOW HAZARD ANALYSIS ~ 29 June 2007 SMILODON 9-4-9 Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 CHEVRON ACREAGE ~rh r ~ L ~E 3 ~`~+ Bt9~.ZSCR1>OI:A~ ~ __ ~ t 11 ~L~V .-:.25-1KR 3H-16A EILEEN ~ 1 ; ;. ~ ,t-Jg y ~~r~^y f UGWU OTc , KUP ic.,n.~""9c.~T-ax~ I! 4$P~.4Ld 1F.BP~AL~~" ~GNU`~1 BpJJa',~2-01 ~~BRsT-~t7 ~ J o` 6 B~-S-2~B= :'r31 a ~P ° o _ - v Ili-191H-18; ~~ 101 ~.,~ ` ~ COLVILLE 1 ~ _ BPS 16 + Pl)C F~ 1 Q~` ,'dE~S~,K2EE48#11~`,'';~~?,~-OS.~~ ~BP~10~P-t;H:.V13 42 ~ ~.,•g~y-?Y-- ~ V+S 18! r 1 1Er3 1b-01 '~~~~- FJiy'~iCid~tIl 1~ ~ R~. ~BI~'-02-1 iR1 ~ 7: KOOKPUK01 ~IrZC14 { ~'-~1Q-~ 'dPS`EIL~EIk~C ~y ~' _ ~ 3'. ' 1J 1 1J 10~' ~` S4K d ~ 1~.tR.iaS:~ 1Y tL~ 53 ' 4'J~,~K031J'-03~J~9 ,BPJ20CK-Ot 8P e^ ~-01 +'~ 14 a.J5AKg RiEG11SPRINGSS~1 ~c J~a1iu 14'~`RIV utJ I~',~ swc aQ+~ ` ^°~-""a=32S2L-?2S KRU S~ #1~ti SAK 1 ~y~INTER TRIJLS 1 BURGL~N 2L-31`321 ° ~' 'roi+ItJ-fR?RivLS#? 4V SWC 1„ vJ[ 2j~ 3 '~-307 v ~,1' SiJC ~""HE td I S''x3 c 3-9-11 :.K,4.ryLi ~1 .~i.35~'irSGJC20 ' HE[,';SPRIWGS 'G#3 ',`v I tJTE R 'R W ~S #2 CIRQUEf2 -- TOi CiR0UE3 RAVIKSTI '~ CIRQUE,',1 -00LIKFEQERgL#3 _ ODLIKEEQERk1#2 t` Ri•DIKLIN E RUB`" S-.=-E «1 2P-4t8 .d.~ 1 ~.4~.CS~7 VSEOUOIia#1 ,. 14d'R tJ1 Nr-ic'v`::4 +1 t.1bS' i R S1 ~irOLEBUT'OF! 32-'-8 -+- ..:~LFBU--ON 25-9 PIPE iE S'A'E #1 EKE+IK#1 GRAY-1 HEAYENLYI ~( - ` ?ULAGA:1 = ~ BUSH FEOER3L 1 > 6lalguk#1 ,, _ ~ _ C~ 1 tJ0 E!1E - AmdhystSt#1 VSUSIE UNI?#1 White Hili I'KILLIKUNIT#1 C'YX70(1?° - 27 of 39 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Union Oil Company of California (UOCC), a wholly owned indirect subsidiary of Chevron Corporation currently has leased approximately 20 x 40 sq miles of acreage on the Central North Slope of Alaska (Fig 1). UOCC holds 100% working interest in the field which is bounded by the National Petroleum Reserve of Alaska (NPRA) to the West, the Trans-Alaska Pipeline (TAPS) to the East, Kuparuk River and Prudhoe Bay Fields to the North and the Brooks Range Foothills to the South. STRATIGRAPHY & RESERVOIR OBJECTIVES M3 ~~ 2 -"('~ CEN~~OIC 50 CRETA CEOUS f i 100 ~_. rx 14~.. JURASSIC `: I __ __ ____ __._._ 2i%8 TRIASSIC 245 PERMIAN 286 PEh9h1SYLVANIAN 320 - MISSISSIPPIAN ' 3B0 t~J E _-..-~ - - .~ ?RE- 'dISSISSIPPIAN < MEGASEc]UENCES * Aloehthonaus rocJt units Fig 2: White Hills Stratigraphy The Smilodon 9-4-9 well will target reservoir objectives in the shallow Tertiary through Upper Cretaceous (Mastrictian) strata referred to as the Saganivriktok, Prince Creek, Ugnu and West Sak Formations bounded at the top by the permafrost and down to a total depth of approximately 5000 ft MD. Overall, the sequence records aregressive-transgressive cycle starting with the West Sak (Schrader Bluff) shallow marine prograding shelf sands, overlain by Ugnu fluvial-deltaic and then Non-marine Prince Creek and Sagavanirktok clastic strata. (From USGS Open-File Report 2005-1182): 28 of 39 Chevron PRINCE CREEK FORMATION Sapavanirktok Group and Prince Creek Formation s Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The Smilodon 9-4-9 well will spud in Tertiary generally upward-coarsening Sagavanirktok siltstones, fine to very-fine grained sandstones, interbedded bentonitic mudstones with minor lignite horizons, and gravels deposited under shallow marine to non-marine conditions. Below the Sagavanirktok Group are undifferentiated Prince Creek coarse clastic strata, comprised of gravels, coarse lithic sands, lignites, and siltstones. The Prince Creek sandstones typically exhibit 8-30% clay content, with porosities to 38% and permeabilities to several darcies. UGNU FORMATION U_gnu Sands The Early Paleocene Ugnu Formation consists of upper-fine to medium and coarse grained lithic sandstones, siltstones, bentonitic shales, lignites, and some gravels deposited in anon-marine delta plain environment. The sandstones are poorly indurated to unconsolidated, with porosities exceeding 35% and to several darcies permeability. Heavy oil saturation is common 30 miles to the north in Kuparuk River, Milne Point, and Prudhoe Bay fields. WEST SAK FORMATION Wesf Sak Sands The West Sak consists of a shallowing upward shallow marine sequence comprised of very fine-grained, single and amalgamated hummocky cross-stratified sandstone beds. The formation is typically characterized by fine to medium-grained, .unconsolidated but well sorted sands interbedded with siltstones, mudstones, and coals. The West Sak sands were deposited in a shoreface to proximal shelf environment. Lower West Sak members were deposited in a lower shoreface to inner shelf setting by storm-generated waves and currents, both the upper and lower members showing good continuity both in the subsurface in areas with good control and in the outcrops to the southwest and south. The Smilodon 9-4-9 well will TD at the base of the West Sak Formation at approximately 5000 ft MD. 29 of 39 • Chevron STRUCTURE Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Fig 3: Pre-stack time migrated 2D White Hills 2D seismic line (PM89-306); dip direction The regional structure on the top of the West Sak in the vicinity of the Smilodon 9-4-9 well is a monocline that strikes north-south and dips eastward at between 1 ° and 2°. The reservoir occurs at relatively shallow depths within the West Sak core area, with the top of the "D" sand being located at between -2536 and --2801 feet subsea. To the west of the core area the top of the West Sak shallows until it intersects the base of the permafrost at about 1,000 feet subsea to the west of Smilodon 9-4-9. The Smilodon structure consists of aNorthwest-Southeast trending closure with stratigraphic and dip related traps. The structure is thought to have both permafrost and temperature seals. The structure shows distinctive depositional fairways for sand accumulation based on 2D seismic, surface geology, and magnetic data. The structure sub-outcrops at certain places throughout the field allowing regional correlation between the source rock and target formations. The primary reservoir objectives 30 of 39 4 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 include gas in the Prince Creek, Ugnu and West Sak formations. In general, gas hydrates are not anticipated. GEOPHYSICAL DATA QUALITY 1% ~.F' ~y~.~, -~~'`~~HP_,tiC~RTHS'i+R3 ~ ~ n; ._*jvc CJ~E•CCTHA SPARK#1 SCLUY£R SPARK #1A PRO'rCSED Ox8 ~ ' " aorsosED RENDEr~iG, skz :tak~f Altnmura-2 ...- ~~taicsd Attamurs-1 '~ tTAKED Ai-='.tURA#1 L ,1 rGtr1V __ 2' 1KRW 3H-1 ~. E UGNU OTz EILEEN S 1KUP rt-1'9'acxl.5t~' K f r15r.c. 1 1ABP-AAtI~-t''-~-~'{1~,NU~1 BP~1 ~E2-C1B~-S-24B-- 1 8!~ -b7 ~ _~ 8 ~'`~ GOLVILLE 1 J ~ 1F~-151H-1F ~'~-1 C1 c_ p~%'~.,F'-~ ~ {-T0~" ' { C.3A'- 'iJES°SAK2 -+8#11.',.°rS~~1H~Od~~1R yBP~10CBBP-~~HV18~~1A~4~' +~R>~;4?-,.~ „ SAK 1 B;' 1rt ~---1fr t% '" Hlb""~I l";'.W,^ ~~ i~~-' R'{L'E RBF~.ri ~-1 a ILLER1KOOKPUK01 ~ ~,YS~1< ~_~D-~t °dP~EILEEIµ2 ~' •; ~ , - }-ra~~ ~ J 9'.JC 031J-1 J-10~"',6P-ROCK-01 ~ ~ ~.~y ~h;F S~~t ^ _A4f 1c ~' 1J'-0~J-09 BPS .'31 -~- "~'~ KUFRRUI~RIVUNI't4'JSW{0§ ~'~~~5~-` 'HEI,IISPRINGSS 1 RS>~Ca~. = '~-3252E-32fJ KRU S' #1~i'J SAK 10 VJIt!?ER'R1JLS 1 BUR LAP! 3? 2L-31 ~?21 ~ 'HINTER TRiJLS #3 n VJ SAK 13 ~ t'' ~: _ •-'"„7,~-307 - 'iJSAK2~c HEldl STATE :?-9-11 -%KADLEf -,-'M`35Q'"~SAK20 H£ttISPRIFIGS f'#3 ~. - ° `iJINTERTRwLS#z CIRQUE ~ ~ T04 CIRQUEICIRCUE3 RAVIKSTI z' T00 LI K FE D E RAL #2 TCOLIKFE~ER>:L#3 ~ tJ Rl..AIKLiNBL 01 2P ~482P~51 RL'E ~-> E #1 - 2P X41 ~.4A7 VSE Q U OIA #1 ., tdVvTR N1 r ti.~3d'J::C #1 L1'i4TR S1 a'dCLFBU--CtI P2-7-8 GR¢a.Y-1 TU LAGA#1 J WOLFBUT'ON 2~-6-9 o Er.`iELL" 1 1,lalguk#1 Amethy~ St#1 GKILLIK UNIT #1 _ _ GUBIK 1 Fig 4: Approximate mapped extent of poor quality 2D seismic data YPIPELS-~V #1 .~~;c S` KAi BUSH FE UtJIT#1 Chevron has an extensive grid of 2D spec data. With our working interest participation in the Kuparuk and Prudhoe Bay fields, we have obtained as much well data and 3D seismic as we are entitled too in order to characterize the White Hills area south of the current main producing fields. Currently, our key 2D lines through the White Hills prospective area have undergone several stages of reprocessing. In 2002, GeoTrace produced apre-stack migration data set which was later reprocessed by 31 of 39 5 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Unocal in 2005 to attempt to apply newer noise reduction techniques. However, after the merger with Chevron, and high grading of the White Hills prospective area, it was decided to try and increase the signal to noise ratio of the data further by applying Chevron's proprietary noise attenuation technique. This was in an effort to enhance the image in a large swath of low frequency, poor quality data (Fig2). This poor data zone is coincident with a large portion of the Chevron acreage on the Central North Slope. 2007 DATA /~-CQUISITION The drilling program for the White Hills area was developed from both geologic and geophysical data sets. The results of the various reprocessed datasets were evaluated and it is clear that the current data quality is not sufficient to determine potential shallow hazards and completely validate well location placement. In the winter of 2007 (Jan 5-Feb 11) nine 2D lines, approximately 170 sq miles as outlined on Fig 3, were acquired over the White Hills area by CGG Veritas. The survey was designed to tie the current proposed well locations in a North-West -- South-East strike direction with two long North -South tie lines. Every attempt was made to avoid water bodies whenever possible due to the potential statics issues that ice lakes have on seismic data. Fig 5: Chevron 2007 2D seismic acquisition lines; acquired by CGG Veritas 32 of 39 Chevron POTENTIAL SHALLOW HAZARDS Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 151°00' - ~ - _ 15D°00'- _, _. _ - ~ 149°~' 14$°00' - -~- FREE GAS o stun 0 3mi ~ ! MILNEPOtNT ~~ Q, I I '~~. _ _ _ - ~ ._..~.--r ~. 4'~ ~~ . _ _ Tarn OfIFiEL - _ -~ _ ~ ~ -~ '¢' _ ¢ - '"~"~ -~r I ~ ~ Accumulati ~ on ~, r q _ _ , -- ~-~- - - _ - _ _ ~ -~, _ t ~ , K if ~,~ H~~\ ]_ h i ~ ~ ~i ~~ Ir- -' ~ : : ~ ~ .. . ~.• i ~" , ~ OIL r._.. ~. ~ ~ ~, . - -- ~ o __._. _ _ .. ~ • - - • ~ I o Q ~ _r r - Eil i Q ~ i ¢, ~ b~ ¢_ i ~- - een ~ - d Accumulation ~+, ' ~ °~. ~ ° ~ ~ 1 E - -- _ - - - ~ ' ~ ~ ,b,". 4 4 . _ . _ _ - _ ~ ~ RAT --._ _ _ . _ _ _ _ .r ~~ , _ ¢ ~ I i i GA a ' I ; ~ ' ~ ! t_ H D ATE' i ~. -_ _ _ =~. ,_ - -~ ~' Fig 6: Alaska North Slope Gas Hydrate Energy Resources, USGS Open File Report 2004-1454; by Timothy Collett Permafrost is expected to 1000 ft below the surface and there is the possibility that gas hydrates could be present although not expected. The current known accumulations of Gas Hydrates (Fig 6) do no appear to be present in the White Hills prospective area. A few coal layers are possible in the permafrost. °` The 2D pre-stack time migrated line, tying the Cirque wells (Fig 7a, b), shows a high amplitude reflector at the base of permafrost and bounded by faults. We suspect that this well blow out is possibly due to shallow gas. There are no significant high-amplitude reflectors that occur on our existing poor quality 2D seismic data around the Smilodon 9-4-9 well. This suggests that shallow gas hazards are not a threat as in the Cirque analogues. 33 of 39 7 cc c C L c a a c a a W A O_ W W TD~C • a XnO?, p 0 W 7 "°'x0 rnfD ~'_ VDA~ W ~ N ~ ~ V ~ cn 7 F+ < ~ O m ~ N (~ A y V M O 7 d Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The present 2D seismic data quality is very poor. In particular, the Central Depth Points (CDPs) which tie the Smilodon 9-4-9 well are coincident with an ice lake at the time the data was acquired. Ice lakes pose a significant challenge when processing and interpreting the data because of statics issues which diminish the image quality and frequencies in that section (Fig 3). With the current state of the seismic, it is difficult to truly asses the potential for shallow hazards. The newly acquired (2007) 2D seismic, acquired to tie the wells and help identify possible shallow hazards, is anticipated to be completed by late summer 2007. The expectation is to review the data as soon as it is completed for any shallow hazards which may not be identifiable on the current pre-stack time migrated dataset. GEO-PRESSURE /VELOCITY ANALYSIS Checkshot and VSP data is sparse in the White Hills area. However, there is sufficient data to generate a velocity field (Fig. 8) across the region which indicates that we should not encounter any velocity anomalies. The permafrost zone has higher velocities as expected and the transition beneath the frozen, lower velocity base is quite distinctive. CHECKSHOTS ~ a~ott~m~=~s-e-9 Time vs Depth aooo Isom i60n 1300 i~oo w ^ ~° d iaao N E BOD 6dC SD© 20C c c 1 .~ ~+ 0~ i i i i i i i -~ i r i iT~ c c c c c c c c c C C G G C d C G - _ r~ ~~ .. .. ~ v r. r. .~ .. r n w ti o - c_ _ ND Depth (ft) below T-D datum Fig. 8 Checkshot and VSP Velocity Field across the White Hills and Surrounding Areas -T~.:~ Taza=1 xntn~sT~i O\ar~1 -\3ehx-ater\-1 x E3n-t7c=1 Czque=2 - amethyssST=1 35 of 39 9 • • Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The Wolfbutton 25-6-9 is the most proximal checkshot to the proposed Smilodon 9-4-9 well. We expect similar velocities as shown in (Fig 9) on the Interval Velocity (Vint) vs Depth plot; Interval Transit Time (ITT) vs Depth. The plots show the expected faster velocities through permafrost and slower velocities through the zone of interest. From the velocity analysis, we expect a normally pressured regime through the Prince Creek, Ugnu, West Sak formations, and Colville zone. ---~' Fig 9. Wolfbutton 25-6-9: Time vs Depth, Vint vs Depth, ITT vs Depth MUD WEIGHT Sc SHALE RESISTIVITY /ANALYSIS 3 key wells which delineate the White Hills area and Smilodon prospect are the Malguk #1, Wolfbutton 25-6-9, and Ruby State #1. These wells were used in addition to the checkshot and VSP data to examine the possibility of pressure and velocity anomalies. In Fig (10) Mud Weight (MW) in ppg were plotted vs depth for the 3 wells. The graphs indicate that drilling was balanced through our zone of interest where MW increased with depth. The Malguk well shows an anomaly at 2977 ft which coincides with top of the west sak pay interval; the well was cased at this point. 36 of 39 10 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Malguk #1 Rshale ohm-m 100 10 1 r0 2000 4000 LL L 6000 m 8000 10000 12000 8.8 9 9.2 9.4 9.6 9.8 10 10.2 10.4 Mudweight ppg Mudweight and Shale Resistivity versus Measured Depth plot for the Malguk #1 well. Mudweights were increased from 1200' to casing point due to oil and gas shows in the mudstream. Note that the shale resistivity trend indicates a normally pressured section down to approximately 10,000 feet, where a higher pressured regime is indicated. 37 of 39 11 f ~~~ vron vo • i Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Wolfbutton #25-6-9 Rshale ohm-m 100.00 10.00 1.00 8.00 8.50 9.00 9.50 10.00 10.50 11.00 Mudweight ppg Mudweight and Shale Resistivity versus Measured Depth plot for the Wolfbutton #25-6-9 well. The shale resistivity trend indicates a normally pressured section at least down to 8,000 feet. 38 of 39 12 ~ , . ~, • thevrOn SUMMARY Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 In conclusion, we do not expect any shallow hazard in the well based on our current dataset. The interpretation of our current 2D seismic and evaluation of offset mudweight well data do not highlight any ~ potential problems. Prepared by: Dave Buthman Geologist /Technical Team Lead Alaska New Ventures Team MidContinent /Alaska BU (281)561-3401 buthbdbCa~chevron.com Monique Velasquez Sr. Exploration Geophysicist Alaska New Ventures Team MidContinent /Alaska BU (281) 561-4958 moniguevelasguez(c~chevron.com 39 of 39 13 • TRANSMITTAL LETTER CHECKLIST ' c:~-~.. ~l' - `~~ 9 ~ s u~ ter, ' WELL NAME ~~ ~ b ~z•~•~? PTD# 2~ 7 ~ l ~~" V Development Service Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in permit No. , API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - -_~ from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception. , assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for Game of well) until after (Comnan~Name) has designed and .implemented a water well testing program to provide baseline data on water quality and quantity. SCompan~Name) must contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 7/13/2007 SARAH PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 November 30, 2007 Hand Delivered Mr. Timothy C. Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 RE: Application for Permit to Drill, Smilodon 9-4-9 Exploration Well Dear Mr. Brandenburg, We are returning herewith the referenced form 10-401 designating Chevron (Union Oil Company of California) as operator. We have repeatedly asked your office to correctly state the name of the operator because Chevron has no operator's bond on file with AOGCC. In response to our inquiries we have been told: "Union Oil Company of California is the only entity name that should be used on... submittals." Therefore, if you intend for us to process this designation of operator. please resubmit it with proper K. N Note to File Smilodon 9-4-9 No. 1 PTD 207-152 Problem In Smilodon 9-4-9, Chevron wishes to drill to a target interval that is stratigraphically below the Response Planning Standard ("RPS") determination provided by the Commission to DEC on October 5, 2007. The Commission's RPS determination considered only the West Sak and Ugnu equivalent reservoirs. Chevron's permit to drill application for Smilodon 9-4-9 brings up two critical questions: 1. What is the flow potential of the additional, lower target interval? 2. Is a new RPS determination required? Recommendations 1. Anew RPS determination is not needed for the White Hills area as the maximum expected production potential from the lower target sand, West Sak sands and Ugnu sands falls far short of the 2,700 barrels per day RPS determination requested by Chevron and approved by the Commission. 2. The drilling permit should be approved. Drilling to the lower target sand will not cause waste, jeopardize correlative rights, or endanger health, safety or the environment. Figure 1. Smilodon 9-4-9 Location Map ~ ~ Note to File Smilodon 9-4-9 No. 1 PTD 207-152 Findings Page 2 of 10 In a letter dated August 2, 2007, and received by the Alaska Oil and Gas Conservation Commission ("Commission") on August 6, 2007, Chevron North America Exploration and Production ("Chevron") requested the Commission find that a reduction in the response planning standard ("RPS") from 5,500 barrels of oil per day ("BOPD") to 2,700 BOPD for drilling and testing of several exploratory wells in the White Hills area, North Slope Borough, Alaska, which In their RPS application, Chevron stated that "Since the objective targets for the White Hills Program are the same West Sak /Ugnu formations found in the KRU..., Chevron feels the formation and hydrocarbon fluid data will be similar." Based on this application, the Commission's determination only considered the West Sak and Ugnu intervals. Utilizing PVT properties supplied by Chevron and assuming average permeability of 1000 millidarcies, the Commission's rate versus pressure analysis yields a maximum flow rate of 2,300 BOPD.1 Review of production records from West Sak and Schrader Bluff wells in the Kuparuk River, Milne Point and Prudhoe Bay Units ("KRU," "MPU" and "PBU," respectively) indicate that the maximum fluid productivity of any non-stimulated well is 0.36 barrels of oil and 0.67 barrels of fluid per day for each foot of reservoir open to the wellbore. Based on this information and an estimated 330 feet of West Sak /Ugnu reservoir sand, the production potential of vertical, unstimulated West Sak / U~nu wells in the White Hills area is reasonably expected to be about 220 barrels of fluid per day. On October 5, 2007, the Commission supplied a RPS determination for the White Hills Area, the Commission agreed with Chevron's request that an appropriate response planning standard for the Chevron's proposed wells would be 2,700 BOPD.3 The agreed RPS for the West Sak and Ugnu sands is more than the reasonably anticipated unassisted flow rate from a vertical exploration well. On October 25, 2007, the Commission received a permit to drill application for Smilodon 9-4-9, a vertical oil exploratory well. This proposed well lies within the White Hills area. Chevron (Unocal) is the only operator and owner within the area affected by these operations. The State of Alaska is the only affected landowner. The nearest wells are Malguk No. 1, Heavenly No. 1, and Kuparuk Uplands Ekvik No. 1, located 3 miles south, 7 miles west-northwest, and 15 miles northwest, respectively. All of these exploratory wells have been plugged and abandoned. ' Roby, D., 2007, "Spill Response Plan Standard Review," in-house attachment for the Commission's RPS determination addressed to Laurie Silfven, DEC, dated October 5, 2007. z Davies, S., 2007.,"Appendix A -Geologic and Production Evaluation of the White Hills Project Area," in-house attachment for the Commission's RPS determination addressed to Laurie Silfven, DEC, dated October 5, 2007. s Seamount, D.T., 2007, Commission's RPS determination addressed to Laurie Silfven, DEC, dated October 5, 2007. ~ ~ Note to File Smilodon 9-4-9 No. 1 PTD 207-152 Page 3 of 10 Page 3 of Chevron's Shallow Hazard Analysis submitted in support of the application for Smilodon 9-4-9 states: "The Smilodon 9-4-9 well will TD at the base of the West Sak Formation at approximately 5000 ft. MD." ["MD" is the acronym for measured depth.] Page 3 of Chevron's permit to drill application for Smilodon 9-4-9 indicates the estimated for the top of the West Sak sand is 3,122 feet MD, suggesting that the West Sak sand interval in Smilodon 9-4-9 will be about 1,900 feet thick. Page 3 of Chevron's permit to drill application for Smilodon 9-4-9 also indicates that the well will drill to a total depth ("TD") of 4950 feet MD, and "Drill thru Malguk #1 Equiv. Zone of 4850' to 4900'." As Dave Roby notes,. this interval lies below the West Sak and Ugnu considered for the Commission's determination. The West Sak sands (Figure 2, below) comprise a 200- to 450-foot thick section of Cretaceous- aged very fine to fine-grained sandstone and silty sandstone with interbedded siltstone and mudstone. The West Sak sands clean and thicken upward, and represent the transition from inner shelf deposition in the lower portion to shallow marine or delta-front for the upper portion.4 These sands tend to be very extensive laterally, covering many square miles. The overlying Ugnu sands of the KRU area comprise about 600 feet of fine- to coarse-grained sand with interbedded siltstone, mudstone and coals. These delta-plain and fluvial deposits span the Cretaceous-Tertiary boundary. s Individual sand beds can be very extensive laterally. Chevron's lower target in Smilodon 9-4-9 is the stratigraphic equivalent of sand found between 4850 to 4900 feet MD in the Malguk No. 1 well, about 1,800 feet beneath their estimated top for the West Sak sands.6 In Malguk No. 1, this fifty-foot thick interval contains 29 net feet of fine to medium grained, subangular to well rounded, unconsolidated to moderately firm, and partly cemented by calcite8 (see Figure 3, below). Porosity calculated from well log data indicates sand porosity averages 20 percent.9 This sand coarsens rapidly upward from the underlying siltstone. At the top of the sand, abrupt changes in the gamma ray, density and sonic logs all suggest the sand is overlain by an unconformity. A careful look at the density, neutron and sonic logs shows that this upward- coarsening "sand" is actually an amalgam of four separate lobes of silty sand and sand that are separated by thin (one- to two-foot thick) dense layers (see Figure 4, below). As it was drilled, a Werner, M.R., 1984, West Sak and Ugnu Sands: Low-Gravity Oil Zones of the Kuparuk River Area, Alaskan North Slope, in AAPG Studies in Geology #25, 1984 AAPG Research Conference, Santa Maria, California, p. 110 to 111. s Werner, M.R., 1984, cited above, p. 111 to 112. 6 Chevron, 2007, Smilodon 9-4-9 Permit to Drill Application, p. 3 (4950 ft - 3122 ft = 1828 ft) Davies, 2007, Analysis of Malguk No. 1 well log. s Sperry-Sun Drilling Services, 1991, Mudlog from Malguk No. 1 9 Davies, 2007, calculations from the Malguk No. 1 well data • • Note to File Smilodon 9-4-9 No. 1 PTD 207-152 Page 4 of 10 10 Decker, P., 2007, Brookian Sequence Stratigraphic Correlations, Umiat Field to Milne Point Field, West-Central North Slope, Alaska, Preliminary Interpretive Report 2007-2, Alaska Division of Geological and Geophysical Surveys, Fairbanks, Alaska, Sheet 1. Figure 2. Southwest to Northeast Geologic Cross-section through Smilodon 9-4-9 Areato ~ i Note to File Smilodon 9-4-9 No. 1 PTD 207-152 Page 5 of 10 the sand showed only a trace of dull orange fluorescence, and it was not stained with oil, had no cut fluorescence and had no residual cut. The mudlog only records methane gas in association with this sand. ~ ~ Well log correlations indicate that sand occurs in conjunction with the unconformity in other wells within the area surrounding the proposed Smilodon 9-4-9 well. Malguk No. 1 Gamma Rav MD TVDss TVD Deep Resistivity -~~Q~ ~~~Q ~~~~ -~Q~~ ~~~~ ~~~~ -~~~a ~~~~ ~~~ Apparent ~ Lower Target Unconformity Interval Equivalent _~~~~ -~~~Q 50Q~ ~0~~ Figure 3. Malguk No. 1 Well Log ~ Lower Target Well log correlations easily tie the lower target sand in Malguk No. 1 to the excellent geologic cross-section from DGGS that traverses the Smilodon 9-4-9 area (Figure 5, below). These correlations demonstrate that Chevron's lower target lies at the top of the Lower Schrader Bluff ~ ~ Sperry-Sun Drilling Services, 1991, Mudlog from Malguk No. 1 • Note to File Smilodon 9-4-9 No, 1 PTD 207-152 Malguk 110. 1 6MSw~ Rey QtptM Racliwfy -~ncity GR <MD Ra Y OT OTCO a-t ;5r 2 OMMM T1ir Si S ~teac Iv1C1> ------R~N.`+1- --~--- RNOg z __ zoor ~ fs crca z fs• GR(oU~(N:'aj RNOB U Nfi 15 f5 i f5~ 0 oi• y'v is for 4e4o xa~u Lewc r~ Iw~ e ¢ _ :~ 4080 d~3ut~ , r t 4900 t9pQ ` 4920 d _~21~ 4940 <t9 its 4960 a'~hg Page 6 of 10 Figure 4. Malguk No. 1 Well Log -Lower `I"arget, Well Log Detail interval, immediately beneath the Mid-Cretaceous Unconformity. Chevron's characterization of this sand as being part of the West Sak sands is incorrecte If Chevron's interpretation that the lower target sand is part of the West Sak sands were correct, then the West Sak interval at Smilodon 9-4-9 would be about 1,800 feet thick, a dramatic change in interval thickness from the 200- to 450-foot thick section that is typical of the KRU. Note to File Smilodon 9-4-9 No. 1 PTD 207-152 • Page 7 of 10 Kup Uplands Ekvik No. 1 Wolfbutton 32-7-8 ad, obn spmia~~,ae~e^~ w4~arx~r IA! 90 ND 02 OHU 1ID0 saea~si. vaiw~y woo a,sM~r ~vo ~,,.,,,~. - _ mr m o2 oHU mm v ro~ im im ~-ehr m ~.,.~„~r ~~, ,~~.... .~ a cai ~sn im ustr m ~~ rd run^q~ ^1ne 715 ~ ~ i ~ °'. r A _ ~~~ ~ s zo end- ~ :~~ ~., .~,.-:~.. ,_--::_ 2 gravel ~ _ ~; ..; ~__ S~ -sh sd ,--,- I u p p e r Schrader Bluff Fm ~ WeSt ~~k suFpressad cry ~m :asedhole SOB ~~~~ sih ~' _:~ sih ~ "`~-,.~,.~ mane fs ~*- "'~ ~j. ~ "~-~.-.o.--- fs .r..-..~` niai_e ~m _ r°~~T1 ~; - _ R7ifldl~ ~ 3000 ~ _ - _ S~rdBBrg~U~F, ~ ¢ fs x-~ ^ ^ ^ ^ ^ w- 1 fs .4`~ man Slb? MCII _ ^ -~ ~ ^^^^^ ^^^^^ ?MCl i ~m t lower r ~OOU Schrader 6i1 ff Frn - 'neshon;face Tufwak Fm (. ed regrpssiue} - - L.OWer 00 Schrader ---~-.-.~ ~,,7 Bluff Target I -~~ Seabee F Interval ~ s -~ _ upper. ~R SchraderBlulfi Fm ~R`e _ `,- ,` r ~ i Seabee Fm Figure 5. Southwest to Northeast Geologic Cross-section through Smilodon 9-4-9 Area12 IZ Decker, P., 2007, cited above. • Note to File Smilodon 9-4-9 No. 1 PTD 207-152 • Page 8 of 10 My interpretation is that this lower target sand represents a regressive deposit that developed as sediments eroded from nearby upland areas were extensively worked, sorted and deposited in a shallow-marine shoreface under regressive conditions. A depositional analog is uppermost "B" interval of the Kuparuk formation in the eastern portion of the Milne Point Unit (see the Milne Point Unit Cascade No. 1 exploratory well between 7300 and 7325 feet measured depth). Regressive sands can have excellent reservoir characteristics. Well logs and mud logs demonstrate that similar very fine- to coarse-grained sand deposits are associated with the Mid-Cretaceous Unconformity in the nearby Heavenly No. 1, Kuparuk Uplands Ekvik No. 1, and Wolfbutton 25- 6-9 wells. These deposits range from 2 to about 15 feet in thickness. Mud logs report traces of sample fluorescence associated with these sand deposits, but no visible oil staining. Gas associated with the trace oil shows was dominantly methane, but small amounts of ethane and propane were also recorded. Mud logging geologists rated oil shows associated with these sands as being trace to none. Chevron's analysis of geological, geophysical and drilling data indicates that the pressure gradient expected is 0.433 psi/ft [8.34 pound-per-gallon equivalent mud weight] from surface to the planned total depth of 4950 feet.13 Mud information recorded during drilling of Malguk No. 1 mud log and daily operations reports from the well indicates that the lower target interval in was drilled without incident using 9.3 pound-per-gallon mud.14 Well log data indicates that the temperature of the lower target interval is about 110° F. Compilation of records for flowing wells producing from the Kuparuk formation at Milne Point yields the chart shown on Figure 6. The Kuparuk formation lies deeper, the reservoir temperature is higher (170° F), and the reservoir sands consist of a combination of regressive and transgressive sands in the MPU B-, E- and K-Pad wells. The highest average daily fluid production from any well is the MPU B-22 well at 2,855 barrels of fluid per day. However, this rate was attained after being shut in for two months and in direct communication with an offset injector. The initial flowing production from MPU B-22 was 1,093 barrels of fluid per day. The next highest rate of flowing production was achieved by MPU E-04, which reached 2,274 barrels of fluid per day from both the Kuparuk B and C sands. This well is a slant producer that crosses through the reservoir at a 40° angle, and opened 76 feet of sand to the well bore. The maximum fluid productivity rate attained by E-04 is 30 barrels of fluid per day for each foot of reservoir open to the wellbore. Assuming 29 feet of net sand in Smilodon 9-4-9, the maximum flow rate expected from the lower target sand would be would be about 900 barrels per day. 13 Chevron, 2007, "Maximum Anticipated Surface Pressure Calculation" in Smilodon 9-4-9 Permit to Drill Application, p. 20. " BP, 1991, Daily Drilling Reports in AOGCC Well History File 191-016, p. 25 to 28. • Note to File Smilodon 9-4-9 No. 1 PTD 207-152 • Page 9 of 10 a,ooo 3,b00 1 3,000 T 8 2,500 i p ~ LL 2,000 !, _» 1,500 ~ - - 1,000 a, - 500 III f ~p W pI O N t0 N C! Rg 19p h ~Y1 ~ ' ~ .{ gY mQ m4 ~ (b ~~ IL U U V V U V U U U V~ U V Q tttpppR f~ N ~ Q Q 0y1 I~ N pR ~q f~ ~R1 Q$ N tq tom' ~ W W LL IL LL LL ~y Y J J Q R~ -~ J J J Figure 6. Maximum Average Daily Flow Rate for Kuparuk Wells within the MPU Conclusions 1. The Commission's RPS determination for the Smilodon 9-4-9 (White Hills) area concerned the West Sak and Ugnu intervals, 2. The lower target interval in the proposed Smilodon 9-4-9 exploratory well lies within the lower portion of the Schrader Bluff formation, and not in the West Sak sands as indicated by Chevron's application and supporting documents. 3. The equivalent stratigraphic interval in the nearby Malguk No. 1 well contains 29 feet of clean sand that is porous, normally pressured, and contains only a trace oil indicator (a trace of dull orange fluorescence) and methane gas. 4. Sand encountered within the lower target interval in nearby well Malguk No. 1 lies below the Mid-Cretaceous Unconformity and appears to be a regressive sand deposited in a shoreface environment. A depositional analog to this sand is the uppermost Kuparuk B sand within the MPU. 5. Nearby wells within the Smilodon 9-4-9 area that encountered sand at this stratigraphic level that ranged up to about 15 feet in thickness. None of these wells contained more than trace indicators of oil. Only methane, ethane and propane gasses were encountered during drilling of these wells. .. Note to File Page 10 of 10 Smilodon 9-4-9 No. 1 PTD 207-152 6. Production information from the West Sak and Ugnu wells within the KRU, MPU and PBU combined with an estimated 330' of West Sak /Ugnu reservoir sand, the maximum production potential of vertical, unstimulated West Sak /Ugnu wells in the White Hills area is reasonably expected to be about 220 barrels of fluid per day.ls 7. MPU Kuparuk production information combined with an estimated 29 feet of net sand in the lower target interval suggests that the maximum production potential of the vertical, unstimulated lower target sand in the White Hills area is reasonably expected to be about 900 barrels of fluid per day. 8. Based on production information, the maximum expected flow potential from the lower target sand, West Sak sands and Ugnu sands is about 1,100 barrels of fluid per day, which falls short of the 2,700 barrels per day RPS determination requested by Chevron. 9. Anew RPS determination is not needed for the White Hills area. 10. Approval of the Smilodon 9-4-9 permit to drill application will not result in the waste of hydrocarbon resources, and it will not jeopardize correlative rights, nor will it endanger health afety or the environment. Steve Davies November 15, 2007 ~ ~~~tb i ~ ~ffP~r i'~'r ~o ~lery CO^Gv J c~ ~'~GT i hr wCll w-'/l ~P K` i /~~B fp tie ~ ~n •'~~rl lQ~s eva/tea f~'~ ~ ,~„ r~~ vP s~1` wG f ~~C~/p~~~ COn fPr lam` ~~g ~K,,Q ~'i ,~0~2 (Jn/~afo^y d/P fo~.,~d~'%o~ 0~ro~ ~ 1 R/~ ~f /~~0~ o~cf~, rr ~® p aegOP~ rar~.t r Y~~ . C~P~ro~ 's o~~,:-~ / ~'Pf P~o~~. fits G•2'i~ 9.sso~A! ~~ ~1`~ 1//s o7 15 Davies, S., 2007, cited above. Chevron Timothy C Brandenburg Drilling Manager October 19, 2007 Commissioner Alaska Oil & Gas Conservation Commission ~, 'rte +~ 333 W. 7 Avenue w•.l~~ Anchorage, Alaska 99501 '"Q/g~~ ~~~ ~~ ,~ Re: Application for Permit to Drill Smilodon 9-4-9 Exploration Well ~ C~' ~~` ~-: ABC d+3fj~> i Dear Commissioner: 9~~ ` ~~^ Enclosed for approval is a completed Permit to Drill (form 10-401) for Union Oil Of California a wholly owned S~O~j subsidiary of Chevron Corporation to drill the Alaska North Slope White Hills Exploration well, Smilodon 9-4-9. Subject to AOGCC approval, it is intended to mobilize Nabors 106E rig for the drilling of Smilodon 9-4-9. The plan is to drill a vertical well to 4950'/4950' MD/TVD, evaluate the well with wireline logs, run and cement a 7" production casing string, then demobilize the rig from this well to the next White Hills exploration well. Upon the drilling of this well, a sundry requesting annular disposal of the used mud and cuttings in this well is planned. A variance from requirements of 20 AAC 25.035, to utilize a diverter vent line diameter of 12" is requested. This is smaller than the planned surface hole of 12-1/4". A similar request was submitted and approved for the SCU 42- OSYwell in June 2007 and the Happy Valley #12 well (with Nabors 106E) in October 2007. ~~`_'~\~,k W~~\s ~ ~0. The AOGCC is requested to treat as confidential all information included in the Application for Permit to Drill(except the Public Information Copy) as information in these documents is drawn from research and data ~ ~ ~~'~ proprietary to Union Oil Of California a wholly owned subsidiary of Chevron Corporation. An anticipated spud date is December ls`, however in an exceptional year, this spud could be as early as November 15`h. This is dependent upon the weather conditions in the Franklin Bluffs staging area and the White Hills exploration area and the DNR approval to proceed with the mobilization of the ice construction and drilling equipment to site via the planned snow road. Therefore, your earliest attention to this application will be greatly appreciated. If additional information is required, please contact either myself or Mr.Walter Quay at 263-7612. Pertinent information attached to this application includes the following: 1. Form 10-401 Application for Permit to Drill (Public Information) -1 Copy 2. Form 10-401 Application for Permit to Drill - 2 Copies 3. Well Program 4. Wellbore Schematic 5. Drilling Fluids Program ~~-~ ~~ } PjN' ! ~'~~ 6. Directional Program ~w, ~ ~~, /~ 1'°y 7. As Staked Location Plat !l..~~ ~6 9,,~ 8. Days Vs Depth Drilling Plot 9. MASP Calculation & Casing Design ~] ~ ~ ~ ~ ~ Q (~ 10. Diverter, BOP and Choke Manifold Schematics 11. Shallow Hazard Analysis A~BS~(g ~I~ ~ ~eS ~Ut15. ~11~~IS$i00 Sincerely, Timothy randenburg Drilling Manager Cc: Well File Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 ~flC~lflC~g11 1 of 39 Union Oil Company of California / A Chevron Company http://www.chevron.com _' ;~ Rs'~IVED STATE OF ALASKA ~Il/ ALASKA OIL AND GAS CONSERVATION COMMISSION ~ ~"-_~~~(~~ PERMIT TO DRILL ~~laska OrE ~ ~;~$ ~~,~~ C~rrmrlission 20 AAC 25.005 1a. Type of Work: 1b. Current Well Class: Exploratory Q Development Oil ^ 1c. Specify if II is proposed f t: Of8~j8 Drill 0 Redrill ^ Stratigraphic Test ^ Service ^ Development Gas ^ Coalbed Methane ^ Gas Hydrates ^ Re-entry ^ Multiple Zone Q Single Zone ^ Shale Gas ^ 2. Operator Name: 5. Bond: Blanket Q Single Well ^ 11. Well Name nd Number: Chevron (Union Oil Company of California) Bond No. 086S1035154066CM Smilodon 9-4 8 3. Address: 6. Proposed Depth: 12. Field,/Pool(s): PO Box 196247, Anchorage, Alaska, 99519 MD: 4950 TVD: 4950 Exploration 4a. Location of Well (Governmental Section): 7. Property Designation: Surface: 539 FNL, 700 FEL, Sec 9, T4N, R9E, Umiat Meridan ADL 389990 ~ Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 539 FNL, 700 FEL, Sec 9, T4N, R9E, Umiat Meridan ADNR LAS 26542 12/1/2007 Total Depth: 9. Acres in Property: 14. Distance to Nearest 539 FNL, 700 FEL, Sec 9, T4N, R9E, Umiat Meridan 5587 Property: 14000' 4b. Location of Well (State Base Plane Coordinates): 10. KB Elevation 2~~ ~ s L ~~.7 0 15. Distance to Nearest Well Surface: x- 510,147 y- 5,743,513 Zone- ASP 4 (Height above GL): 20.5 feet Within Pool: None 16. Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: degrees Downhole: 2143 i Surface: 1648 18. Casing Program: Specifications Top -Setting Depth -Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Coupling Length MD TV MD TVD (including stage data) Augered 16 65 N-80 Weld 80 0 0 80 80 As Required to Surface 12-1/4 9-5/8 40 L-80 BTC 1722 0 0 1722 1722 Lead: 224 bbls (250% excess) Tail: 45 bbls (40% Excess) 8-1/2 7 26 L-80 BTC-M 4950 4950 4950 Lead: 63 bbls (40% excess) Tail: 19 bbls (40% excess) 19. PRESENT WELL CONDITION SUMMARY (To b c ed f e Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured) pth D Effect. Depth TVD (ft): Junk (measured): Casing Length Size e e MD TVD Conductor/Structural Surface Intermediate Production t Liner ~ Perforation Depth MD (ft): N/A ~' Perforation Depth TVD (ft): N/A 20. Attachments: Filing Fee ^ BOP ketch Q Drilling Program Q Time v. Depth Plot Q Shallow Hazard Analysis 0 Property Plat ^~ Diverte~ Sketch Q Seabed Report ^ Drilling Fluid Program Q 20 AAC 25.050 requirements ^ 21. Verbal Approval: Commission Representative:' Date 22. I hereby certify that the foregoing is true and, correct. Contact Walter Quay i Printed Name Tim Brandenburg ,l Title Drilling Manager F ~ Signature Phone 263-7640 Date 10/16/2007 Commission Use Only Permit to Drill ~ ^ N b LIJ~'~/~~ API r: _/~7~ Z~ ~ ~z ~ Permit Approval See cover letter for other um er: . cJ - 50- Date: requirements. If bo is checked, well may not be used to explore for, test, or produce Coalbed methane, gas hydrates, or gas contained in shales: .~ `~ Conditions of approval : ~OOOeSa \ A~i~G` Q~~ ~'C"~'C" Samples req'd: Yes No ^ Mud log req'd: Yes No^ t ~t i - HZS measures: Yes[ No ^ Directional svy req'd: Yes^ No (` t _ 5 a S'~~ > ~~ _ ~ ~~ ~ ^ ~ t S- ~ Or ~al`~ ` T 'CC"~ ~ j~rt,/iit4'~7erk. Surv~ ~~ A ~~~ ~~ '~~ •:r~, Uu~pkab`~ far ~~`Iti ~~~c-~ ~o ARC as.o3s~~>~> ~~ Other: APPROVED BY THE COMMISSION DATE: MISSIONER Form 10-401 Revised 12/2005 Submit in uplicate 7 _ _ ~~T~ • Chevron Drilling Department Well Plan Summary Surface Location: X = 510,146.72' Y = 5,743,507.32 As-Staked 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM Target Location: X = 510,146.72' Y = 5,743,507.32 To U nu 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM Top West Sak X = 510,146.72' Y = 5,743,507.32 537' FSL, 700' FEL, Sec. 9, T4N, R9E UM Bottom Hole Location: X = 510,146.72' Y = 5,743,507.32 537' FSL, 700' FEL, Sec. 9, T4N, R9E LJM The well approaches within 14,000' of the nearest Chevron White Hills lease line. Estimated Start Date: 12/01/2007 O eratin da s to com lete: 27 MD: 4950' TVD: 4950' Formation Markers: Elev. GL: 341' MSL RKB: 20.5 Formation To s MD -RKB TVD-GL Comments To Prince Creek C 1040' 1019 Base Permafrost 1222' 1201 Casin Point 500' below base Permafrost* To Prince Creek B 1465' 1444 To Prince Creek A 1850' 1829 Top Upper Ugnu 2335' 2314 To Lower U nu 2835' 2814 Top West Sak D 3122' 3101 To West Sak B 3286' 3265 Top West Sak A-1 3442' 3421 TD Shallow Contingency 3581' 3560 Top Coleville 4228' 4207 Est. TD 4950' 4950 Drill thru Mal uk #1 E uiv. Zone of 4850' to 4900' Casing Program: Hole Size Csg/ Tb O.D. Wt/Ft Grade Conn Length Top MD/TVD Btm MD/TVD bkb Au ered 16" 65# 80 80' GL 80' 12-1/4" 9-5/8" 40.0# L-80 BTC 1722' GL 1722' 8-1/2" 7" 26# L-80 BTC-M 4950' GL 4950 3 of 39 • Mud Program: 12-1/4" Surface Hole 0-1722' Initial Value Final Value Densi 8.7 9.0-9.4* Funnel Viscosity seconds g0-100 50-70 Yield Point cP 35-45 25-35 Plastic Viscostiy (Ib/100 s 10-21 10-23 10 second Gel Strength Ib/100 s 10-15 10-15 10 minute Gei Strength Ib/100 s 14-24 14-24 H 8.5-9.5 8.5-9.5 API Filtrate cc 8-15 6-8 Solids % 6-12 6-12 8-1/2" Production Hole 1722' - 4950' :Fresh Water Mud - 6% KCUPHPA/Clayseal Initial Value Final Value Densit 9.1 - 9.2 9.3 Max Funnel Viscosity seconds 40-65 40-65 Yield Point (cP) 15-25 15-25 Plastic Viscostiy (Ib/100 s 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <4 <4 Solids % 6-12 6-12 Hydraulics: Surface Hole: 12-1/4" Interval Pump GPM Drill Pie AV f m Pump PSI ECD -emw Motor Jet "/32 Nozzles TFA in2 0'-1722' 600 4" 14# 9.7 N/A Tbd tbd Production Hole: 8-1/2" Interval Pump GPM Drill Pie AV f m Pump PSt ECD -emw Motor Jet "/32 Nozzles TFA inz 1722' - 4950' 450 4" 14# 9.6 N/A tbd .tbd Fresh Water Mud - 6% KCUPHPA 4 of 39 • Logging Program: Lo in While Drillin Hole Size Services Run 1 0-surf cs LWD: GR/Res/Directional Run 2 surf cs -TD LWD: GR/Res/Directional Run 3 Mud Lo in Services 0-SUrf CSg mudlogger required from surface to TD 0-TD Bagged samples of cuttings every 30 feet, with 10 ft samples caught from sandstones and other potential reservoirs from surface to TD (both legs); three washed and dried cuts, one unwashed cut. Corin Hole Size Services surf cs -TD 50 rota sidewall cores Open Hole Logging Hole Size Services Run 1 8-1/2" GR/CN/ZDUXMAC Run 2 8-1/2" MREX Run 3 g_1/2" RCOR Run 4 $_1/2" RCI(MDT Type Formation Sampler & Pressure) Run 5 g_1/2" Seismic Veloci Checkshot Integrity Testina: Test Point Depth Test Type EMW Surface Casing Shoe At least 20 feet but not LOT 12.5 ppg EMW Estimated more than 50 feet of new formation Cement Calculations: Casing Size 9-5/8" Surtace Basis: Lead: Based on conductor set at 80', 1200' of annulus in the permafrost 250% excess Tail: Based on 500' o en hole volume + 40% excess + 80' shoe track volume. Total Cement Volume: Lead 224 bbl / 1257 ft / 303 sks of Permafrost Type L at 10.7 ppg and 4.15 cf/sk. Tail 45 bbl / 255ft / 220 sks of Premium `G' at 15.9 ppg and 1.16 cf/sk. Production Casin Casin Size 7" Lon strin Basis: Lead: Based on TOC 500' belo~ Tail: Based on TOC 500' above Total Cement Volume: I Lead Tai the 9-5/8" shoe + 40% excess volume ~ the 7" shoe + 40% excess volume 67.3 bbls / 379 ft / 117 sks of Premium Cement with Econolite at 11.2 and 3.24 cf/sk 19.1 bbls / 107 ft / 93 sks of Premium at 15.8 ppg at 1.15 cf/sk 5 of 39 • ~ • Well Control: Surface hole will be drilled with a diverter. The MASP is 1648 psi. (See Attached) The intermediate/production hole well control equipment (of at least 3000 psi working pressure) consisting of will be equipped with pipe rams, blind rams, and an annular preventer will be installed and is capable of handling the MASP pressure. Based upon the planned casing test of 2000 psi for casing integrity considerations, the BOP equipment will be tested to 2500 psi. Disposal: Annular disposal is planned for this well. In planning for this, an analysis of the aquifers in the area concluded: 1. The salinity increases uniformly from the base of permafrost to over 10,000 ppm chlorides in the area 2. Abundant oil and gas, thick viscous oil, and brines occupy most of the reservoirs below the base of the permafrost, and are not generally drinkable. 3. The permafrost provides an impermeable up er seal for the disposal of cuttings and wastes derived during drilling operations. ~. 4. The permafrost ranges in thickness of from approximately 600 feet in the south, to 1400 feet thick in the north end of the prospect, containing permanently frozen ground comprised of gravels, sands, silts, shales, gas hydrates, brines, and peat. 5. There are numerous freshwater lakes situated on top of the permafrost that can provide drinkable water and some of which sustain fish populations. 6. There are no roads, no permanent trails or manmade habitable structures of any kind in the prospect area 7. There is no indigenous human population that lives in the White Hills Prospect (ie: population = 0). Cuttings Handling: Cuttings generated from drilling operations will be annularly disposed in the 9-5/8" X 7" Annulus or hauled or hauled to an approved disposal facility. Fluid Handling: All Mud and Used drilling and completion fluids and other Class II wastes will be annularly disposed in the 9-5/8" X 7" Annulus or hauled to an approved disposal facility. ur.~` s~~ c~arc c~ eEC-MC~-~c~'c~~ ~.~ Pc'Ov~i~ C~tv~c~o e~~~ v~F~\s ~~-~~~.~ ~-o b~ co~v~~s ~ v~ ~S ~ b~uc~ SSE I~-~O~ 3 ~.`~ (~3-~5~~ 6 of 39 • Summary of Drilling Operations Pre-Rig Work: 1. Set and cement 16" conductor 2. Install cellar Rig Operations: 1. MIRU Nabors 106E and camp. 2. Nipple up diverter spool and riser. Function test diverter system. Provide the AOGCC at least 24 hours notice of each BOPE function pressure test so that a commission representative can witness the test 3. MU 12-1/4" drilling assembly and drill surface hole to approximately 500' below the permafrost. 4. Run and cement the 9-5/8", 40.0# surface casing back to surface. A Stab-in cementing system will be utilized. 5. NU BOPE and test. MU 8-1/2" drilling assembly with MWD/GR/RES/and RIH to float collar. Test the 9-5/8" casing to 2000 psi for 30 minutes 6. Drill out shoe joints and new formation greater than 20' and less than 50'. Perform the Leak Off Test. 7. Drill ahead to planned TD 8. Circulate and condition hole and perform wiper trip to surface casing shoe. POOH and stand back BHA. 9. RU Open Hole Wireline and run Logging Suite. 10. TIH to TD and condition hole for running casing. 11. Run and cement the 7" production casing. Freeze protect the 7" x 9-5/8"annulus and 7" as required. Test casing to 2000 psi. 12. TOOH and LD drill pipe. 13. Completion program will be advised. 14. Nipple down the BOPE. Nipple up and test the tree to 5000 psi. Remove TWC. 15. Rig down and move off 7 of 39 TANK 106-13 TYPICAL OF 2 TANK 106-12 TANK 106-16 TYPICAL OF 2 TYPICAL OF 2 TANK 106-25 1n1~r~ 1vv-i TANK 106-1 TYPICAL OF 2 106-1 A9cuwAfoR a1Re _, :. ,~ alwns LUtf a 106-2 BOY AatARMTOR 730 rxt Ra1LCr EEIIo fae-a BOY rESr wRY u+eRlrwlnR 3! awns LLeE a tos-a Rla av TNOt foe-6 Ni wrY ios-e /w o91e16;asoR sxs aas 6ESn nlu :. 1s ol6a,s LUKE a 108-7 nOlrEll DN( 106-8 7 . s Daum ueE a 1916 0118 BOILER 9R1E11 l0ei COIDBENlT ilA. TN6( 371 GLS 005[L f1A 108-10 COL06fN[! OENSEE LUKE 93 G1.4 LOBE a 10e-n cOLD91AitE OEIaEE RAOwa ears 0.rCOL 19s-u aET~T taBE 7 e n a1s LI1BE a 1oe-u ao~r RA9WOR z • +33 OrS, txt<p. 108-16 r0aA1RT RO Nl SfOR/0E 7 • e930 ay.S OESR N 1 06-ta 11g1 fAglR 106-16 MA qRp 7 O 2a GIIS ~RAIER 3 e A CNS LIR[ OL 106-1] PILL TAt6( ypy 846 y~L~. 1111D foe-fs>Rp Tw6l 100-19 Mq TA10le 6:.e6 BBLS BRUwc wo 100-70 6 10TA1l11O 6e6 BBLS WD 106-71 106-77 106dJ EATER TNa - YNI 19381 GN.S MA1ER 106-3t BwER TIN(- /~paUR/ la,3M arE, 9IAlEq 106-75 Y0071t a BIOI6GE i ydB pyg ~p7pq a 106-Ib OFM a 6T01V2 100-03IMD. a SfORAOE NA6 Orq, qAa a N2B GL4 IItD. a 106-M iqG xaVER NL OAT TAN( 310 01LS OIESFL Nl 106-T7 PYE 3llyppE SIWE ipV 170 Crq Nyp. a 106-]6 106-79 CEllM BIIpOE alAlE 9 IMO. a 106-Jp a1111R06 BaLR 1 AT A 76E 6 6 6X.M OALi O0I101tS TANK 106-10 r-TANK 106-9 STANK 106-11 TANK 106- ~A9B~'..aB,6. asa ~~ RIG 106E PLAN VIEW -LEVEL 1 SPCC PLAN 4 Smilodon Well Bore.xls 9'I~/9~007 ~ Halliburton saROi~ _ Chevron Mud Program Chevron White Hills Well #1 Smilodon Baroid Mud Program Halliburton Baroid Name (Printed) Signature Date Originator Dave Soquet Reviewed by Dave Higbie Customer Approval Walter Quay Version No: Date: 1.3 September 5, 2007 Smilodon v1.3 1 9/5/07 10 of 39 r: Halliburton BaROID Chevron Smilodon General Discussion Mud Program This exploration well will be drilled from an ice pad south of Kuparuk. Due to the remote location, waste management is critical on this well. A 12 '/<" surtace hole will be drilled vertically to a depth of 1722' where 9-5/8" casing will be set and cemented. An 8 %" production hole will then be drilled vertically to a depth of 4950'. For annular injection, 7" casing will be run and cemented at this depth. Spud the well with a 6% KCI/PHPA mud. Our primary focus for surface hole drilling operations will be adequate mud weight for well control and sufficient mud viscosity for efficient hole cleaning. This spud mud is formulated with two mechanisms to provide effective wellbore stabilization and minimize waste: ionic inhibition (KCI) and polymer encapsulation (PHPA). Clayseal will be added to the existing 6% KCI/PHPA mud for use in the production interval. This wilt provide another mechanism for inhibition and waste minimization and will facilitate drilling a gauge hole. If necessary, the weight will be reduced to 9.3 ppg prior to drilling out of the surface casing. Special Considerations• i. While gas hydrates are unlikely, maintain a sufficient quantity of Driltreat (lecithin) to accomplish a 2 ppb treatment in the event gas hydrates are noted. Contact the Technical Representative prior to any additions of Driltreat. ii. Lime and zinc carbonate should be on location for H2S contingency (@1 pallet No Sulf and 2 pallets lime). iii. Maintain an adequate barite supply (and other necessary products) to increase the mud weight of the current circulating volume by 1.5 ppg at any time (@1500 sx barite on location at all times). iv. Due to the remote nature of this location, maintain an adequate supply of LCM and the other mud additives, which may be required to support this drilling program. v. Reduce the potential for hole erosion/destabilization, hold the jet velocity below 200 fps while achieving pump rates to deliver AV's around the drill pipe in the 150-200 fpm range. vi. Some shale instability has been noted on offset wells (maintain tight filtrate control/mud weight). vii. Obtaining good logs and fluid samples are a key component of this drilling program. Maintaining low filtrate and using the inhibitive mud system will limit fluid invasion and help drill a gauge hole. viii. Maintain an adequate supply of STEELSEAL should losses be observed. String 3-5 sx/hr immediately after noting losses. Again, this will improve the post well fluid samples by limiting drilling fluid invasion. Well Snecifics• 12'/" hole 9 5/8" casin 1722 1722 .1722 8'/2" Hole 7" casin 4950 4950 3228 C~ Smilodon v1.3 2 9/5/07 11 of 39 Halliburton BaROID Chevron Surtace Interval: 12 '/4" to 1,722'; 6% KCI/PHPA Mud Properties Mud Program In~t~al Value Final Value Densit 8.7 9.0-9.4' Funnel Viscosity (seconds) 80-100 50-70 Yield Point cP 35-45 25-35 Plastic Viscosity (lb/100 sf) 10-21 10-23 10 second Ge/ Strength (Ib/100 st7 10-15 10-15 10 minute Gel Strength (lb/100 sf) 14-24 14-24 H 8.5-9.5 8.5-9 5 APl Filtrate cc 8-15 . 6-8 Solids % 6-12 6-12 *Wei ht increa d t g se ue o natural progression of solids. A weight up is not programmed. Base Formulation: COLD Water - 0.905 bbl KCI - 20 Ibs (30-32K ppm chlorides) EZ Mud DP - 0.75 Ibs (.15 aab in initial mixl Dextrid - 3 Ibs (API filtrate of 8-15 cc initially) Barazan-D - 1-2 Ibs (as required for an initial 35 YP) KOH - 0.1-.25 Ibs (pH = 8.5-9.5) Aldacide-G - 0.25 Ibs (X-cide 207 for rig maintenance) Baracor 700 - 1 ppb Barascav D - 0.5 ppb (to be added at the rig when first circulating) "* Use Barite for any needed weight ups on this well. NOT drill solids. A strong focus on minimizing waste needs to be in place before and while drilling all sections of this well. Do not jeopardize the integrity of the fluid system; however, all efforts need to be made to this end. Allow the pit volume to deplete prior to TD on the surface hole. This will leave more room in the pits for displaced mud when cementing. Ensure all solids control equipment is working properly prior to spudding. Utilize shakers, desanders/desilters, mud cleaners and centrifuge(s) to reduce solids and reduce dilution. No processes should take place that will lead to a build up of low gravity solids in the mud. On an example well, some of the centrifuge under-flow was returned to the mud system. This led to a fines build up and the resultant required dilution was excessive. The personnel were trying to reduce waste but wound up causing additional waste. Build and maintain the system with COLD water. All attempts to keep the temperature of the mud <75°F should be made. Normal surface hole viscosities should be adequate for this vertical well. Maximum flow rates should be used to ensure good cuttings transport. Target an initial YP in the 35 range then adjust as dictated by the actual hole cleaning requirements of the well (On offset wells, pea gravel was noted to 500', then mainly sticky clay and sand was observed). Reduce viscosity as allowed, previous wells in the area have TD'd the surface with a -18-25 YP. However, do not hesitate to quickly raise the viscosity if hole cleaning problems develop. Polymer viscosity in the form of Barazan D additions should be utilized to provide rheological support as needed. Utilize high viscosity sweeps to supplement the hole cleaning capabilities of the system. Smilodon v1.3 3 9/5/07 12 of 39 ~ Halliburton saROiD Chevron Mud Program I Spud the well with an 8.7 ppg mud. Expect the natural progression of the weight as drilling proceeds. Increase the mud weight as dictated by actual hole conditions. If gas hydrates are encountered in the surface interval, special operational conditions will need implemented. To minimize the potential for difficulties due to hydrate occurrence, the following suggestions are offered: • Control drill the interval. This limits the amount of cuttings in the well bore which might contribute hydrates. • Use slower pump rates to minimize the potential for bringing up large volumes of hydrates all at once and overloading with gas cut mud. • A two pound per barrel treatment with Driltreat (Lecithin) could provide some inhibition of the hydrate break-out. Contact the Technical Representative prior to any additions of Driltreat. • Keep the mud as cool as possible to minimize thawing of the hydrates. Mud up with cold water and dilute with cold water. • Milne Point and Tarn operations have reported benefit from treating with 1 % DriI-N-Slide. The mud engineers state that it acts to smooth out the rheology of the fluid. If possible, use 6% KCI water (COLD) to maintain volume while drilling ahead. Maintain the mud chlorides ~ 28,000 - 34,000 ppm with KCI. Use Dextrid and PACs for API filtration control. Target 8-15 cc initially, dropping the fluid loss to the 6 cc range prior to running casing at the surface hole TD. Hold the pH in the 8.5-9.5 range with KOH. Mix 0.15 ppb of EZ Mud in the initial mix. Once the mud has sheared through the bit twice, slowly increase the EZ Mud concentration to the full 0.75 ppb. Daily additions of X-Cide 207 are needed to control bacterial action. Should bacteria become a problem, hold a safety meeting and add the desired amount of Aldacide G using all the proper PPE. High levels of corrosion have been seen when running KCI fluids in other areas on the North Slope. Barascav D and Baracor 700 levels will be maintained at programmed levels. As noted on offset wells, heavy amounts of clay will be present from about 500' onward which will require additions of DriI-N-Slide and/or Condet to reduce BHA balling and screen blinding. Sweeping the hole with high viscosity or Barolift sweeps prior to the short trip at TD and again prior to coming out of the hole to run the surface casing is recommended. If possible, reduce the fluids rheology to those recommended in the cementers program after the casing is on bottom. It is important to exercise caution to minimize the potential for creating a situation of lost circulation. Tripping speeds and casing running speeds should be slowed to reduce the effects of surge pressures on the formation especially with this elevated rheology. Do not attempt to run casing if the well is not in stable condition. Pumps should be "staged" on line slowly to avoid surging the hole and the pipe rotated to break the mud's gels before turning the pumps on. Smilodon v1.3 4 9/5/0 3 of 39 ! ~ Halliburton BaROIO Chevron Production Interval: 8'/Z" to 4,950'; 6% KCI/PHPA/Clayseal Mud Properties Mud Program Initial Value Final Value Densit 9.1 - 9.2 9.3 max Funnel Viscosity (seconds) 40-65 40-65 Yield Point cP 15-25 15-25 Plastic Viscostty (lb/100 st) 14-24 14-24 10 second el 4-8 4-8 10 minute el 6-13 6-14 H 9-9.5 9-9.5 API filtrate <4 <4 So/ids % 6-12 6-12 * ~ ~^~°SS hole d "t' con i ions dictate otherwise Treat the mud with bicarb and citric acid prior to drilling out. Drill out using the existing mud system from surtace hole. Some whole mud dilution may be required to reduce solids content and MBT to an acceptable level. Add Clayseal slowly until a final concentration of 0.84 gal/bbl is reached. Maintain this concentration until interval TD. Decrease the API filtrate to <4 cc/30 for the interval using Dextrid and/or PAC L. Keep low gravity drilled solids to a minimum (<6% by volume if possible). Maintain the MBT at <12 ppb through dilution and solids control. Maintain the pH between 9.0-9.5 with KOH. Daily additions of Aldacide G/X-Cide 207 should be made to control bacterial action. The chloride level should be kept in the 28-34K range through additions of KCI. The EZ Mud concentration should be maintained at .75 ppb. A 15-25 YP should be maintained using Barazan D+. On Amethyst #1, some shale splintering was seen at 4,300', requiring aweight-up to 10.5 ppg. Proper drilling practices should be employed to minimize mechanical disturbance in this interval. If splintered shale is seen at the shakers, consider weighting up a minimum of .4 ppg and maintain this weight until TD. Special efforts should be made to keep ECD's and surge/swab pressures to a minimum. This will reduce the chances of lost circulation and also reduce damage to the exposed shales. If seepage losses are noted while drilling the sands, immediately string in STEELSEAL at 3-5 sx/hr. Obtaining good logs and fluid samples are key goals of the well. Smilodon v1.3 5 9/5/0 4 of 39 Ch~ Schlumberger Smilodon (P2) Proposal Report Date: October 9, 2007 Survey 1 DLS Computation Method: Minimum Curvature / Lubinski Client: Chevron Vertical Section Azimuth: 90.000° Field: White Hills Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure /Slot: Smilodon /Smilodon 1 TVD Reference Datum: RKB Well: Smilodon TVD Reference Elevation: 361.5 ft relative to MSL Borehole: Smilodon Sea Bed 1 Ground Levei Elevation: 341.000 ft relative to MSL UWIIAPUf: 50029 Magnetic Declination: 22.594° Survey Name /Data: Smilodon (P2) /October 9, 2007 Total Field Strength: 57560.386 nT Tort 1 AHD 1 DDI 1 ERD ratio: 0.000° / 0.00 ft 10.000 / 0.000 Magnetic Dip: 80.373° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: January 15, 2008 Location LaULong: N 69.71042272, W 149.92011065 Magnetic Declination Model: BGGM 2007 Location Grid NIE YIX: N 5743513.000 ftUS, E 510147.000 ftUS North Reference: True North Gdd Convergence Angle: +0.07493238° Total Corr Mag North a True North: +22.594° Comments Measured De th Inclination Azimuth Sub-Sea TVD TVD Vertical NS EW Grevfty DLS Directional Northing Easting Latitude Lon itude p Section Tool Face Difficulty g k de de ft ft ft H ft de de 1100 H Index ftUS itUS RKB 0.00 0.00 n nn _3R1 ~n n nn n nn n nn n nn n nn Conductor ---- 101.00 ---- 0.00 - 0.00 -260.50 101.00 0.00 0.00 0.00 -- -- 0.00 v.vv 0.00 J/YJJ IJ.VV 5743513.00 JIU I9/.vu 510147.00 IV Oa./lU4LLIL VV l4y.yZU11U6b N 69.71042272 W 149.92011065 200.00 0.00 0.00 -161.50 200.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 MSL 361.00 0.00 0.00 -0.50 361.00 0.00 0.00 0.00 - 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 400.00 0.00 0.00 38.50 400.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 600.00 0.00 0.00 238.50 600.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 800.00 0.00 0.00 438.50 800.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 1000.00 0.00 0.00 638.50 1000.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Top PC C 1040.00 0.00 0.00 678.50 1040.00 0.00 0.00 0.00 - 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 1200.00 0.00 0.00 838.50 1200.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Base Perm 1222.00 0.00 0.00 860.50 1222.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.9201106 1400.00 0.00 0.00 1038.50 1400.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.920110t~ Top PCB 1465.00 0.00 0.00 1103.50 1465.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 1600.00 0.00 0.00 1238.50 1600.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 9-5/8" Csg 1722.00 0.00 0.00 1360.50 1722.00 0.00 0.00 0.00 -- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 1800.00 0.00. 0.00 1438.50 1800.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Top PC A 1850.00 0.00 0.00 1488.50 1850.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2000.00 0.00 0.00 1638.50 2000.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2200.00 0.00 0.00 1838.50 2200.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 Top Upper Ugnu 2314.00 0.00 0.00 1952.50 2314.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2400.00 0.00 0.00 2038.50 2400.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 2600.00 0.00 0.00 2238.50 2600.00 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69.71042272 W 149.92011065 WeIlDesign Ver SP 2.1 Bld(doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon (P2) Generated 10/9/2007 1:58 PM X891 of 2 C Measured Vertical omments Depth Inclination Azimuth Subsea ND ND Section NS EW Gravity Tool face DLS Directional Difficulty Northing Easting Latitude Longitude ft de de ft ft ft ft ft de de HOOK Index ftUS ftUS 2800.00 0.00 0.00 2438.50 28nn nn n nn n nn n nn Lower Ugnu 2835.00 0.00 0.00 2473.50 2835.00 3000.00 0.00 0.00 2638.50 3000.00 Top West Sak D 3122.00 0.00 0.00 2760.50 3122.00 3200.00 0.00 0.00 2838.50 3200.00 Top West Sak C 3286.00 0.00 0.00 2924.50 3286.00 3400.00 0.00 0.00 3038.50 3400.00 Top West Sak 8 3442.00 0.00 0.00 3080.50 3442.00 3600.00 0.00 0.00 3238.50 3600.00 3800.00 0.00 0.00 3438.50 3800.00 4000.00 0.00 0.00 3638.50 4000.00 4200.00 0.00 0.00 3838.50 4200.00 Top Co/eville 4228.00 0.00 0.00 3866.50 4228.00 4400.00 0.00 0.00 4038.50 4400.00 4600.00 0.00 0.00 4238.50 4600.00 4800.00 0.00 0.00 4438.50 4800.00 4959.00 0.00 0.00 4597,50 4959.00 TD / 7" Csg 4960.00 0.00 0.00 4598.50 4960.00 Le gal Description: Surface : 539 FSL 700 FEL S9 T4N R9E UM BHL : 539 FSL 700 FEL S9 T4N R9E UM 0.00 0.00 0.00 --- ^~° 0.00 0.00 5743513.00 JIV 19/.VV 510147.00 rvoa N 69. .ii u4[[rZ W 14y.yLU11065 71042272 W 149 92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 . .71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149 92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 . .71042272 W 149 92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. . 71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 .71042272 W 149 92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. . 71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 .71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 .71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 .71042272 W 149 920110 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 . 6 .71042272 W 149.9201106 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 .71042272 W 149 92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69 . .71042272 W 149 92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. . 71042272 W 149 92011065 - 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. . 71042272 W 149.92011065 0.00 0.00 0.00 --- 0.00 0.00 5743513.00 510147.00 N 69. 71042272 W 149.92011065 Northing (Y) [ftUSj Easting (X) [ftUS] 5743513.00 510147.00 5743513.00 510147.00 WeIlDesign Ver SP 2.1 Bid( doc40x_100) Smilodon 1\Smilodon\Smilodon\Smilodon (P2) Generated 10/9/2007 1:58 PMt3'a~9~ of 2 Chevron Schlumberger ~" Smilodon (P2) FIEt~ White Hills STa~~,v~ Smilodon Me9netlc Paremelen Mc0ei: BGGM 2001 Dip: 00.013' Meg WC: .22.591' Dale: Jenaary 15, 2008 FS: 5]580A nT 3urfece l°utnn NAD21 Alaska Slab Planes, Z°ro 04, U9 FeN lel: N5B 023).522 Na1N,p: 5)10513.00 M1S GrM C.OM': k0.01493238' Lnn: Wfa95512388 Easlkp: 51011].00 M15 Scale Fact 0.998900111 MkwNlen Sbt Plan: eow SmWEan1 NO RN: RKe (351.SOflabove MSLI 5Mb0on IP2) Sny [lab: Odaber OB, 2001 -1200 -600 0 600 1200 0 600 1200 1800 O O t0 ~ 2400 II N O 3000 3600 4200 4800 ~Ri(B ~ ............................... e..... ueto~~ MSL ................... 600 ..:~;c.:_.~_:~: 1200 ._.._ uP T'~8 ._.._.._.. _.._ .._.._.._.._..~.._.._.._ .._.._.. ig ............................................................................. ~............. 1800 op PC A op (Jpper l7gnu .......................................... ~.................................»............. 2400 ower Ugnu ..........................................:...................................:............. 3000 _,__.__.._..__._.._.._.._..~.._.. _.._.._.._.._.. ~..~.. •op West Sale D_.._..~ op West SakC .. ~............j................ ~..~..~.. y.. _.._..~..~.._.. _.._..~. ..~.. ~..~.._.._.._.._ op West Sak 8 .....................:...................................i............................................................... op Colevllle TD l 7" Csg nu~odon (P2) -1200 -600 0 600 1200 Vertical Section (ft) Azim = 90°, Scale = 1(in):600(ft) Origin = 0 N/-S, 0 E/-V 3600 4200 4800 17 of 39 N NOTES: 1. COORDINATES SHOWN ARE NAD 27 ALASKA STATE PLANE ZONE 4. 2. GEOGRAPHIC COORDINATES ARE NAD 27. 3. ALL DISTANCES ARE GROUND. 4. ICE PAD IS ROTATED 70' EAST FROM NORTH. 5. VERTICAL DATUM IS ASSUMED. SCALE: 1" = 200' SMILODON ~M ~~ 500 ' ~~ SRO ~ a- o 0 n Z ~ ~ ~ °• o ~p ~ R\0 Q P O r,~ N M `3Ap, cam- 500 5 ~0 W /~~~ ~~ CHEVRON UNION OIL OF CALIFORNIA ADD FILE N0. DRAWING N0: SMILODON TOPO 25 SEPT. 07 w w w ~'-' ~ ~ ~ o ~ ~ o! VICINITY MAP T5N p~ pQ T4N s s Qa 3 2 t 7 8 10 tt 12 THIS SITE 1e „ , ,3 ~~~. 19 20 21 22 23 ~J 30 29 28 27 nP T 4 N 3i 32 T3N w w w ~ ~ w ~~ ~~ pPO o-o' \G~ ' = APPROX. 3 MI. SMILODON ~~`b~ PROP°~o 0 ~cE cP~ LOCATED WITHIN PROTRACTED SEC. 9, T 4 N, & R 9 E, UMIAT MERIDIAN. 539' F.S. L, 700' F.E.L. LAT = 69'42'37.52" N LONG = 149'55'12.39" W Y = 5,743,513' X = 510,147' ~~ ^~ \i ~~ DENOTES SPILL TRAJECTORY ~}- STAKED CONDUCTOR LOCATION LOUNSBURY & ASSOCIATES, INC. SURVEYORS ENGIIQEBRS PLANNERS SMILODON WELL AS-STAKED DRAWING WITH TOPO AND SPILL TRAJECTORY SHEET: 1 OF 1 18 ~~~0 White Hills Days vs. Depth 0 ~--Proposed Depth -+- Wolfbutton -~a~- Malguk ~-Heavenly 1 000 , 2 000 - - , ---- - - - ---- t .r 3 000 -- , ---- - -- -- N 4 000 - - - , ___ 5 000 , 6,000 0 5 10 15 20 25 Days C~ r Chevron Maximum Anticipated Surface Pressure Calculation Smilodon 9-4-9 Well White Hills Exploration Assumptions: 1. Based on offset drilling data & G&G evaluation and analysis, the pore pressure gradient is predicted to be a a normal 0.433 psi/ft gradient from surface to planned total depth at 4950' TVD 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 surface. With the shoe for Smilodon at 1701' TVD, the Leak-off is anticipated to be -12 ppg EMW. 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. Drilling 8-1/2" Hole at 4929' ND Max. pore pressure at T.D. = 4,950 ft. x 0.433 psi/ft = 2143 psi M.A.S. P. = 2143 psi - ( 0.1 psi/ft x 4950 ) = 1648 psi 20 of 39 Chevron WELL: Smilodon 9-4-9 Sect. 1 12 1/4" hole MUD WT Sed. 2 8 1/2" hole MUD WT FIELD: White Hills Calculation & Casing Design Factors Smilodon 9.4-9 White Hills Exploration DATE: 17-Oct-07 9.5 PPG MASP= 0 Diverter 9.3 PPG MASP= 1,648 psi DESIGN BY: W. Quay TENSION MINIMUM COLLAPSE COLLAPSE WEIGHT TOP OF STRENGTH PRESS @ RESIST. MINIMUM SECTION CASING BOTTOM TOP DESCRIPTION LENGTH WT GRADE THREAD W/O BF SECTION TENSION WORST CASE BOTTOM w/o TENSION WORST CASE MASP YIELD WORST CASE 1 9-5/8" 1,722 0 . 1722 40 L-80 BTC LBS 68 880 LBS 68 880 1000 LBS 916 SF TENSION PSI' PSI SF COLL. PSI•" PSI SF BURST TVD 1,722 0 , , 13.30 778 3,090 3.97 1,641 5,750 3.50 2 7" TVD 4,950 4,950 0 0 4950 26 L-80 BTC 128,700 128,700 604 4.89 2,237 5,410 2.42 2,356 7,240 3.07 Collapse pressure is calculated; Normal Pressure Fluid Gradient for external stress (.452 psi/ft) and the casing evacuated for the internal stress (0 psi/tt) "See attached sheet for calculation of MASP 21 of 39 Chevron LEAK OFF TEST PROCEDURE 1. Clean out the rathole below the shoe, and drill 20' of new hole. Circulate and condition mud. 2. Pull the drill string into the shoe. Rig up to observe annulus pressures. 3. Close the pipe rams and pump down the drillpipe at a slow rate (1/4 - 1/3 BPM) if exposed formation is permeable. Anon-permeable formation should be step tested to a predetermined pressure. 4. Measure the volume pumped and plot annulus pressure-vs-cumulative volume pumped. Compare annulus pressure to drill pipe pressure and confirm both are the same. Record and plot pressure versus volume pumped. The pumps should be shut down immediately upon indication of leak-off. Record the inital, shut down pressure and the pressure after 1, 2, and 3 minutes. 5. Release pressure and record the volume of fluid recovered in the trip tank. The point "B" shown in the attached graph at which the plot of drillpipe pressure stops increasing equally as the volume is pumped is called the P.I.T. limit, Leak Off, or pressure integrity test limit. The leak-off pressure is calculated as follows: Leak-off (EMW) = Mud weight in hole + P.I.T. (PSI) (0.052) X (shoe depth in TVD ft.) This equivalent mud weight should be made known to all drilling personnel to ensure it is not exceeded. See the drilling procedure for guidelines on expected LOT's or pressure integrity test limits for each casing shoe. SURFACE PRESS. TYPICAL PIT PLOT (psi] NOTES: Point "A" will have some variance until the system begins to pressure up. Point "B" is the leak off and is abbreviated LOT. Point "C" is known as the injection pressure and is usually dependent on rate. Point "D" is known as the fracture closure pressure and may not stabilize if permeable formations are exposed. 22 of 39 YULUME PUMPED SHUT-IN-TIME (BBLS] [MIN] LJ Diverter Schematic Date -October 17, 2007 Location -White Hills -North Slpe Rig -Nabors 106E Chevron Size - 13 5/8" Pressure Rating - 5000 PSI Annular: Hydril 13-5/8" GK Double Gate BOP Deactivated Drilling Spool Single Gate BOP Deactivated Knife Valve: 12" Diverter Line 23 of 39 HELI RIG 106 - DIVERTER LINE LAYOUT BOP Schematic Date -October 17, 2007 Location -White Hills -North Slpe Rig -Nabors 106E Chevron Size - 135/8" Pressure Rating - 5000 PSI Mnular: Hydril 13-5/8" GK Double Gate BOP Shaffer 13-5/8" SL Drilling Spool Single Gate BOP Shaffer 13-5/8" SL flanked Off Diverter Outlet 25 of 39 NABORS DRILLING N.T.S ~RAVI MANI by: APR 11 2007 NDR#106 00 qq CC 3-1/8" 5,000# NACE TRIM CHOKE & KILL MANIFOLD SYSTEM BB .~;. +~i PACIFIC VALVE SERVICES INC. VIEW VIEV~/ VIEW Chevron North Slope Alaska White Hills Prospect SHALLOW HAZARD ANALYSIS 29 June 2007 SMILODON 9-4-9 Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 CHEVRON ACREAGE 27 of 39 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Union Oil Company of California (UOCC), a wholly owned indirect subsidiary of Chevron Corporation currently has leased approximately 20 x 40 sq miles of acreage on the Central North Slope of Alaska (Fig 1). UOCC holds 100% working interest in the field which is bounded by the National Petroleum Reserve of Alaska (NPRA) to the West, the Trans-Alaska Pipeline (TAPS) to the East, Kuparuk River and Prudhoe Bay Fields to the North and the Brooks Range Foothills to the South. STw4TIGRAPHY $ RESERVOIR OBJECTIVES Fig 2: White Hills Stratigraphy The Smilodon 9-4-9 well will target reservoir objectives in the shallow Tertiary through Upper Cretaceous (Mastrictian) strata referred to as the Saganivriktok, Prince Creek, Ugnu and West Sak Formations bounded at the top by the permafrost and down to a total depth of approximately 5000 ft MD. Overall, the sequence records aregressive-transgressive cycle starting with the West Sak (Schrader Bluff) shallow marine prograding shelf sands, overlain by Ugnu fluvial-deltaic and then Non-marine Prince Creek and Sagavanirktok clastic strata. (From USGS Open-File Report 2005-1182) 28 of 39 • Chevron PRINCE CREEK FORMATION Sagavanirktok Grouu and Prince Creek Formation Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The Smilodon 9-4-9 well will spud in Tertiary generally upward-coarsening Sagavanirktok siltstones, fine to very-fine grained sandstones, interbedded bentonitic mudstones with minor lignite horizons, and gravels deposited under shallow marine to non-marine conditions. Below the Sagavanirktok Group are undifferentiated Prince Creek coarse clastic strata, comprised of gravels, coarse lithic sands, lignites, and siltstones. The Prince Creek sandstones typically exhibit 8-30% clay content, with porosities to 38% and permeabilities to several darcies. UGNU FORMATION U_gnu Sands The Early Paleocene Ugnu Formation consists of upper-fine to medium and coarse grained lithic sandstones, siltstones, bentonitic shales, lignites, and some gravels deposited in anon-marine delta plain environment. The sandstones are poorly indurated to unconsolidated, with porosities exceeding 35% and to several darcies permeability. Heavy oil saturation is common 30 miles to the north in Kuparuk River, Milne Point, and Prudhoe Bay fields. WEST SAK FORMATION West Sak Sands The West Sak consists of a shallowing upward shallow marine sequence comprised of very fine-grained, single and amalgamated hummocky cross-stratified sandstone beds. The formation is typically characterized by fine to medium-grained, unconsolidated but well sorted sands interbedded with siltstones, mudstones, and coals. The West Sak sands were deposited in a shoreface to proximal shelf environment. Lower West Sak members were deposited in a lower shoreface to inner shelf setting by storm-generated waves and currents, both the upper and lower members showing good continuity both in the subsurface in areas with good control and in the outcrops to the southwest and south. The Smilodon 9-4-9 well will TD at the base of the West Sak Formation at approximately 5000 ft MD. 29 of 39 • t~evlron STRUCTURE Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The regional structure on the top of the West Sak in the vicinity of the Smilodon 9-4-9 well is a monocline that strikes north-south and dips eastward at between 1 ° and 2°. The reservoir occurs at relatively shallow depths within the West Sak core area, with the top of the "D" sand being located at between -2536 and --2801 feet subsea. To the west of the core area the top of the West Sak shallows until it intersects the base of the permafrost at about 1,000 feet subsea to the west of Smilodon 9-4-9. The Smilodon structure consists of aNorthwest-Southeast trending closure with stratigraphic and dip related traps. The structure is thought to have both permafrost and temperature seals. The structure shows distinctive depositional fairways for sand accumulation based on 2D seismic, surface geology, and magnetic data. The structure sub-outcrops at certain places throughout the field allowing regional correlation between the source rock and target formations. The primary reservoir objectives 30 of 39 Fig 3: Pre-stack time migrated 2D White Hills 2D seismic line (PM89-306); dip direction Cheviron • Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 include gas in the Prince Creek, Ugnu and West Sak formations. In general, gas hydrates are not anticipated. GEOPHYSICAL DATA QUALITY Chevron has an extensive grid of 2D spec data. With our working interest participation in the Kuparuk and Prudhoe Bay fields, we have obtained as much well data and 3D seismic as we are entitled too in order to characterize the White Hills area south of the current main producing fields. Currently, our key 2D lines through the White Hills prospective area have undergone several stages of reprocessing. In 2002, GeoTrace produced apre-stack migration data set which was later reprocessed by 31 of 39 5 Fig 4: Approximate mapped extent of poor quality 2D seismic data ~ ~ fhevron P.O~Box'19642Pany of California Anchorage, AK 99519-6247 Fax 907 263 7884 Unocal in 2005 to attempt to apply newer noise reduction techniques. However, after the merger with Chevron, and high grading of the White Hills prospective area, it was decided to try and increase the signal to noise ratio of the data further by applying Chevron's proprietary noise attenuation technique. This was in an effort to enhance the image in a large swath of low frequency, poor quality data (Fig2). This poor data zone is coincident with a large portion of the Chevron acreage on the Central North Slope. 2~~7 BATA /ACQUISITION The drilling program for the White Hills area was developed from both geologic and geophysical data sets. The results of the various reprocessed datasets were evaluated and it is clear that the current data quality is not sufficient to determine potential shallow hazards and completely validate well location placement. In the winter of 2007 (Jan 5-Feb 11) nine 2D lines, approximately 170 sq miles as outlined on Fig 3, were acquired over the White Hills area by CGG Veritas. The survey was designed to tie the current proposed well locations in a North-West -South-East strike direction with two long North -South tie lines. Every attempt was made to avoid water bodies whenever possible due to the potential statics issues that ice lakes have on seismic data. -4: +' ~ N r .~ ~ yh f +~ ~, 1. ~ !~4_. ~ 7. . J ~ ~ i ~ - _ 5 .~ y.~ J .f 3~ t~,~ _ 7,. r j ~ i i r-~ Tr~Y 4_ i ~ r ~ . ~ ~ ~ ~~ (' 1. ~ ~~ ti # ~ s 1~ ~y x ~` ~ A, t I f°'~ t ,< i._ ~ ~ ~ W^ C .y., ' L ~. ~ ~ ~ L' ~ ~ }~ ~~ ~ q ~~ t lw i t I - ~ ~ a ~~ {~i -~ J Fig 5: Chevron 2007 2D seismic acquisition lines; acquired by CGG Veritas 32 of 39 6 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 POTENTIAL SHALLOW HAZARDS Fig 6: Alaska North Slope Gas Hydrate Energy Resources, USGS Open File Report 2004-1454; by Timothy Collett Permafrost is expected to 1000 ft below the surface and there is the possibility that gas hydrates could be present although not expected. The current known accumulations of Gas Hydrates (Fig 6) do no appear to be present in the White Hills prospective area. A few coal layers are possible in the permafrost. The 2D pre-stack time migrated line, tying the Cirque wells (Fig 7a, b), shows a high amplitude reflector at the base of permafrost and bounded by faults. We suspect that this well blow out is possibly due to shallow gas. There are no significant high-amplitude reflectors that occur on our existing poor quality 2D seismic data around the Smilodon 9-4-9 well. This suggests that shallow gas hazards are not a threat as in the Cirque analogues. 33 of 39 7 Chevron • Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 34 of 39 Fig7a: Cirque -Hot Ice tie line Fig 7b: Cirque tie line (magnified image) Chevron i Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The present 2D seismic data quality is very poor. In particular, the Central Depth Points (CDPs) which tie the Smilodon 9-4-9 well are coincident with an ice lake at the time the data was acquired. Ice lakes pose a significant challenge when processing and interpreting the data because of statics issues which diminish the image quality and frequencies in that section (Fig 3). With the current state of the seismic, it is difficult to truly asses the potential for shallow hazards. The newly acquired (2007) 2D seismic, acquired to tie the wells and help identify possible shallow hazards, is anticipated to be completed by late summer 2007. The expectation is to review the data as soon as it is completed for any shallow hazards which may not be identifiable on the current pre-stack time migrated dataset. GEO-PRESSURE /VELOCITY ANALYSIS Checkshot and VSP data is sparse in the White Hills area. However, there is sufficient data to generate a velocity field (Fig. 8) across the region which indicates that we should not encounter any velocity anomalies. The permafrost zone has higher velocities as expected and the transition beneath the frozen, lower velocity base is quite distinctive. T~/D Depth (it) below T-D datum Fig. 8 Checkshot and VSP Velocity Field across the White Hills and Surrounding Areas o R'ofebuttoa25-6-9 -Ta~2 Tamil IhebySTKl ~ Nava[t~l -&ie8+cffieY'N-1 •FSn~I ., Cirqua~2 -ilmethystSTwi 35 of 39 9 Chevron Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 The Wolfbutton 25-6-9 is the most proximal checkshot to the proposed Smilodon 9-4-9 well. We expect similar velocities as shown in (Fig 9) on the Interval Velocity (Vint) vs Depth plot; Interval Transit Time (ITT) vs Depth. The plots show the expected faster velocities through permafrost and slower velocities through the zone of interest. From the velocity analysis, we expect a normally pressured regime through the Prince Creek, Ugnu, West Sak formations, and Colville zone. MUD WEIGHT ~ SHALE RESISTIVITY ANALYSIS 3 key wells which delineate the White Hills area and Smilodon prospect are the Malguk #1, Wolfbutton 25-6-9, and Ruby State #1. These wells were used in addition to the checkshot and VSP data to examine the possibility of pressure and velocity anomalies. In Fig (10) Mud Weight (MW) in ppg were plotted vs depth for the 3 wells. The graphs indicate that drilling was balanced through our zone of interest where MW increased with depth. The Malguk well shows an anomaly at 2977 ft which coincides with top of the west sak pay interval; the well was cased at this point. 36 of 39 10 Fig 9. Wolfbutton 25-6-9: Time vs Depth, Vint vs Depth, ITT vs Depth Chevran Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 Mudweight and Shale Resistivity versus Measured Depth plot for the Malguk #1 well. Mudweights were increased from 1200' to casing point due to oil and gas shows in the mudstream. Note that the shale resistivity trend indicates a normally pressured section down to approximately 10,000 feet, where a higher bressured regime is indicated. 37 of 39 11 C Chevron Wolfbutton #25-6-9 Rshale ohm-m 100.00 10.00 1.00 0.00 2000.00 4000.00 6000.00 8000.00 10000.00 i i i t i, -, i 12000.00 8.00 8.50 9.00 9.50 10.00 10.50 11.00 Mudweight ppg Mudweight and Shale Resistivity versus Measured Depth plot for the Wolfbutton #25-6-9 well. The shale resistivity trend indicates a normally pressured section at least down to 8,000 feet. Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 38 of 39 12 • Chevron SUMMARY Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Fax 907 263 7884 In conclusion, we do not expect any shallow hazard in the well based on our current dataset. The interpretation of our current 2D seismic and evaluation of offset mudweight well data do not highlight any potential problems. Prepared by: Dave Buthman Geologist /Technical Team Lead Alaska New Ventures Team MidContinent /Alaska BU (281) 561-3401 buthbdb .chevron.com Monique Velasquez Sr. Exploration Geophysicist Alaska New Ventures Team MidContinent /Alaska BU (281) 561-4958 moniouevelaspuez c(D.chevron.com 39 of 39 13 Page 1 of 1 Maunder, Thomas E (DOA) From: Quay, Walter [ASRC] [WQuay@chevron.com] Sent: Monday, November 26, 2007 9:50 AM To: Maunder, Thomas E (DOA) Cc: Buster, Larry W; Brandenburg, Tim C; Quick, Mike [ASRC] Subject: RE: Smilodon 9-4-9 Torn, My Replies in Blue. Wafter Quay WQuay@chevron.com Office: 907-263-7812 Cef1: 907-230-3961 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Friday, November 23, 2007 11:09 AM To: Quay, Walter [ASRC] Subject: Smilodon 9-4-9 Walter, I am reviewing the permit application and have some questions. 1. It is stated that annular disposal is planned. I believe you know that must be applied for separately using the 10-403 AD form. When the LOT is conducted below the surface casing shoe, is it planned to pump in some fluid volume? Other operators that employ AD usually pump 2 - 3 bbls after "break". Once we get the results from the LOT's et. al. 10-403 AD application is planned. On the LOT 2-- 3 bbls after break is planned. 2. Will casing be set regardless of success in the 8-1/2" hole section? Yes the plan is to set the 7" regardless of the success/failure of the exploration objectives. 3. Referring to the procedure and drawing, will the stage collar be used to assure that cement is not above it following the 7" cementing operation? Yes the stage collar is to ensure the annulus is clear. 4. Will the rig be running tubing into the well? You state that the completion program will be advised, that program should be submitted via a sundry. The plan is to run a tubing string. It will be submitted via a sundry. 5. Is the combined diverter spool /stack arrangement what has been employed at Happy Valley? Due to the really long move, it is likely that a 5000 psi initial BOP test wilt be required and then the 2500 psi as proposed in the program. 80P schedule is 7-days. No it is not the stack employed at HV. The plan for White Hills will utilize a 13-5/8" diverter/BOP stack, whereas the stack in HV is an 11" stack and a separate diverter. Will plan for 5000 psi initial BOP test. Look forward to your reply, Tom Maunder, PE AOGCG 11 /26/2007 Union Oil Company of Califor~Chevron Corporate Structure Colombie, Jody J (DOA) From: Norman, John K (DOA) Sent: Wednesday, November 21, 2007 2:23 PM To: Colombie, Jody J (DOA); Saltmarsh, Arthur C (DOA) Cc: Foerster, Catherine P (DOA); Seamount, Dan T (DOA); Davies, Stephen F (DOA) Subject: RE: Union Oil Company of California/Chevron Corporate Structure Only "operators" (20 AAC 25.990 (46)) need a bond. John From: Colombie, Jody J (DOA) Sent: Wednesday, November 21, 2007 10:28 AM To: Norman, John K (DOA); Saltmarsh, Arthur C (DOA) Cc: Foerster, Catherine P (DOA); Seamount, Dan T (DOA); Davies, Stephen F (DOA) Subject: RE: Union Oil Company of California/Chevron Corporate Structure Page 1 of 3 Chevron does not have a current Bond, Blair Wondzell released it in 1988. Chevron does have a $500,00 bond with DNR though. From: Norman, John K (DOA) Sent: Wednesday, November 21, 2007 10:11 AM To: Saltmarsh, Arthur C (DOA) Cc: Foerster, Catherine P (DOA); Seamount, Dan T (DOA); Colombie, Jody J (DOA); Davies, Stephen F (DOA) Subject: RE: Union Oil Company of California/Chevron Corporate Structure Art, please retain and file a copy of this reply. Based upon what is stated we should reject future applications which designate Chevron USA as operator. Does Chevron have a current blanket bond on file with AOGCC? From: Martin, Shannon W [mailto:SMartin@chevron.com] Sent: Wednesday, November 21, 2007 8:16 AM To: Saltmarsh, Arthur C (DOA) Cc: Davies, Stephen F (DOA); Maunder, Thomas E (DOA); Roby, David S (DOA); Williamson, Mary J (DOA); Regg, James B (DOA); Fleckenstein, Robert J (DOA); McMains, Stephen E (DOA); Colombie, Jody J (DOA); Seamount, Dan T (DOA); Norman, John K (DOA); Foerster, Catherine P (DOA); Stanek, Judy A; Tabler, Kevin A Subject: RE: Union Oil Company of California/Chevron Corporate Structure Art, Although Chevron USA does own assets/working interests in Alaska it does not operate any wells. For example, Chevron USA owns WI in Beluga River, Colville, Prudhoe, but other companies operate. Union Oil Company of California is the only Chevron company to operate any wells in Alaska, and as such, Union Oil is the only entity name that should be used on the AOGCC submittals mentioned below. Have a great Thanksgiving as well! Shannon 11/27/2007 i}nion Oil Company of Califo~Chevron Corporate Structure ~ Page 2 of 3 From: Saltmarsh, Arthur C (DOA) [mailto:art.saltmarsh@alaska.gov] Sent: Wednesday, November 21, 2007 8:01 AM To: Martin, Shannon W Cc: Davies, Stephen F (DOA); Maunder, Thomas E (DOA); Roby, David S (DOA); Williamson, Mary J (DOA); Regg, James B (DOA); Fleckenstein, Robert J (DOA); McMains, Stephen E (DOA); Jody Colombie; Dan T Seamount; Norman, John K (DOA); Foerster, Catherine P (DOA) Subject: RE: Union Oil Company of California/Chevron Corporate Structure Morning Shannon, Thanks for your reply. We are getting Permit applications, Sundries, production data, BOP reports and other items listing either Union oil or Chevron as the operator. Paperwork is also being submitted for the same well using both operator's names. Our database cannot handle two different operator names for the same well. Your reply does not specify which name we should use for the above mentioned items. Please clarify which name should be used. It may also require you to send a Company wide notice of the preferred Company name. After the single operator name is provided, documents submitted without that operator name will be returned. Thanks for your help in this. Have a Happy Thanksgiving. Art Edmund Burke Art Saltmarsh Sr. Petroleum Geologist Ak. Oil & Gas Conservation Commission (907)793-1230 From: Martin, Shannon W [mailto:SMartin@chevron.com] Sent: Monday, November 19, 2007 2:26 PM To: Saltmarsh, Arthur C (DOA) Cc: Stanek, Judy A Subject: Union Oil Company of California/Chevron Corporate Structure «2007-02-13 Corp Structure Chevron and Union.doc» Art, Regarding your voicemail, we are no longer Unocal and should not under any circumstances be holding ourselves out as Unocal. Unocal went away with the merger on August 10, 2005, after which Union Oil Company of California ("Union Oil") became a wholly owned indirect subsidiary of Chevron Corp. Chevron USA is also a wholly owned indirect subsidiary of Chevron Corp. In other words, Union Oil and Chevron USA are owned by the same parent company, Chevron Corp, and both entities separately own and operate oil and gas assets in Alaska and continue to do business under such names. That said, all Chevron Corp Alaska business is done under one roof, i.e., out of the Anchorage office. The only two entity names that should ever be used on paperwork 11 /27/2007 °The only thing necessary for tha triumiah of e~tfl is fc~r good men to do rtotiling'". Union Oil Company of Califor~Chevron Corporate Structure ~ Page 3 of 3 submitted to the AOGCC are Union Oil Company of California and Chevron USA. As a practical matter, most of our day-to-day Alaska business is done under the name Union Oil Company of California. See also the attached document for a more thorough explanation of the corporate relationship between Union Oil Company, Chevron USA, and Chevron Corp. The DO&G had the same confusion and asked that we clarify. I think this should clear up any confusion, but please let me know if you have questions. Regards, Shannon Shannon W. Martin Land Representative MidContinent/Alaska Chevron North America Exploration and Production 909 West 9th Ave., Anchorage, AK 99501 Tel 907-263-7872 Fax 907-263-7698 smartin@chevron.com 11/27/2007 Anion Oil Company of CalifoChevron Corporate Structure Page 1 of 3 Saltmarsh, Arthur C (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, November 21, 2007 10:28 AM To: Norman, John K (DOA); Saltmarsh, Arthur C (DOA) Cc: Foerster, Catherine P (DOA); Seamount, Dan T (DOA); Davies, Stephen F (DOA} Subject: RE: Union Oil Company of California/Chevron Corporate Structure Chevron does not have a current Bond, Blair Wondzell released it in 1988. Chevron does have a $500,00 bond with DNR though. From: Norman, John K (DOA) Sent: Wednesday, November 21, 2007 10:11 AM To: Saltmarsh, Arthur C (DOA) Cc: Foerster, Catherine P (DOA); Seamount, Dan T (DOA); Colombie, Jody J (DOA); Davies, Stephen F (DOA) Subject: RE: Union Oil Company of California/Chevron Corporate Structure Art, please retain and file a copy of this reply. Based upon what is stated we should reject future applications which designate Chevron USA as operator. Does Chevron have a current blanket bond on file with AOGCC? From: Martin, Shannon W [mailto:SMartin@chevron.com] Sent: Wednesday, November 21, 2007 8:16 AM To: Saltmarsh, Arthur C (DOA) Cc: Davies, Stephen F (DOA); Maunder, Thomas E (DOA); Roby, David S (DOA); Williamson, Mary J (DOA); Regg, James B (DOA); Fleckenstein, Robert J (DOA); McMains, Stephen E (DOA); Colombie, Jody J (DOA); Seamount, Dan T (DOA); Norman, John K (DOA); Foerster, Catherine P (DOA); Stanek, Judy A; Tabler, Kevin A Subject: RE: Union Oil Company of California/Chevron Corporate Structure Art, Although Chevron USA does own assets/working interests in Alaska it does not operate any wells. For example, Chevron USA owns WI in Beluga River; Colville, Prudhoe; but other companies operate. Union Oil Company of California is the only Chevron company to operate any wefts in Alaska, and as such, Union Oil is the only entity name that should be used on the AOGCC submittals mentioned below. Have a great Thanksgiving as well' Shannon From: Saltmarsh, Arthur C (DOA) [mailto:art.saltmarsh@alaska.gov] Sent: Wednesday, November 21, 2007 8:01 AM To: Martin, Shannon W Cc: Davies, Stephen F (DOA); Maunder, Thomas E (DOA); Roby, David S (DOA); Williamson, Mary J (DOA); Regg, James B (DOA); Fleckenstein, Robert J (DOA); McMains, Stephen E (DOA); Jody Colombie; Dan T Seamount; Norman, John K (DOA); Foerster, Catherine P (DOA) Subject: RE: Union Oil Company of California/Chevron Corporate Structure Morning Shannon, Thanks for your reply. We are getting Permit applications, Sundries, production data, BOP reports and other items 11/23/2007 ~Jnion Oil Company of CalifoChevron Corporate Structure ~ Page 2 of 3 listing either Union oil or Chevron as the operator. Paperwork is also being submitted for the same well using both operator's names. Our database cannot handle two different operator names for the same wail. Your reply does not specify which name we should use for the above mentioned items. Please clarify which name should be used. It may also require you to send a Company wide notice of the preferred Company name. After the single operator name is provided, documents submitted without that operator name will be returned. Thanks for your help in this. Have a Happy Thanksgiving Art ~~mun~ Burk Art Saltmarsh Sr. Petroleum Geologist Ak. Oil & Gas Conservation Commission (907)793-1230 From: Martin, Shannon W [mailto:SMartin@chevron.com] Sent: Monday, November 19, 2007 2:26 PM To: Saltmarsh, Arthur C (DOA) Cc: Stanek, Judy A Subject: Union Oil Company of California/Chevron Corporate Structure «2007-02-13 Corp Structure Chevron and Union.doc» Art, Regarding your voicemail, we are no longer Unocal and should not under any circumstances be holding ourselves out as Unocal. Unocal went away with the merger on August 10, 2005, after which Union Oil Company of California ("Union Oil") became a wholly owned indirect subsidiary of Chevron Corp. Chevron USA is also a wholly owned indirect subsidiary of Chevron Corp. In other words, Union Oil and Chevron USA are owned by the same parent company, Chevron Corp, and both entities separately own and operate oil and gas assets in Alaska and continue to do business under such names. That said, all Chevron Corp Alaska business is done under one roof, i.e., out of the Anchorage office. The only two entity names that should ever be used on paperwork submitted to the AOGCC are Union Oil Company of California and Chevron USA. As a practical matter, most of our day-to-day Alaska business is done under the name Union Oil Company of California. See also the attached document for a more thorough explanation of the corporate relationship between Union Oil Company, Chevron USA, and Chevron Corp. The DO&G had the same confusion and asked that we clarify. I think this should clear up any confusion, but please let me know if you have questions. 11/23/2007 "the onl~r thing necessary fic~r ~~ triumph of e~ii i~ fir g~dead rrrer> t® dt~ rtiothig~« ~IJnion Oil Company of Califor/Chevron Corporate Structure Regards, Shannon Shannon W. Martin Land Representative MidContinent/Alaska Chevron North America Exploration and Production 909 West 9th Ave., Anchorage, AK 99501 Tel 907-263-7872 Fax 907-263-7698 smartin@chevron.com Page 3 of 3 11/23/2007 r TRANSMITTAL LETTER CHECKLISgT WELL NAME -~~'~~/'~~~- (r ~'-9 PTD# ~ 7- ~ ~ ~i Development Service / Exploratory Stratigraphic Test Non-Conventional Well Circle Appropriate Letter /Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS TEXT FOR APPROVAL LETTER WHAT (OPTIONS) APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both weft name ( PH) and API number (50- - -_) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to perforate and produce /inject is contingent upon issuance of a conservation order approving a spacing exception. , assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Please note the following special condition of this permit: Non-Conventional production or production testing of coal bed methane is not allowed Well for (game of well) until after iCompany Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. SCompany Name) must contact the Commission to obtain advance approval of such water well testing ro ram. Rev: 7/13/2007 1lI-fLL PERMIT CHECKLIST Field & Pool Well Name: SMILODON 9-4-9 Program EXP Weli bore seg ^ PTD#:2071520 Company r rNrnti OIL CO OF CALIFORNIA Instal ClasslType EXP 1 PEND GeoArea 890 Unit On1Off Shore On Annular Disposal Administration 1 Permit#aeattached ------ ----- - -- - -- - - -- NA-- - ---- -- - --------- -- -- - ----- 2 Lease numberappropri;3te ------ --- -- - --- Yes- -------------------------------- - - -- - - --------- --- 3 Uniquew911_natneandoumbet-- ------ - - - -- - --- Yes- - - - -- --- - - - - - --- -- -- - - -- --- 4 WeIUQCated in_adefined pool - - - - - - - - - - - - - - - - - NO- - - - - Exploratory v~ell- - - - ~ - - - - - - - - - - - - - - - - - - - 5 W@IllocatedProperdistanCefromdrillingunit.boundary________________________ Yes_ ______.--__-___- --__- ------------------------------------------------ 6 -Well located proper distance from other wells_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ - _ - _ Nearest well-is the plugged and abandoned Malguk.explor_atory well,-which lies 3 miles to the south. , _ - - _ _ - 7 SufhCientacreage_ayailablein_driilingunit__-______--__.---__-___ _-- Yes- ------------------------------------------------ -------------------------- 8 If deviated,is_w®IlboraPlat_included----------------------------- ----- NA_ ___--Vertical well----------------------------------------- 9 OpetatotonlyaffectedPa~+---- - ----- --- -- --- - Yes- - - -- - - -- ----- - - - -- -- - -------- 10 Opecatotbas_appropriatebondin.force---- -- - --- --- - --- Yes --------- - -- -- - - ------- -- -~ - - -------- 11 PerrnitcaDbelasuadvnthoutCQnserYati9n4rd@r---------------------------- Yes- ------------------.--------------------------------------------------- Appr Date 12 PermiicanbetssuedwJthoutadministtati~e-apptoral----------------------- Yes- -.----------------------------------------------------------------------- SF 111712007 13 Canperm~beaP~'ovedbef0rel`i-day wait- ---- - - -- - ----- Yes- ------ - ---- --- - --------- ---- - - ----- ----- --- - 4 NIeIIIQCaked4vithinareaar2datrataa0lhorizedbylnjeCtionOtdet#(put.1O#in_comments)(For_ No-- ----------------------------------------------------------------------- ~ (z'~' 15 . AJlwells_withU114-miiearea_ofreyieHridentifled(FotseruiceweN4nly)--------------- NA-- --------------------------------------..------------------.------------- 16 Pre-produced injectordtuatianofpreproduCtionlessthan3months-(FOrservicewellonly)_ _NA_ ______-___--_____________________________-------------------- ---- 17 NonCOnven,ges-conforms to AS31,05.030Q,1.A)~4.2.A-D) - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Engineering 18 Conductorstting_Rrrnr~ed ------- ----- -- - ------ - Yes -- - -- - - --------------- - - - ----- -- - ------ 19 Surface casingproiects all known USDWs _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _NA_ _ - . _ _ No subsurface water sources_inarea.- Surface oaring 400' below permafrost, - - - - _ _ _ _ _ _ _ 20 CMTvoladequate_tcoircuiateon_conductot8,surtcsg-.___--_-._-____-_-- Yes- ------------------------------------------------------------------ ---- 21 CMT_voladequate_torte-inlongstringtoas~rfcs8--------------------------- No-- ------Annular disposalis-planned,------------------------------------------------- 22 CMT will Coyer.ah koown.produCtiye horizons - - - - - - - - - - - - - Yes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23 CasingdesgnsadequateforC,T,B&-permafrost--------------------- -_-- Yes- -----------------------------------------------------------.------------ 24 AdequAte tartkage_or reserve pit _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ - _ _ _ _ Rig equipped with steel pits. No_r@serve pit planned._ Annular disposal of waste_planned. - - - - - - - _ _ _ _ - _ _ ~ 25 if-a_re~dril6has_a10.403forabandonmentbeenapproved---------------.----- -~-- ------------------------------------------------------------------- -- ~~' x 26 Adoquatewahboresepara6onproposad-------------------------------- Yes- ----._Nearestwell_3 miles distant---------------------------------------------- ~© ( 7 If diverler re4uired, does Jtmeet regulations- - - - - - - - - - - - - - - - - - - - - - - - _ _ Yes _ _ - - _ _ _ 12-114"-hole_planned. 1~"-diverter Ilse planned. This has been approved p[eyiously, _ _ _ _ _ _ _ _ _ Appr Date 28 Drilling fluid program schematic_it<e4uip list adaquate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ - _ _ _ _ _ Maximum expected formation pressure 8.4_EMW.- MW planned up to 9,3-ppg or as-needed: - _ _ _ - _ _ _ _ _ _ _ - TEM 1412612007 29 BOPls.dotheyfneetregulati4n--- --- - -- -- - ---- - Yes- -- -- - - --- ------ - -- - -- -- - - ----- 30 6QPE-press rating appropriate; test to-(put prig in comments)_ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ . _ _ MA$P calculated at 1548 psi. 2500-psi_BOP testplanned, - - _ _ _ - - _ _ _ _ - _ _ _ _ _ _ _ _ _ _ 31 Choke-manifold complieswlAPI-RP-53 (May S4)--- - - --- ---- Yes- --- - -- --- -- ----------------- - -- ----- -- ---- 32 utrorkwih°CCUrwithoutoperationshutdown-_-__-----_-_-__-________-- Yes- .--------------------------------------------------------.--------___-- 33 is presence of t12S gas Probable_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ - No- - _ _ _ _ - _ H2S has nokbeen reported in the offsetwells. _ Mud should preclude_H2S_on rig.- Rig has sensors end_alarms.- _ 34 _Mechanicalc9nditioDOfwellswiihinAQRverified(F9tservicewell only)..----------- NA-- ------------------------------------------------------------.------------ Geology 35 Pe[mitcan be issued wlo. hydrogen sulfide measures - - - - - - - - - - - - - _ - _ - _ No_ _ _ _ Exploratory well. Will_be-mudlogged f[om_surface to TD. Lime i?a zinc Carbonate will be onsJte._ - .. - _ - _ _ _ - - _ 36 Data presented on potential overpressurezones _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ . _ _ _ _ ExpeCfed reser~olrpreesure is 8,4.ppg, Will be drilled with`2.1.9.5 Ppgmud. - _ _ - _ - - - - _ - _ _ _ _ _ _ _ _ _ _ _ _ Appr Date 37 Seismioanalysis of shallow gas-z~ones_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ YeS _ _ _ _ _ _ _ Seismic and velocity data do not indicate the presence of shallow hazards. _ - - _ _ _ _ _ _ - _ _ _ - _ _ _ - _ _ . - SFD 1117!2007 «~ `~ ~~ 38 Seabed-cAndJtion sun_rey-(if offshore) - . _ _ . _ _ NA- _ - - _ _ _ 7 7 40 2 - 39 Contact namelphone #or we8kly_progrflss reports (exploratory only}. - _ _ - . _ _ _ _ Yes _ ~ 6 _ Tim-Brandenberq 80 b3- _ - _ _ _ _ _ - _ - . _ _ _ _ Geologic Cammissroner Date: Engineering Date Public Date Commissioner: Commissicner . p r5 ~1~~~ ~~-~ ~~ Z~ _n~ /1 • • Welt History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history fife. To improve the readability of the Well History file and to simplify finding information, information of this nature is accumuialed at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. ~6~- ~ `~~ M NI Laboratories, Inc. RUN 1 Rotary Sidewall Core Photography for Chevron North America Exploration and Production UNOCAL Smilodon 9-4-9 Well North Slope Borough, Alaska Omni File No. HH-38745 Cl~evror~ Nor~l~ Annerica Explorati®~ 8~c Production ~1l-l_3$745 N ~ UNOCAL Srr~ilodor~ ~-4-9 Well ~~, ~~. Nor~ll5lope ~orougll, Alaska Sar~pNe No.; 1-1 R Dep#N~; 4733,00 ~~~ Visible Light ~~. ,a i1:5 za LongNtudinal 2x i.o o: s Z.o Ultraviolet Light Chevron North America Exploration & Production I-I~#-38745 UNOCAL Smilodon 9-4-9 Well "'~~ ~ North Slope Borough, Alaska Sample IVo.: 1-2R nth: 4739.00 feet Visible Light 2x OM ~~ 0.~0 X0.5 2.~0 Longitudinal ~~ ~~ ,a ~s 2'0 Ultraviolet Ught MNI Laboratories, Inc. RUN 2 Rotary Sidewall Core Photography for Chevron North America Exploration and Production UNOCAL Smilodon 9-4-9 Well North Slope Borough, Alaska Omni File No. HH-38745 Chevron North America Exploration & Production I~H_3g745 UNOCAL Smilodon 9-4-9 Well ot~oo~,~c. North Slope Borough, Alaska Sar~pie INo. ; Depth; 2-1 R 3030.15 feet Visible Light ~~ aan in t .fl 95 P:9 ~ °~ c,r ~' ~~ ~° t '~ -„r k ~ 'r s 4 ~. ~ . , ~ s r' ..'3 r a : . `dual.-~ _ -K.;.Y C. `C'.~e.` , !+.~ a _ Longitudinal GFR IIA ao U.5 ?.0 Ultraviolet Light Chevron North America Exploration & Production H~_3g~~~ M ~ ~ UNOCAL Smilodon 9-4-9 Well ~°^~ ~~~ North Slope Borough, Alaska Sample No.: 2-5R Depth: 3078.21 feet Visible Light 2x ~~ .,, ~o os ao Longitudinal zX ~~ ,e os 2.B Ultraviolet Light Chevron North Ar~nerica Exploration & Production HH_387~~ UNOCAL Srnilodon 9-4-91Nell ~~~°^~~ "~~ North Slope Borough, Alaska Sample No.: 2-6R Depth: 3083,11 feet Visible Ught zx ~~ t.8 D.5 2.D Longitudinal r:~ ~~ ,D a.s zo Ulfiaviolet Light IV1~~ 1_atroratories, kAC. Chevron North America Exploration & Production ~~-3~ 7~~ UNOCAL Stmilodon 9-~-9 iNell !North Shope Borough, Alaska Sample Na.: 2-7R Depth: 3179.15 #eet Visible Light cm m t.9 r.5 2.0 - ~~, •` ~ ~= s~:~~ 4~: _ - ~~ ~ K ,- ~ a ~, ~~," ~ tee' ~ ~-.. ~° -H -: ~:, s ,°, a `~ ~ c "' ~ '-~ Longitudinal ~, ,o os zo Ultraviolet Light Chevron North Ar~nerica Exploration & Production I~1~-38 74~ I UNOCAL Smilodon 9-4-9 Well • ~~ North Slope Borough, Alaska Sample No.: 2-8R Depth: 3182.28 feet Visible Light 2x ~~ ;~, ,s os =:a Longitudinal c. ;n ,o ~3 2.0 Ultraviolet Light Chevron Noah America Exploration ~ ~rod~ctior~ p~~_3674.~ M ~ ~ UNOCAL Smilodon 9-4_g V1Jell ~~~°^~ "~. North Slope Borough, Alaska Sample No.: 2-9R Depth: 318c5.10 feet Visible Light 21I ~"' -. y tee; '._ „ ""y; '~ e:. ~ ~, i i:~ d- ;t.`p '~ = es. , Y ^ :~ ~ v 6. s yb4 '1 i. ~ r ~ -~.~ t~ ;6t ~. ~~ . ~E £ ~ i' 's z _,~.. c,. i 20 Longitudinal ~.:~. ,~ as z,, Ultraviolet Light Chevron North America Exploration 8e Production ~~-3874 UNOCAL Smilodon 9-4-9 Well ~~~ ~~~ North Slope Borough, Alaska Sample No. ~ ~-1 OR Depth : 3 X00.29 feet Visible Light ~~ ,~ os za ~. ~ ~ ~~~ . Longitudinal ~~ ,~ m a3 2a Ultraviolet Light AA ~~ ii Chevron Noah America exploration & Production l~l~_38 ~~~ IV1~1 visible Ught UBVOCAL Sr~ilodon 9-4-9 Well ~~°°~°'~~ 1Vorth Slope borough, Alaska Sample No~: 2-~ 1 R Depth: 3120,00 feet ZK qua am io o.s z.a Longitudinal ~~ ,o 0.5 ~~ Ultraviolet Light Cheo~ro~n North America Exploration & Production ~~_38 745 UNOCAL Smilodon 9-4-9 Well ~~~ ~~~ North Slope Borough, Alaska Sample No.: 2-12R Depth: 3433.95 fleet Visible Light 2x :,, ,g 0.5 2.0 ~,~ Longitudinal ain in MO 0.5 2.0 Ultraviolet Light Chevron North America Exploration & Proaluction ~JNOCAL Smilodon 9-4-9 Well ~~'~~ North ,Slope Borough, Alaska Sample No.; 2-13R Depth; X443.94 feet Visible Light ~« ~~ ,o b.5 :9 Longitudinal ~x ~, io o.s z.o l'-~H-38745 Ultraviolet Ught Chevron North America Exploration & Production l-lH_3874~ UNOCAL Smilodon 9-4-9 Well ~~~5. ~~. North Slope Borough, Alaska nple No, : 2-14R Depth: 3630.15 feet Visible Ught .. fi t `~ _ ,#~, e , ~, ~ u ~ ~~ ..<M1 , .."qtr e'r ~i~~,~ A. .. .aJ.R4,9Y1pt"u'.LtLsA .. 4 . _ -_~_- ~ o ,. Longitudinal x M o.s Ultraviolet Light ~i^ae~r®~ i~or$h Ar~erica~ Explorc~tior~ & Production ~H-3874 ~6~locA~ Sr~ilodon 9-4~-9 Weli r.~nli3s,11Rec. l~orfih Slope Borough, Alaska ~a~pie ~o.: ~-~ ~R ®~p~t: 3~i32~~~~ feet Visible Light ~~ am rin 7 tJ O.5 2 fi .~ : is *q. '."+ .. ~ : ~~ ~ ';~ ° _ ~' ,~'~,f ;.e LOfl9lt~itr111a~ ~~ ~n ~„ 0.5 Z.V Ultraviolet light i~a~~~ ~Il~,.: ~~-~~ T~ ~~5!~.41~D fry ~sdb6c~ L~gb~ .~ ,~, ~~~ :~ ~. ;: A.fO s ~ ~f 6 c ,'~ mr; ~rr~;~ F ', k zro Longitndinal ~nm 6n h IJ ~a •s :~ ra U~~ravwt~iet Lig6~~ ~he~~ror~ North America Exploration & Production HH-38745 UN4CA~ Smilodon 9-4-4 u1/ell ~~~~ North Slope Borough, Alaska ~crmopie N®. ° 2-~ 9R :: 4~ 6~,~02 feet Visible Light ~ nom un ~ - , ~~, ~ . , ~: AN w # ~~ v ~iS x . ' q~. z,u ~, a ~' ~~+ t ~ ~'.~ . Longitudinal x~ ~~ ,.~ ~9 ,?p Ultraviolet Light 'I OnnNi Sample Na.: depth: Chevron Noah America exploration & Production l-1H-38745 UNOCAL Smilodon 9-4-9 Wel! North slope Borough, Alaska 2-20R 41 b7.03 feet Visible Ught ~~ ~„ ,.~ D:5 2.11 ~ ; , . ~. Longitudinal ~ 4m 7.0 U.5 2V Ulbaviolet Light Chevron North Ar~erlca Exploration & l~roductlon ~~-.38745 UN~CA~ Srrailodon 9-4-9 Well °~°~, "~. North Slope i8orough, Alaska Sample No.: 2-21 R Depth: 4674.02 feet ~sibre Light ~, X13 ~J.S 2!J L4~g~tudi~al CJ11 NA 110 0.5 2.R Uitira~rioNet IUght Chevron North America Exploration & Q~oductiora ~~_38745 UNOCAL Smilodon 9-4-91Neil "^~~ North Slope Borough, Alaska Sample No,; ~-22R Depth; 4b95,11 feet Visible Light 2x ONI YA 1A 4-.3 za ~_ .`~ ~ ~- g ~ ^ ~ ~J~ Longitudinal ~~ 9.ID 9.5 .:.R1 Ulmviolet light Chevron North A,rnerNCa Exploration & Production H~_387~5 UNOCAL Srnilodon 9-4-9 Well ~~ North Shope borough, Alaska Sample Na.: 2-23R Depth: 4702 10 feet visible Ught ~~ ,m ~ ~~ ~~ Longitudinal ry„ y~ 6.5 z.n Ultraviolet fight Chevron !North America Exploration & Production HH-38745 ~''~ ~ UNOCAL Smilodon 9-4-9 Well °~°°~'• ""°~ !North Slope Borough, Alaska Sample No.: 2-24R Depth: 4719.02 feet Visible Light xx ~~ 9.5 2.b Longitudinal 2x +wn in ,.~ O.5 4.41 Ultraviolet Light ,i Chevron 1Vortl~ America Explores#ion & Produc#ion HH-38745 I UNOCAL Smilodon 9-4-9 Weii ~~ ~~ ~-~~~ ~°°~~~'~~~ Nor#h Slope Borough, Alaska Sample Ida: ~-~7R depth: 4733..13 feet Visible Light Zx ~~ A .U m.5 P t) Longitudinal b~ a.a i0. Y.p Ultraviolet Light Che~r~ron North America Exploration & Production HH-387 45 UNOCAf. Smilodon 9-4-9 Well ~~'~ North Slope Borough, Alaska Sample No.; 2-ASR Depth: 4739.46 feet Visible Ught ~~ ~ ' °ti. m -x~ .. ~+ = ~ T ~ -~ ~ aye.,:: y ~,~ .`-~.~ fiy ~ • - ~~y+ ~~ r z ~ e a ~ -'.. ,.a.. _ ~~ Lq q.'S 3l7 longitudinal Ultraviolet Light MNI Laboratories, Inc. RUN 3 Rotary Sidewall Core Photography for Chevron North America Exploration and Production UNOCAL Smilodon 9-4-9 Well North Slope Borough, Alaska Omni File No. HH-38745 Chevron North Americo Exploration & Production HH-3875 UN®CAL Smilodon ~-4_q VI/ell ~Ta~~~. °~ North Slope 8oro~gh, Alaska Sarr~ple No.: 3-1 i? Depth: 3023,00 feet Visible Light 2x aan in 1.4 b.5 20 Longitudinal ~~ ,a OS 2.0 Ultraviolet Light ~Chev~®n N®~ib A,~ne~°~oa Expl®roti®n & Production ~H-3874 UNOCAL Sr~nilodon 9-4-9 Well "~. Noah Slope Borougha Alaska Sarnpie No.; 3-2R Dep#h: 4040,00 fee# Vsible ugbt ao m tl.0 Q.5 z.n ~ongitudNnal sx :~ ,~ ~~ ~n Ultraviolet Ugbt Chevron !forth Arr~~rloa Exploration & Production Fll~-3€745 UIVOCA~. 5rnilod®~ 9-4-~ ilVell ~~~°~~"~. North Slope Borough, Alaska Sample Ala.: 3-3R Depth ; 4066.00 feet Visible Light ,~ ~ .~ 0.5 20 ~: . =~ ~~ ~~ .} ~ 4 -~ ~~ ~ ~ ~ ~ ~ t ~ ~3 .~ u k % Sv .` ~ 4 - ' ~ ^f ` r ~ F; ,~T ~' ~ `ASK R 4 .. §~' M ~' E X*~. ~. /~ ~o~gitudin~al ~~ ~~ ,a U.5 z.a Ultraviolet Ught 1V1~~ Labora4ories, inc. Sample No.: Depth ~hevrori lolorrl•h Ar~erloa Expl®ra~l®rt $c Qrodl~Ctior~ }~~-38 74~ UN~CA~ Srniloclor~ ~-4-9 Well North Slope Borough, Alaska 3-4R 4640.00 feet Visible Light 2x ~~ .~ ,o ms za Longitudinal ~~ ,a D.5 2D Ultraviolet light ~hev~®~ Nosh A~e~AOa Elo~'atlort 8c Pi'oCI~C#'BO~ ~~-38745 UN~~A~. Sm~slloc~o~ 9-4-'9 Ul~lell ~,~.sx~s, ~~. l~lo~th Slope B®~ougf~, Alaska Sample Na, ; 3-5R Depth: 4763,00 feet Visible Light cm im 10 q.5 2.0 Longitudinal zX pm m 7.0 b.3 2.9 Ultraviolet Light Chevron North Arr~erlca Ex~loratlor~ & Productlor~ Hl~_3~74~ M N ~ ~JIV®CAI. sr~alodor~ 9-~1s9 V1/ell ~~~ ~~. North Sloe Borough, Alaska Sample No.: 3-6R Depth; 4772.00 feet visible Light ~aa sn 1.0 OS 2.0 Longitudinal ~~ ~.® e.s z.o Ulbravio~et Light OMNI Chevron North America Exploration & Production !~H-38745 UNOCAL Srnilodon 9-4-91Neil North Slope borough, Alaska 5®mpie No..: 3-7R ~epfih: 4780.00 feefi visible Ught ~J.S 8 ~ ,.. , ~ : ~ b~ xt`RTr.~ ~ Longitudinal ~~ rw d.5 X.q Ultraviolet Light MNI Laboratories, Inc. RUN 4 Rotary Sidewall Core Photography for Chevron North America Exploration and Production UNOCAL Smilodon 9-4-9 Well North Slope Borough, Alaska Omni File No. HH-38745 ~ "'i/~~lV~~ ,I I~jI1 IV~QI~~n~~U~j1~//C'~W/~~\11~~,1~~~~B1j i1 ~~~~~4~V09tl ~fiV~/~'11 ~{9~~~®~ 'nI~4~~WI~~U V'~ ~~_~~l ~~ ~yi~H~ L~gh~ ~: nom Gi ~9 h';i ?fJ Lt~1'~t~1~ILId617~1 :~; ~s~ fwi S !B 4':d :°_fd ~~~ra~ru~o~et fight ~ ~~ 9 a~i~~1Q~~ Il~ll~~~¶~~ r11//V~~'~~~U~o~p~'~~rp~ ,~~y~~9®~~,/~~~~®.~®~®~ B~~~iJl~~i~~~~ ~'~11'~6~ ~'~i}~ iLaAY~r~sm~,4mc. ~~~~~ ~°~~IC't~i ~~'®~~~~ /`1~~SR~ ~. .r~•-~~ ,GL~~.~ fl~i~ @~RSq~3~P ~Mght ~am vn M1 ~6 B!3 uu ILong~tudinal .o~ ~, J3 o.s ~~ ~~travaoNet light ~he~rron ~®~'h America Exploration 8c Produotion HH-38745 ~IV~?~A~ Snrailocton 9-4-9 Weii ~~^~~~°~~ forth Slope Borough, Alaska ~as~pie ~®.; depth; 4-3iZ 23b8.23 feed risible Light yam 4m 3 !0 W,5 L8 x ~.ongitudinal ~, F,~ ~~ ~ r~ Ultraviolet Light che~rr®n North America Exploration & Production ~~_38745 UI~oCAL Smilodon 9-4_q Well F ~~,~. hVorth Slope Borough, Alaska Sannple ~Vo. ®epth: 4-4~ ~378.CD7 feet Visible Light am wa C.9 W.5 E.~B ~. ;, ~ ~ s ~ ,y x.. •, 1 Y G,..~" f ~ ~ :, ... b.. ~ . +. - .^ f ~' `y . r z ~ 4 t J h ~ ~ ~ £ ~ 4 ~. ~ ~ ;. €. $a. r "~ a . .. t ~~ ~Y ~x 3'' ~ c ` te ~' ~ 3. , ~ -..~.~ R -~ xy 2 -~ ~ C Longitudinal ~, ,® ~~ tf8 Ultraviolet Light OMNI chevron North America Exploration & Production I-IH-38745 UNOCAL Smilodon 9-4-9 Well North Slope Borough,. Alaska Sample No.: 4-5R Depth: 2513.94 feet Visible Light .~ 1V 05 i.q ,. ~1'R E~ .. ~ ,ti Ad 5 Aj° ~ ~ ~ >: 4* l :fi ate, . :~ 7 0 ... l ~ ,, 3r~y ` x"".' 4 ~ ~. - ~ -. y n Longitudinal 5111 iA 10 ~.5 zro Ultraviolet Light Chevron North Annerica Exploration & I'roductlon ~~_3g 7~5 UNOCAL Smilodon 9-4-9 ~IVell ~~ North Slope Borough, Alaska Sample IVo.: ~-bR Depth: 2531.9b feet visible Light 2x an in ~.5 i.5 Z'~ L~o~g!#ud~nal ~, ,a 9.5 10 Ultraviolet Ught Chevron North America Exploration ~c l~roductior~ 1~1~9.367~4~ i~ M ~ ( UNOCAL Smilodon 9-4-9 Weil ` Laboa'atories, lrtc. North Siope Borough, Alaska Sample No.; 4-7R Depth: 2538.25 feet Visible Light 2x c~ ~~ io o-s zo ~ ~ , ": „. ~s Longitudinal 2x cw~ in LO ®.5 2.0 Ultraviolet Light Chevron North America Exploration ~c Production ~~_~g 74~ M ~ I UNOCAL Smilodon 9-4-9 Well ' ~~t~~, ~^~- North Slope Borough, Alaska Sample No.: 4-8R Depth: 2800.18 feet Visible Light 2x . cm i~ .. ~~ ~~ c~P ~. Y•-, ~~ -~ ~ g ~ K ~ ' `~1, b . 0.5 ty.,, j /~p .t ~. Y i .. r -.`r k'fi mil'.` Longitudinal ~, r.o 9.5 '':.0 Ultraviolet Light IV~~~ ~~., ~. Sample No.: Depth: ~hevrora ~lorth Arr~erioa Exploration & Produc#ion ~~-3874v UIU~CAI. Snnilodon 9-4-9 Well !North Slope Borough, Alaska 4-9R 2806,39 feet Visible Light ~X clan in t fl 9.5 2.D Longitudinal ~..~ ,o a~ zo Ultraviolet Light ~l•oevror~ l~o~h Arr~ergoa E~~loratior~ 8c Proc~~o~lor~ ~;~-3875 U~IOCA~ Srnlloc~or~ 9-~-91Nell l~lor~h Sloe ~oroa~gh, Alaska Sample No..: ®ep~h. ~-~ FOR 2~2b,2® feed visible Light CUfI YII .® C.5 Y.b 4 ._.. k ~ j i .pa.4 .. s ..' ..r .: ~ ~ } +} 1 ' f ' _ mom` ~ Y ' .':" ( `,a y br. ~ t..t. ,.. $ ',y' ,.:r ~ ~, ,,~ i ,i .. z ~ Longitudinal z~ ~~ ~m 0.5 ++.0 Ultraviolet Light ~~4~rlb~~ ~gl~t ar ~~ , , n~ ~~ ~, ~.o~ngit~dina~ pee in A .N ~.~ r ip ~~~r~~r~®~~t fight Cl~ev~o~ No~'l~ Aeelca E~tplora#ior~ & P~odvo#io~ ~_3B ~~~ UIV~A~ S~iloe~o~ 9-4-~ 1lNell ~,~ ~. Noah Slope Borough, Alaska Sa~pie lao.: 4-12R ~elp#h:: 3040.14 fee# Visible Vght ~: am ..n A tJ iS.~a 2 PJ ~.ongltudinal .~ n~ y .re ~ ., ~n Ultraviolet ~.ght ~herr~o~ l~lo~trh As~e~ioa E~plora~tion & P~ot~uotio~ l~l-l_38 7~~ ~l~®CAL S!rnilodo~n 9-~-~ Well '~"'~~'°'"~. lVo~th Slope ~o~ough, Alaska ~~o~be Flo.: 4-~13R ~e~th: 3353.8b feet Visible Light a.a ~, ~, 1 !3 :s.s Longitudinal ,~ ,~ m:; 4~ Ultra~riolet Light Chevron North America Exploration & Production ~y_38 745 ,~ ~ I UNOGAL Smilodon 9-4-9 Well -,- ~'~at°"~,'"°. North Slope borough, Alaska Sample No.: 4-14R Depth: 3357,42 feet Visible Light ~x G~ ~.4 ~J5 2A Longitudinal xX ~, ~, a5 Z.® Ultraviolet Light • FINAL WELL REPORT MUDLOGGING DATA SMILODON 9-4-9 • Provided by: ~~ EPOCH • Approved by: David Buthman Distribution: June 17, 2008 Compiled by: Larry Resch Harry E. Bleys Ralph Winkelman Date: 02/16/2008 ,b ~~a «~ ~,~- c [hevroa Smilodon 9-4-9 • • TABLE OF CONTENTS MUDLOGGING EQUIPMENT & CREW........... 1.1 Equipment Summary .......................... 1.2 Crew ................................................... 2 WELL DETAILS ........................................ 2.1 Well Summary .................................... 2.2 Hole Data ........................................... 3 GEOLOGICAL DATA ................................ 3.1 Mudlog Summary ............................... 3.2 Connection Gas Summary................., 3.3 Trip/Wiper Gas Summary ................... 3.4 Sampling Program /Sample Dispatch 4 DRILLING DATA ....................................... 4.1 Daily Activity Summary :...................... 4.2 Survey Data :....................................... 4.2 Bit Record .......................................... 4.4 Mud Record ........................................ 5 MORNING REPORTS ............................... Enclosures 2"/100' Formation Log (MD) 2"/100' LWD/Lithology Log (MD) 2"/100' Drilling Dynamics Log 2"/100 Gas Ratio Log (MD) EPOCH Cheuron Smilodon 9-4-9 • MUDLOGGING EQUIPMENT & CREW 1.1 Equipment Summary • Parameter Equipment Type /Position Total Downtime Comments Casing Pressure Cable to 1502 transducer for BOP 0 Computer -Drill Floor Monitor Azonics 0 Ran new power Computer- Pit Monitor Azonics Intermittent cord to logging unit for clean ower. Computer for Company Man Rigwatch Remote (hp Compaq) 0 Computer for Mud Engineer Rigwatch Remote (hp Compaq) 0 Computer for Toolpusher Rigwatch Remote (hp Compaq) 0 Computers for Mudloggers (3) Data editing, Rigwatch Master, and 0 Rigwatch Remote (all hp Compaq) QGM Agitator (Mounted in possum Possum belly briefly Ditch gas belly) Flame ionization total gas & Intermittent too full of claystone chromatography. cuttings. Hook Load /Weight on bit Drilling Line Sensor on Rig Floor 0 Mud Flow In Derived from Strokes/Minute and 0 Pump Output Mud Flow Out Flow line Sensor 0 Pit Volumes, Pit Gain/Loss 10 radar pit sensors 1 2 Ground/Power Faults. Pump Pressure Standpipe Transducer 0 Pump stroke counters (2) 2 proximity sensors 0 Rate of penetration Crown Fast Sheave proximity sensors 0 RPM PLC feed 0 Torque PLC feed 0 Schlumberger LWD Data to Rig Watch 0 Wits In (LWD Data) Master Computer 1.2 Crew Unit Type Arctic Unit Number ~ ML014 Mudloggers Years Days Sample Catchers Years Days Technician Days Har Ble s 7 22 Teresa Downe .5 10 Steve Forest 3 Lar Resch 4 17 Rick Frederick 1.8 20 Ral h Winkelman 17 4 ~' Years experience as Mudlogger .2 Days at wellsite between spud and total depth of 5058 feet. • EPOCH 2 Chevron Smilodon 9-4-9 2 WELL DETAILS 2.1 Well Summary Well: SMILODON 9-4-9 API Index #: 50-223-20022-00 Field: White Hills Project Surface Location 539' FSL, 700' FEL Sec 9, T4N, R9E, UM Borough: North Slope Primary Targets: Schrader Bluff State: Alaska Primary Target Depth: Multiple Rig Name /Type: Nabors 106E/Antic/Double TD Depth: 5058MD' Spud Date: February 2, 2008 Ground Elevation: 341.0 FT MSL TD Date: February 16, 2008 RT Elevation: 361.5 FT MSL Days Drilling: 8 TD Formation: Schrader Bluff C Completion Status: Plug and Abandon Days Testing: 6 (E-logging ) Classification: Exploration 2.2 Hole Data • • Maximum De th Mud C Shoe De th FIT Hole TD Dev. asing/ Section MD TVD Formation Weight o. (mc) Liner MD TVD (ppg) ft ft) (PPg) (ft) (ft) Conductor 90 90 Permafrost -- -- 16" 90 90 N/A 12 %4' 1710 1710.2 Prince Ck 9.4 0.5 9 5/8" 1698 1697.94 8'/2' 5058 4 4959 Schrader g 55 9.87 7" . Bluff C . EPOCH Chevron Smilodon 9-4-9 • 3 GEOLOGICAL DATA 3.1 Mudlog Summary 100'-1710' MD Drill Rate Ft/ Hr. Total Gas Units Maximum Minimum Average Maximum Minimum Average 522 7.7 84.9 57 0 0.3 (100 -185) Sand/Conglomerate Sand and Pebbles = clear to yellowwhiteopaque quartz in varying sizes from unconsolidated siltstone with traces of calcites and some rare green stone; typically sands are unconsolidated poorly sorted medium to medium lower to fines; evidence of fluvial events of angular to sub angular to well rounded contours in sample sands; conglomeritic sand and pebbles continue in a larger scale of being in the sample pattern of weathering in fluvial systems of low and higher energy with obvious sharp breaks due to more high energy fluvial mechanical forces. • • ~~ ~~QC~ 4 Chevron Smilodon 9-4-9 (185-277) Sand/Conglomeritic Sand and Pebbles =subsurface materials continue to display dominant amounts of fluvial mechanically worked pebbles, conglomerates sands and pebbles; increasing unsorted unconsolidated sands; colors range mostly in medium to dark gray in pebble size shales, silty shales and dominant yellow white opaque quartz and some rare greenish marlstone; overall contours of sand is well rounded to sub angular cuttings in quartz, with shales, silty shales and calcites; Conglomeritic sands and pebbles are well rounded to angular blocky coaly black carbonaceous lithic materials; unconsolidated sands are beginning to increase in percentage. (270-360') Coarse Pebble Conglomerate =very coarse to 10 mm diameter; dominantly medium dark gray to grayish/ greenish black with significant milky white, yellowish gray, occasional amber, grayish orange to dark yellowish orange; very poorly sorted; unconsolidated with a trace of yellowish grey argillaceous material; bimodal well rounded to very angular; strong indications of impact weathering, tumbling and drill bit fracture; becoming sandy down section. Very rare mineral florescence; no evidence of hydrocarbons. (330-450') Sand and Conglomeritic Sand= translucent to milky white, various shades moderate to dark gray and grayish black, often glass-like trans- parent, amber to orange yellow brown, occasionally greenish black; unconsolidated; dominantly coarse; varies very coarse to medium angular grains; occasionally sub angular to sub rounded with moderate sorting in part; 3-6mm well rounded pebbles common; no florescence or evidence of hydrocarbon. (450-510') Sand =milky white to trans- lucent, abundant glass-like transparent, also various shades yellowish orange to light amber, moderate to dark gray; dominantly medium grain; well sorted; angular with poor sphericity; occasional medium to lower coarse, sub angular; unconsolidated; interval somewhat finer grained down section; no sample florescence; no signs of hydrocarbons. (510-570') Sand and Conglomeratic Sand =translucent to milky white, yellowish white, various shades moderate to dark gray, gray green, yellowish brown to orange; poorly sorted; medium to coarse angular grains; abundant 2-3mm well rounded pebbles; larger pebbles are indicated with fresh drill bit fracture; unconsolidated; occasionally consolidated medium grain with moderate sorting; very angular with poor sphericity; grain supported with limonitic/argillaceous matrix; non reactive with hydrochloric acid I; occasional fair visible porosity in part; no florescence; no hydrocarbons indicated. (570-600') Sand/Conglomeratic Sand =milky white to yellowish white, pale orange, abundant moderate to dark gray; unconsolidated; coarse to very coarse; poorly sorted; very angular to angular with poor sphericity; abundant well rounded 5mm+ diameter pebbles, larger pebbles indicated; no sample florescence (600-630') coal =black, dark gray to grayish black; firm to moderately hard; generally platy; tabular; dull; rarely sub vitreous; irregular cuttings habit; traces of dull very light brown earthy clay. No sample florescence. • E~ocH 5 Chevron Smilodon 9-4-9 (630-690') Argillaceous Sand =light olive gray to olive gray, very light yellow brown; non cohesive nor adhesive; occasionally firm with very fine carbonaceous laminae; occasionally seen in direct contact with dull, dark gray to grayish black coal; occasionally silty to slightly sandy in part; interval exhibits medium to occasionally fine grain unconsolidated sand and irregular carbonaceous fragments; pebbles in samples believed to be washed out from up hole; no sample florescence. (690- 720) Sand/Conglomeritic Sands and Pebbles =dramatic decrease in tuffaceous sandstones; increase of sand and Conglomeritic sands and conglomerates and pebbles; sands unconsolidated poorly sorted with sub angular to sub rounded to rarer round pebbles; sands dominantly off yellow white color; conglomeritics the same as above with pebbles medium to dark gray with blue hues; increase of tuffaceous sands and tuffaceous sandstones reducing; gas back ground very low (720-800) Tuffaceous Claystone =light brownish gray color; soft to crumbly tenacity with irregular fracture; soft rounded cuttings habit; soft abrasive gritty texture; thick to thin structure; easily washed out of cuttings samples; found entrained in accompanied sands and Conglomeritic sands, and Claystone. (800-870) Sand/Conglomeritic Sands, and Pebbles =pebble size cuttings continue to be found; sub angular to sub rounded sands are increasing and Conglomeritic are reducing; sample made up of poorly sorted dark gray blue shales, yellow off white quartz grains, some tuffaceous Claystone, and Claystone mixed with tuffaceous sandstone, black carbonaceous material, and coal; Conglomeritic sands slightly calcareous; with back ground gas very low. (800-870) Coal =shiny dark gray to blackish gray to shine vitreous black color; blocky to splintery to crumbly to firm brittle tenacity; dominantly planar to irregular splintery fracture; wedge like to blocky cuttings habit; soft ridged texture; thin to laminae structure; no apparent gases possibly due to young immature coals. (870-10i0) Tuffaceous Claystone and Claystone =light tan to light brown gritty textured cuttings; soft and malleable to crumbly tenacity; irregular fracture; soft malleable irregular cuttings; gritty texture; thick to thin structure; calcites and calcareous claystones interbeded with tuffaceous Claystone; some coals, and conglomerates found in tuffaceous claystones; back ground gases still very low. (1010-1060) Tuffaceous Claystone =light tannish to tannish brown color; soft malleable tenacity; irregular fracture; lumpy to crumbly rounded cuttings habit; gritty texture; thick to thin structure; entrained calcites, black carbonaceous materials, coals, some medium upper and lower sands; tuffaceous claystones increasing; no gas. • EPOCH 6 Chexron Smilodon 9-4-9 (1060-1140) Sands/ Conglomerates and Pebbles =yellow off white to soft orange opaque color; poorly to fair sorting; dominantly quartz grains at 60-70% with accessories of shale, tuffaceous claystone, black carbonaceous material, and some calcite materials; low sphericity; surface abrasions of pitting and etching; tuffaceous claystone entrained with in loose unconsolidated sands; tuffaceous claystone is verging on a silty clayey texture within it's center; moderately adhesive and cohesive; back ground gases remain low; conglomeritic sands and pebbles remain sub rounded to rounded with sharp breaking edges due to high energy fluvial mechanical action. (1140-1200) Tuffaceous Sandstone and claystone = light to medium tannish brown with grayish hues; soft malleable to tacky to slightly firm crumbly tenacity; irregular fracture; clumpy to slight rounded cuttings habit; gritty to smooth clayey inner textures; thin to thick structure; moderate adhesive to moderate cohesive properties; hydrates but is tenacious and does not wash out rapidly; none calcareous except calcites and carbonaceous materials entrained in tuffaceous claystones and claystone; conglomerates, pebbles found along with large blocky cuttings of coal; gases remain low; no evidence of degassing in coal remnants. (1200-1290') Sand/Conglomerate/Pebbles =light pale yellowish brown to yellowish gray, very light olive gray; milky to yellowish white, moderate to very dark gray, yellowish orange to amber grains; very fine to coarse grain; very poorly sorted; well rounded to very angular; irregular with dominant poor sphericity; very well rounded in part; unconsolidated with abundant tuffaceous/argillaceous material; irregular shaped but well rounded frosted pebbles exceeding 10mm diameter; no sample florescence; no evidence of hydrocarbons; trace of coal in 1260-1290 sample. (1290-1350') Conglomeratic Sand =milky white to translucent, yellowish white oft glass- liketransparent, transparent amber to yellowish orange, very dark gray to black; fair sorting in part with upper medium to lower coarse angular grains; poor to rare fair sphericity; often very coarse and beyond, often angular, irregular; abundant 5mm diameter well rounded pebbles; traces of poorly developed coal, pyrite; no sample fluorescence or evidence of hydrocarbons. (1350-1410') Coarse Pebble Conglomerate =dominantly 6-8mm diameter well rounded pebbles with good sphericity; larger pebbles indicated in samples by fresh fracture surfaces; with minor interbeded tuffaceous/argillaceous conglomeratic sand =dark yellowish gray to light olive gray; generally medium angular grain with fair sorting and poor sphericity; no sample florescence; no evidence of hydrocarbons. (1410-1470') Coal/Carbonaceous Shale =dark gray, grayish black; dull; earthy; blocky to hackly in part; firm with nodular cuttings habit; occasionally black; dull tosub-waxy; platy to sub- fissile in part; often argillaceous to very slightly silty in part; occasionally a carbonaceous claystone with very fine carbonaceous laminae and elongated detrital fragments; no sample florescence. • EPOCH 7 Chevron Smilodon 9-4-9 (1470-1590') Sand/Conglomeratic Sand =dominantly translucent to transparent quartz, abundant dark gray to gray black, red orange to dark yellow orange, pale green; unconsolidated; top of interval predominately very coarse to coarse very angular grains with poor sphericity and abundant 8mm+ diameter well rounded pebbles; becoming dominantly medium grain; angular to often sub angular with slightly improved sphericity; samples generally moderately well sorted; significant decrease in pebble size and volume down section. No sample florescence or hydrocarbon indicators. (1590-1710') Sand and Tuffaceous Sand =very light olive gray to very light pale yellowish brown; fine to medium grain; surrounded to angular with fair sorting and fair to moderate sphericity; unconsolidated translucent to transparent and milky white quartz and moderate to dark grayish black lithic fragments; clays better developed through interval, less sandy, more silty, becoming clumpy; sub- waxy in part with fair cohesion and adhesion; earthy in part with very fine carbonaceous laminae/fine detrital fragments; no sample florescence. 1710'- 5058'MD • DRIILL RATE FT/HR TOTAL GAS UNITS Maximum Minimum Average Maximum Minimum Average 198.3 0.1 94.4 191 0 8.1 (1745-1800) Tuffaceous Claystone and Claystone =light gray to medium light gray to soft tannish light gray with greenish hues; soft ashy appearance to smooth mushy punky to malleable and flexible tenacity; dominantly irregular with moderate cohesive and adhesive properties from the Claystone inter- bedded with tuffaceous Claystone; dull luster; smooth to slight gritty texture and massive overall structure. (1745-1860) Sand and Tuffaceous Sandstone =light translucent to yellow white opaque color; very well sorted grains; sub angular to sub rounded to rounded; medium sphericity over all; rarer tuffaceous sandstone light gray to medium gray and green and black hues; friable and easily sheared; numerous black carbonaceous materials; dominantly quartz grains at 60-70%,; accessories of carbonaceous materials, green stone possibly chlorite, shales, tuffaceous Claystone , siltstone; matrix supported sub angular to sub rounded; no gas. (1855-1950) Tuffaceous Claystone, Claystone/Shales =light gray to tannish gray to medium gray with greenish and slight black hues; mushy to malleable tenacity; irregular fracture; soft rounded cuttings; tuffaceous Claystone had no adhesive or cohesive properties; Claystone inter- bedded in the tuffaceous Claystone shale has moderate cohesive and adhesiveness; the shale interbeded has more blocky cuttings habit and less cohesive and have limited adhesive properties; some loose unconsolidated sands and black carbonaceous materials are entrained in the shale/Claystone cuttings; gas background very low. EPOCH Chevron Smilodon 9-4-9 (1950-2040') Tuffaceous Claystone =very light to medium light gray; generally dull; flakey to splintery in part, soft; slightly cohesive with poor adhesion; air dried samples readily hydrate and swell; slightly silty in part; often pasty to mushy. also firm, tough; blocky, sub waxy with smooth texture; occasionally very slightly silty; fine black irregular carbonaceous detritus common; often interbeded with micro- laminae of extremely fine sub angular translucent to transparent quartz and very fine translucent glass shards. no sample florescence; no evidence of hydrocarbons. (2040-2100') Sandstone/Tuffaceous Sandstone = light to medium gray; bimodal very fine to fine grain; angular to sub- angular in part with good sorting and moderate sphericity; predominately translucent to transparent quartz and very minor amounts of moderate gray, reddish orange, amber lithic fragments; occasionally elongated splintery fragments appear oriented in parallel planes; matrix supported with very light to light gray tuff. also fine to upper fine angular grain with fair sorting and moderate sphericity; translucent to milky gray quartz, peppered in part with dark gray to grayish black, bluish gray lithic fragments and wedge-like, scaly carbonaceous detritus; grain supported in part with bluish white to very light gray argillaceous/tuffaceous matrix; interval grossly calcareous with vigorous reaction with hydrochloric acid; no visible porosity; no sample florescence; no evidence of hydrocarbons. (2100-2250') Tuffaceous Claystone/Siltstone/Sandstone =very light to light gray, occasionally medium gray; mushy to clumpy, often firm; irregular to blocky cuttings habit; dull to sub waxy; occasionally sub sucrosic with very fine grain quartz; interval exhibits gradations from massive firm sub waxy claystone, silty soft flaky claystone, sandy claystone to an argillaceous/ tuffaceous sand stone; irregular upper fine to lower medium and angular detrital fragments common; sands are rarely grain supported; 2160 sample has abundant unconsolidated fine to lower coarse grain quartz and dark gray angular lithic fragments; surrounded to well rounded quartz; significant appearance of pyrite; no sample florescence; no evidence of hydrocarbons (2250-2370') Tuffaceous Claystone = overwhelmingly light grey, occasionally light bluish gray to medium light gray; mildly adhesive highly cohesive; dried samples readily hydrate ands swell; lumpy/curdy to pasty; samples balling over shaker; soft to gummy with no well defined cuttings habit; dull, earthy; generally smooth; occasionally slightly silty; abundant unconsolidated very fine to lower medium grain quartz and variety of medium to dark grey lithic fragments; pyrite, irregular carbonaceous fragments and shell fragments common. no sample florescence; no evidence of hydrocarbons (2370-2460') Tuffaceous Claystone and Sand =unconsolidated in samples; very fine to fine angular grains with moderate sphericity; also fine to lower medium occasionally upper medium, angular grain with fair to poor sphericity; predominately translucent to very light milky grayish white quartz medium dark to dark gray lithic fragments, pyrite and yellowish gray to very pale orange shell fragments common, gross sample is very calcareous; trace bright yellow florescence in 2460 sample no stain or cut. • EPOCH 9 Chevron Smilodon 9-4-9 (2460-2550') Sand =unconsolidated in sample; very fine to fine grain, often upper fine to lower medium grain; dominantly sub angular, surrounded in part with moderate sphericity and moderate to well sorted; predominately transparent to translucent quartz, medium to dark gray lithic fragments, trace pyrite; abundant yellowish gray to very pale orange shell fragments; florescence observed in shell fragments; no visible oil stain; no cut. (2580-2580) Sand =dominant translucent to light tannish yellow opaque quartz with shale, calcite, black carbonaceous fragments, yellow orange lithic shell fragments, and rarer green chlorite cuttings; lose unconsolidated fair to poorly sorted sands transported in massive amounts of tuffaceous claystone and claystone; angular to sub angular to sub rounded to rarer rounded grains; lower medium to upper fine to lower fine grain size; low to fair to moderate sphericity; surface abrasions of frosting and etching with occasional conchodial burst; sands entrained in clays with moderate cohesive and adhesiveness. (2580-2670) Tuffaceous claystone and claystone =light gray to light gray with green and slight bluish hues; small amounts of loose unconsolidated sands entrained in tuffaceous claystone and claystone; tuffaceous claystone hydrates quickly washing out claystone; tuffaceous claystone settles to firm hard tackiness once claystone is gone; tuffaceous claystone is fairly cohesive but not adhesive; claystone is moderate to highly adhesive and moderately cohesive; no background gas as yet; no fluorescence or cut in any loose sand entrained in tuffaceous claystone or claystone. (2670- 2820) Tuffaceous claystone, claystone and Ash =light gray to medium light gray to gray with a slight olive green and slight bluish hues; clumpy tacky, lumpy, mushy, to slightly firm and malleable when washed; irregular fracture; lumpy rounded cuttings habit; tuffaceous claystone is firmly cohesive but poorly adhesive; small quantities of loose unconsolidated sands of quartz, shale, ash, calcite, black carbonaceous material and lithic shell fragments; claystone is very much as tuffaceous claystone but highly adhesive and moderately to fairly cohesive; hydrates well but does not wash out of tuffaceous claystone to fast; tuffaceous claystone and claystone have similar properties to gumbo in the southern states; dull earthy to waxy luster; smooth texture; massive structure; no fluorescence from loose sands entrained in tuffaceous claystone and claystone; no background gases. (2580-2850) Sand =translucent to yellow white to dirty tannish light orange color; fair to poorly sorted; angular sub angular to sub rounded grains; low to moderate sphericity; fine upper to medium lower grains with surface abrasions of pitting, etching, frosting, and conchodial burst; dominantly quartz with 60-70%, accessories of calcite, tuffaceous claystone, chlorite, black carbonaceous material, and lithic shell fragments; background gases average 1-3 units; no fluorescence, no cut; no oil or gas indicators. EPfJCH ~° Chevron Smilodon 9-4-9 (2850-2970) Tuffaceous Claystone and Claystone and Ash =light gray to light gray with olive green hues, and slight bluish hues; soft mushy clumpy malleable to stiff when Claystone is removed from entrainment with tuffaceous Claystone; tuffaceous Claystone is moderately adhesive and poorly cohesive; Claystone is moderately cohesive and strongly adhesive; combined the two have a gumbo effect; loose sand are entrained in the tuffaceous Claystone an Claystone; dominantly quartz with black carbonaceous materials, lithic shell fragments, calcite, chlorite, and rare siltstone and shales; tuffaceous Claystone and Claystone are smooth texture, waxy luster, massive structure. (2970-3120) Sand/Tuffaceous Sandstone/ Sandstone =greenish translucent quartz in angular to sub angular grain supported sandstone; brown indurate matrix supported sandstone with black lithic and carbonaceous materials; loose unconsolidated sands poorly to fair sorted; lower medium to upper fine grain size; low to medium sphericity; matrix supported tuffaceous sandstone is medium brown with red hues; tuffaceous sandstone is none reactive to hydrochloric acid and is well indurated as is grain supported sandstone; grain supported sandstone does have a slow reaction to hydrochloric acid, and shows good visual porosity by hydrating quickly; most visible grains show some surface abrasions; loose unconsolidated sands have frosting and etching; tuffaceous sandstone have a blocky structure and the grain supported sandstone have a more roughly spherical appearance; gas still low; dull fluorescence; streaming yellow cut. • (3120-3210) Tuffaceous Claystone and Claystone and Ash =light gray medium light gray with green olive hues; lumpy mushy pasty to tacky almost firm consistency; malleable tenacity; irregular fracture with waxy shiny luster; smooth to slightly gritty texture; tuffaceous Claystone moderately cohesive and poorly adhesive; Claystone entrained in tuffaceous Claystone is very adhesive and moderately cohesive; both Claystone and tuffaceous Claystone behave like gumbo; loose sands and larger cuttings of tuffaceous sandstone and brownish sandstones with black carbonaceous material with some possible tar in the Claystone and tuffaceous sandstone; Chevron Smilodon 9-4-9 (3220' - 3320') Siltstone/Claystone =light gray to medium light gray; soft to slightly firm to very firm; shapeless to globular cuttings, firmer fragments are wedge shaped; mushy to pasty; clayey to silty to slightly gritty texture; dull to slightly waxy luster; hydrophilic; soluble; very expansive when hydrated; poor to fair cohesiveness; fair to good adhesiveness; non calcareous; no sample fluorescence; no odor or cut. (3322-3410) Sand/Sandstone = clear to colored bluish translucent to rare yellow opaque with blue and red hues; fine upper to medium lower loose unconsolidated fair to poorly sorted sands; sandstones are spotty with dominantly quartz with some calcites and green stone possibly chlorites; small cuttings of siltstone and shales with black lithic and lithic shell fragments with small cuttings of black and dark grayish coals; both sand and sandstone are sub angular to sub rounded; both sands and sandstone show evidence of surface mechanical weathering of frosting, etching, pitting and some rarer conchodial bursting; low to fair sphericity; gas background finally rising slowly 2-10 units; no oil or gas rise; no fluorescence or cut. • (3410-3510) Claystone/ Tuffaceous Claystone =light gray to medium gray with green and blue hues; lumpy mushy consistency to rounded malleable to almost firm tenacity; irregular fracture; rounded cuttings habit; dull to shiny lusterwith reflective volcanic glass entrained; smooth to gritty with tuffaceous Claystone and some volcanic ash; loose sands and some lithic shell fragment with black carbonaceous material; some calcite and green stone; possibly the green stone is chlorite; background gas is still low but present; gas is 1- 4 units no fluorescence no cut. ~ EPOCH 12 Carbonaceous Shale at 3370 ft. Chevron Smilodon 9-4-9 (3510-3577) Carbonaceous Shale =black to vitreous black color; obvious rounded shoulders of carbonaceous shale; dominantly rounded to wedge like to splintery fracture; brittle to very hard tenacity; irregular to wedge like to splintery cuttings habit smooth to slightly rough edges in texture; soft black to vitreous shiny luster; thin structure; background gases rising slightly with obvious degassing from cuttings. (3577-3690) Claystone =light gray to darker gray to dark medium gray to black and heavy brown color; soft lumpy to mushy pasty consistency; soft to crumbly to slightly firm tenacity; irregular fracture; rounded cuttings habit; dully waxy luster; smooth clayey texture; soft rounded structure; trace pale blue fluorescence from carbonaceous shales and sands in claystone; trace tars; background gases around 5 to 14 units. (3510-3690) Sand =dominantly clear to rarer yellow to green to gray white; fine lower to upper to lower medium grains; fair to moderately sorted with sub angular to some angular to sub rounded grains; low to fair sphericity; evidence of black carbonaceous material in sands, also from entrainment in claystones; evidence of surface wear; pitting, etching and some conchodial burst; loose sands are unconsolidated with a few sandstone cuttings; black tar like color in claystone and through sands as dark reddish brown to black color; gases holding to 5-15 units; no fluorescence or cut; no gas or oil indicator. (3690-3750) Carbonaceous Shale =medium dark brown with reddish hues and black steaks to shiny black vitreous color; rough gritty surface texture; some degassing and occasional orange fluorescence; firm to tough to hard tenacity; irregular fracture; rounded to slightly blocky cuttings; dull to shiny luster; thin to sometimes thick structure; sometimes associated with higher rates of penetration; back ground gases slightly higher. (3750-3870) Sand/Sandstone =dominantly translucent quartz with some yellow to bluish hues to opaque quartz with dirty gray white color; sub angular to almost rounded grains; moderately to well sorted; fair to moderate sphericity; surface abrasions of etching and some pitting; accessories of black carbon, lithic fragments, some calcareous stone possibly calcite, green stone and carbonaceous shale; sandstone is grain to matrix supported; slightly reactive to hydrochloric acid; gas background unremarkable 5 -10 units. (3890-4000) Claystone =light to light medium gray with light greenish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clay to slightly gritty texture from fine grain suspended sands; dull to earthy luster; moderately soluble and expansive poorto fair adhesive/cohesive properties; non calcareous; no sample fluorescence, odor, or stain. (3940-4040) Sandstone/ Sand =light greenish gray to light brownish gray with light to medium brown secondary hue overall; very firm to hard; irregular shaped cuttings; very fine lower to fine lower, commonly grading to a siltstone; very well sorted; angular to sub angular; slight to moderately calcareous; estimated poor to fair visible porosity and permeability; trace to common pyrite nodules in 3990' sample; trace shell fragments in 4020' sample; no sample fluorescence, odor or visible staining. :] EPOCH 13 Chevron Smilodon 9-4-9 Tar streaks at 3660 ft. (4010-4110) Claystone/ siltstone =light gray to light brownish gray; soft to very firm; irregular wedge shaped cut- tings; silty to clayey to gritty texture from suspended sands; dull, earthy luster non to slightly soluble; moderately expansive; moderate to very calcareous; poor adhesiveness; fair to good cohesiveness; trace very dark brown to black, micro thin carbonaceous inclusions; trace very weak dull yellow mineral fluorescence; no cut or cut fluorescence; no odor or stain. (4060-4180) Sandstone/ Sand =light greenish gray to light brownish gray with light to medium brown secondary hue overall; veryfirm to hard; irregular shaped cuttings; veryfine lower to fine lower, commonly grading to a siltstone; very well sorted; angular to sub angular; slight to moderately calcareous; estimated poor to fair visible porosity and permeability evidence of macroscopic quartz crystals, possible gas indicator. (4140-4260) Claystone/ siltstone =light medium gray with light greenish gray secondary hues; soft to slightly firm; irregular shaped cuttings; silty to clay to slightly gritty texture from fine grain suspended sands; dull to earthy luster; non to slightly soluble and expansive; poor adhesiveness; fair to good cohesiveness; siltstone commonly grades to a silty sandstone/ sandy siltstone; slight to moderately calcareous; no sample fluorescence; no oil indicators. ~~ EPOCH 14 Crievron Smilodon 9-4-9 • (4200-4280) siltstone/Sandstone =medium gray with light brownish gray secondary hues; very firm to slightly hard, occasionally brittle; very fine lower sand grains grading to silt; very well consolidated; well sorted; non calcareous; scattered very dark brown to black micro inclusions; irregular to rounded, wedge shaped cuttings; gritty texture; earthy to waxy luster; no sample fluorescence. (4260-4380) Sandstone/ Sand =light to medium gray to light brownish gray with light to medium brown secondary hue overall; very firm to hard, rarely soft; rounded cuttings; very fine lower to fine lower, commonly grading to a siltstone; very well sorted; angular to sub angular; non to slightly calcareous; estimated poor to fair visible porosity and permeability; dull, earthy luster; gritty texture; no sample fluorescence; no odor or stain; no oil indicators present. (4320-4440) Claystone/siltstone =light medium gray with light brownish gray secondary hues; soft to very firm; irregular shaped cuttings; silty to clayey to slightly gritty texture from fine grain suspended sands; dull to earthy luster; moderate to very soluble and expansive; poor adhesiveness; fair to good cohesiveness; siltstone commonly grades to a silty sandstone/ sandy siltstone; slight to moderately calcareous; over washing during sample prep results in very soft, sticky, pasty, clumpy clay; very hydrophilic; no sample fluorescence no oil indicators present. (4380-4470) Sand/Sandstone =translucent quartz some with black some with green hues to solid grayish white opaque color; dominantly sub angular with some angular and sub rounded grains; fair to moderate sorting; low to moderate sphericity; sandstone grain supported and fairly well indurated with some very friable; quartz is 70-80% in sandstone cuttings with accessories of green stone, calcite, shale, siltstone, and some rarer pyrites; unconsolidated sands as described above with more surface abrasions of frosting, etching, sands are very small in quantity and can be due to bit action and how friable the sandstone is becoming; no fluorescence or cut; gas background 5-18 units; overall quartz grains are very fine lower to upper with some lower fines; continuous black carbonaceous material is in all sandstone cuttings, possibly it is carbonaceous shale or some black lithic fragments; light tannish orange lithic shell fragments are also present. (4470-4590) Claystone/siltstone =light gray to medium gray, rarer gray with brownish hues almost transitioned out; brown color transitions back 4590 feet; Claystone and siltstone argillaceous with rarer carbonaceous reactions to hydrochloric acid; Claystone mushy to malleable to firm tenacity and siltstone malleable to firm to tough tenacity; both irregular fracture with rounded blocky cuttings both dull earthy to waxy; smooth to gritty; thin to thick structure. • EPOCH 15 Chevron Smilodon 9-4-9 • (4590-4710) Sandstone =dominantly translucent quartz to rarer grayish white, some green stone and some white, possibly argillaceous kaolinite; obvious brown streaks, possibly tar; numerous black grains possibly carbonaceous materials; very fine lower to fine to lower course in lower section; angular to sub rounded; poorly sorted to low; quartz 60 -70% with green stone possibly glauconite, calcite and black carbonaceous grains possibly carbonaceous shales; sandstone varies from matrix supported very fine grains to grains supported course lower; matrix cement dominantly argillaceous with fair visual porosity in sandstones; bright yellow fluorescence strong yellow cut from tar streaks; background gas up to 40 to 55 units. (4710-4770) Siltstone =light gray to light gray with green or tannish brown hues; soft to firm tenacity; irregular fracture with rounded blocky cuttings habit; grading towards sandstone so texture is smooth to slightly gritty in very fine grain size of lower sandstone size range; predominantly argillaceous with SOME larger entrained sandstone cuttings thick structure; some cloudy fluorescence from sandstone with trace dull yellow fluorescence, • • ~~ ~l" Q ~H 16 Tar streaks in Sandstones and Claystone at 4740 ft. Chevron Smilodon 9-4-9 • (4770-4890) Sandstone =predominantly translucent to clear grains with blue and green hues to grayish white opaque grain; poorly sorted cuttings of very fine to lower course; quartz at 60- 70% with accessories of black carbonaceous materials as carbonaceous shales, others of calcite and green stone possibly glauconite, some pyrite and lithic shell fragments; soft yellow fluorescence; no cut; gas dropping to 5-15 units; poorly sorted with very fine to lower course grains; angular to sub angular to sub rounded to rounded grains; surface abrasions of frosting and etching, some conchodial burst; predominantly grains supported cuttings in larger lower medium to course and the matrix supported with fine to lower fine grains; all sandstones do have some unusual larger grains included but mostly fallow this range; good visual porosity on grain supported cuttings. (4890-4928) siltstone =light gray to light gray with tannish brown and green hues; soft mushy to crumbly tenacity; irregular fracture; rounded blocky cuttings habit; silty to clayey to slight gritty texture; dull, earthy luster; occasionally grading to very fine, silty sandstone/ sandy siltstone; non to slightly calcareous; no sample fluorescence; no oil indicators present. (4950-5058) Sandstone =medium light gray to medium gray with light brownish gray secondary hues, trace greenish gray; very fine lower to fine lower; sub angular to surrounded; moderate to very well sorted very well consolidated; non calcareous cement; irregular broken fragments; hard to very hard; estimated poor porosity and permeability; sandstone commonly grades to a sandy siltstone/silty sandstone; no sample fluorescence; • no oil indicators present. r: EPOCH 17 Chevron Smilodon 9-4-9 3.2 Connection Gas Summary 1 unit . 0 05% Mpthanp Fnuivalpnt • De th Gas over BGG Measured Strokes Bottoms U feet units) pump strokes um strokes) No Connection Gases Were Observed 3.3 Trip/Wiper Gas Summary 1 I Init . A A~°/ MpthanP Fm~ivalpnt De th Trip to Gas Downtime feet (feet units hours) 2140' 4720' 110 96 ~`No Wiper Trip Gases Were Observed 3.4 Sampling Program /Sample Dispatch Set Processed As Frequency Interval Dispatched to Chevron, USA dried Washed ' ' ' 909 West Avenue A , , envelopes 30 MD 90 - 5058 P.O. Box 196247 Anchorage, Ak 99518-6247 Attn: David Buthman/Trac Win er Chevron, USA Washed dried ' 909 West Avenue B , , envelopes 30' - 5058 MD 90 P.O. Box 196247 Anchorage, Ak 99518-6247 Attn: David Buthman/Trac Win er Chevron, USA dried Washed ' ' ' 909 West Avenue C , , envelopes 30 MD 90 - 5058 P.O. Box 196247 Anchorage, Ak 99518-6247 Attn: David Buthman/Trac Win er Chevron, USA 909 West Avenue D Unwashed Whirlpak 30' 90' - 5058' MD P.O. Box 196247 Anchorage, Ak 99518-6247 Attn: David Guthman/Tracy Winger As dictated by EPOCH Well Services. E Washed Wet 30' Chevron 1615 Jefferson Island Rd. Whirlpak Geologist. New Iberia, La 70560 For QFII Analysis Sample frequency may be altered according to drill rate constraints ana zones or interest. EPrJ~H 18 Chevron Smilodon 9-4-9 4 DRILLING DATA 4.1 Daily Activity Summary: 02/01/08 : Continue rig up operations. Pick up 24 joints HWDP and stand back. Pick up tongs for BHA; rig up Kelly hose. Test high pressure lines with air and mud to 250 psi low. Trouble shoot pressure sensor problem. Pick up drill collars and jars; stand back in derrick. Re-adjust Kelly hose. 02/02/08: Continue rig up operations. Adjust kelley hose and test mud lines. Pick up BHA, but motor, stabilizers, ARC 8, Power Pulse. Finish testing mud lines and calibrate pump pressure sensors. Conduct rig evacuation drill. Finish testing lines to 2000 psi. Break circulation and drill cement at 1400 hrs. Drill ahead to 277'. Pull out of hole to 90'. Pick up ADN tool and load nuclear sources. Run back in hole from 90'. Tag bottom at 201' and wash to 239'. Make up 1 collar and jars. Tag bottom. 02/03/08: Drill ahead from 295' to 460'. Loosing mud over shaker. Drill ahead to 545'. Trouble shoot Schlumberger tool: not reading. Re-log hole from 460' to 545'. Drill ahead to 606'. Troubleshoot Epoch not tracking: Academy not sending pump pressure signal to Epoch. Re-log hole from 545' to 606'. Drill ahead to 729'. Replace line on pressure sensor; service top drive. Drill ahead to 1303'. 02/04/08: Drill ahead from 1303' to 1710'. Circulate and condition. Pump carbide: Observed versus calculated lag ratio is 1:1. Pull out of hole. Wash and ream through tight spots at 1321-1327'. Ream back out of hole from 1327' to 362'. Continue pulling out of hole from 362' to 175' with no over pull. Trip back in hole from 175' to 1166'. 02/05/08: Wash and ream from 1166' to 1710'. Circ and condition. Pump carbide around: received back at 4700 strokes (4275 estimated). Pull out of hole. Pull tight at 1640'. Wash and ream from 1640' to 240'. Wash out of hole without rotating: Could not pull out without pumping but pulled OK while pumping at 2.4 BPM. Continue out of hole; stand back jars and spiral collar. Blow down top drive. Stand back BHA after removing nuclear sources. Lay down Schlumberger tools. Drill bit was 1/8" out of gage. Pull wear ring and rig up to run 9 5/8" 40# casing. Run same to 450'. 02/06/08: Continue running 9 5/8" 40# casing from 450'. Tagged tight hole at 1410' and could not work through. Rig up to circulate. Wash down from 1410' to landing point pumping at 2.75 BPM while working pipe. Circulate at 300 GPM and 300 PSI. Pick up landing joint and hanger. Circulate at 8 BPM at 600 PSI; start to loose flow and pumping fluid away. Backed pump rate down to 4 BPM; still pumping fluid away. Circulated 223 BBL. Blow down all surface equipment; lay down landing joint. Pick up BHA and run in hole with 4" drill pipe. Tag float collar at 1616'. Space out with pups. Pick up cement head. • EPOCH ,9 thevson Smilodon 9-4-9 02/07/08: Rig up to circulate through cement head; circulate 74 BBLS. Rig down mud line and blow down. Rig up Halliburton Cement line. Water tank valve was frozen. Move water line to different outlet; mud line had ice plug; thaw same. Pump 10 BBL water at 5 BPM and pressure test cement line to 3000 PSI. Pump 20 BBL Alpha spacer at 4.4 BPM, 10 PPG, 9.12 Gal/Stk, 1.34 yield. Pump 196 BBL lead cement at 15.8 PPG, 4.91 Gal/Stk, 1.15 yield. Pump 45 BBL tail at 10.5 PPG, 4.91 Gal/Stk, 1.15 yield. Drop dart at 0515 hrs and pump down hole. Blow down cement lines and rig down same. Pull landing joint and drain down stack. Service top drive. Circulate out cement and condition mud. Nipple up/down diverter system, BOP's; suck out cellar; clean around casing for pack off. Nipple down diverter crossover, thaw out ice plug; clean out and install diverter crossover door. Rig up Koomey lines and pressure test Koomey system. Rig up to wash stack and prepare to nipple down to clean off for pack off installation. 02/08/08: Continue work on BOP's. Johnny whacked stack; blow down top drive and sucked out stack. Nipple down stack at well head; clean pack off surface; nipple up stack; set pack off and test to 500 and 5000 psi for 30 minutes with good results. Install rams, target 90's, kill and choke, HCR, manuel valves, kill lines. 02/09/08: Continue work on BOP's. Nipple up choke; tightened flanges on stack; makeup test joint; shell tested stack. Test choke valves 7, 9, 11, 12, 13; annular; HCR kill; IBOP at 250 and 3500 psi. Test choke; HCR's; manuel valves. Tighten flange at bottom of double gate. Replace seals on lower pipe rams-4". Lay down test joint, pick up joint of drill pipe. Test lower pipe rams; koomey bleed off 56 seconds 200 psi 3 minutes 18 seconds full recovery, 1240 psi bleed off, 2487 psi average on nitrogen bottles. Pull test plug and set wear ring. Rig up to pressure test casing shoe at 2000 psi for 30 minutes. Effect same. 02/10/08: Continue pressure testing Test casing with 2000 psi for thirty minutes and record test. Blow down choke manifold, hose kill line, and back up to mud pumps. Remove hydraulic service loop. Orientate new loop and install. Connect supply lines; function test and travel test top drive. Pick up forty joints of drill pipe and run in hole to 1287 ft. Pickup more drill pipe and run in hole to 1288 ft. Held safety meetings; BOP and Spill Drill in cellar. Response time for drills was good. Pulled out of hole to 965 ft. 02/11/08: Lay down 2 spiral drill collars. Run in hole with 12 stands of HWDP and 7 stands drill pipe. Cut/slip 125.5' of drill line. Surface test smart iron. Epoch calibrates gas equipment. Trip in hole; wash from 1389' to 1421'. Change out swivel packing. Wash from 1421' to 1582'. 02/12/08: Wash and ream hole from 1528 ft. to 1606 ft. Tagged cement and drill from 1606 to 1698 ft. Drill out float, shoe track and rat hole from 1698 ft. to 1710 ft. Drilled one foot of new hole. Picked up joint of new pipe and drilled to 1743 ft. Circulate hole clean. Wait on third party tools. Rigged up Halliburton to pump for LOT and FIT. Run FIT test and after good test rig down Haliburton tools. Trip in hole and wash down to 1711 ft. Work tight spots and wash and ream to 1743 ft. Commence to rotary drill from 1743 ft. to 1968 ft. Pull out of hole from 1968 ft. to 1643 ft. Run FIT. Rigged down test lines. Tripped back in hole to 1968 ft. EPOCH 20 Chevron Smilodon 9-4-9 02/13/08: Drill ahead from 1968 ft. to 2030 ft. Cleaned up mud pump number 1 suction screen. Drilled ahead to 2548 ft. Changed out shaker screens on shaker number #1. Continue to rotary drill to 2805 ft. Circulated one and a half times bottoms up. Drill ahead to 2998 ft. Service top drive. Continued to drill to 3288 ft. 02/14/08: Drill 3280' to 3320'. CBU 1.5X. Back ream out to shoe. Circ and condition mud at shoe while service rig top drive and change out shaker screens. TIH. Wash/ ream 3256' to 3320'; 15' of fill. Drill ahead from 3320' to 3902'. 02/15/08: Drill 3902' to 4350'. Service rig, top drive and clean screen mud pump #1. Drill 4350' to 4929'. 02/16/08: Continue drilling from 4929' checking for flow at every connection to total depth of well of 5058'. Circulate bottoms up one and a half times conditioning the hole. Start tripping out of the hole from 5058' to 3449'. Pump out of the hole with tight areas at 4820', 4760', 4092', 4028', and 3808'. Continue tripping out of hole from 3449' to 1647', back reaming from 3449' to 2540'. Circulated one and a half bottoms up. Continued circulation and conditioning 2x bottoms up. Service top drive, greased blocks, crown and trouble shot TD ROT brakes. (Brake actuator seized) Changed out ODS jerk line. Changed out saversub. Continued tripping in the hole from 1647' to 4800', filling pipe at 3191'. Kelly up and reamed from 3300' to 3452'. 02/17/08: Continued tripping in the hole from 4800' to 5020'. Circulated and conditioned 2x surface to surface. Tripped out of the hole from 5058' to 206' with no fluid loss. Rigged up to lay down BHA and smart tools. Crew worked on cleaning floors. Laid down BHA with source. Changed out wear bushing. Started testing BOP's to 250 psi low and 2500 psi high. Blew down test equipment and rigged down same. Rigged up logging equipment and picked up tools. 02/18/08: Held a pre job safety meeting with Baker and started open hole logs with grand slam logging tool. Baker had a logging tool failure at 1698'. Laid down logging tool per Baker. Picked up logging tool and continued running in the hole to 5045'. Logging from 5045' to 1967' at which point there was a spill at the wire line unit. Crew cleaned up spill and berm unit. Laid down logging tools per Baker and pick up new tool string. Continued running in the hole with Baker logging tools. Night tour continued logging, cleaning pits, housekeeping and trouble shooting top drive hydraulic system. Found a damaged service loop, pressure line. Changed out pressure side hydraulic loop on the top drive. 02/19/08: Logging open hole from 2500 ft. to 2250 ft. with HDIL-MREX tool. Pulled out of hole and laid down the HDIL-MREX logging tool, and picked up rotary core logging tool. Ran in hole and commenced to 4750 ft. Tool failed and commenced to pull out of the hole. Laid down coring tool. Picked up Mandril Rotary coring tool and ran in hole to start coring at 4750 ft. During coring run crew cleaned rig floor, continued to clean pits and repaired Volvo loader. Coring continued to 3023 ft. Trip out of hole and recover 28 core samples. Mixed spud mud for Mastodon site and continued to clean rig ~! EPflCH 21 Chevron Smilodon 9-4-9 02/20/08: Continued to log hole with Rotary Coring tool. Pull out of hole from 3810 ft., due to tool failure. Picked up another rotary logging tool and tripped back in hole to 2250 ft. continued to run coring operation. Pulled out of hole and laid down coring tools. Picked up pressure logging tools. While processing data from core runs the crew ran liner and mats at Mastadon site. The crew still on Smilodon site continued to mix spud mud for Mastodon. Open hole logging continued. Pulled out of hole with pressure logging equipment at 2300 hours. Was out of hole by 0000 hours. 02/21/08: Logging hole with RCI tool. Operators established communication with tool and laid down wireline sheaves. New latch head was installed on wireline tool. Checked communication with Latch Sub. Crew rigged up to run in hole with RCI tool to 1636 ft. The pipe was filled at 5.5 blls per minute at 137 psi. The mud temperature was -40 degrees at 0930 hours. A E line sheave was rigged up in derrick at 1030 hours, and run in hole to 2530 ft. Run in hole with drill pipe attached to Baker logging tools to 3052 ft. Rigged up side entry sub on drill pipe. Pulled out other tool and ran in hole with new tool to 3052 ft. to 4720ft. Took formation fluid sample at 4720 ft. Circulated bottoms up and recorded 110 units of trip gas. Continued to add mud till 1900 hours. 02/22/08: Open hole logging from 3677' to 3060'. Circulating hole at 3 bbls/min at 3060'. Changed liners in mud pump #2 to 6". Continued logging, picked up side entry sub, removed clamp and unstring from down hole tools. Pulled out of the hole with E-line, broke it down and checked head, good. Trip out of the hole to 3066' to BHA, checking flow. Laid down BHA and logging tools. Crew continued housekeeping. Night tour picked up BHA change and changed out Baker logging tool assembly (1230-1400). Picked. up new Baker tool assembly (1400-1600). Picked up BHA plug in and tested Baker tools. First test failed 1630. Second test failed 1700. Trouble shot Baker tools and found a short in swivel down hole power adapter or TTRM sub. Start final test at 1900. Tripping back in the hole with Baker logging tools from 145' to 2140'. 02/23/08: Tripping in hole with drill pipe CL from 2140 ft. to 2995 ft. Circulate bottoms up. Rig up side entry sub; start to pump mud head down and latch in with forty percent flow. Continue to run in hole from 2995 ft to 3300 ft. E-log hole back to 3067 ft.; pick up to 3052 ft. and again to 3031 ft. Change out liners in pump 2„ from 5 inch to 6 inch. Pull out of hole to 2997 ft. Hit tight spot and pulled 5 K over to free the pipe; continue to pull out of hole; lay down head and sub. Continue to pull out of hole to 1625 ft. Remove wire line tools from the derrick. Lay down Baker tools. Rig up to run seismic logging tools. Changed out AWS-1300 GM receiver. 02/24/08: Trouble shoot and run in hole with Baker seismic tools. Completed seismic logs. Removed wear bushing and wear ring. Tested BOP's. Rigged down testing equipment. Blow down pipe to run casing. Rigged up tools to run casing; rigged up cement head. Run liner: 3.5" # 9.30 L80 IBT Mod tubing to 1643 ft. Circulated bottoms up and conditioned mud. Blow down stack to clear, and continue to run liner down hole. Installed float collar and landing collar. Changed out elevators and picked up 7" tongs. Picked up packer assembly and changed out elevators, tong heads. Picked up 1 stand of heavy weight pipe, circulated and conditioned mud. Rigged down casing; blow down stack. ~ EP(JCH 22 Cheuran Smilodon 9-4-9 02/24/08: Run in hole with heavy weight drill pipe to 4654 ft. Wash to bottom at 5057 ft. Circulate bottoms up, space out and blown down stack. Wait on cement. Pressure test lines .to 4500 psi. Pump cement and 40K on packer at 5057 ft. Pressure up to 4200 psi to test lines. Check floats. Run casing cement, displace and pull out of hole and circulate bottoms up. Rig down cement head, and perform a rig service. Welder to repair jerk line roller. Held pre job safety meeting. Prepare to pull out of hole and lay down drill pipe. • ~ E~ocH 23 Chevron Smilodon 9-4-9 4.2 Survey Data: • Me asured Depth (ft Inclin (deg) Azim (deg) True Vertical Depth (ft Northing (ft) Easting (ft) Vertical Section (ft) Dogleg Rate (°/100 ft ) 226.99 0.26 147.70 226.99 -0.44 0.28 -0.42 0.11 510.29 0.24 193.59 510.29 -1.56 0.48 -1.52 0.07 593.29 0.35 152.86 593.29 -1.95 0.55 -1.91 0.28 716.79 0.45 142.34 716.78 -2.67 1.02 -2.59 0.10 777.59 0.58 148.59 777.58 -3.12 1.33 -3.02 0.23 899.39 0.57 145.52 899.37 -4.15 1.99 -4.00 0.03 1028.79 0.58 139.04 1028.77 -5.17 2.79 -4.96 0.05 1092.89 0.58 135.86 1092.86 -5.65 3.23 -5.41 0.05 1158.69 0.56 136.45 1158.66 -6.12 3.68 -5.85 0.03 1220.19 0.55 134.98 1220.16 -6.55 4.09 -6.25 0.03 1350.49 0.58 146.61 1350.45 -7.54 4.90 -7.18 0.09 1479.89 0.49 155.96 1479.85 -8.59 5.49 -8.19 0.10 1544.49 0.49 159.89 1544.44 -9.10 5.69 -8.69 0.05 1638.29 0.53 160.66 1638.24 -9.89 5.97 -9.45 0.04 1711.81 0.49 162.89 1711.76 -10.51 6.18 -10.06 0.06 1776.31 0.10 271.33 1776.26 -10.77 6.20 -10.32 0.82 1840.90 0.78 335.08 1840.84 -10.37 5.96 -9.93 1.15 1903.44 3.30 353.94 1903.34 -8.20 5.59 -7.79 4.12 1968.44 5.41 354.23 1968.15 -3.29 5.09 -2.93 3.25 2033.54 6.84 352.47 2032.88 3.61 4.27 3.90 2.22 2098.39 8.18 352.62 2097.17 12.01 3.17 12.20 2.07 2162.69 9.38 354.95 2160.71 21.77 2.12 21.86 1.95 2226.09 10.58 358.81 2223.15 32.74 1.55 32.76 2.17 2290.89 11.85 3.02 2286.72 45.33 1.78 45.34 2.33 2354.29 13.27 5.09 2348.60 59.08 2.76 59.13 2.35 2419.29 14.46 8.09 2411.70 74.54 4.57 74.68 2.14 2482.79 15.78 4.81 2473.00 91.00 6.41 91.22 2.48 2546.39 16.40 2.29 2534.11 108.59 7.49 108.84 1.47 2610.99 16.15 0.06 2596.13 126.68 7.87 126.92 1.04 2676.59 16.28 358.91 2659.12 145.00 7.70 145.18 0.53 2740.29 16.31 358.52 2720.26 162.87 7.30 162.98 0.18 2804.59 16.28 1.64 2781.98 180.90 7.32 180.97 1.36 2868.89 16.29 4.10 2843.70 198.91 8.23 199.00 1.07 2924.98 16.38 5.01 2897.52 214.63 9.48 214.77 0.48 2999.52 16.26 4.31 2969.06 235.51 11.18 235.71 0.31 3063.42 16.40 5.29 3030.38 253.41 12.69 253.68 0.48 3128.22 16.21 4.39 3092.58 271.54 14.22 271.87 0.49 3192.52 16.39 4.11 3154.29 289.54 15.56 289.92 0.31 3260.02 16.17 4.11 3219.08 308.41 16.92 308.84 0.33 3320.21 16.20 2.45 3276.89 325.16 17.87 325.61 0.77 3385.31 16.21 2.59 3339.40 343.31 18.67 343.77 0.06 3449.11 16.40 0.52 3400.64 361.21 19.16 361.67 0.96 EPOCH 24 Ehevron Smilodon 9-4-9 • • 3514.31 16.25 1.40 3463.21 379.53 19.46 379.97 0.44 3578.41 16.11 3.16 3524.77 397.38 20.17 397.82 0.80 3642.41 16.23 4.78 3586.24 415.16 21.41 415.64 0.73 3706.81 16.24 6.13 3648.07 433.08 23.12 433.64 0.59 3771.41 16.40 5.75 3710.07 451.14 25.00 451.78 0.30 3835.32 16.38 5.44 3771.38 469.08 26.76 469.81 0.14 3899.56 16.40 5.44 3833.01 487.13 28.47 487.93 0.03 3964.86 16.25 4.71 3895.68 505.41 30.10 506.28 0.39 4029.16 16.37 4.07 3957.39 523.42 31.48 524.34 0.34 4093.16 16.29 4.76 4018.81 541.36 32.87 542.33 0.33 4156.76 16.46 4.33 4079.83 559.23 34.29 560.26 0.33 4221.36 16.05 3.91 4141.85 577.27 35.59 578.34 0.66 4286.46 16.22 2.78 4204.38 595.33 36.64 596.43 0.55 4349.86 15.50 2.65 4265.37 612.63 37.46 613.75 1.14 4414.66 14.17 3.42 4328.01 629.20 38.34 630.34 2.07 4478.36 13.29 3.91 4389.89 644.29 39.30 645.46 1.39 4543.06 12.38 2.30 4452.97 658.64 40.09 659.83 1.51 4607.46 12.60 1.99 4515.84 672.56 40.61 673.75 0.36 4672.31 12.24 2.63 4579.18 686.49 41.17. 687.69 0.59 4735.81 11.56 2.01 4641.31 699.57 41.70 700.78 1.09 4801.26 10.66 0.67 4705.53 712.18 42.00 713.38 1.43 4865.86 9.62 359.90 4769.12 723.55 42.06 724.73 1.62 4936.16 9.33 359.41 4838.47 735.13 41.99 736.27 0.43 4996.76 9.87 3.35 4898.22 745.22 42.24 746.36 1.40 5058.00 9.87 3.35 4958.55 755.70 42.86 756.85 0.00 EPOCH 25 i ~ Smilodon 9-4-9 4.2 Bit Record Jets / Depth Total Bit Aug' WOB ROT PP Wear Bit Make Type / S# TFA In/out Footage Hrs ROP (Klbs) RPM (psi) Reason MD(ft) (ft/hr) I,O,D,L,B,G,O NB# MXL-1X HUGHES/ 5125764 3X15,1 X13/0. 117/171 607 1 32.2 49.91 20 70 1560 3-3-CT-C-E-2/16-NO- CASING 1 0 , TD 647 NB# MSX61 HYCALOG/120373 3X10,3 1710/50 3348 46.4 72.2 15 X30 2000 2-3-BT-S-X-I-CT-TD TD 2 6M-A3D X11 58 EPOCH 26 bri Smilodon 9-4-9 4.4 Mud Record Contractor: BAROID • Date Depth MW ~ ~ FLT ° F VIS s/ t) PV YP GELS FL cc FC Sols % NAP/VU Ratio Sd %~ MBT pH CI- m 11 Ca+ m /I 01 /31 /08 104 8.60 65 59 11 30 11 /18/- 2/ 2.1 -/97.7 9.20 02/01/08 104 8.60 67 67 12 35 15/19/22 2/ 2.3 -/95.0 9.20 32,000 20 02/02/08 250 8.60 53 64 13 33 15/19/21 6.1 2/ 1.3 -/96.2 8.80 30,000 240 02/03/08 1290 9.40 57 55 18 29 13/21/24 6.8 2/ 5.8 -/92.0 8.30 27,000 600 02/04/08 1710 9.60 63 49 15 22 10/28/34 6.3 2/ 7.5 -/90.4 1.00 12.5 8.20 27,000 720 02/05/08 1710 9.45 65 49 13 23 7/16/33 6.2 2/ 6.2 -/91.6 1.00 10.0 8.30 28,000 960 02/06/08 1710 9.50 65 51 15 19 8/18/25 5.5 2/ 6.7 -/91.0 1.00 11.5 8.30 29,000 1120 02/07/08 1710 9.40 70 44 12 15 5/12/16 4.8 2/ 6.1 -/92.0 1.00 12.0 8.30 24,000 840 02/08/08 1710 8.85 56 52 15 20 6/7/8 5.2 2/ 1.6 -/96.1 5.0 8.50 27,000 360 02/09/08 1710 8.85 60 57 16 22 6/8/9 4.8 2! 1.2 -/96.1 5.0 8.50 32,000 360 02/10/08 1710 9.00 56 38 7 10 3/4/- 15.0 2/ 3.0 -/95.0 0.50 10.0 8.50 24,000 760 02/11/08 1710 9.10 48 40 8 10 3/4/6 13.2 2/ 3.9 -/94.2 0.50 10.0 8.50 23,000 800 02/12/08 1968 9.10 68 40 9 14 4/6/8 7.0 2/ 3.6 -/94.2 0.50 9.0 8.80 27,000 400 02/13/08 3249 9.35 86 42 11 14 4113/18 6.0 2/ 5.5 0.5/91.8 0.50 11.5 8.50 27,000 600 02/14/08 3886 9.45 82 52 16 17 8/31 /33 7.6 2/ 5.9 0.2/91.4 0.50 12.5 9.20 31, 000 800 02/15/08 4865 9.55 85 51 18 20 8/28/31 7.0 2/ 6.8 1.0/89.8 0.50 12.0 9.30 31,000 360 02/16/08 5058 9.40 80 51 17 18 5/24/28 5.6 2/ 5.7 0.5/91.4 0.50 12.5 9.20 30,000 360 02/17/08 5058 9.40 72 54 19 21 6/22/28 6.4 2/ 5.9 0.5/91.4 0.50 12.5 8.80 27,500 400 02/18/08 5058 9.35 82 42 15 14 4/18/24 7.0 2/ 5.7 0.5/91.8 0.50 11.0 9.20 25,000 360 02/19/08 5058 9.25 72 38 11 10 3/11/15 7.6 2/ 5.0 0.5/92.6 0.50 10.0 8.80 24,000 400 02/20/08 5058 9.30 80 41 10 10 3/16/24 7.6 2/ 5.1 0.4/92.3 0.50 10.0 9.10 27,000 400 02/21/08 5058 9.35 70 52 17 16 3/9/15 5.6 2/ 5.3 0.2/92.1 0.50 10.0 8.50 29,500 200 02/22/08 5058 9.35 72 51 19 19 4/10/15 4.4 2/ 5.2 0.2/92.1 0.50 10.0 9.30 31,000 200 02/23/08 5058 9.35 72 51 19 16 4/9/16 5.0 2/ 5.3 0.2/92.1 0.50 10.0 9.10 30,000 320 02/24/08 5058 9.30 62 51 19 16 4/7/11 4.8 2/ 4.9 0.2/92.5 0.50 10.0 8.80 30,000 320 Abbreviations MW =Mud Weight FL = Water or Filtrate Loss Ca+ =Calcium Hardness YP =Yield Point Gels =Gel Strength CI-= Chlorides PV =Plastic Viscosity FLT =Flow Line Temperature Sd =Sand content ECD =Effective Circulating Density VIS =Funnel Viscosity FC =Filter Cake Sols =Solids NAP/W =Oil to Water ratio [~1 EPOCH 27 • n LJ • MORNING REPORTS EPOCH 28 • • CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~,~~~,~~ SMILODON 9-4-9 REPORT FOR Floyd Hurt, Jason Bradford DATE Jan 31, 2008 DEPTH 80 PRESENT OPERATION Rig Up Operations TIME 2359 hrs YESTERDAY 80 24 HOUR FOOTAGE 0 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 8.6 VIS 59 PV 11 YP 30 FL Gels 11/18/- CL- FC SOL 2.1 SD OIL MBL pH 9.2 Ca+ CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY DAILY ACTIVITY SUMMARY Continue rig up operations. EPOCH PERSONNEL ON BOARD Resch, Bleys + 2 SC DAILY COST DML $3800__RW $1000 REPORT BY Larry Resch • • • CHEVRON USA HAPPY VALLEY PROJECT DAILY WELLSITE REPORT ~,~~~ SMILODON 9-4-9 REPORT FOR Floyd Hurt, Jason Bradford DATE Feb. 1, 2008 DEPTH 80 PRESENT OPERATION Rig Up Operations TIME 2359 hrs YESTERDAY 80 24 HOUR FOOTAGE 0 CASING INFORMATION DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 8.6 VIS 67 PV 12 YP 35 FL Gels 15/19/22 CL- 32k FC SOL 2.3 SD OIL -/95.0 MBL pH 9.2 Ca+ 20 CCI MWD SUMMARY INTERVAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY Continue rig up operations. Pick up 24 joints HWDP and stand back. Pick u p tongs for BHA; rig up kelly hose. DAILY ACTIVITY Test high pressure lines with air and mud to 250 psi low. Trouble shoot pressure sensor problem. Pick up drill SUMMARY collars and jars; stand back in derrick. Re-adjust kelly hose. EPOCH PERSONNEL ON BOARD Resch, Bleys + 2 SC___ DAILY COST _DML $$4200___RW $1780 REPORT BY Larry Resch • CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~,~~~,~~ SMILODON 9-4-9 REPORT FOR Floyd Hurt, Jason Bradford DATE Feb 03, 2008 DEPTH 295' PRESENT OPERATION Wash back to bottom @ 239 feet. TIME 2359 hrs YESTERDAY 90' 24 HOUR FOOTAGE 205' CASING INFORMATION 16" @ 90' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 232' 0.26 -- 227' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 1 12 1/4" HUGHES MXL-1X 5125764 1 X 13, 3 X 15 90' 205' 3.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 226.1 @ 110 11.3 @ 157 80.3 29.7 FT/HR SURFACE TORQUE 5886 @ 194 25 @ 197 1438.0 1986 AMPS WEIGHT ON BIT 16 @ 110 0 @ 262 3.7 7.5 KLBS ROTARY RPM 51 @ 263 26 @ 260 25.8 41 RPM PUMP PRESSURE 707 @ 292 293 @ 130 400.8 684 PSI DRILLING MUD REPORT DEPTH 290' MW 8.06 VIS 64 PV 13 YP 33 FL 6.1 Gels 10/19/21 CL- 30k FC - SOL 4 SD - OIL 0/96.0 MBL - pH 8.8 Ca+ 240 CCI MWD SUMMARY INTERVAL 90 TO Current TOOLS Tri cone bit with mud motor and LWD: gamma, resistivity, density, porosity, D & 1 GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 0 @ @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 0 @ @ CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG PROPANE (C-3) 0 @ @ CURRENT BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None through drilled interval. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Permafrost PRESENT LITHOLOGY Gravels and unconsolidated sands. Continue rig up operations. Adjust kelly hose and test mud lines. Pick up BHA, but motor, stabilizers, ARC 8, Power DAILY Pulse. Finish testing mud lines and calibrate pump pressure sensors. Conduct rig evacuation drill. Finish testing ACTIVITY lines to 2000 psi. Break circulation and drill cement at 1400 hrs. Drill ahead to 277'. Pull out of hole to 90'. Pick up SUMMARY ADN tool and load nuclear sources. Run back in hole from 90'. Tag bottom at 201' and wash to 239'. Make up 1 collar and jars. Tag bottom. EPOCH PERSONNEL ON BOARD ___Resch, Bleys + 2 SC___ DAILY COST ___DML $4550___RW $1780 REPORT BY Larry Resch • • CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~~~~~ SMILODON 9-4-9 REPORT FOR Floyd Hurt, Jason Bradford DATE Feb 04, 2008 DEPTH 1303' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 295' 24 HOUR FOOTAGE 1008' CASING INFORMATION ___16" @ 90' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 226' 0.26 147.70 226.99' 717' 0.45 142.34 716.78' SURVEY DATA 889' 0.57 145.52 899.37' 1093' 0.58 135.86 1092.86' 1220' 0.55 134.98 1220.16' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 1 12 1/4" HUGHES MXL-1X 5125764 1x13, 3x15 90' 1213' 17.8 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 522.0 @ 734 7.7 @ 950 87.6 70.9 FT/HR SURFACE TORQUE 8166 @ 1300 944 @ 730 4389.9 5224.2 AMPS WEIGHT ON BIT 20 @ 463 0 @ 516 10.7 14.9 KLBS ROTARY RPM 87 @ 1013 15 @ 732 68.2 63 RPM PUMP PRESSURE 1357 @ 1299 418 @ 461 1003.5 1330 PSI DRILLING MUD REPORT DEPTH 1134' MW 9.4 VIS 55 PV 18 YP 29 FL 6.8 Gels 13/'21/24 CL- 27k FC 1 SOL 6.2 SD 2 OIL 0/94.0 MBL 10 pH 8.3 Ca+ 600 CCI MWD SUMMARY INTERVAL 90' TO Current TOOLS Tri cone bit with mud motor and LWD: gamma, resistivity, density, porosity, D & I GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 57 @ 666 0 @ TRIP GAS n/a CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 2248 @ 934. 19 @ 1159 32.1 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG PROPANE (C-3) 0 @ @ CURRENT BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ @ HYDROCARBON 3 units maximum obsertved through today's interval. Ditch gas reported above is gas trap test with SHOWS carbide. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Permafrost PRESENT LITHOLOGY ----------Conglomerate, conglomeratic sand, tuffaceous claystone, occsional minor coals---------- DAILY Drill ahead from 295' to 460'. Loosing mud over shaker. Drill ahead to 545'. Trouble shoot Schlumberger tool: not ACTIVITY reading. Relog hole from 460' to 545'. Drill ahead to 606'. Trouble shoot Epoch not tracking: Academy not sending SUMMARY Pump pressure signal to Epoch. Relog hole from 545' to 606'. Drill ahead to 729'. Replace line on pressure sensor; service top drive. Drill ahead to 1303'. r ~ L I CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~~~~,H SMILODON 9-4-9 REPORT FOR Floyd Hurt, Jason Bradford DATE Feb 04, 2008 DEPTH 1710' PRESENT OPERATION Wash and Ream TIME 2359 hrs YESTERDAY 1303' 24 HOUR FOOTAGE 407' CASING INFORMATION 16" @ 90' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1350' 0.58 146.61 1350.45' 1480' 0.49 155.96 1479.85' SURVEY DATA 1544' 0.49 159.89 1544.44' 1638' 0.53 160.66 1638.24' 1710' prof 0.5 160.7 1710.3' prof BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 1 12 1/4" HUGHES MXL-1X 5125764 1x13, 3x15 90' 1620' 23.6 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 179.8 @ 1672 10.7 @ 1432 78.6 86.5 FT/HR SURFACE TORQUE 8436 @ 1698 1263 @ 1602 5070.3 5947 AMPS WEIGHT ON BIT 26 @ 1463 7 @ 1519 15.4 18.7 KLBS ROTARY RPM 81 @ 1311 44 @ 1333 70.2 71.0 RPM PUMP PRESSURE 1535 @ 1642 1238 @ 1446 1403.1 1514.0 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL 90' TO Current TOOLS Tri cone bit with mud motor and LWD: gamma, resistivity, density, porosity, D & I GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 20 @ 1460 0 @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 0 @ @ CONNECTION GAS HIGH ETHANE (C-2) 0 @ @ AVG PROPANE (C-3) 0 @ @ CURRENT BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None through today's drilled interval. Ditch gas recorded from carbide test of gas trap. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Permafrost PRESENT LITHOLOGY ----------Sand, Tuffaceous Sand, Conglomerate, occasional very minor Coal---------- DAILY ACTIVITY Drill ahead from 1303' to 1710'. Circulate and condition. Pump carbide: Observed versus calculated lag ratio is 1:1. SUMMARY Pull out of hole. Was and ream through tight spots at 1321-1327'. Ream back out of hole from 1327' to 362'. Continue pulling out of hole from 362' to 175' with no over pull. Trip back in hole from 175' to 1166'. EPOCH PERSONNEL ON BOARD ___Resch, Bleys + 2 SC___ DAILY COST ___DML $4550___RW $780 REPORT BY Larry Resch CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~,~~,~ SMILODON 9-4-9 PORT FOR Floyd Hurt, Abe Purugganan Feb 05, 2008 DEPTH 1710' PRESENT OPERATION Running 9 5/8" casing @ 450' TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 0' CASING INFORMATION __16" @ 90' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 1 12 1/4" HUGHES MXL-1X 5125764 1 x 13, 3 x 15 90' 1710' 1620' 27.6 CSG PT. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.45 VIS 49 PV 13 YP 23 FL 6.2 Gels 7/16/33 CL- 28k FC 2 SOL 6.2 SD 1.0 OIL -/91.6 MBL 10.0 pH 8.3 Ca+ 960 CCI MWD SUMMARY INTERVAL TO TOO S G MMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS N/A CHROMATOGRAPHY (ppm) SURVEY N/A METHANE (C-1) @ @ CONNECTION GAS HIGH 0 ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY Wash and ream from 1166' to 1710'. Circ and condition. Pump carbide around: recieved back at 4700 strokes (4275 estimated). Pull out DAILY of hole. Pull tight at 1640'. Wash and ream from 1640' to 240'. Wash out of hole without rotati ng: Could not pull out without pumping but ACTIVITY pulled OK while pumping at 2.4 BPM. Continue out of hole; stand back jars and spiral collar. Blow down top drive. Stand back BHA after SUMMARY removing nuclear sources. Lay down Schlumberger tools. Drill bit was 1/8" out of gage. Pull wear ring and rig up to run 9 5/8" 40# casing. Run same to 450'. EPOCH PERSONNEL ON BOARD _Resch, Bleys + 2 SC___ DAILY COST _DML $4550__RW $780 REPORT BY Larry REsch • CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~,~{~~ SMILODON 9-4-9 PORT FOR Floyd Hurt, Abe Purugganan E Feb 06, 2008 DEPTH 1710' PRESENT OPERATION Cement Operations TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 0' CASING INFORMATION ___16" @ 90' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 1 12 1/4" HUGHES MXL-1X 5125764 1 x 13, 3 x 15 90' 1710' 1620' 27.6 CSG PT. DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.5 VIS 51 PV 15 YP 19 FL 5.5 Gels 8/18/25 CL- 29k FC 2 SOL 6.7 SD 1.0 OIL -/91.0 MBL 11.5 pH 8.3 Ca+ 1120 CCI MWD SUMMARY INTERVAL TO TOO S G MMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this pertiod. PRESENT LITHOLOGY Continue running 9 5/8" 40# casing from 450' .Tagged tight hole at 1410' and could not work through. Rig up to circulate. Wash down DAILY from 1410' to landing po int pumping at 2.75 BPM while working pipe. Circulate at 300 GPM and 300 PSI. Pick up landing joint and ACTIVITY hanger. Circulate at 8 BPM at 600 PSI; start to loose flow and pumping fluid away. Backed p ump rate down to 4 BPM; still pumping fluid SUMMARY away. Circulated 223 BBL. Blow down all surface equipment; lay down landing joint. Pick up BHA and run in hole with 4"drill pipe. Tag float collar at 1616'. Space out with pups. Pick up cement head. EPOCH PERSONNEL ON BOARD _Resch, Bleys + 2 SC___ DAILY COST _DML $4550, RW $780 REPORT BY Larry Resch • CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~,~~~,~ SMILODON 9-4-9 ~ORT FOR Floyd Hurt, Abe Purugganan DATE Feb 07, 2008 DEPTH 1710' PRESENT OPERATION Nipple Down TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 90' SURVEY DATA DEPTH INCLINATION AZIMUTH VERTICAL DEPTH BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 1 12 1/4" HUGHES MXL-1X 5125746 1 X 13, 1 X 15 90' 1710' 1620' 2706 CSG PT DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.4 VIS 44 PV 12 YP 15 FL 4.8 Gels 5/12/16 CL- 26k FC 2 SOL 6.1 SD 1.0 OIL -/92.0 MBL 12.0 pH 8.3 Ca+ 840 CCI MWD SUMMARY INAL TO T GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY Rig up to circulate through cement head and circulate 74 BBLS. Rig down mud line and blow down. Rig up Haliburton Cement line. Water tank valve frozen. Move water line to different outlet; mud line had ice plug; thaw same. Pump 10 BBL water at 5 BPM and pressure test DAILY cement line to 3000 PSI. Pump 20 BBL Alpha spacer at 4.4 BPM, 10 PPG, 9.12 Gal/Stk, 1.34 yeild. Pump 196 BBL lead cement at 15.8 ACTIVITY PPG, 4.91 Gal/Stk, 1.15 yeild. Pump 45 BBL tail at 10.5 PPG, 4.91 Gal/Stk, 1.15 yeild. Drop dart at 0515 hrs and pump down hole. Blow SUMMARY down cement lines and rig down same. Pull landing joint and drain down stack. Service top drive. Circulate out cement and condition mud. Nipple up/down diverter system, BOP's; suck out cellar; clean around casing for packoff. Nipple down diverter crossover, thaw out ice plug; clean out and install diverter crossover door. Rig up Koomey lines and pressure test Koomey system. Rig up to wash stack and prepare to nipple down to clean off for packoff installation. EP~ PERSONNEL ON BOARD _Resch, Bleys + 2 SC_ DAILY COST _DML $4550, RW $ 780 REPORT BY Larry Resch CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPO RT ~~~~H SMILODON 9-4-9 F~RT FOR Fl d H t Ab P B b F ll ur , urugganan, oy e o arre DATE Feb 08, 2008 DEPTH 1700' PRESENT OPERATION Nipple Up TIME 2359 hrs YESTERDAY 1700' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 90' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB #2 8 1/2" HYCALOG MSX616M-A3D 120373 3 x 10, 3 x 11 1710' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.1 VIS 42 PV 8 YP 11 FL 13.6 Gels 3/5/ CL- 26k FC 2 SOL 3.7 SD .75 OIL -/94.2 MBL 10.0 pH 8.5 Ca+ 750 CCI MWD SUMMARY AL TO IN ~ T GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage this period PRESENT LITHOLOGY Continue work on BOP's. Johnny wacked stack; blow down top drive and sucked out stack. Nipple down stack at well head; clean DAILY ACTIVITY packoff surface; nipple up stack; set packoff and test to 500 and 5000 psi for 30 minute s with good results. Install rams, target 90's, SUMMARY kill and choke, HCR, manuel valves, kill lines. EPOCH PERSONNEL ON BOARD _Resch, Bleys + 2 SC_ DAILY COST _ DML $4550, RW $780 REPORT BY Larry Resch CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT E~~~ SMILODON 9-4-9 ~ORT FOR Fl d H t B b F ll oy ur , arre o DATE Feb 09, 2008 DEPTH 1710' PRESENT OPERATION Casing Test TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 90'__ __9 5/8 " @-- DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB 2 8 1/2" HYCALOG MSX616M-A3D 120373 3 x 10, 3 x 11 1710' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.0 VIS 50 PV 9 YP 11 FL 11.4 Gels 4/5/- CL- 25 FC 1 SOL 2.9 SD 0.5 OIL -/95.0 MBL 10.0 pH 8.5 Ca+ 750 CCI MWD SUMMARY AL TO iN ~ T GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY Continue work on BOP's. Nipple up choke; tightened flanges on stack; make up test joint; shell tested stack. Test choke valves 7, 9, 11, DAILY 12, 13; annular; HCR kill; IBOP at 250 and 3500 psi. Test choke; HCR's; manuel valves. Tighten flange at bottom of double gate. ACTIVITY Replace seals on lower pipe rams-4". Lay down test joint, pick up joint of drill pipe. Test lower pipe rams; koomy bleed off 56 seconds SUMMARY 200 psi 3 minutes 18 seconds full recovery, 1240 psi bleed off, 2487 psi average on nitrogen bottles. Pull test plug and set wear ring. Rig up to pressure test casing shoe at 2000 psi for 30 minutes. Effect same. EPOCH PERSONNEL ON BOARD _Resch, Bleys + 2 SC_ DAILY COST _DML $4550, RW $780 REPORT BY Larry Resch • CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~,~~~, SMILODON 9-4-9 ~ORT FOR Ab P B b F ll urugganan, arre e o DATE Feb 10, 2008 DEPTH 1710' PRESENT OPERATION Pick Up BHA TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 0' CASING INFORMATION _16" @ 90'_ _9 5/8" @-- DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 2 8 1/2" HYCALOG MSX616M-A3D 120373 3x10, 3x11 1710' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.0 VIS 38 PV 7 YP 10 FL 15.0 Gels 3/4/- CL- 24k FC 2 SOL 3.0 SD 0.5 OIL -/95.0 MBL 10.0 pH 8.5 Ca+ 760 CCI MWD SUMMARY AL TO INT ~ TO GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY Pressure test casing shoe to 2000 psi for 30 minutes. Epoch records test and charts same. Blow down choke manifold, hose, kill line DAILY and back to pumps. Remove/replace hydraulic service loop. Function test and travel test to p drive. Pick up 40 joints drill pipe and run in ACTIVITY hole to 1288'. Stand back drill pipe in derrick. Conduct spill drill in cellar: Response time 1 1/2 minutes. Continue standing back drill SUMMARY pipe. EPOCH PERSONNEL ON BOARD Resch, Bleys + 2 SC__ DAILY COST __DML $4550, RW $780 REPORT BY Larry Resch CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~~~~,~ SMILODON 9-4-9 F~RT FOR Ab P Fl d H rt B b F ll e urugganan, oy u , arre o DATE Feb 12, 2008 DEPTH 1710' PRESENT OPERATION Drill out cement TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 0' CASING INFORMATION 16" @ 90'__ __9 5/8 " @ DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 2 8 1/2" HYCALOG MSX616M-A3D 120373 3x10, 3x11 1710' DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH 1710' MW 9.1 VIS 40 PV 8 YP 10 FL 13.2 Gels 3!416 CL- 23k FC 1 SOL 3.9 SD 0.5 OIL -/94.2 MBL 10.0 pH 8.5 Ca+ 800 CCI MWD SUMMARY INT AL 1710' TO ~ TO PDC bit with Power Drive RSS and LWD: Gamma; Resistivity; Porosity' D & I GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 0 CUTTING GAS @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY n/a METHANE (C-1) @ @ CONNECTION GAS HIGH n/a ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) @ @ HYDROCARBON SHOWS No new footage drilled this period. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY No new footage drilled this period. PRESENT LITHOLOGY DAILY ACTIVITY Lay down 2 spiral drill collars. Run in hole with 12 stands of HWDP and 7 stands drill pipe. Cut/slip 125.5' of drill line. Surface test SUMMARY smart iron. Epoch calibrates gas equipment. Trip in hole; wash from 1389' to 1421'. Change out swivel packing. Wash from 1421' to 1582'. EPOCH PERSONNEL ON BOARD Resch, Bleys + 2 SC__ DAILY COST DML $4550, RW $780 REPORT BY Larry Resch `~ CHEVRON USA WHITE HILLS PROJECT DAILY WELLSITE REPORT ~~{~~,~ SMILODON 9-4-9 ~ORT FOR D F l Ab P er, urugganan on ow e DATE Feb 12, 2008 DEPTH 1968' PRESENT OPERATION Drilling Ahead TIME 2359 hrs YESTERDAY 1710' 24 HOUR FOOTAGE 258' CASING INFORMATION 9 5?8" @ 1710' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH 1712' 0.49 162.89 1711.76' 1841' 0.78 335.84 1840.85' SURVEY DATA 1903' 3.30 353.94 1903.34' 1968' 5.41 354.23 1968.15' 2034' 6.84 352.47 2032.87' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED BN 2 8 1/2" HYCALOG MSX616M-A3D 120373 3x10, 3x11 1710 258' 3.3 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 197.5 @ 1848 1 @ 1711 102.1 73. FT/HR SURFACE TORQUE 12802 @ 1859.00000 2575 @ 1810 7675.1 7639 AMPS WEIGHT ON BIT 18 @ 1710 0 @ 1851 7.6 8.0 KLBS ROTARY RPM 121 @ 1901 58 @ 1719 94.4 121.0 RPM PUMP PRESSURE 1514 @ 1710 827 @ 1945 1133.1 1176.0 PSI DRILLING MUD REPORT DEPTH 1968' 9.1 VIS 40 PV 9 YP 14 FL 7.0 Gels 4/6/8 CL- 27k 1 SOL 3.6 SD 9.0 OIL -/94.2 MBL 9.0 pH 8.8 Ca+ 400 CCI MWD SUMMARY INTERVAL 1710' TO Current Depth TOOLS PDC bit with Power Drive RSS and LWD: Gamma; Resistivity; Porosity; D & I GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 27 @ 1718 0 @ TRIP GAS 0 CUTTING GAS 0 @ @ WIPER GAS n/a CHROMATOGRAPHY (ppm) SURVEY 0 METHANE (C-1) 0 @ @ CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ @ AVG PROPANE (C-3) 0 @ @ CURRENT BUTANE (C-4) 0 @ @ CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 0 @ @ HYDROCARBON SHOWS None during today's drilled interval. Ditch gas reported is carbide trap test. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Sand and Tuffaceous Claystone PRESENT LITHOLOGY ---------Tuffaceous Claystone and Argillageous Shale--------- Continue washing hole from 1528' to 1606' Drill cement from 1606' to 1698'. Drilled float and shoe track; drilled up rat hole from 1698' to DAILY 1711'. Drilled new formation from 1711' to 1743'. Circulate and condition. Rig up Haliburton for FIT and LOT. Short trip to 1679' and ACTIVITY conduct tests. Epoch monitors and charts these tests. Run in hole from 1679'. Work tioght spot: b ack ream from 1711' to 1649'. Pull 85k. SUMMARY Clean up shoe. Rig up Haliburton and run FIT to 320 psi. Epoch records and charts same. Trip in hole, washing from 1711' to 1743'. Drill ahead to 1968'. Short trip to 1643': Conduct LOT test 258/203 psi. Rig down test line. EP~PERSONNEL ON BOARD Resch, Bleys + 2 SC___ DAILY COST DML $4550, RW $780 REPORT BY Larry Resch CHEVRON USA DAILY WELLSITE REPORT EPQCH SMILODON 9-4-9 PORT FOR D F l / Ab P on ow er e ur ugganan DATE Feb 13, 2008 DEPTH 3280.00000 PRESENT OPERATION Wiper trip TIME 23:59 YESTERDAY 1968.00000 24 HOUR FOOTAGE 1312 CASING INFORMATION 9 5/8" @ 1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 3260.02' 16.17 4.11 3219.08' BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB#2 8 1/2" Hycalog MSX616M-A3D 120373 3x10, 3x11 1710 1570 15.1 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 198.3 @ 2092:00000 19.1 @ 2999.00000 115.7 81.90195 FT/HR SURFACE TORQUE 14506 @ 2301.00000 3225 @ 2021.00000 1 0936.2 12679.00000 AMPS WEIGHT ON BIT 19 @ 2869.00000 0 @ 3001.00000 14.1 15.34671 KLBS ROTARY RPM 135 @ 2295.00000 103 @ 2378.00000 129.0 126.00000 RPM PUMP PRESSURE 1819 @ 3148.00000 836 @ 2103.00000 1390.1 1728.00000 PSI DRILLING MUD REPORT DEPTH 3249 MW 9.35 VIS 42 PV 11 YP 14 FL 6.0 Gels 4/13/18 CL- 27500 FC 1/- SOL 5.5 SD 0.50 OIL .5/91.8 MBL 11.5 pH 8.5 Ca+ 600 CCI MWD SUMMARY I~VAL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 191 @ 2054.00000 0 @ 3219.00000 0.7 TRIP GAS CUTTING GAS 0 @ 3280.00000 0 @ 3280.00000 0.0 WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 764 @ 3180.00000 764 @ 3180.00000 0.6 CONNECTION GAS HIGH ETHANE (C-2) 0 @ 3280.00000 0 @ 3280.00000 0.0 AVG PROPANE (C-3) 0 @ 3280.00000 0 @ 3280.00000 0.0 CURRENT BUTANE (C-4) 0 @ 3280.00000 0 @ 3280.00000 0.0 CURRENT BACKGROUND/AVG PENTANE (C-5) 0 @ 3280.00000 0 @ 3280.00000 0.0 HYDROCARBON SHOWS None. Ditch gas reported is carbide trap test. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Claystone, siltstone, trace sand PRESENT LITHOLOGY Claystone, siltstone, trace sand DAILY ACTIVITY SUMMARY Drill 1968' - 2805. Circ 1 1/2 bottoms up to clean hole. Drill 2805' to 2998'. Work on top drive. Drill 2998' - 3280' at midnight. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML $4550, RW $780 REPORT BY Ralph Winkelman CHEVRON USA White Hills Project DAILY WELLSITE REPORT ~,~~~,~ SMILODON 9-4-9 ~ORT FOR D n F l / Ab P o ow er e urugganan DATE Feb 14, 2008 DEPTH 3902.00000 PRESENT OPERATION Pump Repair/ drilling TIME 23:59 YESTERDAY 3280.00000 24 HOUR FOOTAGE 622 CASING INFORMATION 9 5/8"@ 1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 3835.31 16.38 .5.44 3771.37 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB#2 8 1/2" Hycalog MSX616M-A3D 120373 3x10, 3x11 1710 2192 23.6 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 137.1 @ 3356.00000 5.8 @ 3896.00000 88.8 70.92757 FT/HR SURFACE TORQUE 14163 @ 3804.00000 4721 @ 3376.00000 11362.0 13317.00000 AMPS WEIGHT ON BIT 17 @ 3496.00000 2 @ 3642.00000 12.8 14.53302 KLBS ROTARY RPM 135 @ 3815.00000 124 @ 3430.00000 130.8 128.00000 RPM PUMP PRESSURE 2232 @ 3893.00000 1277 @ 3722.00000 1867.2 1927.00000 PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY IN~AL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 54 @ 3684.00000 0 @ 3438.00000 8.9 TRIP GAS CUTTING GAS 0 @ 3902.00000 0 @ 3902.00000 0.0 WIPER GAS 2 CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) 10414 @ 3684.00000 102 @ 3438.00000 1846.9 CONNECTION GAS HIGH 0 ETHANE (C-2) 0 @ 3902.00000 0 @ 3902.00000 0.0 AVG PROPANE (C-3) 0 @ 3902.00000 0 @ 3902.00000 0.0 CURRENT 4 BUTANE (C-4) 0 @ 3902.00000 0 @ 3902.00000 0.0 CURRENT BACKGROUND/AVG 5 PENTANE (C-5) 0 @ 3902.00000 0 @ 3902.00000 0.0 HYDROCARBON SHOWS None detected. INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Trace carbonaceous shale, sand, claystone PRESENT LITHOLOGY Sand, sandston e, claystone DAILY ACTIVITY Drill 3280' to 3320'. CBU 1.5X. Back ream out to shoe. Circ and condition mud at shoe while service rig, top drive and change out SUMMARY shaker screens. TIH. Wash/ ream 3256' to 3320'. 15' of fill .Drill 3320' to 3902' EPOCH PERSONNEL ON BOARD 4 DAILY COST DML $4550, RW $780 REPORT BY Ralph Winkelman • CHEVRON USA White Hills Project DAILY WELLSITE REPORT ~,~~~,~ SMILODON 9-4-9 F l / Ab P ~ORT FOR D on ow er urugganan e DATE Feb 15, 2008 DEPTH 4929. PRESENT OPERATION Drilling TIME 23:59 YESTERDAY 3902. 24 HOUR FOOTAGE 1027 CASING INFORMATION 9 5/8" @ 1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4801.26 10.66 0.67 4705.53 4865.86 9.62 359.90 4769.12 BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB#2 8 1/2" Hycalog MSX616M-A3D 120373 3X10,3X11 1710 3219 39.4 DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 169.8 @ 4158. 6.3 @ 4440. 75.7 33. FT/HR SURFACE TORQUE 14984 @ 4710. 4279 @ 4855. 11482.5 12321. AMPS WEIGHT ON BIT 17 @ 3910. 0 @ 4735. 10.2 7. KLBS ROTARY RPM 143 @ 4308. 111 @ 4038. 127.5 122. RPM PUMP PRESSURE 2111 @ 3912. 1354 @ 4707. 1880.9 2022. PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI M MMARY INT AL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 63 @ 4118.00000 2 @ 4456.00000 18.4 TRIP GAS NA CUTTING GAS @ @ WIPER GAS NA CHROMATOGRAPHY (ppm) SURVEY NA METHANE (C-1) 12457 @ 4118.00000 410 @ 4456.00000 3552.4 CONNECTION GAS HIGH NONE ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT 14 BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG 10/ 9 PENTANE (C-5) @ @ HYDROCARBON SHOWS none INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Claystone, siltstone, sandstone PRESENT LITHOLOGY Claystone, silts tone, sandstone DAILY ACTIVITY SUMMARY Drill 3902' to 4350'. Service rig, top drive and clean screen mud pump #1. Drill 4350' to 4929'. EPOCH PERSONNEL ON BOARD 4 DAILY COST DML $4550, RW $780 REPORT BY Ralph Winkelman • CHEVRON USA White Hills Project DAILY WELLSITE REPORT El'~~ SMILODON 9-4-9 F l /Ab P ~ORT FOR D on er e urugganan ow DATE Feb 16, 2008 DEPTH 5058.00000 PRESENT OPERATION Wiper trip TIME 23:58 YESTERDAY 4929.00000 24 HOUR FOOTAGE 129 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA 4930.16 9.33 359.41 4832.55 4996.76 9.87 353.29 4898.21 BIT INFORMATION INTERVAL CONDITION REASON N0. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED NB#2 8 1/2" Hycalog MSX616M-A3D 120373 3x10,3x11 1710' 5058' 3348' 42.41 TD DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION 62.6 @ 4995.00000 32.0 @ 4993.00000 39.1 33.18584 FT/HR SURFACE TORQUE 14702 @ 5056.00000 4978 @ 4982.00000 11158.6 10386.00000 AMPS WEIGHT ON BIT 14 @ 4995.00000 7 @ 4929.00000 12.7 13.32249 KLBS ROTARY RPM 129 @ 4978.00000 116 @ 5051.00000 121.9 120.00000 RPM PUMP PRESSURE 2142 @ 5018.00000 1910 @ 5058.00000 2080.8 1910.00000 PSI DRILLING MUD REPORT DEPTH MW 9.55 VIS 51 PV 18 YP 20 FL 7.0 Gels 8/28/31 CL- 31,000 FC 2/ SOL 6.8 SD 0.5 OIL -/89.8 MBL 12.0 pH 9.30 Ca+ 360 CCI M~MMARY INTL"T!4/AL TO TOOLS GAS SUMMARY (units) HIGH LOW AVERAGE DITCH GAS 16 @ 4996.00000 5 @ 5055.00000 12.9 TRIP GAS CUTTING GAS 0 @ 5058.00000 0 @ 5058.00000 0.0 WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) 3261 @ 4996.00000 1095 @ 5055.00000 2592.7 CONNECTION GAS HIGH ETHANE (C-2) 42 @ 4996.00000 15 @ 5055.00000 26.3 AVG PROPANE (C-3) 17 @ 4989.00000 0 @ 4961.00000 3.1 CURRENT 0 BUTANE (C-4) 0 @ 5058.00000 0 @ 5058.00000. 0.0 CURRENT BACKGROUND/AVG 0 PENTANE (C-5) 6 @ 5058.00000 6 @ 5058.00000 0.0 HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Claystone, siltstone, sandstone PRESENT LITHOLOGY Claystone, siltstone, sandstone DAILY ACTIVITY Drilled from 4929 ft. to 5058 ft., and reached TD. Circulated and conditioned mud. Monitored well and commenced wiper trip. SUMMARY Serviced top drive and cleaned rig floor. Contiued wiper at report time. EPOCH PERSONNEL ON BOARD 2 DAILY COST $3635.00 REPORT BY Harry E. Bleys C, CHEVRON USA White Hills Project DAILY WELLSITE REPORT ~~~~, SMILODON 9-4-9 ~ORT FOR Don Fowler/Abe Purgganan DATE Feb 17, 2008 DEPTH 5058.00000 PRESENT OPERATION Rigging Wireline. TIME 11:59:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.40 VIS 54 PV 19 YP 21 FL 6.4 Gels 6/22/28 CL- 27,500 FC 2/ SOL 5.9 SD 0.5 OIL 0.5/91.4 MBL 12.5 pH 8.80 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TO GA MMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY sand siltstone and shale DAILY ACTIVITY SUMMARY Finished testing Blow Out Preventers on Stack. Commenced rigging up for wireline crew. Rigging up at report time. EPOCH PERSONNEL ON BOARD 2 DAILY COST $4480.00 REPORT BY Harry E. Bleys • CHEVRON USA Y WELLSITE REPORT ~~~ White Hills Project DAIL , SMILODON 9-4-9 ~ORT FOR Don Fowler/Abe Purugganan DATE Feb 18, 2008 DEPTH 5058.00000 PRESENT OPERATION Wirelining the hole TIME 11:59:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.40 VIS 54 PV 19 YP 21 FL 6.4 Gels 6122/28 CL- 27500 FC 2/ SOL 5.9 SD 0.5 OIL 0.5/91.4 MBL 12.5 pH 8.80 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TO GAS MMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY PRESENT LITHOLOGY SHALE, SILTSTONE, SANDSTONE DAILY ACTIVITY SUMMARY CONTINUING TO CLEAN PITS. WIRELINING TESTS OF HOLE. EPOCH PERSONNEL ON BOARD 2 DAILY COST $4280.00 REPORT BY HARRY E. BLEYS CHEVRON USA White Hills Project DAILY WELLSITE REPORT ~~~~~ SMILODON 9-4-9 ~ORT FOR Don Fowler/Jason Bradford DATE Feb 19, 2008 DEPTH 5058.00000 PRESENT OPERATION WIRELINE CORING RUN. TIME 11:59:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8" @ 1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.35 VIS 42 PV 15 YP 14 FL 7.0 Gels 4/18/24 CL- 25000 FC 2/ SOL 5.7 SD 0.50 OIL 0.5/91.8 MBL 11.0 pH 9.20 Ca+ 360 CCI MWD SUMMARY INTERVAL TO TO- GAS UMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY Schrader Bluff C PRESENT LITHOLOGY claystone 40%, siltstone 40%, and sandstone 20%. BAKER HUGHES LOGGING OPEN HOLE TO 2250 FT. PULL OUT OF HOLE AND LAID DOWN HDIL - MREX TOOL. THEN PICKED DAILY UP ROTARY CORE LOGGING TOOL. RUN IN HOLE AND COMMENCE LOGGING. TOOL FAILED AND THEY COMMENCED ACTIVITY PULLING OUT OF HOLE. LAID DOWN TOOL AND PICKED UP MANDRIL ROTARY CORE TOOL. RUN IN HOLE AND COMMENCED SUMMARY CORING AT 4739 FT. CREW CONTINUES TO CLEAN AND PERFORM MAINTENANCE ON EQUIPMENT. BAKER CONTINUES TO RUN CORING TOOL AT REPORT TIME. EPOCH PERSONNEL ON BOARD 2 DAILY COST $4255.00 REPORT BY HARRY E. BLEYS • CHEVRON USA WELLSITE REPORT ~~~~,~ White Hills Project DAILY SMILODON 9-4-9 F~RT FOR DON FOWLER /JAS ON BRADFORD. DATE Feb 20 2008 DEPTH 5058.00000 PRESENT OPERATION RUNNING WIRELINE LOGGING. TIME 12:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.35 VIS 41 PV 10 YP 10 FL 7.6 Gels 3/16/24 CL- 27000 FC 2/ SOL 5.1 SD 0.5 OIL 0.4/94.23 MBL 10.0 pH 9.10 Ca+ 400 CCI MWD SUMMARY INTERVAL TO T GAS UMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY 1 NE C @ @ CONNECTION GAS HIGH ) ( - METHA AVG ETHANE (C-2) @ @ PROPANE (C-3) @ @ CURRENT @ @ CURRENT BACKGROUND/AVG BUTANE (C-4) PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SCHRADER BLUFF C TOP AT 4790' PRESENT LITHOLOGY CLAYSTONE 40%, SILTSTONE 40%, AND SANDSTONE 20%. AND ESTABLISHED COMMUNICATION WITH RCI TOOL KED UP BAKER RCI TOOL . LAID DOWN WIRELINE SHEAVES, DAILY ACTIVITY PIC ALLED N , CHECKED COMMUNICATION WITH LATCH SUB. CLEANED RIG FLOOR EW LATCH HEAD ON WIRELINE . SUMMARY AND INST WHILE RUNNING IN HOLE WITH RCI TOOL TO 1636'. LOGGING AT REPORT TIME EPOCH PERSONNEL ON BOARD 2 DAILY COST $4255.00 REPORT BY HARRY E. BLEYS CHEVRON USA H AILY WELLSITE REPORT ~~~~ White Hills Project , D SMILODON 9-4-9 ~ORT FOR Don Fowler/Jason B radford DATE Feb 21, 2008 DEPTH 5058.00000 PRESENT OPERATION RUNNING WIRELINE. TIME 11:58:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.30 VIS 41 PV 10 YP 10 FL 7.6 Gels 3/16/24 CL- 27000 FC 2/ SOL 5.1 SD 1.50 OIL 0.4/92.3 MBL 10.0 pH 9.10 Ca+ 400 CCI MWD SUMMARY INTERVAL TO TO GA MMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS 110u. CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SCHRADER BLUFF TOP AT 4790' PRESENT LITHOLOGY CLAYSTONE 40%, SILTSTONE 40%, AND SANDSTONE 20% LOGGING OPEN HOLE CONTINUED AND RAN IN HOLE WITH BAKER TOOLS ON DRILL PIPE. FILLED PIPE AT 3052 FT. PULLED DAILY UT AND LAIDD DO WN TOOLS AND RIGGED UP SIDE ENTRY SUB ON DRILL PIPE. CIRCULATED AND PUMPED AND RAN IN ACTIVITY O INSTALLED CLAMP AT 1400 HOURS. CONTINUED TO RUN IN HOLE FROM 3052 FT. TO 4720 FT. HOLE WITH LATCH TOOL . SUMMARY TOOK FORMATION FLUID SAMPLE AT 4720 FT. CIRCULATED BOTTOMS UP AND RECEIVED 110 UNITS OF TRIP GAS. EPOCH PERSONNEL ON BOARD 2 DAILY COST $4255.00 REPORT BY HARRY E. BLEYS • CHEVRON USA White Hills Project DAILY WELLSITE REPORT ~,~~~,~ SMILODON 9-4-9 ~RT FOR DON FOWLER /JASON BRADFORD. DATE Feb 22, 2008 DEPTH 5058.00000 PRESENT OPERATION TRIPPING IN HOLE. TIME 12:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION .AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW VIS PV YP FL Gels CL- FC SOL SD OIL MBL pH Ca+ CCI MWD SUMMARY INTERVAL TO TO GA MMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SCHRADER BLUFF C PRESENT LITHOLOGY CLAYSTONE 40%, SILTSTONE 40%, AND SANDSTONE 20%. LOGGING OPEN HOLE TO 3060 FT., AND CIRCULATE MUD IN HOLE. PICKED UP SIDE ENTRY SUB. REMOVED CLAMP AND DAILY UNSTRING. PULLED OUT OF HOLE WITH E LINE. BROKE DOWN AND CHECKED HEAD. WHILE TRIPPING OUT OF HOLE ACTIVITY CHECKED FLOW. PULLED OUT TO BOTTOM HOLE ASSEMBLY. LAID DOWN BOTTOM HOLE ASSEMBLY AND LOGGING TOOLS . SUMMARY PICKED UP B H A AND BAKER LOGGING TOOLS. TESTED BAKER TOOLS TWICE WITH FAILURE. TROUBLE SHOOT FOUND SHORT IN SWIVEL DOWN HOLE. START FINAL TEST TRIPPING INTO HOLE. STILL TRIPPING AT REPORT TIME. EPOCH PERSONNEL ON BOARD 2 DAILY COST $4255.00 REPORT BY HARRY E. BLEYS • CHEVRON USA White Hills Project DAILY WELLSITE REPORT El'~J~I I SMILODON 9-4-9 ~RT FOR DON FOWLER /JASON BRADFORD. DATE Feb 23, 2008 DEPTH 5058.00000 PRESENT OPERATION RIGGING UP TO LOG HOLE. TIME 12:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.35 VIS 19 PV 19 YP 19 FL 4.4 Gels 4/10/15 CL- 31000 FC 2/ SOL 5.2 SD 0.5 OIL 0.2/92.1 MBL 10.0 pH 9.30 Ca+ 200 CCI MWD SUMMARY INTERVAL TO T GA oUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY(ppm) SURVEY METHANE (C-1) @ @ CONNECTION GAS HIGH ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT BUTANE (C-4) @ @ CURRENT BACKGROUND/AVG PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SCHRADER BLUFF C PRESENT LITHOLOGY CLAYSTONE 40%, SILTSTONE 40%, AND SANDSTONE 20%. TRIPPING IN HOLE FROM 2140 FT. TO 2995 FT. CIRCULATED BOTTOMS UP. LOGGING OPEN HOLE FROM 3300 FT. TO 3031 DAILY FT. IN STAGES. PULLED OUT OF HOLE TO SIDE ENTRY SUB AT 2997 FT. CONTINUE TO PULL OUT TO 2333 FT. CONTINUE TO ACTIVITY PULL OUT OF HOLE AND REMOVE WIRELINE SHIVE FROM DERRICK. CLEAR DRILL FLOOR OF ALL UNEEDED WIRELINE SUMMARY TOOLS. CONTINUE TO PULL OUT TO 145 FT. RIG UP BAKER SEISMIC LOGGING TOOLS. AND RUN BAKER SEISMIC LOGGING TOOLS. EPOCH PERSONNEL ON BOARD DAILY COST 2 REPORT BY $4255.00 C] CHEVRON USA white Hies Protect ~~ ~,~ DAILY WELLSITE REPORT ~ , . SMILODON 9-4-9 PORT FOR Don Fowler /Jason Bradford DATE Feb 24, 2008 DEPTH 5058.00000 PRESENT OPERATION CIRCULATING. TIME 12:00 YESTERDAY 5058.00000 24 HOUR FOOTAGE 0 CASING INFORMATION 9 5/8"@1698' DEPTH INCLINATION AZIMUTH VERTICAL DEPTH SURVEY DATA BIT INFORMATION INTERVAL CONDITION REASON NO. SIZE TYPE S/N JETS IN OUT FOOTAGE HOURS T/B/C PULLED DRILLING PARAMETERS HIGH LOW AVERAGE CURRENT AVG RATE OF PENETRATION @ @ FT/HR SURFACE TORQUE @ @ AMPS WEIGHT ON BIT @ @ KLBS ROTARY RPM @ @ RPM PUMP PRESSURE @ @ PSI DRILLING MUD REPORT DEPTH MW 9.35 VIS 51 PV 19 YP 16 FL 5.0 Gels 4/9/16 CL- 30000 FC 2/ SOL 5.3 SD 0.50 OIL 0.2/92.1 MBL 10.0 pH 9.10 Ca+ 320 CCI MWD SUMMARY INTERVAL TO T GA SUMMARY (units) HIGH LOW AVERAGE DITCH GAS @ @ TRIP GAS CUTTING GAS @ @ WIPER GAS CHROMATOGRAPHY (ppm) SURVEY 1 NE C @ @ CONNECTION GAS HIGH ) ( - METHA ETHANE (C-2) @ @ AVG PROPANE (C-3) @ @ CURRENT @ @ CURRENT BACKGROUND/AVG BUTANE (C-4) PENTANE (C-5) @ @ HYDROCARBON SHOWS INTERVAL LITHOLOGY/REMARKS GAS DESCRIPTION LITHOLOGY SCHRADER BLUFF C PRESENT LITHOLOGY CLAYSTONE 40%, SILSTONE 40%, AND SANDSTONE 20%. TOPPED TO TROUBLE SHOOT CABLE HEAD TO RELIEVER. LOGGING WITH SEISMIC TOOLS. PULLED OUT OF DAILY LOGGING S REMOVE WEAR BUSHING AND WEAR RING. RIG UP TO TEST BOP'S. TEST DOWN LOGGING TOOLS ACTIVITY HOLE AND RIGGED RIABLE RAMS AN . FINISHED TESTING AND BLOWN DOWN PIPES, AND RIGGED DOWN FROM TESTING D ANNULAR . SUMMARY VA EQUIPMENT. RIGGED UP TOOLS TO RUN CASING AND PREPARE FOR LATER CEMENT JOB. EPOCH PERSONNEL ON BOARD 2 DAILY COST $4255.00 REPORT BY HARRY E. BLEYS •
